Adipic acid

LONDON (ICIS)–Verbio’s ethenolysis plant under construction in Germany is expected to start up in 2026, a company official told ICIS. The plant will produce renewable chemicals based on rapeseed oil methyl ester. “The distillation columns are in, all the big-ticket items have been installed,” Marc Siegel, Verbio’s head of sales, Specialty Chemicals and Catalysts, said in an interview. While there were some delays, the project at the Bitterfeld chemicals park in Saxony-Anhalt state remains on budget, he said. Capacities: – 32,000 tonnes/year of methyl 9-decenoate (9-DAME) – 17,000 tonnes/year of 1-decene. Project cost: €80-100 million. Startup: early 2026 “We are seeing a lot of interest in the materials,” Siegel said. 9-DAME has applications in surfactants, lubricants, solvents, polymers and others while 1-decene is a precursor for lubricants, coating agents, surfactants, polymers and others. Siegel also noted an opportunity to convert 9-DAME, which is similar to C10 fatty acid methyl ester, into a C10 fatty acid or alcohol, replacing palm kernel oil (PKO). Customers would thus avoid the complex supply chains of PKO, and its price fluctuations. More important, however, they would reduce their carbon footprint, and they could put palm-free and GMO-free labels on their shampoos and other products, he said. Nongovernment organizations have created a lot of pressure against palm oil because of the environmental impacts of palm oil plantations, he noted. A NEW CHEMICAL INDUSTRY “Customers see the value of these renewable chemicals”, he said, adding that many companies have strong decarbonization targets. While Germany’s chemical industry was currently in crisis, renewable chemicals was its opportunity, he said. “All the companies are hurting now, but once we rebound, there will be a new chemical industry, otherwise we will end up as an industrial museum,” he said. “Sustainability is the way to go, chemical companies need to reinvent themselves in the things they do,” he said. For Verbio, the ethenolysis project is part of its strategy to reduce its reliance on biofuels, Siegel said. Biofuels is a heavily regulated market that leaves producers exposed to political decisions, he said and noted the changes in policies under the current US administration. The diversification into renewable chemicals will give Verbio additional mainstays outside the transport sector, he said. While Verbio plans to focus on producing and supplying the two renewable chemicals – 9-DAME and 1-decene – it does not intend to get involved in making downstream products, he added. Interview article by Stefan Baumgarten Thumbnail photo of Verbio’s ethenolysis plant under construction at Bitterfeld, Germany. Source: Verbio

10-Jun-2025

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Is the petrochemicals industry really a free market? Or have we been telling ourselves a comforting fiction? As we sift through margins, P&Ls, and operating rates to predict a recovery, we might be asking the wrong questions. Let’s rewind to 2014. While China’s state media signalled a major push toward self-sufficiency in petrochemicals, many Western analysts dismissed it — seeing China through the lens of profit maximisation. But I was told way back in 2000 that China’s strategy had just as much to do with jobs and economic value creation as with profits. Fast forward to today: polyester fibres, , polyethylene terephthalate (PET) film and bottle grade resins, purified terephthalic acid (PTA), styrene and polypropylene (PP),— China is nearly or completely self-sufficient in these markets. The drivers? National security, supply certainty, and industrial policy. And it’s not just China. Middle East investments — underpinned by cheap feedstocks, state ownership, and now oil demand substitution — follow similar, non-market logic. If key players haven’t been led by market signals alone, what happens next? Despite the deepest downturn in petrochemical history — likely to stretch into 2028 — new capacities keep rising. Not from those chasing short-term profit, but from those with long-term, state-backed agendas. Just a modest rise in China’s PP operating rates above the ICIS base case assumption could flip China into being a net exporter by 2027. The trade war may play a role here, as it has increased supply security concerns. True, there are more private petrochemical companies in China than ten years ago. But this latest wave of investment is more state-owned-enterprise-led than the previous one. And private companies can also benefit from local and central government support Saudi investments in refinery-to-petrochemicals will persist. More ethane crackers in the Middle East will be built. China’s plant-build costs are often 50%+ lower than the U.S., thanks to relentless innovation support. So… what does this mean for producers operating on pure market terms? Can they survive, let alone thrive, in a landscape shaped by strategic ambition rather than shareholder return? Your thoughts are welcome. Let’s start the conversation. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

04-Jun-2025

LONDON (ICIS)–BASF will become the sole owner of Alsachimie, taking over the shares of former joint venture partner DOMO Chemicals, the German major announced on Wednesday. Currently, BASF holds 51% of the shares and is set to buy DOMO’s 49% stake in the company which, subject to consultations with relevant social bodies of Alsachimie, will close by mid-2025. Alsachimie was founded by the two companies in February 2020 and situated on the French-German border, producing key materials for polyamides, including KA-oil, adipic acid and hexamethylenediamine adipate (AH salt). The purchase would complement BASF’s nylon 6,6 precursor production at its site in Chalampe, France, and enable further backward integration into key raw materials for the value chain in Europe. “By taking over the shares of our partner DOMO Chemicals, we are further strengthening our leading position and long-term commitment to the nylon 6,6 value chain and paving the way for future growth with our customers in industries such as automotive and textiles,” said BASF board member Stephan Kothrade. “The intended transaction aligns with our strategy to continue to focus on delivering tailored polyamide solutions in the core segments automotive, consumer goods, industrial and electrical & electronics industries,” said DOMO Chemicals CEO Yves Bonte.

28-May-2025

HOUSTON (ICIS)–The US delay of its proposed 50% tariffs on EU imports will still leave its polymers vulnerable to retaliatory tariffs. The new deadline is 9 July. For US exports, the EU has already drafted a list of targets for retaliatory tariffs, part of its second round of €95 billion in tariffs on US imports. A full list of all the proposed imports can be found here. This is on top of the first round of €21 billion in tariffs on US imports. A full list of all the proposed imports can be found here. In all, the EU could impose tariffs on nearly every major polymer from the US, including polyethylene (PE), polypropylene (PP), polystyrene (PS), polyvinyl chloride (PVC) and polyethylene terephthalate (PET). The EU is also considering tariffs on US imports of surfactants, fatty acids, fatty alcohols, and tall oil, a feedstock used to make renewable diesel, sustainable aviation fuel (SAF) and renewable naphtha. The following table lists some of the many plastics and chemicals proposed on the EU's second round of tariffs. CN CODE DESCRIPTION 28151200 sodium hydroxide "caustic soda" in aqueous solution "soda lye or liquid soda" 29053926 butane-1,4-diol or tetramethylene glycol [1,4-butanediol] having a bio-based carbon content of 100% by mass 29091910 tert-butyl ethyl ether (ethyl-tertio-butyl-ether, etbe) 29152100 acetic acid 29153200 vinyl acetate 29291000 isocyanates 32061100 pigments and preparations based on titanium dioxide of a kind used for colouring any material or produce colorant preparations, containing >= 80% by weight of titanium dioxide calculated on the dry matter (excl. preparations of heading 3207, 3208, 3209, 3210, 3212, 3213 and 3215) 32061900 pigments and preparations based on titanium dioxide of a kind used for colouring any material or produce colorant preparations, containing < 80% by weight of titanium dioxide calculated on the dry matter (excl. preparations of heading 3207, 3208, 3209, 3210, 3212, 3213 and 3215) 34023100 linear alkylbenzene sulphonic acids and their salts 34023990 anionic organic surface-active agents, whether or not put up for retail sale (excl. linear alkylbenzene sulphonic acids and their salts, and aqueous solution containing by weight 30-50% of disodium alkyl [oxydi(benzenesulphonate)]) 34024100 cationic organic surface-active agents, whether or not put up for retail sale 34024200 non-ionic organic surface-active agents, whether or not put up for retail sale (excl. soap) 34024900 organic surface-active agents, whether or not put up for retail sale (excl. soap, anionic, cationic and non-ionic) 34025010 surface-active preparations put up for retail sale (excl. organic surface-active preparations in the form of bars, cakes, moulded pieces or shapes, and organic surface-active products and preparations for washing the skin in the form of liquid or cream) 38030010 crude tall oil 38030090 tall oil, whether or not refined (excl. crude tall oil) 38170050 linear alkylbenzene 38170080 mixed alkylbenzenes and mixed alkylnaphthalenes, produced by the alkylation of benzene and naphthalene (excl. linear alkylbenzene and mixed isomers of cyclic hydrocarbons) 38231100 stearic acid, industrial 38231200 oleic acid, industrial 38231300 tall oil fatty acids, industrial 38231910 fatty acids, distilled 38231930 fatty acid distillate 38231990 fatty acids, industrial, monocarboxylic; acid oils from refining (excl. stearic acid, oleic acid and tall oil fatty acids, distilled fatty acids and fatty acid distillate) 38237000 fatty alcohols, industrial 38260010 fatty-acid mono-alkyl esters, containing by weight => 96,5 % of esters "famae" 38260090 biodiesel and mixtures thereof, not containing or containing < 70 % by weight of petroleum oils or oils obtained from bituminous minerals (excl. fatty-acid mono-alkyl esters containing by weight >= 96,5 % of esters "famae") 39013000 ethylene-vinyl acetate copolymers, in primary forms 39019080 polymers of ethylene, in primary forms (excl. polyethylene, ethylene-vinyl acetate copolymers, ethylene-alpha-olefins copolymers having a specific gravity of < 0,94, ionomer resin consisting of a salt of a terpolymer of ethylene with isobutyl acrylate and methacrylic acid and a-b-a block copolymer of ethylene of polystyrene, ethylene-butylene copolymer and polystyrene, containing by weight <= 35% of styrene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms) 39021000 polypropylene, in primary forms 39023000 propylene copolymers, in primary forms 39029010 a-b-a block copolymer of propylene or of other olefins, of polystyrene, ethylene-butylene copolymer and polystyrene, containing by weight <= 35% of styrene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms 39029020 polybut-1-ene, a copolymer of but-1-ene with ethylene containing by weight <= 10% of ethylene, or a blend of polybut-1-ene with polyethylene and/or polypropylene containing by weight <= 10% of polyethylene and/or <= 25% of polypropylene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms 39031100 expansible polystyrene, in primary forms 39031900 polystyrene, in primary forms (excl. expansible) 39032000 styrene-acrylonitrile copolymers "san", in primary forms 39033000 acrylonitrile-butadiene-styrene copolymers "abs", in primary forms 39039090 polymers of styrene, in primary forms (excl. polystyrene, styrene-acrylonitrile copolymers "san", acrylonitrile-butadiene-styrene "abs", copolymer solely of styrene with allyl alcohol, of an acetyl value of >= 175 and brominated polystyrene, containing by weight >= 58% but <= 71% of bromine, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms) 39041000 poly"vinyl chloride", in primary forms, not mixed with any other substances 39042100 non-plasticised poly"vinyl chloride", in primary forms, mixed with other substances 39042200 plasticised poly"vinyl chloride", in primary forms, mixed with other substances 39051200 poly"vinyl acetate", in aqueous dispersion 39051900 poly"vinyl acetate", in primary forms (excl. in aqueous dispersion) 39052100 vinyl acetate copolymers, in aqueous dispersion 39052900 vinyl acetate copolymers, in primary forms (excl. in aqueous dispersion) 39053000 poly"vinyl alcohol", in primary forms, whether or not containing unhydrolyzed acetate groups 39061000 poly"methyl methacrylate", in primary forms 39071000 polyacetals, in primary forms 39072911 polyethylene glycols, in primary forms 39072920 polyether alcohols, in primary forms (excl. bis(polyoxyethylene) methylphosphonate and polyethylene glycols) 39072999 polyethers in primary forms (excl. polyether alcohols, polyacetals and copolymer of 1- chloro-2,3-epoxypropane with ethylene oxide) 39073000 epoxide resins, in primary forms 39074000 polycarbonates, in primary forms 39075000 alkyd resins, in primary forms 39076100 poly"ethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g 39076900 poly"ethylene terephthalate", in primary forms, having a viscosity number of < 78 ml/g 39079110 unsaturated liquid polyesters, in primary forms (excl. polycarbonates, alkyd resins, poly"ethylene terephthalate" and poly"lactic acid") 39079190 unsaturated polyesters, in primary forms (excl. liquid, and polycarbonates, alkyd resins, poly"ethylene terephthalate" and poly"lactic acid") 39079980 polyesters, saturated, in primary forms (excl. polycarbonates, alkyd resins, poly"ethylene terephthalate", poly"lactic acid", poly"ethylene naphthalene-2,6-dicarboxylate" and thermoplastic liquid crystal aromatic polyester copolymers) 39089000 polyamides, in primary forms (excl. polyamides-6, -11, -12, -6,6, -6,9, -6,10 and -6,12) 39091000 urea resins and thiourea resins, in primary forms 39092000 melamine resins, in primary forms 39093100 poly"methylene phenyl isocyanate" "crude mdi, polymeric mdi", in primary forms 39094000 phenolic resins, in primary forms 39095010 polyurethane of 2,2'-"tert-butylimino"diethanol and 4,4'-methylenedicyclohexyl diisocyanate, in the form of a solution in n,n-dimethylacetamide, containing by weight >= 50% of polymer 39095090 polyurethanes in primary forms (excl. polyurethane of 2,2'-"tert-butylimino"diethanol and 4,4'-methylenedicyclohexyl diisocyanate, in the form of a solution in n,ndimethylacetamide) Source: EU CN CODE DESCRIPTION 39011010 linear polyethylene with a specific gravity of < 0,94, in primary forms 39011090 polyethylene with a specific gravity of < 0,94, in primary forms (excl. linear polyethylene) 39012010 polyethylene in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms, of a specific gravity of >= 0,958 at 23°c, containing <= 50 mg/kg of aluminium, <= 2 mg/kg of calcium, of chromium, of iron, of nickel and of titanium each and <= 8 mg/kg of vanadium, for the manufacture of chlorosulphonated polyethylene 39012090 polyethylene with a specific gravity of >= 0,94, in primary forms (excl. polyethylene in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms, of a specific gravity of >= 0,958 at 23°c, containing <= 50 mg/kg of aluminium, <= 2 mg/kg of calcium, of chromium, of iron, of nickel and of titanium each and <= 8 mg/kg of vanadium, for the manufacture of chlorosulphonated polyethylene) 39014000 ethylene-alpha-olefin copolymers, having a specific gravity of < 0,94 , in primary forms 39081000 polyamides-6, -11, -12, -6,6, -6,9, -6,10 or -6,12, in primary forms Source: EU

27-May-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 23 May. Taiwan crackers to run at 60-70% of capacity in 2025 – PIAT By Jonathan Yee 19-May-25 13:26 SINGAPORE (ICIS)–Taiwan's ethylene crackers are expected to run at 60-70% of capacity on average this year amid heightened regional competition and weak downstream demand, according to the Petrochemical Industry Association of Taiwan (PIAT). Singapore Apr petrochemical exports up 1.4%; NODX surges 12.4% By Jonathan Yee 19-May-25 17:37 SINGAPORE (ICIS)–Singapore’s petrochemical exports in April rose 1.4% year on year to Singapore dollar (S$) 1.13 billion ($868.6 million), amid continued overall frontloading activities by exporters, official data showed on 16 May. South Korea’s April base oils exports to India stay high By Iain Pocock 20-May-25 15:05 SINGAPORE (ICIS)–South Korea’s base oils exports to India stayed higher than usual in April for a third month. Thailand Q1 GDP grows 3.1%, but trade war weighs on outlook By Jonathan Yee 20-May-25 16:45 SINGAPORE (ICIS)–Thailand’s GDP grew by 3.1% in the first quarter of 2025, but the southeast Asian country has slashed its GDP forecast amid looming US tariffs and uncertainty over a global trade war, official data showed on 19 May. INSIGHT: Rising supply, falling crude, weigh on Asia petrochemical product prices in May By Jimmy Zhang 20-May-25 17:48 SINGAPORE (ICIS)–A substantial proportion of petrochemical prices in Asia are expected to decrease in May, on the back of downward pressure declining crude oil values and rising supply. Asia fatty acids demand to pick up on lower offers amid decline in upstream palm oil prices By Helen Yan 21-May-25 11:49 SINGAPORE (ICIS)–Asia’s fatty acids demand is expected to pick up, as spot offers are being revised lower due to higher upstream inventories and declines in feedstock crude palm oil (CPO) and palm kernel oil (PKO) prices. INSIGHT: Tariff cuts support China petchems rebounds, market fundamentals remain a dominant factor By Yvonne Shi 22-May-25 12:00 SINGAPORE (ICIS)–The temporary climbdown by the US and China on trade tariffs indicates that downward pressure on China's economy may be relieved, but still-bearish market fundamentals will also continue to exert a pull on market pricing. Mideast polyols face pressure despite feedstock, freight gains By Isaac Tan 23-May-25 14:17 SINGAPORE (ICIS)–Spot prices for polyols in the Middle East rose in the week ending 22 May, buoyed by stronger feedstock and freight costs from China. However, gains may be short-lived amid weak regional demand and a seasonal slowdown in construction toward the peak summer months. Indonesia central bank cuts GDP growth forecast on rising global challenges By Nurluqman Suratman 23-May-25 14:54 SINGAPORE (ICIS)–Bank Indonesia (BI) anticipates a more challenging economic landscape for 2025, lowering its growth forecast to a range of 4.6-5.4%, as persistent global challenges and heightened uncertainty surrounding US tariff policy are expected to weigh on the outlook.

26-May-2025

HOUSTON (ICIS)–Chemical plants along the US Gulf Coast will face another active hurricane season, but any potential disruptions will be partially if not entirely offset by excess global capacity and weaker demand growth. Meteorologists expect up to 10 hurricanes in the Atlantic basin during this year's hurricane season, which starts in June and lasts through November The global supply glut of plastics and chemicals will continue in 2025 and beyond Global plastic and chemical demand will weaken because of tariffs and a prolonged manufacturing downturn BUSY HURRICANE SEASONMeteorologists expect a busy hurricane season as shown in the following table: AccuWeather CSU US 30-Year Average Hurricanes 7-10 9 6-10 7 Major hurricanes 3-5 4 3-5 3 TOTAL 13-18 17 13-19 14 *Major hurricanes have wind speeds of at least 111 miles/hour (178 km/hour) Sources: AccuWeather, Colorado State University (CSU), US National Oceanic and Atmospheric Administration (NOAA) Hurricanes directly affect the chemical industry because plants and refineries shut down in preparation for the storms, and they sometimes remain down because of damage. Power outages can last for days or weeks. Hurricanes shut down ports, railroads and highways, which can prevent operating plants from receiving feedstock or shipping out products. Most US petrochemical plants and refineries are on the Gulf Coast states of Texas and Louisiana, making them prone to hurricanes. Other plants and refineries are scattered farther east in the states of Mississippi, Alabama and Florida, a peninsula that is also a hub for phosphate production and fertilizer logistics. Hurricanes can shut down LNG terminals, most of which are concentrated along the Gulf Coast. If the outages last long enough, it can cause a local glut of natural gas and a decline in prices. US prices for ethane tend to rise and fall with those of natural gas, so a prolonged shutdown of LNG terminals would lower feedstock costs – especially if the hurricane also shuts down ethane crackers. Petrochemical plants outside of the US are becoming increasingly reliant on that country's exports of ethane, ethylene and liquefied petroleum gas (LPG), a feedstock for crackers and for propane dehydrogenation (PDH) units. Most of these terminals are on the Gulf Coast, leaving them vulnerable to disruptions caused by hurricanes. HOTTER SUMMER COULD REDUCE THROUGHPUT AT GAS PLANTSExtremely high temperatures can reduce the throughput of Texan natural gas processing plants, which extract ethane and other natural gas liquids (NGLs) from raw natural gas. Such reductions took place in 2024 during the peak summer months of August and September, when temperatures are typically at their highest in many parts of Texas. Texas has natural gas processing plants in the western and fractionation hubs in the eastern parts of the state. For both regions, summer temperatures should be 1-2°F higher than normal, according to AccuWeather, a meteorology firm. That amounts to 0.6-1.0°C higher. CHEM OVERCAPACITY GROWS BIGGERThe effect of any shutdowns of chemical plants will be blunted by excess global capacity. Companies have continued to start up new plants, despite the oversupply of plastics and chemicals. ICIS FORECASTS WEAKER 2025 DEMAND GROWTHAny disruptions to chemical production would take place amid weaker demand growth. ICIS forecasts that 2025 demand growth for most commodity plastics will slow from 2024 and remain well below levels in 2018 and earlier. The following chart ICIS past demand growth rates and forecasts for 2025. Source: ICIS Growth rates are slower in part due to uncertainty caused by US trade policy. ICIS expects global GDP to expand by 2.2% in 2025, down from 2.8% in 2024. Global manufacturing is expected to contract globally. The following breaks down forecasts for national purchasing managers' indices (PMI). Anything below 50 indicates contraction. Sources: Institute for Supply Management, S&P Global and JP Morgan RESUMPTION OF TARIFFS WOULD FURTHER WEAKEN DEMANDIn July, the US could resume imposing its higher reciprocal tariffs against much of the world, including the EU, following a 90-day pause announced in April. The EU is preparing a list of retaliatory tariffs that covers many US imports of commodity chemicals and plastics, including the following: Caustic soda Acetic Acid Vinyl acetate monomer (VAM) Polyethylene (PE) Polypropylene (PP) Polystyrene (PS) Acrylonitrile butadiene styrene (ABS) Polyvinyl chloride (PVC) Polyethylene terephthalate (PET) The US and EU may extend the pause or reach a trade agreement that would do away with the need for retaliatory tariffs. But if the two sides fail to reach an agreement, then the EU's retaliatory would likely reduce demand for US plastics and chemicals. Demand for US plastics and chemicals could take another hit in mid-August if the US and China resume triple-digit tariffs following their 90-day pause. The pause would expire right before hurricane season reaches its peak in the US. Insight article by Al Greenwood Thumbnail shows a hurricane. Image by NOAA.

22-May-2025

MUMBAI (ICIS)–India has proposed to impose counter duties on select products from the US in response to American tariffs on steel and aluminium, the South Asian nation said in a notice to the World Trade Organization (WTO) on 12 May. The US's tariffs on steel and aluminium were introduced as safeguard measures on 12 March 2025. India reserves the right to suspend concessions or other obligations that are substantially equivalent to the adverse effects of the measure to India's trade, India said in its statement to the WTO. “The proposed suspension of concessions or other obligations takes the form of an increase in tariffs on selected products originating in the United States,” it added. “The US safeguard measures would affect $7.6 billion imports into the US of the relevant products originating in India, on which the duty collection would be $1.91 billion,” the notice said. In April, India had sought consultations with the US under the WTO's safeguard agreement, following the US decision to impose these tariffs. On the request for consultation, the US informed the global trade body that its decision was based on national security grounds and should not be considered as safeguard measures. The US first implemented safeguard measures on imports of certain steel and aluminium products in March 2018. It imposed ad valorem tariffs of 25% and 10% respectively. This was extended in January 2020. It was revised again in February 2025 for an unlimited duration and was raised to 25%. In response, India in June 2019 imposed duties on 28 US products, including almonds, walnuts, phosphoric acid, and iron and steel products among others. The proposal assumes significance as both countries are negotiating a bilateral trade agreement (BTA) with an Indian official team expected to visit the US this month for trade talks. The BTA seeks to more than double bilateral trade between the two countries to $500 billion by 2030. Total goods trade between the two countries stood at around $129.2 billion in calendar year 2024, as per official data. Visit the US tariffs, policy – impact on chemicals and energy topic page for the latest update on the US-China 90-day pause with significantly reduced tariffs while negotiations take place.

13-May-2025

LONDON (ICIS)–Premiums for used cooking oil methyl ester (UCOME) were under pressure following a controversial move from the German government to release previously-blocked proof of sustainability (POS) certificates from a suspended hydrotreated vegetable oil (HVO) producer. Price impact on the spot European biodiesel market, more specifically on UCOME, materialized quickly with sharp drops over the two days since the news emerged on Tuesday. In an official statement,  the federal office of agriculture and food (BLE) said that following an investigation, it held “a strong suspicion that the HVO producer does not exist”, but made the decision to validate the POS certificates. The tickets are used to verify the sustainability of a biofuel. One source highlighted a significant market impact following the re-entry of the controversial tickets, adding that prices collapsed in a short span of two days. “It killed the UCOME market,” said the market source. Spot premiums for UCOME over gasoil dropped by US$ 75/tonne week on week, to reach US$ 780-790/tonne FOB ARA. A second player agreed the market had been “quite weak” since the news came out. A BLE press officer told ICIS on Friday the unblocking of the POS certificates takes "into account the possible protection of confidence" in line with the Biofuels Sustainability Ordinance, known in Germany as Biokraft-NachV. Controversy emerged as market participants voiced concerns over the release of the previously suspended proof of sustainability (POS) certificates back into the market and fuelling an oversupply. Issues began to emerge at the start of the year. The investigation also showed biofuels sustainability verification scheme ISCC suspended the user's certification in January. The government statement, published on Tuesday, also voiced doubts over the existence of the supplier which was meant to be based in the Netherlands. The HVO producer had been using the country’s Nabisy biofuels compliance registry, but its access has been revoked. In contrast, premiums for fatty acid methyl ester (FAME 0) and rapeseed methyl ester (RME) rose slightly this week. The German government said the Nabisy ticket scheme user, the HVO producer, used an address in the United Arab Emirates, but during an associated audit report had given a different address in Hong Kong. The impacted Nabisy users were asked to provide a “self-declaration on compliance”. The government statement also indicated further steps “in criminal law” were being considered.

09-May-2025

SINGAPORE (ICIS)–Saudi Arabia’s Basic Chemical Industries (BCI) has extended its Memorandum of Understanding (MoU) with Italmatch's Middle East unit to supply chemicals to Italmatch’s facilities in the PlasChem Park in Jubail Industrial City. The MoU, first signed in May 2023, was extended to 31 Dec 2025, BCI said in a filing on the Saudi bourse Tadawul on 4 May. Italy-based Italmatch has extended the timeline on increased scope and additional technical work to modify product processes to match the local market, it added. The deal involves the supply of chlorine, caustic soda and hydrochloric acid to Italmatch’s facilities. Financial details of the deal were not disclosed. Saudi Arabia’s BCI manufactures chlorine gas, hydrochloric acid, caustic soda, and sodium hypochlorite at a site near Dammam, according to the company’s website.

05-May-2025

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 2 May. Europe PE, PP spot pricing stable to soft as softer May anticipatedEuropean polyethylene (PE) and polypropylene (PP) spot pricing is stable to soft following the unpredictable trade wars at the beginning of the month. Players are universally expecting a softer month in May. Spanish refineries, chemicals restart after nationwide power outageRefineries and chemical sites in Spain have taken their first steps towards restarting operations following Monday’s nationwide power outage which forced widespread shutdowns. European phenol/acetone market reacts with surprise to Orlen closure newsThe European phenol and acetone market has reacted with surprise to the news that Orlen is to decommission its phenol and acetone plant in Plock, Poland, by the end of this year. Europe acrylic acid contract prices fall in April as feedstock costs subsideThe Europe acrylic acid (AA) market has seen the freely negotiated contract prices for April settle at a slight decrease. INSIGHT: CEOs face new problem as economy weakens, overcapacity worsensAs the trade war puts a squeeze on already tepid economic growth, and deepens chromic global overcapacity in chemicals, CEOs may struggle to find fresh markets as they shift product flows to avoid the burden and uncertainty of tariffs.

05-May-2025