Epoxy resins

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson: Blood bags, syringes, disposable hospital sheets, gowns and medicine packaging. Modern-day medicine, which has greatly extended the quantity and quality of our lives, would be impossible without the plastics industry. Computers, smartphones, washing machines, refrigerators and automobiles cannot be manufactured without plastics and chemicals. Think of women in the developing world who still have to wash clothes by hand (this is, sadly, how some patriarchal societies work). Imagine the time and energy they would save if their families can afford their first washing machine, enabling girls and women to spend more time at school and freeing them up to attend college. The absence of decent roads in developing countries doesn’t matter a jot because, since the invention of the smartphone, buying and selling goods and services, issuing microfinance and keeping accounts up to date can be done on the go. The scale of future demand for nine of the world’s biggest synthetic polymers is illustrated by the chart in today's post. We forecast that global demand for the resins will this year total 299 million tonnes, up from just 79 million tonnes in 1992 which I believe was the start of the Petrochemicals Supercycle. By 2024, we predict that demand will reach 515 million tonnes – a 72% increase. The question on the exam paper is how we meet this demand in as sustainable a fashion as possible. This is going to require a new industrial revolution. Jim Fitterling, CEO of Dow Chemical, provided the best summary I have seen of the challenges that lie ahead for the chemicals industry. This was in a speech he gave in New York on 8 May. He highlighted the strain on electricity supply resulting from the growth in artificial intelligence, making it harder for the chemicals industry to secure the renewable electricity it needs to decarbonise. While it was “almost fashionable” to blame producers for plastics waste, around 3bn people around the world lacked access to basic waste management. About 95% of leakage occurs in emerging markets with underdeveloped waste management systems, he said. Demand for recycled plastics outstrips supply and was growing, but the ecosystem to collect, sort and efficiently recycle plastics waste was not keeping up, he added. Government support for these efforts would be critical – policies that preserved the many benefits of plastics while also helping eliminating waste, the CEO said. Through its history, the chemical industry had a formidable record of achievement in overcoming challenges and can do it again in making the energy transition a reality and ending plastics pollution, said the Dow CEO. Key to this was harnessing talent – not just chemical talent, but a new generation of workers who understood robotics, AI, machine learning and analytics, he said. Hear, hear! Let’s get on the with this new industrial revolution. 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.

17-May-2024

HOUSTON (ICIS)–US builder confidence in the market for newly built single-family homes fell sharply in May as higher mortgage rates “hammer” confidence, the National Association of Home Builders said on Wednesday. Mortgage rates averaged above 7% for the past four weeks as a lack of progress on reducing inflation pushed long-term interest rates higher, NAHB said. The NAHB/Wells Fargo Housing Market Index (HMI) fell by six points from April to 45 in May – its first decline since November 2023. HMI readings below the 50 neutral mark indicate that builders are pessimistic, readings above 50 that they are optimistic. The high mortgage rates have pushed many potential buyers back to the sidelines and the market has slowed, NAHB said. Another worry are new code rules that require the US Department of Housing and Urban Development and the US Department of Agriculture to insure mortgages for new single-family homes only if they are built to the 2021 International Energy Conservation Code. This would further increase the cost of construction in a market “that sorely needs more inventory for first-time and first-generation buyers”, said NAHB chairman Carl Harris. NAHB chief economist Robert Dietz added: “The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing.” The housing market is a key consumer of chemicals, driving demand for a wide variety of chemicals, resins and derivative products, such as plastic pipe, insulation, paints and coatings, adhesives and synthetic fibers, among many others. Please also visit the ICIS construction topic page and Macroeconomics: Impact on Chemicals. Thumbnail photo source: NAHB

15-May-2024

HOUSTON (ICIS)–US plastic scrap trade continues to show robust import activity amid flat export volumes in the first quarter. Polyethylene terephthalate (PET) plastic scrap in particular continues to see strong growth in import and export volumes despite domestic recyclers citing only moderate-to-weak demand. This is likely due to the wide window of arbitrage for recycled flake and pellet resin into the US. On the other hand, US PET bale prices have minimally improved following last year's market crash, creating export opportunities to other global destinations. US remains a net importer of plastic scrap US PET scrap imported increased 88% Q1 2024 vs Q1 2023 US PET scrap exported increased 33% Q1 2024 vs Q4 2023 Q1 2024 trade data from the US Census Bureau shows US imports of plastic scrap – noted by the HS code 3915 – remain strong, having dropped only 2% quarter on quarter, but having jumped 38% year on year when comparing with Q1 2023. Exports on the other hand were nearly identical quarter on quarter, having leveled off over the last several quarters around 100,000 tonnes. US plastic scrap imports totaled 127,176 tonnes in Q1 2024, marking it the strongest first quarter in the last 10 years, and only the second strongest quarter ever, following Q4 of last year. Plastic scrap imports include items such as used bottles, but also other forms of recycled feedstock such as purge, leftover pairings and now also flake material. PET SCRAP IMPORTS CONTINUE RECORD PACEPET in particular continued to see growth in imported scrap volumes, increasing 88% year on year. PET scrap now constitutes nearly 50% of all US imported plastic scrap, followed by the "other" plastic scrap category at 29% and polyethylene (PE) scrap at 14%. Overall plastic scrap imports from Mexico continued to drop, down both year on year and quarter on quarter, largely driven by declines in PET scrap imports. Canada on the other hand increased year on year but declined quarter on quarter with the broader volume trend. Together, plastic scrap coming from Canada and Mexico continues to constitute nearly half (46%) of US plastic scrap imports. Material from Thailand comes in as the third largest region for US plastic scrap imports at 7% of the total volume. When considering just PET scrap, Thailand continued their strong growth trajectory with nearly identical volumes to Q4 2023. US PET scrap imports from Thailand in Q1 2024 increased 82% year on year. Despite this growth, Canada still sends the largest volume of PET scrap to the US at 11,960 tonnes in Q1 2024. When considering other countries, PET imports from Asian-based countries now makes up over 40% of the total PET scrap import volume, passing up Canada and Mexico at a combined 21%. Market participants confirm they have seen a notable rise in imported recycled polyethylene terephthalate (R-PET) activity from Asia and Latin America, particularly due to their cost-competitive position when it comes to feedstock, labor and facility costs in light of cheaper ocean freight rates. Though, other regions may not always be in a cost-competitive position, as most recently seen in South American countries like Peru and Colombia, where local bale prices have increased significantly, while US feedstock prices remain relatively stable. Supporting the increase in imported scrap plastic, US recyclers who continue to have strong order volumes were heard to be supplementing their operations with imported feedstock. Several recyclers now purchase low-cost spot or imported R-PET flake to process into their food-grade pellet product and redirect their internally produced flake from high-cost domestic bale feedstock to sell directly to customers. This in turn has alleviated pressure from US PET bales, thus enabling price stability for pellet material which is formulated to US bale feedstock costs. In the long term, the US will seek imports of bale or flake feedstock not just due to the cost driver but to feed growing plastic recycling capacities amid stagnant plastic collection rates domestically. PET SCRAP EXPORTS TO MEXICO ACCELERATEUnlike many other polymer types which continue to see declining volumes following the Chinese National Sword and Basel Convention adoption several years ago, exports of PET scrap have increased, as many global regions with growing R-PET capacities see a cost-play opportunity. PET scrap exports, which could include PET bales, rose 33% quarter on quarter and 21% year on year, coming in at 21,662 tonnes in Q1 2024. Specifically, exported PET scrap to Mexico increased 38% year on year, making up 61% of all US PET scrap exports. At present, aggressive buying activity from Mexican recyclers continues to drive up West Coast PET bale prices. Exports to Mexico have always made up a small portion of US PET bale sales from southern California or states like Texas, though the current activity has been notably strong. PE SCRAP TRADE REMAINS ROBUSTPE continues to be a leading polymer type for US plastic scrap exports, coming in at 35,359 tonnes in Q1 2024. Of that volume, India is the largest destination at 25%, followed by Malaysia and Canada tied at 16%. On the other hand, PE scrap imports show mixed trends. While Canada and Mexico continue to make up nearly 75% of imported PE scrap volumes, US imports from Mexico increased 24% quarter on quarter. On the other hand, imports from Canada decreased 40% quarter on quarter. This time last year, India did not export any PE scrap to the US, and now is the third largest per Q1 data.

14-May-2024

HOUSTON (ICIS)–Following a better-than-expected 2024 first quarter, US compounder and formulator Avient raised its full-year guidance for adjusted earnings before interest, tax, depreciation and amortization (EBITDA) by $5 million at the low end. Sales into the defense market, along with raw material deflation, were the key earnings drivers in Q1 and Avent expects both to support earnings through 2024, CEO Ashish Khandpur and CFO Jamie Beggs told analysts during the company’s Q1 earnings call on Tuesday. New 2024 guidance Previous 2024 guidance Pro forma 2023 adjusted EBITDA $505 to $535 million $510 to $535 million $501.8 million SALES IMPROVING IN MOST END MARKETSAvient sees demand conditions “generally improving across all regions”, with improved momentum in consumer, packaging, healthcare, defense and industrial end markets, the executives said. After a 35% year-on-year increase in Q1, defense sales amid the ongoing geopolitical tensions, Avient expects those sales to continue growing through 2024, albeit not at the first quarter’s hot pace, they said. Avient’s Dyneema-brand fiber technology is used in the personal protection of soldiers and law enforcement and border control officers. While Avient’s utilization rates in defense are high, the company is able to meet forecast demand growth and expects no capacity limitations this year. However, it may add capacities in the future, depending on demand, which can be “lumpy” in that market, they said. Defense accounted for 7% of Avient’s total 2023 sales of $3.14 billion, with more than half of those sales in the US. Avient acquired the Dyneema business from DSM in 2022. Telecommunications and energy, however, are among the weaker end markets, with first-quarter sales down double-digit and weakness continuing into the second quarter. Destocking in the capital-intensive telecommunications market continued in Q1, with no meaningful rebound in that market expected until 2025, the executives said. Telecommunications accounted for 4% of Avient’s 2023 sales. BY REGION Regionally, Avient sees good momentum in the US in markets such as consumer packaging, defense, building and construction, industrial and infrastructure. “Destocking in those markets is over”, Khandpur said. With the exception of telecommunications and energy, overall demand in North America is “coming back quite well”, he said. However, persistent inflation is delaying the timing of interest rate cuts, which could weigh on sales in end markets such as building and construction, transportation and industrial, the executives said. In China, about 70% of Avient’s sales go into the local market, putting the company into a good position as that country’s economic policies transition to focus on the domestic market, the executives said. In Europe, demand in packaging and healthcare is improving, but Avient expects the region’s overall year-on-year sales growth to be soft. Consumer confidence in Europe is weak and eurozone manufacturing continues to signal contraction, they noted. Meanwhile, the stronger US dollar has become a headwind, they added. Sales by region in 2023: RAW MATERIAL DEFLATION Raw material deflation will continue to support margin expansion in the second quarter, albeit to a lesser extent than in the first quarter, the executives said. In the first quarter, Avient saw better-than-expected pricing for non hydrocarbon-based raw materials such as pigments and certain performance additives. Primary raw materials used in Avient’s manufacturing operations include polyolefin and other thermoplastic resins, titanium oxide (TiO2), inorganic and organic pigments, specialty additives and ethylene. Pricing, net of raw materials, should help drive year-on-year earnings growth in 2024, the executives said. Also, the company expects additional margin expansion due synergies and plant closures related to its acquisition of Clariant’s masterbatch business back in 2020, Beggs noted. M&A NOT A PRIORITY In the near-term, Avient will focus on organic growth and margin expansion whereas growth through mergers and acquisitions (M&A) is not a priority. While Avient is not ruling out M&A, any deals would be “small and bolt-on in nature”, in areas like healthcare, sustainable solutions or composites, with focus on Asia and Latin America, Khandpur said. “Premiums are pretty high” in M&A, he added. Thumbnail photo of Ashish Khandpur, who took over as Avient's CEO and president on 1 December 2023; photo source: Avient

07-May-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 3 May. NEWS Besieged by imports, Brazil’s chemicals put hopes on hefty import tariffs hike Brazilian chemicals producers are lobbying hard for an increase in import tariffs for key polymers and petrochemicals from 12.6% to 20%, and higher in cases, hoping the hike could slow down the influx of cheap imports, which have put them against the wall. Mexico’s manufacturing slows on weaker exports, Chinese competition Mexico’s manufacturing sectors slowed down slightly in April on the back of tough competition, particularly from China, and weak demand from abroad, which caused a fall in output, analysts at S&P Global said on Thursday. Brazil’s manufacturing at nearly three-year high on booming demand Brazil's manufacturing sectors continued booming in April on the back of a sharp increase in new business intakes, which led to higher output and job creation, analysts at S&P Global said on Thursday. Mexico increases PET import tariff again in attempt to shield economy In the last week of April, Mexican President Andres Manuel Lopez Obrador introduced an amended version of the Tariff within the General Import and Export Duties Law to enforce import duties, or temporary duties, on products falling under 504 tariff items, including polyethylene terephthalate (PET) resin. These new duties will vary from 5% to 50%. Brazil's Braskem Q1 resin sales fall 5% yearly, on prioritizing sales with higher added value Braskem resin sales in its domestic Brazilian market dropped by 5% in Q1, year on year, on the back of prioritizing sales with higher added value in the period, the Brazilian petrochemicals major said on Friday in its quarterly production and sales report. INSIGHT: Six decades on, Brazil’s Unigel founder fights the ultimate battle The founder of Unigel, aged 87, is actively fighting the Brazilian chemicals and fertilizers producer’s most decisive battle, one for its survival, as it tries to restructure its debts, one step away from bankruptcy. PRICING Lat Am PE domestic prices fall in Argentina, Brazil on cheaper imports, soft demand Domestic polyethylene (PE) prices fell in Argentina and Brazil due to competition with cheaper imports and soft demand. In other Latin American countries, prices were unchanged. LatAm PP domestic prices fall in Argentina, Colombia, Mexico on lower feedstock costs, soft demand Domestic polypropylene (PP) prices fell in Argentina, Colombia and Mexico on the back of lower feedstock costs and soft demand.

06-May-2024

RIO DE JANEIRO (ICIS)–Huntsman’s assets in Europe are not energy intensive and have been spared from the energy crisis, but more broadly, the 27-country EU is still lacking a comprehensive policy to address the issue, the CEO at US chemicals major Huntsman said on Friday. Peter Huntsman, one of the chemical industry’s most outspoken CEOs, said the company is not planning to divest any asset in Europe but said the region should stop its “nonsense” about reindustrialization and implement policies that create actual economic growth. The CEO added he is feeling “bullish” about the coming quarters regarding demand, arguing the chemical industry had gone to “hell” and was just coming back from the steep low prices of 2023. In North America, Huntsman said the construction industry should post a marked recovery in the coming quarters after two years in the doldrums because of high interest rates because, he argued, even with current interest rates, the industry will adapt. Huntsman’s sales and earnings in the first quarter fell again, year on year, as higher sales volumes could not offset low selling prices; the company said, however, that a notable improvement in sales volumes quarter on quarter should be a signal that the recovery is underway. Among others, Huntsman produces polyurethanes (PUs), which are widely used in the construction and automotive sectors. EUROPE NONSENSEPeter Huntsman on Friday first referred to the EU’s need to stop its “nonsense” about reindustrialisation, without elaborating further, but he was more measured when asked about the company’s assets in that region. He nonetheless made clear that he thinks European governments have yet to formulate, two years into the region’s biggest energy crisis in decades, appropriate policies to address the issue. “What I am most concerned about Europe is high energy costs. Most of our businesses there are not energy intensive assets, so they are competitive; in fact we have some strong businesses there, and our margins in Advanced Materials [the division] are stronger there than in other parts of the world,” said Huntsman, speaking to reporters and chemical equity analysts on Friday. “There are businesses in Europe in which you will do OK, such as aerospace, lightweighting. But if you are energy intensive, if you produce fertilizers, glass, cement… you have some portfolio concerns there. Energy prices are too high, and this is not being addressed by governments, they still have to come up with realistic policies to address that.” Europe’s construction has also taken a hit from the crisis after interest rates shot up to bring down inflation, with projects put on hold and many building companies in financial distress. Huntsman’s CEO said he is not hoping for a strong recovery anymore in that sector in Europe, but simply for stability, which could come with governments taking more decisive action to prop up GDP growth. “If we look at the past two years… We are looking for stability: it is the volatility that concerns us the most. We need to see Europe stop its the nonsense policies around reindustrialization and get the economy growing once again,” he said. See Huntsman assets in Europe at bottom table. NORTH AMERICA CONSTRUCTIONPeter Huntsman was feeling more optimistic about North America’s construction sector, where even if high interest rates stay for longer, builders will adapt to the situation, easing the way towards a recovery. “US builders are doing two things: if interest rates were to stay where they are, they are going to adapt, perhaps building smaller units, and if rates do come down, that will open up demand quite a bit higher than it has been in the last couple of years. There are big gaps [in housing stock] which need to filled,” said Huntsman. “I am increasingly feeling better and better [about an improvement in demand]. In Q1 we saw a lot of inventory drawdown, now we are seeing a slow, steady recovery as we try to get back to average inventory levels. By and large inventory levels feel pretty thin in MDI [methylene diphenyl diisocyanate] and we look forward to moderate growth in coming quarters.” MDI is consumed mainly in PU foams, used in construction, refrigeration, packaging, and insulation. MDI is also used to make binders, elastomers, adhesives, sealants, coatings and fibers. Huntsman’s CFO, Philip Lister, also at the press conference, added that in a normal year the company’s growth in volumes from the first quarter to the second would be around 5%, as construction and other seasonal activities enter their annual peak. “This year, we are expecting more [than 5% growth],” said Lister. CHINA ELECTRIC VEHICLESHuntsman’s CEO said China’s electric vehicle (EV) sector continues to boom, although potential trade restrictions in the EU, after those imposed by the US, could start denting China’s dominance in that sector. However, the company also knows what China’s dominance in the sector, thanks to the country’s strong public support for it, can mean for western producers: in 2023, Huntsman suspended an EV battery materials project in the US because of aggressive imports from China. But the CEO added that even if China’s EV sector slowed down, the company would still be able to tap into other growing markets such as lightweighting or insulation, among others. “The automotive sector continues to be one of the strongest areas of growth in China. How long that continues [remains to be seen], but probably for some time still,” said Huntsman. “There is a broader question about [trade in the EV chain] with the US, which has been extremely limited, or Europe, where there is a lot of talk about limitations to China’s EVs.” He added that despite sluggish activity in the residential construction sector because of financial woes in building companies, exemplified by the demise of major company Evergrande, subsectors such as energy conservation, insulation, building materials and infrastructure are still doing well. “By and large we are seeing in China a slow but steady recovery in volumes and pricing. Elsewhere, I am getting more bullish. A year ago, we were in a nightmare, and we expected a recovery in the second half [of 2023] which didn’t happen and got worse and worse, until we found ourselves in hell,” said Huntsman. “At the beginning of this year we have seen good, reliable, consistent growth. What we need to see is that growth continues in the second half of this year.” HUNTSMAN ASSETS IN EUROPE Product Location Capacity (in tonnes) Aniline Wilton, UK 340,000 Epoxy resins Bergkamen, Germany 18,000 Monthey, Switzerland 120,000 Duxford, UK 10,000 Isocyanates Runcorn, UK 70,000 Maleic anhydride (MA) Moers, Germany 105,000 MDI Rozenburg, The Netherlands 470,000 Nitrobenzenes Wilton, UK 455,000 Polyalolef Grimsby, UK 15,000 Polyester polyols Huddersfield, UK 20,000 Rozenburg, The Netherlands 86,000 Unsaturated polyester resins (UPRs) Ternate, Italy 8,000 Source: ICIS Supply & Demand Database Front page picture: Huntsman’s headquarters in The Woodlands, Texas  Source: Huntsman Additional reporting by Miguel Rodriguez-Fernandez

03-May-2024

SAO PAULO (ICIS)–Brazilian chemicals producers are lobbying hard for an increase in import tariffs for key polymers and petrochemicals from 12.6% to 20%, and higher in cases, hoping the hike could slow down the influx of cheap imports, which have put them against the wall. For some products, Brazil’s chemicals trade group Abiquim, which represents producers, has made official requests for the import tariffs to go up to a hefty 35%, from 9% in some cases. On Tuesday, Abiquim said several of its member companies “are already talking about hibernating plants” due to unprofitable economics. It did so after it published another set of somber statistics for the first quarter, when imports continued entering Brazil em masse. Brazil’s government Chamber of Foreign Commerce (Camex) is concluding on Tuesday a public consultation about this, with its decision expected in coming weeks. Abiquim has been busy with the public consultation: it has made as many as 66 proposals for import tariffs to be hiked for several petrochemicals and fertilizers, including widely used polymers such polypropylene (PP), polyethylene (PE), polyethylene terephthalate (PET), polystyrene (PS), or expandable PS (EPS), to mention just a few. Other chemicals trade groups, as well as companies, have also filed requests for import tariffs to be increased. In total, 110 import tariffs. HARD TO FIGHT OFFBrazil has always depended on imports to cover its internal chemicals demand, but the extraordinary low prices coming from competitors abroad has made Brazil’s chemicals plant to run with operating rates of 65% or lower. More and more, the country’s chemicals facilities are becoming white elephants which are far from their potential, as customers find in imported product more competitive pricing. Considering this dire situation and taking into account that the current government in Brasilia led by Luiz Inacio Lula da Silva may be more receptive to their demands, Abiquim has put a good fight in publica and private for measure which could shore up chemical producers’ competitiveness. This could come after the government already hiked import tariffs on several products in 2023 and re-introduced a tax break, called REIQ, for some chemicals which had been withdrawn by the previous Administration. While Brazil’s chemicals production competitiveness is mostly affected by higher input costs, with natural gas costs on average five times higher than in the US, the industry is hopeful a helping hand from the government in the form of higher import tariffs could slow down the flow of imports into Brazil. As a ‘price taker region’ given its dependence on imports, Latin American domestic producers have taken a hit in the past two years. In Brazil, polymers major Braskem is Abiquim’s commanding voice. Abiquim, obviously, has always been very outspoken – even apocalyptic – about the fate of its members as they try to compete with overseas countries, namely China who has been sending abroad product at below cost of production. The priorities in China’s dictatorial system are not related to the balance of markets, but to keep employment levels stable so its citizens find fewer excuses to protest against the regime which keeps them oppressed. Capitalist market dynamics are for the rest of the world to balance; in China’s dictatorial, controlled-economy regime the priority is to make people feel the regime’s legitimacy can come from never-ending economic growth. The results of such a policy for the rest of the world – not just in chemicals but in all industrial goods – is becoming clear: unprofitable industries which cannot really compete with heavily subsidized Chinese players. The results of such a policy in China are yet to be seen, but subsiding at all costs any industry which creates employment may have debt-related lasting consequences: as they mantra goes, “there is no such thing as a free lunch.” Abiquim’s executive president urged Lula’s cabinet to look north, to the US, where the government has imposed hefty tariffs on almost all China-produced industrial goods or raw materials for manufacturing production. “[The hikes in import tariffs] have improved the US’ scenario: despite the aggressive advance in exports by Asian countries, the drop in US [chemicals] production in 2023 was of 1%, while in Brazil the index for production fell nearly by 10%,” said Andre Passos. “The country adopted an increase in import taxes of over 30% to defend its market from unfair competition. The taxation for some inputs, such as phenol, resins and adipic [acid], for example, exceeds three digits. “Here, we are suggesting an increase in rates to 20% in most claims … We need to have this breathing space for the industry to recover,” he concluded. As such, the figures for the first quarter showed no sign of imports into Brazil slowing down. The country posted a trade deficit $9.9 billion during the January-March period; the 12-month accumulated (April 2023 to March 2024) deficit stood at $44.7 billion. A record high of 61.2 million tonnes of chemicals products entered Brazil in Q1; in turn, the country’s industry exported 14.6 million tonnes. Abiquim proposals for higher import tariffs Product Current import tariff Proposed tariff Expandable polystyrene, unfilled, in primary form 12.6% 20% Other polystyrenes in primary forms 12.6% 20% Carboxymethylcellulose with content > =75%, in primary forms 12.6% 20% Other polyurethanes in liquids and pastes 12.6% 20% Phthalic anhydride 10.8% 20%  Sodium hydrogen carbonate (bicarbonate) 9% 35% Copolymers of ethylene and alpha-olefin, with a density of less than 0.94 12.6% 20% Other orthophthalic acid esters 11% 20% Other styrene polymers, in primary forms 12.6% 20% Other silicon dioxides 0% 18% Other polyesters in liquids and pastes  12.6% 20% Commercial ammonium carbonates and other ammonium carbonates 9% 18% Other unsaturated polyethers, in primary forms 12.6% 20% Polyethylene terephthalate, with a viscosity index of 78 ml/g or more 12.6% 20% Phosphoric acid with an iron content of less than 750 ppm 9% 18% Dinonyl or didecyl orthophthalates 11% 20% Poly(vinyl chloride), not mixed with other substances, obtained by suspension process 12.6% 20% Poly(vinyl chloride), not mixed with other substances, obtained by emulsion process 12.6% 20% Methyl polymethacrylate, in primary form  12.6% 20% White mineral oils (vaseline or paraffin oils) 4% 35% Other polyetherpolyols, in primary forms 12.6% 20% Other unfilled epoxy resins in primary forms 12.6% 20% Silicon dioxide obtained by chemical precipitation 9% 18% Acrylonitrile-butadiene rubber in plates, sheets, etc 11% 35% Other organic anionic surface agents, whether or not put up for retail sale, not classified under previous codes 12.6% 23% Phenol (hydroxybenzene) and its salts 7% 20% Fumaric acid, its salts and esters 10 ,8% 20% Plasticizers and plastics 10 ,8% 20% Maleic anhydride 10 ,8% 20% Adipic acid salts and esters 10 ,8% 20% Propylene copolymers, in primary forms 12.6% 20% Adipic acid 9% 20% Unfilled polypropylene, in primary form 12.6% 20% Filled polypropylene, in primary form 12.6% 20% Methacrylic acid methyl esters 10 ,8% 20% Other ethylene polymers, in primary forms 12.6% 20% Acrylic acid 2-ethylhexyl esters 0% 20% 2-Ethylexanoic acid (2-ethylexoic acid) 10. 8% 20% Other copolymers of ethylene and vinyl acetate, in primary forms 12.6% 20% Other unfilled polyethylenes, density >= 0.94, in primary forms 12.6% 20% Polyethylene with a density of less than 0.94, unfilled 12.6% 20% Other saturated acyclic monoalcohol acetates, c atom <= 8 10. 8% 20% Polyethylene with a density of less than 0.94, with filler 12.6% 20% Triacetin 10. 8% 20% Sodium methylate in methanol 12.6% 20% Stearic alcohol (industrial fatty alcohol) 12.6% 20% N-butyl acetate                              11% 20% Stearic acid (industrial monocarboxylic fatty acid) 5% 35% Alkylbenzene mixtures 11% 20% Organic, non-ionic surface agents 12.6% 23% Ammonium nitrate, whether or not in aqueous solution 0.0% 15% Monoethanolamine and its salts 12.6% 20% Isobutyl alcohol (2-methyl-1-propanol) 10.8% 20% Butan-1-ol (n-butyl alcohol) 10.8% 20% Styrene-butadiene rubber (SBR), food grade as established by the Food Chemical Codex, in primary forms 10.8% 22% Styrene                                9% 18% Hexamethylenediamine and its salts 10.8% 20% Latex from other synthetic or artificial rubbers 10.8% 35% Propylene glycol (propane-1, 2-diol) 10.8% 20% Preparations 12.6% 20% Linear alkylbenzene sulfonic acids and their salts 12.6% 23% 4,4'-Isopropylidenediphenol (bisphenol A, diphenylolpropane) and its salts 10.8% 20% Dipropylene glycol 12.6% 20% Butanone (methyl ethyl ketone) 10.8% 20% Ethyl acetate                                 10.8% 20% Methyl-, ethyl- and propylcellulose, hydroxylated 0.0% 20% Front page picture: Chemical production facilities outside Sao Paulo  Source: Union of Chemical and Petrochemical industries in the state of Sao Paulo (Sinproquim) Focus article by Jonathan Lopez Additional information by Thais Matsuda and Bruno Menini

30-Apr-2024

LONDON (ICIS)–The European and US epoxy resins markets are in a tug of war between margin and cost struggles versus still fragile underlying demand and competition from China and elsewhere in Asia. The US anti-dumping case for epoxy resins against several Asian countries and the EU anti subsidy probe against Chinese wind turbines are also talking points as the West looks to protect its industry against unfair competition. Senior editor Heidi Finch who covers the Europe epoxy market  discusses current and near term expectations with fellow senior editor Tarun Raizada, who covers the US epoxy market. Margin woes, tepid demand and Asia competition weigh on Europe, US epoxy Regulatory cases aim to tackle unfair competition from China, rest of Asia Near-term outlook cautious on demand, macroeconomics; seasonality likely to be diluted Edited by Will Beacham

29-Apr-2024

TORONTO (ICIS)–Following the conclusion of a consultation period, Canada’s federal government has published a formal notice in the Canada Gazette for its planned Federal Plastics Registry. The registry will require plastic resin manufacturers, producers of plastic products and service providers to annually report on the amounts and types of plastic they put out in the market, and where the plastic ends up. Environment minister Steven Guilbeault said at a webcast press event on Monday that the registry would create an inventory of plastics data, with the objective of providing transparency about the production, distribution, sale, use and disposal of plastics in Canada. Industry knew what kind of plastics is being produced, to whom it is sold, and how it is used, the minister said. The registry, in turn, would put this information into one place and make it accessible to the public, researchers and non-governmental organizations, enabling them to track plastics production and plastics use, he said. The registry would have a similar role in fighting plastic pollution as the annual greenhouse gas (GHG) inventory reports the government uses in combatting emissions, he said, adding that without this information it was hard to tackle these challenges. The first phase of reporting to the plastics registry’s IT system is due to begin on 29 September 2025. UN PLASTICS POLLUTION TREATYIn related news, delegates from more than 170 countries on Tuesday gathered in Ottawa for the fourth session of the UN’s Intergovernmental Negotiating Committee on Plastic Pollution (INC-4) to develop an international legally binding treaty on containing plastic pollution. The event runs from 23-29 April. German chemical producers’ trade group VCI and Chemistry Industry Association of Canada (CIAC) said they are supporting the fight against plastics pollution. VCI is looking to INC-4 and a subsequent final INC-5 to be held in South Korea in November for a global commitment to a circular economy, in which plastic products are reused or recycled, rather than ending up as waste in the environment, it said. At the same time, VCI stressed the benefits of plastics. An across-the-board "demonization" of plastics would end up harming the climate and the environment, rather than helping it, said VCI director general Wolfgang Grosse Entrup. “A sustainable future requires plastics," he said and pointed, as examples, to plastics used in wind turbines, electric vehicles (EV) and packaging – applications in which plastics help avoid carbon dioxide (CO2) emissions, he said. Likewise, CIAC vice president of policy Isabelle Des Chenes told media in a webcast event that plastics, for example, help preserve food. "There's a lot of plastic and there's a lot of plastic for a reason," she added. Additional reporting by Tom Brown Thumbnail photo of environment minister Steven Guilbeault; photo source: government of Canada

23-Apr-2024

HOUSTON (ICIS)–INEOS Styrolution is temporarily shutting its styrene plant in Sarnia, Ontario, after nearby residents complained they became ill from the plant’s emissions. “At INEOS Styrolution, ensuring the health and safety of our employees and community is paramount,” the company said in a statement. “We are temporarily shutting down our facility located in Sarnia, Ontario, Canada, to perform maintenance and address a mechanical issue. We will resume operations once addressed.” The plant has capacity to produce 445,000 tonnes/year of styrene and 490,000 tonnes/year of ethylbenzene (EB), according to the ICIS Supply and Demand Database. The shutdown came after the Aamjiwnaang First Nation community asked the government to close the plant when members complained of becoming sick and said that data indicated high levels of benzene in the air. Members reported having headaches, nausea and dizziness due to poor air quality. Aamjiwnaang First Nation describes itself as a community of about 2,500 Chippewa Aboriginal peoples located on the St Clair River in the city limits of Sarnia. Last week, Ontario Environment Minister Andrea Khanjin said that she expected the company to “quickly identify and reduce” emissions at the site, according to news reports. In 2020, the Ministry of Environment, Conservation and Parks created the Sarnia Area Environmental Health Project to look into concerns that residents expressed about air pollutants and other quality-of-life impacts from living close to industrial operations in the area. The project includes regularly measuring air quality for potential health risks. The shutdown will further tighten the North American styrene market, which has experienced a number of outages that have put upward pressure on contract and spot prices. Styrolution’s Texas City, Texas, plant has been shut since mid-2023. In addition, Total remains on force majeure from its joint-venture CosMar unit in Carville, Louisiana, and LyondellBasell’s propylene oxide/styrene monomer (POSM) plant in Channelview, Texas, is undergoing maintenance. Shell recently restarted its Scotford, Alberta, styrene unit but it is not operating at full capacity, according to market sources. US styrene contract prices in April were assessed at their highest level since Q3 2023 due to the rise in spot prices, which are up approximately 50% since the beginning of the year. Styrene is a chemical used to make latex and polystyrene resins, which in turn are used to make plastic packaging, disposable cups and insulation. Major North American styrene producers include AmSty, INEOS Styrolution, LyondellBasell Chemical, Shell Chemicals Canada, Total Petrochemicals and Westlake Styrene.

22-Apr-2024