Ethylene vinyl acetate (EVA)

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 16 May. INSIGHT: Markets rally as US, China de-escalate tariffs stand-offMarkets and chemicals stocks rallied on Monday in the wake of an agreement by the US and China to dramatically cut reciprocal tariff rates for 90 days, signalling the first step in a de-escalation of trade tensions. INSIGHT: Limited improvements in demand for toluene and downstream sectors in EuropeNo significant growth is expected for toluene consumption in the near future, with long markets for certain isocyanates, a disappointing start to the summer driving season and tepid benzene demand stymying near-term growth hopes. INSIGHT: Sale of SABIC assets in Europe could make strategic senseA sale by SABIC of its European petrochemical assets could make strategic sense as the company has production in the Middle East, US and China, which benefit from much lower production costs. Europe butac sellers voice concerns over cheaper Chinese imports amid weak demandButyl acetate (butac) sellers in Europe have grown increasingly concerned about competitively-priced imports from China. As spot buying appetite in the continent is already subdued, domestic sellers are facing intense competition to offload material. European OX market flatlines as construction demand struggles, tariff uncertainty continuesHopes for a pick-up in European orthoxylene (OX) demand for the rest of 2025 are fading among downstream phthalic anhydride (PA) producers, as orders from the key construction sector remain flat year on year in the early stages of the warm season.

19-May-2025

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). Economic uncertainty, US tariffs and geopolitical risk are pressure points for the industry, the industry body said in a report released at the Asia Petrochemical Industry Conference (APIC) 2025 on 15-16 May in Bangkok. Taiwan’s ethylene capacity is about 4.0 million tonnes; while its propylene capacity is about 3.4 million tonnes, according to PIAT. Despite a potential short-term rebound in prices for Taiwan’s petrochemical sector in 2025, continued capacity extensions in China will “intensify market price competition”, PIAT said. For 2025, it forecasts a 2.7% growth for both supply and demand of ethylene, with a projected 61% surge in exports. Propylene, on the other hand, is expected to post a 2.2% contraction in both supply and demand, with exports expected to more than double. Ethylene (in tonnes) 2024 2025 (estimated) change Supply Production 2,596,243 2,650,000 2.1% Import 228,176 250,000 9.6% Total 2,824,419 2,900,000 2.7% Demand Domestic 2,818,820 2,891,000 2.6% Export 5,599 9,000 60.8% Total 2,824,419 2,900,000 2.7% Year End Capacity (tonnes/year) 4,005,000 4,005,000  Propylene (in tonnes) 2024 2025 (estimated) change Supply Production 2,315,130 2,363,700 2.1% Import 309,100 202,600 -34.5% Total 2,624,230 2,566,300 -2.2% Demand Domestic 2,566,418 2,400,500 -6.5% Export 57,812 165,800 186.8% Total 2,624,230 2,566,300 -2.2% Year End Capacity (tonnes/year) 3,370,500 3,370,500 Source: PIAT China is expected to increase its 2025 ethylene capacity by approximately 7.8 million tonnes, or by 15%, to 60.99 million tonnes. But ethylene derivative consumption is expected to grow at a slower rate of 12.6%, and ethylene demand is expected to rise by just 6%, PIAT said, posing a challenge for neighboring suppliers that have historically relied on exports to China. Taiwanese producers have either reduced operating rates or remained idle over the past three years, while ethylene exports to China dropped to zero last year. “Given weak downstream demand and regional competition, cracker utilization rates are expected to average 60%-70% in 2025,” PIAT said in the report. Meanwhile, Taiwan’s demand for propylene is expected to weaken further due to weak downstream demand, particularly for polypropylene (PP) and epichlorohydrin (ECH). China's ongoing capacity expansion also continues to pressure Taiwanese producers, said the PIAT. Since 2024, Taiwan’s propylene exports to China have been subject to tariffs, posing a challenge for accessing the Chinese market. According to PIAT data, major petrochemical production dropped 2.39%, exports were down by 4.3% and demand fell by 1.1% in 2024 from the previous year. Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy. Thumbnail image At the port city of Keelung, Taiwan on 20 March 2025. (RITCHIE B TONGO/EPA-EFE/Shutterstock)

19-May-2025

BANGKOK (ICIS)–Over the past week, Asia ethylene players arrived in Bangkok, Thailand, to reflect on the industry’s drift towards oversupply, and probe opportunities for continued survival as supply-demand balance changes enter the horizon. Feedstock cost competitiveness, ethane conversion considerations on the table Consolidation a complex question, but looking more necessary for survival New SE Asia supply may cause supply-demand balance changes for Indonesia In this chemical podcast, ICIS editor Josh Quah discusses some insights gleaned from the Asia Petrochemical Industry Conference (APIC) 2025, held in Bangkok, Thailand.

16-May-2025

BANGKOK (ICIS)–Northeast Asia ethylene and polyvinyl chloride (PVC) markets have seen a slower-than-expected tempo of spot talks for June cargoes, with the main driver of uncertainty being unclear start-up timelines from new ethylene derivative expansions, particularly from Chinese PVC. Around 1.5 million tonnes/year of new PVC supply may face start-up postponements Import discussions on ethylene slow pending clearer demand picture PVC demand clouded by India-Pakistan tensions amid pre-monsoon season In this chemical podcast, ICIS editors Jonathan Chou and Josh Quah discuss their findings from the Asia Petrochemical Industry Conference (APIC) 2025, held in Bangkok, Thailand.

16-May-2025

BANGKOK (ICIS)–Asia's petrochemical industry leaders are navigating a complex global landscape marked by unprecedented challenges, with a renewed focus on sustainability, innovation, and regional collaboration, industry leaders said on Friday. Oversupply, sluggish demand, trade conflicts weigh on industry Challenges open doors for transformation through digital innovation, efficiency Protectionist trade policies cast shadow over global economic activity Facing economic volatility, supply chain disruptions, and increasing environmental demands, top executives from across the region attending the Asia Petrochemical Industry Conference (APIC) in Bangkok emphasized that the industry must adapt to ensure continued prosperity. APIC 2025 with the theme “Ensuring a Transformed World Prosperity” runs on 15-16 May. "We are now standing at a defining crossroads," Federation of Thai Industries, Petrochemical Industry Club (FTIPC) chairman Apichai Chareonsuk said, acknowledging formidable pressures on the industry. He cited “economic volatility, supply chain uncertainties, and rising expectations for environmental responsibility" among the list of complex challenges facing the petrochemical industry. However, he viewed these challenges as opportunities for progress. "These challenges are also opening doors to transformation- through digital innovation, resource efficiency, and sustainable development," Chareonsuk said. INDIA AS BEACON OF GROWTH India, a giant emerging market in Asia, nonetheless, is a "beacon of growth” fueled by burgeoning end-use sectors, according to the country’s Chemicals and Petrochemical Manufacturers’ Association (CPMA) secretary general Shekhar Balakrishnan. The south Asian country is emerging as one of the fastest-growing economies in the world, he noted. This growth, he explained, is underpinned by a robust rise in end-use sectors, including automobiles, infrastructure, construction, among others. These sectors, he added, have propelled the petrochemical industry to new heights, adding that "the Indian petrochemical industry has entered a new phase of growth". "As I speak, a new world-scale cracker is in its last stage of commissioning," Balakrishnan said. Hindustan Petroleum Corp Ltd (HPCL) is slated to begin commercial operations at its refinery and petrochemical complex at Barmer in India's western Rajasthan state this year. The complex can produce 820,000 tonnes/year of ethylene and 400,000 tonnes/year of propylene. Furthermore, he noted that across the country, "new investments covering a broad spectrum of petrochemicals are materializing to augment India’s production capabilities further and make the petrochemical industry in this part of the world even more robust". Balakrishnan also drew attention to the widespread commitment to environmental responsibility in the region. "I will be failing in my duty if I do not highlight the tremendous efforts that organizations in India and the Asian region are making towards sustainability," he remarked. He stressed the balance between the industry's essential role and the need for responsible practices. "Petrochemicals are essential enablers of modern life … However, the collective challenge before us is to adopt smart, sustainable processes and technologies,” the CPMA secretary-general said. "The industry is actively embracing the circular economy, especially in polymers, creating huge opportunities for reuse and recycling while addressing the global crisis of material waste," he added. Balakrishnan highlighted the success of the Extended Producer Responsibility (EPR) framework in India. "This is already yielding significant societal benefits and setting the stage for sustainable industrial growth." "For instance, India today recycles over 90% of polyethylene terephthalate (PET) bottles into value-added articles." PROTECTIONIST POLICIES PROLIFERATE Japan Petrochemical Industry Association (JPCA) chairman Koshiro Kudo said that "protectionist trade policies around the world" are casting a shadow over global economic activity. He also pointed to the disruptive influence on the industry of "growing geopolitical risks, fluctuations in tariff policies, economic security issues, problems in China’s real estate market, and the increasing frequency of natural disasters caused by climate change". In Japan, the operating rate of ethylene plants “has remained below 90% since May 2022, and has recently dropped to around 80%, continuing in a very challenging situation." Kudo also emphasized the industry's environmental obligations, stating that it "is also expected to play a role in maintaining the balance of the ecosystem by recycling CO2 [carbon dioxide], as well as supplying materials”. Achieving sustainability necessitates that "international cooperation and technological innovation in the petrochemical industry are essential, and it is necessary to fully leverage the power of chemistry", he said. JPCA's two-phase approach to structural reform is to focus first on applying available technologies to reduce greenhouse gas emissions and developing innovative technologies for further emission reductions, and then on applying new technologies to achieve sustainable development goals, Kudo said. He emphasized the need to transform petrochemical complexes into "environmentally friendly 'sustainable complexes' through technological innovation" to function as environmental and energy infrastructure hubs. Kudo also drew attention to the demographic challenge of declining birth rates across Asia. He stressed the need to utilize technologies such as digital transformation, "green" transformation, and artificial intelligence to improve plant operation efficiency, facilitate technology transfer, accelerate R&D, and improve safety. Korea Chemical Industry Association (KCIA) chairman Hak-Cheol Shin described the current market as an "unprecedented crisis marked by global oversupply, sluggish demand, and full-scale trade conflicts" which calls for regional unity. "Amidst growing uncertainties in the global trading order, closer solidarity and cooperation among us are more crucial than ever to ensure the sustainable growth of our industry." "The external environment surrounding the petrochemical industry this year is more complex and challenging than ever before," he said. Shin warned that “the implementation of US tariff policies is expected to bring about cataclysmic changes in global trade". Exacerbating business challenges were "persistent oversupply centered around China" and "instability in raw material procurement stemming from the reorganization of global supply chains", he said. If downstream industries weaken due to tariff shocks, the petrochemical industry's growth momentum may also diminish, the KCIA chief said. Shin urged a proactive response to both market dynamics and increasing environmental demands. REGIONAL UNITY IS KEY "At this critical juncture, APIC members must demonstrate stronger solidarity and leadership than ever before," KPIA's Shin said. "While addressing internal and external risks such as trade conflicts and global oversupply, we must also remain fully responsive to the growing societal demands for enhanced environmental regulations, including carbon neutrality and key elements of the UN Plastics Treaty." Shin stressed the need to "enhance operational efficiency, optimize energy utilization, and shift toward high-value-added products through the adoption of cutting-edge technologies" to minimize environmental impacts and reinforce competitiveness. "As we navigate global challenges – from climate change to economic volatility – our industry stands at the forefront of delivering solutions that balance growth, sustainability, and societal progress," Malaysian Petrochemicals Association (MPA) president Bahrin Asmawi  said. Various initiatives are underway in line with Malaysia's National Energy Transition Roadmap (NETR) and New Industrial Master Plan 2030 (NIMP 2030). These include investments in carbon capture, utilization, and storage (CCU), green hydrogen, and utilizing bio-based feedstocks, as well as accelerating adoption of renewable energy in production and chemical recycling. Asmawi stressed the indispensable nature of collaboration, saying: "No single entity can drive transformation alone." MPA is committed to fostering partnerships with the government, investors, technology providers, and communities, he said. Asmawi also proposed a united front among APIC members to address trade policy challenges, particularly suggesting that regional cooperation could lead to "better effective negotiating deals" in the context of recent US tariff announcements. Petrochemical Industry Association of Taiwan (PIAT) chairman Mihn Tsao emphasized in his key address at APIC 2025 "both the urgency and the opportunity of our time." The industry is "called upon to deliver not only economic value but also social and environmental responsibility," he said. "Innovation, sustainability, and partnership are no longer optional – they are essential to our continued development." Despite facing significant global headwinds in 2024, including geopolitical tensions, supply chain disruptions, inflation, and climate change, Tsao noted the Taiwanese industry's resilience and "steadfast commitment to transformation". This transformation, he explained, included intensified investments in green innovation, AI-driven process optimization, and sustainable material development. Taiwan has a formal commitment to net-zero emissions by 2050 through its "Climate Change Response Act" and the introduction of carbon fee regulations in 2024 as a "critical turning point", he said. Future focus areas must include developing high-value, low-carbon production, driving technological innovation through AI, and deepening international cooperation to secure competitiveness. "Collaboration across borders and industries is essential in addressing the global challenges we face: decarbonization, overcapacity, shifting geopolitical dynamics, and the fragmentation of the multilateral trading system." For Singapore, efforts to transform its industry in line with national sustainability goals, include the Singapore Green Plan 2030 and the national net-zero ambition by 2050, Singapore Chemical Industry Council (SCIC) chairman Henri Nejade said. This transformation includes the development of Jurong Island into a Sustainable Energy & Chemicals Park focusing on sustainable products, sustainable production, and Carbon Capture and Utilization (CCU). Government initiatives like the establishment of a Future Energy Fund also support low-carbon and next-generation energy solutions. Nejade also emphasized the importance of regional cooperation in navigating regulatory landscapes through initiatives like the ASEAN Regulatory Co-operation Platform (ARCP). The ARCP is an industry-led initiative to drive greater engagements and capacity building involving all the regulators and industry representatives from all the 10 ASEAN member states. Such cooperation helps "address non-tariff barriers, thus helping to create conducive business environments." Insight article by Nurluqman Suratman Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy. Thumbnail image: Leaders of the Asia Petrochemical Industry Conference (APIC) member countries. The event runs on 15-16 May in Bangkok, Thailand. (Nurluqman Suratman)

16-May-2025

BANGKOK (ICIS)–Sluggish domestic demand weighed on Japan’s petrochemical industry, resulting in reduced production volumes in 2024 compared with previous years, according to the Japan Petrochemical Industry Association (JPCA). 2024 ethylene output falls 6.3% Production of five major plastics shrink by 5% Japan economy forecast to grow by 1.2% in 2025 “Although some crackers in Southeast Asia and East Asia are reducing production, there are plans for capacity increases in crackers that significantly exceed demand in China,” JPCA said in a report prepared for the Asia Petrochemical Industry Conference (APIC) 2025. The conference is being held in Bangkok, Thailand from 15-16 May. Operating rates of crackers in Japan are expected to remain lowered, as with previous years, JPCA said. Japan's ethylene production in 2024 fell 6.3% year on year to 4.99 million tonnes, as domestic crackers have operated at below 90% of capacity since August 2022, with the monthly average run rate falling below 80% five times in 2024. Japan’s real GDP growth rate in 2024 was 0.1% amid weak exports, neutral growth in private consumption, and a slight increase in government consumption. For the whole of 2024, the country’s total production of five major plastics – namely, linear density polyethylene (PE), high density PE (HDPE), polypropylene (PP), polystyrene (PS) and polyvinyl chloride (PVC) – declined to 5.7 million tonnes, lower by 5.2% from 2023. Production (in thousand tonnes) Product 2024 2023 % change Ethylene 4,989 5,324 -6.3 LDPE 1,160 1,219 -4.8 HDPE 656 665 -1.4 PP 1,935 2,075 -6.8 PS 549 564 -2.7 PVC 1,406 1,496 -6.0 Styrene monomer (SM) 1,297 1,428 -9.2 Ethylene glycol (EG) 276 264 4.6 Acrylonitrile (ACN) 303 341 -11.2 Sources: METI, Japan Styrene Industry Association (PS, SM) and Vinyl Environmental Council (PVC) Domestic demand as ethylene equivalent in 2024  inched up by 1.4% to 3.92 million tonnes, according to JPCA data. While the global economy is expected to grow steadily in 2025, there is a risk of deterioration in the global economy and a corresponding decline in demand due to geopolitical issues, JPCA said, citing Russia's invasion of Ukraine, the Israel-Hamas war, as well as the tariff policy of the US Trump administration. The latter has caused costs of raw material prices to soar, JPCA said. Meanwhile, Japan's real GDP growth rate for 2025 is projected to accelerate to 1.2%, supported by increased exports, sustained growth in personal consumption, and increases in capital investment, said JPCA. Higher wage hikes in 2025 should help boost domestic consumption, it said. In the report, JPCA called on the petrochemical industry to adopt new roles and responsibilities in achieving carbon neutrality and advancing a recycling-oriented society. The report outlined a two-stage timeline: first, to reduce greenhouse gas emissions from existing facilities by immediately deploying currently available technologies; and second, to establish sustainable development goals by gradually introducing new technologies into society. “Not only corporate efforts but … collaboration and system design throughout the supply chain are required,” JPCA said. Focus article by Jonathan Yee

15-May-2025

SAO PAULO (ICIS)–Braskem swung to a net profit in the first quarter, year on year, but sales and earnings fell slightly as the global petrochemicals downturn continues, management at the Brazilian polymers major said on Monday. Speaking to reporters from Sao Paulo, the company’s CEO and CFO described the operating environment as persistently challenging on the back of excess capacity and emerging international trade conflicts. The company’s net profit stood in Q1 at $113 million, up from a net loss of $273 million in the same quarter of 2024, while recurring earnings before interest, taxes, depreciation and amortization (EBITDA) stood 2% lower, however, at $224 million. Braskem produces mostly polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC), some of the most widely used polymers and which remain under intense pressure due to global overcapacities. Braskem (in $ million) Q1 2025 Q1 2024 Change Q4 2024 Q1 2025 vs Q4 2024 Sales 3,331 3,618 -8% 3,285 1% Net profit/loss 113 -273 N/A -967 N/A Recurring EBITDA 224 230 -2% 102 121% Brazilian operations achieved 74% utilization rates, up 4% from the previous quarter, while US and European facilities operated at 80% capacity, a 13% improvement, and Mexican operations reached 79% utilization (up 2%). The improved performance was primarily driven by better spreads and increased sales volumes, particularly in Brazil, Europe and the US. CHINA PP COMPETITION: ADDs?Much of the earnings call with reporters on Monday focused on the global trade tensions and competition from Chinese producers, particularly in the Brazilian market. "The question of tariffs generated much instability and many doubts in this first quarter," said CEO Roberto Ramos, who noted how negotiations over the weekend between China and the US in Switzerland could potentially alter the tariffs war. "This discussion between the two countries should move toward some kind of normality. Therefore, I think when all is said and done, after all this commotion, very little will remain,” he said. He highlighted a few aspects which have affected petrochemicals in the trade war so far, such as China's decision not to impose retaliatory tariffs on US natural gas-based ethane imports, which he said stand at approximately 18 million tonnes annually. That was a positive, he said, because ethane from the US to China would continue uninterrupted, preventing a scenario where excess ethane in the US would have driven down prices and potentially created advantages for ethane-based producers. Braskem operates most of its plants in Brazil on crude-derived naphtha. However, Chinese authorities did maintain tariffs on propane imports from the US, which affects Chinese PP producers and that did affect Braskem, said the CEO. “China has a surplus in PP, so it is a net exporter, and the main destination of this excess PP production has been precisely Brazil, which has greatly affected us here in the Brazilian market,” said Ramos. "They wanted to become self-sufficient regarding both resins [PP and PE], had a project to become self-sufficient in PP by 2030, but achieved this much earlier, by 2024. Therefore, as there isn't enough consumption for the resin, they're forced to sell, and they sell here at a price we can't compete with." In response to this competitive pressure, Ramos confirmed Braskem is actively pursuing trade remedies in talks with the authorities, which could, among others, include instruments like antidumping duties (ADDs) against China but also against the US, also a big producer with excess product in some materials. "Yes, we are studying trade protection measures in relation to China, as, moreover, we are also doing in relation to US PE producers, who also place resin here at a lower price than they sell in their respective countries," he said. Management said they continue to pursue the "switch to gas" strategy, which involves systematically reducing dependence on naphtha as feedstock, particularly in Brazilian operations, in favor of more competitive ethane-based production. Despite recent decreases in oil prices and consequently naphtha prices, executives said the price differential between naphtha and ethane remains substantial at approximately $350-370/tonne, sometimes even higher. RECOVERY STILL WAITINGAlthough some of Braskem’s margin spreads posted improvements during Q1, the CEO was not too optimistic about a strong recovery anytime soon. “I do not imagine that spreads will recover further in the short term, because there is still an excess supply of ethylene but also of propylene, and therefore the plants are operating at lower capacity. Apart from the US producers who are processing at over 90% of their capacity utilization, we here have around 70%, and the Europeans have even less than that,” said the CEO. “As long as this excess installed capacity still exists, as long as the pace of construction of new plants in the US and China continues, there is no reason to imagine that spreads will react, because the supply and demand situation continues to be an excess of supply in relation to demand. “If you have an excess installed capacity of 30 million tonnes of ethylene, for example, therefore of PE, and if the market increases its consumption volume by 5 million tonnes per year, you will need at least six years to be able to clear this excess supply. Therefore, there is no structural reason to think about an increase in spreads."

12-May-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 9 May. S Arabia's SABIC swings to Q1 net loss amid higher operating costs By Jonathan Yee 05-May-25 11:36 SINGAPORE (ICIS)–SABIC swung to a net loss of Saudi riyal (SR) 1.21 billion ($323 million) in the first quarter on the back of higher feedstock prices and operating costs, the Saudi Arabian chemicals giant said on 4 May. Ethane fuss cools for NE Asia C2, positions reassessed over Labor Day break By Josh Quah 05-May-25 20:24 SINGAPORE (ICIS)–The early May holidays probably could not have come at a more appropriate time for Asia ethylene players, with players noting that the pause in spot discussions was a good time to take stock of positions going into June shipment talks. Malaysia's Lotte Chemical Titan narrows Q1 net loss on improved margins By Nurluqman Suratman 06-May-25 14:46 SINGAPORE (ICIS)–LOTTE Chemical Titan (LCT) narrowed its first quarter (Q1) net loss to ringgit (M$) 125.7 million ($29.7 million) amid improved margins, the Malaysian producer said on 5 May. Singapore's Aster acquires CPSC at undisclosed fee By Nurluqman Suratman 07-May-25 12:33 SINGAPORE (ICIS)–Aster Chemicals and Energy has reached a sales and purchase agreement to acquire Chevron Phillips Singapore Chemicals (CPSC) through its affiliate, Chandra Asri Capital, at an undisclosed fee, the Singapore-based producer said on Wednesday. Vietnam’s economy to slow despite exports jump, lower inflation – Moody's By Jonathan Yee 07-May-25 16:16 SINGAPORE (ICIS)–Escalating trade tensions with the US are casting a shadow over Vietnam’s growth trajectory in 2025, despite continued growth in exports as well as lower inflation. China SM plagued by weak fundamentals and falling feedstock By Aviva Zhang 07-May-25 16:44 SINGAPORE (ICIS)–China’s styrene monomer (SM) prices fell sharply in April, as a result of decreasing crude oil prices and weak end-user demand expectations caused by the China-US tariff conflicts. The domestic market is likely to face headwinds from supply, feedstock and downstream sectors in May. Asia refined glycerine trades to Europe to be spurred by weak Chinese demand By Helen Yan 08-May-25 14:43 SINGAPORE (ICIS)–European demand for refined glycerine may lend support to regional glycerine producers in southeast Asia, who have been faced with persistently sluggish Chinese demand. Asia VAM plant margins to get a lift from westbound trades By Hwee Hwee Tan 09-May-25 13:08 SINGAPORE (ICIS)–Asia’s vinyl acetate monomer (VAM) producers are eyeing improved netbacks from expansion in westbound shipments as regional trade margins narrow into the second quarter. Asia capro remains pressured by weak benzene, cautious demand outlook By Isaac Tan 09-May-25 13:11 SINGAPORE (ICIS)–Spot prices for caprolactam (capro) in Asia continued to soften in the week ending 7 May, weighed down by persistent losses in the upstream benzene market and a lack of recovery in downstream demand. China Apr export growth slows to 8.1% amid tariff uncertainty By Nurluqman Suratman 09-May-25 16:03 SINGAPORE (ICIS)–China's export growth slowed to 8.1% year on year in April from 12.4% in March in US dollar terms, underscoring the increasing impact of US tariffs amid ongoing uncertainty surrounding a potential trade agreement.

12-May-2025

SAO PAULO (ICIS)–Braskem-Idesa (BI) officially launched the Terminal Quimica Puerto Mexico (TQPM) on Wednesday, according to a notice from the company. After many years in the making, and at some points, serious doubts about the companies involved managing to put together the necessary capital expenditure (capex) for the terminal, in March ICIS could visit the almost-finished facilities. Braskem Idesa’s executives were relieved to finally see the long-running construction almost finished. Up to now, Braskem Idesa has been importing ethane by ship, a system called Fast Track. Before and during that, Braskem also depended on Mexico’s state-owned energy major Pemex for supply of ethane. However, beleaguered Pemex, after years of falling output, rising debts, and mismanagement, did not follow the agreement on several occasions and its ethane supply would fall short of what it had been agreed, leading to Braskem Idesa not having the feedstock needed to produce PE. Sources close to the situation reported to ICIS last year that Pemex only got serious about the ethane supply when threatened with being taken to arbitrage international court – because it is state-owned, that would have been the necessary course of action. As the ribbon was cut on Wednesday, most executives present could now focus on the future – undoubtedly more promising having its own terminal to import the feedstocks needed. Braskem Idesa holds a 50% stake in the terminal with Advario, the Netherlands-based engineering services provider. The terminal will allow BI to import 80,000 barrels/day, enabling the company to operate at 100% of its capacity at its integrated polyethylene (PE) Ethylene XXI complex in Coatzacoalcos, Mexico. The Braskem Idesa cracker in Coatzacoalcos has 1.05m tonnes/year of ethylene capacity and downstream capacities of 750,000 tonnes/year of high-density polyethylene (HDPE) and 300,000 tonnes/year of low-density polyethylene (LDPE). In an interview with ICIS in March, the CEO at TQPM, Cleantho de Paiva, said the terminal would benefit Mexican petrochemicals at large, not just Braskem Idesa, by allowing the feedstocks it was consuming up to now to be released to other producers. "This project has a very important impact on the development of the national petrochemical industry, because it's precisely to complement access to raw materials that we lack today. With a capacity to import up to 80,000 barrels per day of ethane, this will significantly exceed the 63,000 barrels Braskem Idesa currently requires for its operations,” said Cleantho de Paiva. “The issue of the lack of ethane in the country is structural. Since the US is the largest producer and exporter of petrochemical ethane, building this terminal gives us access to import sufficient raw material." "When the terminal comes into operation, Pemex, which currently has an obligation to supply a certain amount to Braskem Idesa, will no longer have it and will be able to direct this raw material to its own petrochemical complexes and resume its operating capacity," he added. Braskem Idesa is a joint venture made up of Braskem (75%) and Mexican chemical producer Grupo Idesa (25%). PE is the most widely used plastic in the world, primarily found in packaging including plastic bags, plastic films and geomembranes. Article thumbnail: The terminal as seen in March Source: ICIS Additional reporting by Johnathan Lopez

07-May-2025

SAO PAULO (ICIS)–Celanese will aim to weather what is becoming an increasingly “uncertain” second half of 2025 by reducing inventories and keeping firm cost controls, but also by reducing operating rates if demand is not there, the CEO at the US-based acetyls and engineered materials producer said on Tuesday. Scott Richardson added that key end markets for the company such as construction, automotive and consumer goods remain somehow in the doldrums, and occasional improvements in some subsegments during H1 may have just been an illusion of a strong recovery – before the storm. The CEO and the CFO Chuck Kyrish acknowledged, however, there is a high degree of uncertainty about whether slight improvements in H1 in some segments represented genuine demand improvements or temporary supply chain restocking as some customers, them too, would be preparing for a potential turbulent H2. "We are not assuming anything right now. We are continuing to be diligent on driving self-help actions, [and] we are focused on reducing inventory and are going to pull back on rates if we see any kind of reduction in demand," said the CEO, speaking to reporters and chemical equity analysts. The CEO said that the company has been somehow shielded from any direct tariff hit, as its operations in China are mostly focused on the domestic market, but nonetheless the current uncertainty and instability will be one of the factors to make the second half of 2025 an uncertain one. He repeated that claim on several occasions. Celanese’s first-quarter sales fell, year on year, although it managed to narrow the net loss posted in the same quarter of 2024, the company said after the markets closed on Monday. The producer also announced that as part of its efforts to deleverage it is to fully divest its electronic pastes and ceramic tapes producer Micromax, acquired in 2022 as part of the $11 billion acquisition of DuPont’s Mobility & Materials (M&M) business. Despite the poor metrics for the first quarter, the financial results beat analysts' consensus expectations which, together with the Micromax divestment and others which could be on the way, propped up Celanese stock by nearly 9% in Tuesday afternoon trading. AMID THE CHALLENGES, SAVINGSThe CEO said Celanese projects generating between $700-800 million in free cash flow for 2025, driven by optimized working capital management, lower capital expenditure (capex), and comprehensive cost-cutting measures totaling approximately $60 million expected in the latter half of the year. The chemical producer recorded stronger orders in March and April in its Engineered Materials sales volumes, but its Acetyl chain business delivered mixed results, with limited seasonal improvement in key segments including paints and coatings. “In engineered materials, we saw a much stronger March than we saw in January and February. April orders were in line with that March pickup, and the order book for May looks very similar. We are seeing a volume pickup from Q1 into Q2 from engineered materials. June is too early to say [and] there's some uncertainty around where June orders will go,” said Richardson. “On the acetal side of things, we're not seeing the normal seasonal pickup that we would typically see. Usually, Q2 is significantly better volumetrically in sectors like paints and coatings – we haven't seen that. We're seeing some of that, but not nearly at the level that we've seen historically in the past.” The CEO added that within that division, however, the segment producing acetate tow has posted higher sales volumes on the back of some Q1 seasonality. The product is mostly used in cigarette filters as well as Heat Not Burn (HTB) products and demand has been on the rise in countries like Indonesia, Bangladesh and India. Meanwhile, the producer’s beleaguered nylon business, which accounts for approximately 75% of the substantial $350 million profit deterioration in its Engineered Materials segment since 2021, has begun to stabilize following capacity reductions and operational adjustments. However, executives acknowledged considerable work remains to restore this segment to acceptable profitability levels amid persistent industry overcapacity and challenging pricing dynamics. "The industry has given up a lot of margins over the last several years, and it's unsustainable. The actions that we started taking last year around capacity reductions, us flexing a different operating model here, hasn't been enough yet. We are starting to see a stabilization here," said the CEO. "We've been very consistent that our focus is on cash generation, and we are looking at a myriad of options on the divestiture side. It's not just Micromax: we've talked about having a portfolio of things we're looking at." Capex has been reduced to maintenance levels, providing "significant" year-over-year improvement in free cash flow generation, according to Kyrish. Front page picture: Celanese produces acetyls and other chemicals widely used in the paints and coatings sector Picture source: imageBROKER/Shutterstock

06-May-2025