Mixed plastic waste and pyrolysis oil

LONDON (ICIS)–Senior editor for recycling Matt Tudball discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Upwards pressure on NWE colourless bales, colourless and mixed coloured flake Buyers in eastern Europe seek lower bale prices Asian food-grade pellet imports cheaper on weaker dollar

25-Apr-2025

SINGAPORE (ICIS)–A subsidiary of Sweden-based fashion retailer H&M, Syre, has announced a Memorandum of Understanding (MoU) with Binh Dinh province in Vietnam to build a circular textile recycling plant, the company said on Friday. Syre, a joint venture between H&M and technology investment firm Vargas, announced plans to build a Gigascale recycling plant in Binh Dinh, which will produce up to 250,000 tonnes of high-quality polyethylene terephthalate (PET) chips from textile waste. “Syre has an ambition to support Vietnam in its green transition and as a global leader in the circular textile industry,” said Dennis Nobelius, CEO of Syre. “The partnership with the Binh Dinh Province will, with the right conditions in place, be a great opportunity to jointly lead the textile shift,” Nobelius added. Investment details have not been finalized, Nobelius said. "Binh Dinh offers an excellent investment environment, being a hub for clean energy … with synchronized infrastructure … and favorable climate conditions,” said Vietnam Prime Minister Pham Minh Chinh on 23 April. Syre is a circular textile-to-textile recycling firm with one plant in North Carolina in the US under construction, to be operational in mid-2025. The North Carolina plant will have a capacity of up to 10,000 tonnes/year of circular polyester. In 2024, Syre raised $100 million in funds to construct its plants in North Carolina and other locations such as Vietnam.

25-Apr-2025

MUMBAI (ICIS)–Two oil refineries will be built in India as part of Saudi Arabia’s $100-billion investment pledged to the south Asian nation which would cover cooperation in multiple areas, including energy and petrochemicals. High-level joint task force finalizes plans for joint cooperation in multiple sectors Both countries to develop supply chains, projects linked to energy sector Green hydrogen infrastructure collaboration plans on The projects, which will be built in partnership with the Indian government, and agreements to enhance cooperation with the world’s biggest crude exporter across various industries were announced on 22 April, during a state visit by Indian Prime Minister Narendra Modi to Saudi Arabia. Collaborations are also planned in the pharmaceuticals, infrastructure, technology, fintech, digital infrastructure, telecommunications, manufacturing and health sectors, among others, according to a statement from the Prime Minister’s Office (PMO) of India on 23 April. In 2023, the two countries agreed to set up a joint committee to expedite Saudi Arabia’s $100-billion investments in India which was announced in February 2019. A high-level task force set up by the two countries has now finalised plans in multiple areas which will allow both countries to begin work soon, the PMO stated. The countries will also work towards developing supply chains and projects linked to the energy sector, it added. The two nations have agreed to enhance cooperation in the supply of crude oil and its derivatives, including liquefied petroleum gas (LPG), the government statement said, adding that collaborations in the field of green hydrogen, including developing hydrogen transport and storage technologies, would also be explored. Saudi Arabia is India’s fourth largest trading partner and is the third largest exporter of crude oil to the south Asian country. In the fiscal year ending March 2024, India’s goods imports from Saudi Arabia stood at $31.4 billion, while exports to the nation were at around $11.6 billion, official data showed. Its major exports to Saudi Arabia include petroleum products, engineering goods, rice, chemicals, textiles, food products while imports from Saudi include crude oil, liquefied petroleum gas (LPG), fertilisers, chemicals, plastics, among others. RATNAGIRI MEGA REFINERY PROJECT IN QUESTION About seven years ago, Saudi Arabia signed a deal with Indian refiners to build a mega refinery and petrochemical complex in the west coast of India, but the project hit a snag. The 60 million tonne/year project in the Maharastra state which was estimated to cost $44 billion to build was supposed to be commissioned by 2022, faced delays due to land acquisition problems. Opposition to the project continues and there has been no breakthrough in discussions with villagers in the area. There was no official announcement from the central government on the fate of the proposed Ratnagiri mega-refinery and petrochemical project. Maharashtra chief minister Devendra Fadnavis, in a February 2025 interview at an Indian daily Economic Times, had said that instead of one mega refinery project, three small ones will be built – one in Ratnagiri and the other two will be in two other states in southern India. The refineries will each have a 20 million tonne/year capacity, he said. Indian petroleum minister Hardeep Singh Puri in January this year announced plans to build smaller refineries at different locations in the country. Focus article by Priya Jestin

24-Apr-2025

SINGAPORE (ICIS)–South Korea's economy shrank by 0.1% year on year in the first quarter as domestic consumption remained in the doldrums amid a prolonged political crisis, while exports fell on US tariffs, central bank data showed on Thursday. On a seasonally adjusted quarter-on-quarter basis, GDP contracted by 0.2% in the first three months of 2025, shrinking for the first time since Q2 2024, the Bank of Korea (BOK) said in a statement. Goods exports from Asia's fourth-largest economy slipped by 0.8% year on year in the first quarter, reversing the 2.6% growth in Q4 2024. Latest data for the first 20 days of April point to further weakness for South Korea's exports, falling by 5.2% year on year. South Korea is a major importer of raw materials like crude oil and naphtha, which it uses to produce a variety of petrochemicals, which are then exported. The country is a major exporter of aromatics such as benzene, toluene, and styrene. Private consumption, accounting for roughly half of the country's GDP, increased by 0.9% year over year in the first quarter, lower than the 1.6% growth seen in the fourth quarter of 2024. Manufacturing expanded at a slower pace of 0.4% year on year in the first quarter, from the 2.2% growth in the last three months of 2024. South Korea's economy is facing headwinds on multiple fronts. The country is still reeling from the political chaos triggered by former President Yoon Suk Yeol's surprise martial law declaration on 3 December, which lasted just a few hours, and ultimately led to his removal from office on 4 April. South Korea will hold a snap election on 3 June to replace Yoon after the country’s Constitutional Court unanimously upheld a decision by the legislature to impeach Yoon. The trade-dependent economy is also grappling with the impact of the US' broad tariff scheme. A 25% US reciprocal tariff announced for South Korea that was supposed to take effect on 9 April was suspended by US President Donald Trump for 90 days. During this temporary suspension, South Korea is subject to the 10% baseline tariff and its auto industry remains affected by a 25% tariff on automobiles, which is separate from the reciprocal tariff and not paused. The central bank forecasts a slower GDP growth of 1.5% for South Korea this year, after posting a 2.0% growth in 2024. BoK governor Rhee Chang-yong on 17 April, however, said that the growth forecast might still be too optimistic, citing Trump's tariff policy and its sectoral tariffs, as well as levies on China, which is South Korea’s biggest market. Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy. Thumbnail image: At a container pier in South Korea's southeastern port city of Busan on 1 November 2023.(YONHAP/EPA-EFE/Shutterstock)

24-Apr-2025

HOUSTON (ICIS)–Fitch Ratings lowered its global automotive sector outlook to “deteriorating” from “neutral”, and lowered its US sales forecast by 6.7% to 15.2 million from 16.3 million because of US tariffs on auto imports. “Tariffs are likely to lead to production cuts and increased costs, potentially driving issuers’ profitability,” the ratings agency said. On 26 March, the US imposed a 25% tariff on all imported automobiles and certain auto parts, which went into effect on 2 April despite a 90-day delay on other announced tariffs. “This measure poses a significant risk for automakers importing vehicles manufactured in Mexico, Canada, Japan, Korea and Germany to the US,” Fitch said. Patrick Manzi, chief economist at the National Automobile Dealers Association (NADA), said that if tariffs go into effect as planned, he expects vehicle prices to increase, sales to decrease, and production to fall – although the degree is difficult to quantify. US March sales of new light vehicles jumped 11% on a seasonally adjusted basis from February as buyers rushed to make purchases ahead of the automotive tariffs. ICIS senior economist for global chemicals Kevin Swift said the surge was likely from consumers and fleet owners pulling forward purchases to beat the new tariffs. Some respondents in the US Federal Reserve’s Beige Book agreed with Swift’s assessment. Some auto dealers in the Cleveland Fed region reported that the threat of tariffs drove customers to make purchases before potential price increases. “Several retailers had difficulty forecasting the impacts of policy and economic uncertainty on consumer demand, and they worried that consumer spending would pull back further,” the Cleveland Fed said. The Beige Book is a summary of US economic activity during the past six weeks among the 12 Federal Reserve districts with data for the most recent report collected before 14 April. Fitch’s action comes just after the ratings agency cut its GDP growth assumptions for the US by 0.4 percentage points in March and a further 0.5 percentage points more recently in a special update to its quarterly outlook. “Although we expect direct tariff implications to vary among automakers, depending on their production footprint, pricing power and supply chain configuration, no issuer will be fully immune to declining consumer confidence and lower automotive demand,” Fitch said. Fitch expects global automakers to increase selling prices to account for the tariffs, with some that are unable to raise prices sufficiently making “painful adjustments” to production and sales plans. AUTO PARTS SUPPLY CHAINS Fitch said impacts of tariffs on auto parts suppliers are less transparent because of complexities in their supply chains, including productions hits from delays. This impact will be partially offset as tariffs are currently delayed for imports that are compliant with the US-Mexico-Canada (USMCA) free trade agreement. Fitch estimates that about 60% of auto parts are USMCA-compliant. Tariff-related uncertainties may lead to fluctuations in production volumes, which could weigh on chemicals demand. CHEMS USED IN AUTOS Demand for chemicals in auto production comes from, for example, antifreeze and other fluids, catalysts, plastic dashboards and other components, rubber tires and hoses, upholstery fibers, coatings and adhesives, Swift said. Virtually every component of a light vehicle, from the front bumper to the rear taillights, features some chemistry. The latest data indicate that polymer use is about 423 pounds (192kg) per vehicle. EVs and associated battery markets are an important growth opportunity for the chemical industry, with chemical producers separately developing battery materials, as well as specialty polymers and adhesives for EVs. Visit the ICIS topic page Automotive: Impact on Chemicals Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy Thumbnail image shows autos on a lot in Colorado. Photo by David Zalubowski/AP/Shutterstock

23-Apr-2025

SINGAPORE (ICIS)–While the US-led trade war has roiled Asia’s petrochemicals market, sending prices of some on free fall, a selected few products have bucked the trend due to rising feedstock cost and tightening supply, but the support may be temporary amid global economic headwinds. Oxo-alcohols to lead April price gains in April – ICIS forecast Trade war weighs on demand, economic growth China warns countries against striking US trade deals at its expense Spot propylene prices in northeast Asia were tracking gains in feedstock propane as production in China is being curtailed by high cost. About a third of China’s propylene production is produced via the propane dehydrogenation (PDH) route, but imports of feedstock propane from the US are now subject to hefty tariffs amid the renewed US-China trade war. Meanwhile, spot prices of oxo-alcohols such as 2-ethylhexanol (2-EH), dioctyl phthalate (DOP), and n-butanol (NBA) have risen as constrained production tightened supply. Supply-side pressures have allowed them to outperform despite weakness in the broader market. For epichlorohydrin (ECH), prices were largely stable, supported by limited availability, with plants in northeast Asia running at below 50% of capacity. Meanwhile, restocking was taking place in China ahead of the week-long Labor Day holiday in early May. ECH is a chemical intermediate used in the production of synthetic rubbers, resins, and pharmaceuticals, among other industrial uses. Downstream epoxy resins prices are also stable amid restocking following price falls in March. In the fatty alcohol mid-cut market, prices are rising on tightened supply and elevated cost of feedstock palm kernel oil (PKO) in Indonesia. Two regional plants – one in Malaysia and another in Indonesia – are currently shut for scheduled maintenance, while another plant in Malaysia remains shut due to an unplanned outage in early April. The Malaysian plant was shut at the start of the month due to a fire incident. Generally, demand has remained soft as buyers adopt a risk-mitigation strategy to better navigate the uncertain market, ICIS analyst Ann Sun said. The majority of chemical prices are forecast to decline in tandem with falling oil prices, weighed down by recessionary fears, Sun added. Amid uncertainties surrounding markets, traders – notably those in China – are searching for alternative paths away from the US towards regions with lower tariffs such as southeast Asia, Latin America, and Europe. Some US goods bound for China are also being re-routed to other countries like India amid high tariffs. OUTLOOK The volume of world trade is expected to fall by as much as 1.5% if US President Donald Trump’s “reciprocal” tariffs are back on the menu after a 90-day suspension lapses, according to the World Trade Organization (WTO). Meanwhile, the US and China appears to be on an all-out trade war, having imposed tariffs exceeding 100% on each other. Export front-loading is taking place globally as markets seek to avoid further complications wrought by future tariff announcements by the US. But not all countries have posted export growth. South Korean exports fell in the first 20 days of April by 5.2% year on year – the first signs that US tariffs are beginning to hit global trade hard, said Min Joo Kang, senior economist for South Korea and Japan at Dutch financial institution ING. In southeast Asia, Malaysia’s gross exports in March grew by 6.8% year on year, led by front-loading ahead of Eid ul Fitr festival, Singapore-based UOB Global Economics & Markets Research economists said in a note on 21 April. Eid ul Fitr marks the end of Ramadan, the Muslim fasting month. But UOB predicted a dimmer external trade outlook ahead for Malaysia, depending on how tariff negotiations with the US pan out. Malaysia, along with other ASEAN member nations such as Vietnam, Thailand and Indonesia, is sending a trade delegation to the US on 24 April. The southeast Asian country was slapped with 24% tariffs by Trump on 2 April prior to the levies’ 90-day suspension. The country’s gross domestic product (GDP) rose 4.4% year on year between January-March amid worries of lower growth outlook for 2025. Markets in southeast Asia, which were some of the hardest-hit by Trump’s tariffs, are anxiously waiting for the results of trade negotiations with the US before the 90-day suspension is up in July. Chinese President Xi Jinping has urged southeast Asian governments to unite against “unilateralism” during his recent tour of Vietnam, Malaysia and Cambodia. Separately, China warned countries against striking deals with the US at its expense, a spokesperson for the Ministry of Commerce said on 21 April. “Sacrificing others’ interests to obtain so-called exemptions for temporary selfish gains is akin to negotiating with a tiger; it ultimately leads to failure for both parties and harms everyone involved,” it said. Focus article by Jonathan Yee Additional reporting by Matthew Chong, Izham Ahmad, Claire Gao, Helen Yan, Josh Quah, Aswin Kondapally and Julia Tan Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy.

23-Apr-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 18 April. US tariffs spark fears in Chile about even higher industrial goods imports US import tariffs on China and other Asian countries are increasing fears in Chile that even higher amounts of imports will dent domestic plastics and wider manufacturing producers’ competitiveness, according to the CEO at the country’s plastics trade group Asipla. INSIGHT: Global chemical prices plunge with oil amid tariffs The tariffs imposed by the US and the uncertainty of what will follow has caused a crash in oil prices and is one of the main factors behind a global decline in chemical prices in the days after the country's April announcement of its reciprocal tariffs. Valero may shut down California refinery in 2026 Valero has submitted notice to the California Energy Commission of its intent to idle, restructure, or cease refining operations at its Benicia Refinery by the end of April 2026, the US refining major said in an update on Wednesday. Brazil's chemicals production in ‘free fall’ as idle capacity hits 40% Brazil's chemicals industry is facing its worst performance in 30 years, with the producing companies in the sector operating at just 60% of installed capacity during January and February, the country’s trade group Abiquim said. INSIGHT: Possible US mineral tariffs threaten chem, refiner catalysts The US is taking steps that could lead to tariffs on imports of up to 50 critical minerals, many of which are used to make catalysts for key processes used by refiners and chemical producers. Canada to keep using retaliatory tariffs, regardless of election outcome Canada will continue resorting to retaliatory tariffs against the US – regardless of which party, the incumbent Liberals or the opposition Conservatives, wins the upcoming 28 April federal election.

21-Apr-2025

MUMBAI (ICIS)–State-owned National Fertilizers Ltd (NFL) plans to acquire an 18% stake in a proposed joint venture (JV) that will build a 1.27 million tonne/year urea plant at Namrup in India’s eastern Assam state. NFL plans to invest Indian rupees (Rs) 5.72 billion ($67 million) in the Namrup IV Fertilizer Plant, the company said in a disclosure to the Bombay Stock Exchange (BSE) on 18 April. The state government of Assam will hold a 40% stake in the proposed joint venture; with NFL and Oil India Ltd (OIL) each holding an 18% stake. Hindustan Urvarak & Rasayan Ltd (HURL) will own 13% and Brahmaputra Valley Fertiliser Corp (BVFCL) will have the remaining 11%. The project, which will be set up within the complex operated by BVFCL, is expected to cost Rs106 billion, it added. The plant is expected to be commissioned within 48 months of the project launch, NFL said, adding that once operational, the plant will help meet the growing demand for urea in northeast India. The Indian government approved the proposal for the new project on 19 March 2025 as part of its effort to reduce urea imports. Indian finance minister Nirmala Sitharaman had announced the project during her budget speech on 1 February 2025. It will be the eighth plant with the same capacity that will be built in the south Asian country since 2019. ($1 = Rs85.12)

21-Apr-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 April 2025. INSIGHT: China SM feedstocks, end-products outlook clouded by US tariffs By Aviva Zhang 17-Apr-25 12:18 SINGAPORE (ICIS)–Escalating US-China trade tensions have driven significant fluctuations in China’s styrene monomer (SM) market, with feedstock import costs and constraints on end- products exports to continue to affect the market. INSIGHT: ICIS cuts April Asia chemical forecast as recession fears hit global market By Ann Sun 17-Apr-25 12:0 SINGAPORE (ICIS)–Uncertainty surrounding US tariff policies and the potential for a global recession continues to weigh on global oil prices, projecting a decline in chemical prices as a consequence. The knock-on effect on end markets, coupled with conservative business sentiment, will shape the price trend. Asia petrochemicals slump as US-China trade war stokes recession fears By Jonathan Yee 16-Apr-25 17:34 SINGAPORE (ICIS)–US “reciprocal” tariffs are prompting a shift of trade flows and supply chains as market players in Asia seek alternative export outlets for some chemicals, while overall demand remains tepid amid growing fears of a global recession. INSIGHT: US tariff barriers put further downward pressure on the Asian aromatics market By Jenny Yi 16-Apr-25 17:01 SINGAPORE (ICIS)–The macroeconomic repercussions from the escalating US-China trade war and potential for reduced end-market demand are expected to exert additional pressure on Asian aromatics markets. CHINAPLAS ’25: Asia polyolefin players gather for clarity amid US trade war By Jackie Wong 16-Apr-25 14:34 SINGAPORE/SHENZHEN, China (ICIS)–Polyolefin market players from Asia are gathering in China this week for an annual industry event under a cloud of uncertainty as the US embarks on a trade war that could potentially redefine trade flows in the region. China Q1 GDP growth at 5.4%; outlook dims amid trade war with US By Nurluqman Suratman 16-Apr-25 12:31 SINGAPORE (ICIS)–China's economy expanded by 5.4% year on year on the first quarter, unchanged from the previous quarter, official data showed on Wednesday, but the world’s second-biggest economy is generally expected to weaken due to the tit-for-tat trade war with the US. INSIGHT: Asia C2 awaits tariff response from Chinese ethane crackers By Josh Quah 16-Apr-25 12:00 SINGAPORE (ICIS)–Asia ethylene markets have settled into a disquieting calm belying the tumult of the past 10 tariff-packed days. The spotlight is now sharply on a segment of players – crackers that crack ethane into ethylene – that may have an impact on the import-export market depending on their response to the US-China trade war. INSIGHT: China propylene supply to fall amid trade tensions with US By Seymour Chenxia 15-Apr-25 14:4 SINGAPORE (ICIS)–Escalating US-China trade tensions are expected to raise production cost for Chinese propane dehydrogenation (PDH) plants and weaken overall domestic demand for propylene (C3) at the same time. Singapore slashes 2025 GDP growth on escalating US-China trade war By Jonathan Yee 14-Apr-25 12:06 SINGAPORE (ICIS)–Singapore's Ministry of Trade and Industry (MTI) on Monday cut the country's 2025 GDP growth forecast to 0-2% from a previous 1-3%, citing escalating US-China trade tensions and the impact of reciprocal tariffs on global trade. INSIGHT: China-US trade war to hurt NGL trades both ways By Lillian Ren 14-Apr-25 14:39 SINGAPORE (ICIS)–As one of the largest petrochemical producers globally, China plays a vital role in taking in US’ natural gas liquids (NGLs) such as ethane, propane and butane for propylene and ethylene production. High tariffs are expected to rule out US NGLs products from China market, which, in turn, will hurt buyers and producers in both countries. INSIGHT: China new energy storage capacity to surge by 2030 By Anita Yang 14-Apr-25 16:19 SINGAPORE (ICIS)–New energy storage plays a crucial role in ensuring power balance in China, especially in effectively addressing the intermittent issues of new energy generation. It helps alleviate the dual pressures of power supply security and consumption.

21-Apr-2025

LONDON (ICIS)–Trading interest dipped on the European Group I base oils market this week, as the ongoing US trade tariffs made some market participants hesitant. The growing lack of clarity has become an unwelcome aspect of market conditions. This week, domestic Group I prices failed to show any movement, with pricing information heard in the market within published ICIS ranges. Some traders were also away from their desks ahead of the Easter holiday. Brightstock remained in tight supply, while demand for SN500 rose slightly. SN150 continued to face competition from re-refined base oils in Europe, though less than in previous months. A source voiced concerns over the growing volatile situation in wider commodity markets as financial and currency markets react to news from The White House. “The market is crazy and we need to see what will happen,” they said. “Stability would be nice,” they added. The US tariffs upheaval is bound to ripple into all commodities, though some impact is indirect. Furthermore, retaliatory measures from the EU would impact US goods heading to Europe. But base oils are exempt from tariffs, along with oil and oil products. But an impact may be felt in the base oils market if the wider world demand outlook suffers and if the global economy is hit. Long-term commitments in contracts are also being avoided in other chemical markets. Last week’s announcement of a 90-day pause on the implementation of the latest tariffs round, except for China, partly eased investors’ concerns. With the US-China trade war escalating and new US sanctions being announced on Iran, crude oil prices were also reacting. With base oils being derived from vacuum gasoil, a key oil product, this may mean some indirect impact on the base oils market. On Thursday, crude oil prices were on the rise as the new US sanctions targeted the export of Iranian oil, focusing on shippers and importers in China. Base oils are used to produce finished lubes and greases for automobiles and other machinery.

17-Apr-2025