Mixed plastic waste and pyrolysis oil

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

HOUSTON (ICIS)–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. If the US ends up imposing the tariffs on the critical minerals, then they would take the place of the reciprocal tariffs. REFINING CATALYSTS AND AROMATICS MARKETSFluorspar is used to make hydrofluoric acid, a catalyst used in alkylation units. These units convert isobutane and propylene into alkylate, a high-octane blendstock. Cerium and lanthanum are used to make catalysts for fluid catalytic cracking (FCC) units. These units convert gas oils into gasoline and refinery grade propylene (RGP). If the US imposes tariffs on these catalysts and if the tariffs cause large enough price increases, then refiners could alter their operations to reduce their costs. If refiners lower alkylation operating rates, they may rely on other high-octane blendstock such as toluene or mixed xylenes (MX). Changes in alkylation and FCC rates would concurrently affect supply and demand for RGP. ANTIMONY AND PETChinese restrictions on antimony already have led producers to propose price increases for polyethylene terephthalate (PET), which relies on the mineral as a catalyst. If the US imposes tariffs on antimony, then it would further increase prices from the other countries that export the mineral to the US. BISMUTH AND POLYURETHANESBismuth is used as a catalyst for making polyurethanes. One such bismuth-based catalyst won an innovation award. OTHER CATALYSTSIridium, neodymium, rhodium, ruthenium, ytterbium and yttrium are all used to make catalysts, according to the US Geological Survey (USGS). Palladium and platinum are used in catalytic converters in automobiles. TIO2 AND PAINTS MARKETSThe US also considers titanium and zirconium as critical minerals. It is unclear if the US would impose tariffs on titanium metal or titanium oxide. However, the US list of critical minerals implies that the tariffs could include titanium oxide. Titanium oxide is the feedstock that is used to make titanium dioxide (TiO2), a white pigment that is used to make paints opaque. Producers of paints and coatings are already facing higher costs from US tariffs on steel. In 2023, Sherwin-Williams estimates that plastic and metal containers made up 15% of its product's costs. A tariff on titanium oxide would further increase costs for paints and coatings producers. Zirconium is a byproduct of processing mineral sands that contain titanium. TiO2 producers Tronox and Chemours operate such mines. Tronox's are in Australia and South Africa, and Chemours has mines in the US states of Florida and Georgia. FLUORSPAR AND FLUOROMATERIALSFluorspar is also the upstream feedstock for fluorochemicals and fluoropolymers. Polyurethane foams use fluorochemicals as blowing agents. Fluoropolymers include Teflon. These are becoming increasingly important in 5G equipment, semiconductor fabrication plants and lithium-ion batteries. Fluoropolymers are also used as membranes in hydrogen fuel cells and chlor-alkali plants. BARITE, CESIUM USED IN OIL PRODUCTIONBarite is used to make drilling mud. Cesium is used to make cesium formate drilling fluids, which are used by oil and gas producers. FLAME RETARDANTSAluminum and antimony are used to make flame retardants. INVESTIGATION TO PRECEDE ANY TARIFFSBefore the US imposes any tariffs on critical minerals, it will conduct an investigation under section 232 of the Trade Expansion Act of 1962. The US has used that section to impose tariffs on other products such as steel and aluminium. The scope of the investigation will include the 50 minerals deemed critical by the USGS, processed critical minerals and derivative products. Derivative products include semi-finished goods and final products "such as permanent magnets, motors, electric vehicles, batteries, smartphones, microprocessors, radar systems, wind turbines and their components and advanced optical devices", according to the order. The secretary of commerce will have 180 days to submit a final report of the investigation to the president. Recommendations will include tariffs and policies the US could adopt that would promote more production of critical minerals. LIST OF CRITICAL MINERALSThe following table shows the minerals that the US considers critical. Aluminium Magnesium Antimony Manganese Arsenic Neodymium Barite Nickel Beryllium Niobium Bismuth Palladium Cerium Platinum Cesium Praseodymium Chromium Rhodium Cobalt Rubidium Dysprosium Ruthenium Erbium Samarium Europium Scandium Fluorspar Tantalum Gadolinium Tellurium Gallium Terbium Germanium Thulium Graphite Tin Hafnium Titanium Holmium Tungsten Indium Vanadium Iridium Ytterbium Lanthanum Yttrium Lithium Zinc Lutetium Zirconium Source: USGS Insight article by Al Greenwood (Thumbnail shows a fuel pump that dispenses gasoline, which relies on critical minerals for production. Image by Shutterstock.)

17-Apr-2025

LONDON (ICIS)–The European Central Bank (ECB) dropped its key interest rates on Thursday in a bid to stabilize economic activity in the eurozone in the wake of disruption caused by US tariff announcements. The bank cut its rates by 25 basis points, reducing the deposit facility interest rate to 2.25%. Marginal lending rates dropped from 2.90% to 2.65% and the refinancing rate was settled at 2.40% from 2.65%. Rates have fallen consecutively throughout the year, as eurozone inflation came back down to 2.2% in March, nearing ECB target levels of 2%. The prospect of a pause on cuts diminished with the volatility caused on ‘Liberation Day’ on 2 April, when US President Donald Trump’s shift in trade policy defied more moderate expectations. Global markets were riled by President Trump’s dramatic tariff rollout on around 60 countries, before rescinding many of his retaliatory tariffs for many trading partners, including the eurozone. Initially, the eurozone had been hit with a 20% tariff and was taking steps to respond in kind, before both sides agreed to a 90-day pause. The EU remains subject to a 10% baseline tariff, with 25% duties on some automotive parts, steel, and aluminum. This has left economic sentiment weak, with the euro tracking significant gains over the US dollar in response to the volatility. Manufacturing has also been hit by the tariffs, with the International Energy Agency (IEA) predicting oil demand growth to fall from 1.03 million barrels/day to 0.73 million barrels/day in 2025, and the World Trade Organization (WTO) expecting global trade to slow by 0.2% year on year. Click here to visit our topic page on the impact of US tariffs on the chemicals and energy industries

17-Apr-2025

HOUSTON (ICIS)–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. The following chart shows the sharp declines among the seven building-block chemicals. Notably, the declines continued even after the US paused the implementation of the higher reciprocal tariffs and settled for the relatively lower 10% rate against most countries. The exception is China, which has been responding to US tariffs with matching rates. The two countries are now imposing triple-digit tariffs on each others' imports. While the US has made exceptions for critical minerals, pharmaceuticals and electronics, China has made none. China's tariffs include the large amounts of natural gas liquids (NGLs) that it imports as feedstock for its propane dehydrogenation (PDH) units and its ethane crackers. LOWER OIL PRICESPrices for plastics and petrochemicals tend to rise and fall with those for oil. Oil prices have been falling since the start of the year, but the decline accelerated rapidly following the April tariff announcements by the US, as shown in the following table. Figures are in dollars per barrel. 2-Jan 1-Apr 14-Apr Brent 75.93 74.49 64.88 WTI 73.13 71.20 61.53 The decline was remarkable because it happened despite the weakening of the US dollar. The US dollar index has fallen by 8% as of 14 April since the start of the year. Oil prices tend to rise when the dollar weakens. This relationship has broken down in part because of plans by OPEC and its allies (OPEC+) to increase May production by an amount much higher than anticipated. But another reason is lower demand. Following the reciprocal tariff announcement by the US, ICIS lowered its forecast for global oil demand by 10%. ICIS also lowered its forecast for Brent oil prices for the rest of the year. Lower oil prices are manifesting themselves in aromatics markets, which are closely tied to crude. Export declined month on month for toluene and other aromatics from South Korea to the US for gasoline blending for March loading. Prices of toluene in India tumbled to fresh three-year lows. FALLING CHEM DEMANDDemand for plastics and chemicals also tends to rise and fall with the economy. Economists have started lowering their forecasts for growth, according to a periodic survey conducted by The Wall Street Journal. Survey participants also increased the chances of a recession. Tariffs will act like a sales tax. Companies and consumers will treat the tax like any other – they will take steps to avoid it by purchasing fewer goods. If one applied the US baseline tariff of 10% to the $3.3 trillion of goods the US imported in 2024, that comes to $3.3 billion in taxes. That represents a lot of potential purchases that US companies and consumers could defer or abandon. RPM International, a US producer of coatings, adhesives and sealants, expects that the slow- to no-growth environment of the past 18 months will persist. RPM's comments are notable because they were made on 8 April, after the US announced its reciprocal tariffs. UNCERTAINTYUncertainty is starting to paralyze some key chemical end markets. The auto industry in the US is already showing signs of this, RPM said. In European polyethylene (PE) markets, buyers are retreating to the side lines rather than committing to volumes in the current climate. “All in all, people are being careful, and that's not just converters that also consumers. People are worried about the future, and it's probably affecting demand further down chain as well," said ICIS markets editor Ben Monroe-Lake. “All in all, people are being careful, and that's not just converters that also consumers. People are worried about the future, and it's probably affecting demand further down chain as well.” REDIRECTED TRADE FLOWSBy imposing such broad tariffs, the US has erected a formidable trade barrier around its economy, which has caused exporters to redirect their shipments to other markets. This is especially true of Chinese exports. The US has created an effective embargo of Chinese imports by increasing its tariffs by 145% in 2025. Even with the recent exemptions adopted by the US, a large portion of Chinese imports will need to find new markets. The following table shows 2024 US general imports from China. Figures are in US dollars. Chapter Description Value 29 Organic chemicals 8,519,224,570 39 Plastics and plastic products 19,290,918,758 All Chapters Total 438,947,386,145 Source: US International Trade Commission (ITC) Similarly, China's 125% tariffs on shipments from the US would cause a large amount of products to be redirected, as shown in the following table. Figures are in US dollars. Chapter Description Value 27 Coal; mineral fuels, oils and products 14,727,138,106 29 Organic chemicals 3,980,594,815 39 Plastics and plastic products 7,452,840,887 All Chapters Total 143,545,739,507 Source: US ITC Given the tariff rates, it's likely that direct trade between the US and China will crater, said Lynn Song, chief economist, Greater China, at ING. Re-arranging global trade flows on such a scale will affect local chemical markets directly and indirectly through the influx of end products made with plastics and chemicals. The world was already contending with an oversupply of chemicals. This will aggravate it Such concerns have already appeared in east Chinese markets for certain grades of linear low density polyethylene (LLDPE) and high density polyethylene (HDPE), which reached multi-year lows. Market players are worried that US tariffs will cause a decline in demand for Chinese products that use these plastic grades. Similar concerns are arising in the Middle East among buyers and sellers of polymeric methylene diphenyl diisocyanate (PMDI) US auto tariffs could cause producers in the rest of the world to reduce output of vehicles and parts. These auto tariffs are global, and they are separate from the reciprocal tariffs. As such, the US auto tariffs are still in effect. If auto producers lower output, that will reduce demand for plastics and chemicals used in auto production, such as polypropylene (PP), nylon, butadiene (BD), and styrene butadiene rubber (SBR) “I may have to tweak my operations if I lose access to the US market, and if so, certainly I would be prudent now not to overcommit on forward deliveries of raw materials including EPDM,” said an auto parts maker in southeast Asia. Ethylene Propylene Diene Monomer (EPDM) refers to a synthetic rubber. DEFLATIONARY SPIRALIf companies expect declines to continue, then they may postpone purchases, setting off a deflationary spiral, in which sellers lower prices each time buyers defer purchases. Such a dynamic could emerge in European ethylene market and its PP market. US TARIFFS COULD MAKE THE COUNTRY THE EXCEPTIONAlthough US prices for building blocks have fallen since the April tariff announcement, many have still raised their expectations for inflation. RPM said on 8 April that the tariffs announced at that time would raise its raw material costs for its US operations by 4.3%. RPM's forecast did not take into account the 90-day pause on tariffs that the US announced on 9 April. That said, others are expecting prices in general to increase. Seasonally adjusted, a net 30% of US small business owners planned price hikes in March, up one point from February and the highest reading since March 2024. CHINA'S NGL TARIFFS MAY CREATE US GLUTChina's tariffs of 125% do not carve out any exemptions for ethane, liquefied petroleum gas (LPG) or other natural gas liquids (NGLs). China imports large amounts of these feedstocks from the US If China maintains the tariffs on NGLs, it could cause a supply glut of these primary chemical feedstocks in the US. The country does not have the chemical capacity to absorb the shipments that would normally go to China, and it is unlikely that the rest of the world can fully offset the loss of China as an export destination. If China maintains its tariffs on US NGLs, ICIS expects that US ethane and propane prices will decline. Insight article by Al Greenwood Additional reporting by Vicky Ellis, Ajay Parmar, Nurluqman Suratman, Isaac Tan, Nel Weddle, Melanie Wee, Kojo Orgle and Jonathan Yee Infographics by Yashas Mudumbai (Thumbnail shows a flask, which commonly holds chemicals. Image by Fotohunter.)

15-Apr-2025

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at the latest oil market developments. 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. Paul Hodges is the chairman of consultants New Normal Consulting.

14-Apr-2025

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. Singapore lowers projected GDP growth for 2025 to 0-2% Trade war, tariffs to negatively impact global demand, consumption Lower manufacturing hits Q1 2025 growth Singapore's revision of its GDP growth forecast comes amid US 'reciprocal' tariffs, initially announced on April 2nd but subsequently suspended for 90 days. While Singapore received a baseline 10% tariff, other southeast Asian nations such as Vietnam and Thailand were slapped with 46% and 36% levies, respectively. “The sweeping tariffs introduced by the US, and the ongoing trade war between the US and China, are expected to weigh significantly on global trade and global economic growth,” the MTI said in a statement. A fall in external demand resulting from US President Donald Trump’s tariffs will negatively impact on growth outlooks in the southeast Asian region, while dampened business and consumer sentiments will lead to a crimping of domestic consumption in many economies, MTI said. “Against this backdrop, MTI’s assessment is that the external demand outlook for Singapore for the rest of the year has weakened significantly,” said MTI, adding that the manufacturing sector is likely to be particularly negatively affected by weaker global demand. “Given the significant downside risks, MTI will continue to closely monitor global and domestic developments, and make further adjustments to the forecast if necessary,” the ministry added. In the latest escalation of a brewing trade war, Trump raised the US’ tariffs on Chinese products to 145%, inclusive of 125% on 10 April, after China retaliated with 125% tariffs on US goods. The US also paused its reciprocal tariffs on all countries for 90 days, except China. Before the pause on reciprocal tariffs, the World Trade Organization (WTO) had forecast trade growth to decline by 1.0% in 2025, from 3.0% previously, MTI said. MONETARY POLICY EASEDIn response to a dimming economic outlook, Singapore’s central bank eased its monetary policy on Monday for the second time in 2025, reducing slightly the rate of appreciation of the Singapore dollar nominal effective exchange rate (NEER) amid weakening economic activity. The NEER refers to the value of Singapore dollar against a basket of currencies of its major trading partners. However, the Monetary Authority of Singapore (MAS) will carry on with a policy of a modest and gradual appreciation, unchanged from its previous statement in January. “Prospects for global trade and GDP growth dimmed in early April” following the US’ reciprocal tariffs, the MAS said. Meanwhile, the MAS’ core inflation eased “significantly” to 0.7% year on year in January-February 2025, from 1.9% in Q4 2024, a larger fall than expected as weakened consumer spending dampened price increases. Enhanced government subsidies, implemented during the country’s Budget for 2025, also contributed to lower services inflation, MAS said. The MAS Core Inflation is now forecast to average 0.5-1.5% in 2025, which is down from 1.0-2.0% in January, as it expects prices to continue to moderate more slowly. SE ASIA RESPONDSOn 10 April, following an emergency meeting among the 10-nation ASEAN group, the region’s economic ministers affirmed their deep concern over the tariffs, adding that they will aim to work with the US on a mutually beneficial deal. The ministers also said they will continue to work together to find ways to boost trade within the southeast Asian region amid a simmering trade war. “The ongoing trade war marks a sharp fracturing of the global economy that has profound impact for Singapore and the entire ASEAN region,” said Singapore Deputy Prime Minister Gan Kim Yong following the meeting. “ASEAN looks forward to constructive dialogue with the US to address concerns and explore enhancing cooperation in areas of mutual interest,” Gan, who is also minister for trade and industry, added. ECONOMY SLOWSSingapore’s economy also grew by 3.8% in the first quarter of 2025 according to advanced estimates, lower than 5.0% growth in the previous quarter, the MTI said on Monday. Declines in manufacturing and external demand slowing were among the reasons for the decline, the MTI said. The manufacturing sector grew by 5.0% year on year, compared with the 7.4% expansion in the previous quarter, with falls observed in the chemicals and general manufacturing clusters. Singapore’s petrochemical exports grew by 4.8% year on year in February, which boosted overall non-oil domestic exports (NODX) for the month, according to official data. This was a reversal from a fall of 0.3% year on year in petrochemical exports observed in January. Singapore has no hydrocarbon resources and imports crude oil for its refining and petrochemical industries. More than 100 global chemical firms, including energy majors ExxonMobil and Shell, are housed at its petrochemical hub, Jurong Island. Thumbnail image shows a Singapore port (Source: WALLACE WOON/EPA-EFE/Shutterstock) Focus article by Jonathan Yee Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy.

14-Apr-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 11 April. UPDATE: Oil, Asia chemical shares extend rout on recession fears By Nurluqman Suratman 07-Apr-25 16:52 SINGAPORE (ICIS)–Oil prices tumbled by more than $2/barrel on Monday, with shares of petrochemical firms in the region falling on heightened concerns that a brewing global trade war could lead to an economic recession. Vietnam Q1 GDP growth slows to 6.98% ahead of Trump's tariffs By Jonathan Yee 07-Apr-25 17:24 SINGAPORE (ICIS)–Vietnam’s economy expanded by 6.93% year on year in the first quarter of 2025 but looming reciprocal tariffs has dampened its growth outlook for the rest of the year. Asia petrochemical market players pause discussions amid Trump tariff uncertainties By Jonathan Yee 07-Apr-25 16:59 SINGAPORE (ICIS)–Market players across petrochemical markets are pausing discussions as they await clarity on the US' ‘reciprocal’ tariff enforcement and potential retaliatory measures from affected countries. Hefty tariffs to slow China’s chemical capacity expansion By Fanny Zhang 07-Apr-25 17:26 SINGAPORE (ICIS)–The trade war between the world’s two biggest economies is expected to exacerbate China’s chemical overcapacity as demand could weaken further, while higher costs stemming from tit-for-tat tariffs would slow down capacity expansion in the country. PODCAST: Impact of US tariffs on aromatics trade flows from Asia By Damini Dabholkar 07-Apr-25 19:31 SINGAPORE (ICIS)–The announcement of import tariffs by the Trump administration is likely to see a shift in aromatics trade flows from Asia, especially given the disparity in tariff rates on different countries. China petrochemical futures extend losses on latest US tariff threats By Fanny Zhang 08-Apr-25 13:01 SINGAPORE (ICIS)–China’s petrochemical futures markets were mostly lower on Tuesday morning, extending their losses from previous session amid worries over an escalating trade war with the US. INSIGHT: China expands carbon market; hydrogen key to decarbonize steel sector By Patricia Tao 08-Apr-25 16:11 SINGAPORE (ICIS)–China has officially included its steel sector in the national carbon emissions trading system, a major step toward greening one of its most carbon-intensive industries. Asia glycerine supply ample as US-bound exports to decline amid trade war By Helen Yan 08-Apr-25 15:14 SINGAPORE (ICIS)–Asia's glycerine market is facing more supply than expected, with regional suppliers seeking other outlets outside of the US, following the tariffs launched by the US on imports from southeast Asia. INSIGHT: Trade war may affect China PP demand more than supply By Lucy Shuai 08-Apr-25 18:06 SINGAPORE (ICIS)–With the escalation of the US-China trade war, it is expected that the impact on demand for China's polypropylene (PP) will be greater than on supply. South Korea ups emergency funding support for embattled auto sector By Nurluqman Suratman 09-Apr-25 12:40 SINGAPORE (ICIS)–South Korea on Wednesday announced emergency measures to support its export-reliant automotive industry in response to a 25% US tariff on vehicles and parts which will take effect on 10 April. INSIGHT: Confusion and anxiety hit Asia oleochemicals market amid US tariffs By Helen Yan 09-Apr-25 16:10 SINGAPORE (ICIS)–Asia’s oleochemicals market is characterized by confusion and anxiety following the steeper-than-expected tariffs launched by the US Trump administration on oleochemicals imports into the US. Asia benzene sinks to lowest daily price in over four years By Angeline Soh 09-Apr-25 19:30 SINGAPORE (ICIS)–Asia benzene import prices on a free on board (FOB) South Korea basis fell to their daily lowest in more than four years. ICIS China March petrochemical index falls; hefty tariffs to hit demand hard By Yvonne Shi 10-Apr-25 13:54 SINGAPORE (ICIS)–The ICIS China Petrochemical Price Index in end-March fell to 1,121.73, down by 3.1% from end-February, with the US-China trade war likely to weigh heavily on overall demand in both the domestic and export markets. INSIGHT: New China PE capacity may cover US supply loss amid trade tensions By Joanne Wang 10-Apr-25 14:16 SINGAPORE (ICIS)–China’s polyethylene (PE) market demand faces significant challenges following the US’ continued imposition of tariffs, with domestic prices of linear low-density polyethylene (LLDPE) down by 4% so far this week on expectations of new capacity coming online. US ethanol exports to Philippines expected to remain duty free; tariff on Brazil increased By Evangeline Chueng 10-Apr-25 17:44 SINGAPORE (ICIS)–US ethanol exports to the Philippines are expected to remain unaffected by the recent tariff changes, as the country has maintained duty-free access since 2016. INSIGHT: China-US tariffs altering Asia olefins supply and demand balance By Joey Zhou 10-Apr-25 18:52 SINGAPORE (ICIS)–Market dynamics for Asia propylene prices in Q2 2025, originally trending bearish amid long supply from China, are shifting on the back of US tariff policy and its impact. Uncertainty remains the watch-word in this market. Asia petrochemical shares drop as US tariffs on imports from China hit 145% By Jonathan Yee 11-Apr-25 10:38 SINGAPORE (ICIS)–Asian chemical shares fell on Friday amid deepening concerns over a global trade war after the White House clarified that the US' tariffs on China has risen to 145%. INSIGHT: India anchors PVC future amid global market re-alignment By Aswin Kondapally 11-Apr-25 15:00 MUMBAI (ICIS)–India’s vinyl industry is entering a new era of accelerated growth and global relevance as it emerges as the single-largest contributor to global polyvinyl chloride (PVC) demand expansion, even as the broader chemical industry faces overcapacity and trade re-alignments.

14-Apr-2025

MUMBAI (ICIS)–India’s Deepak Chem Tech Ltd (DCTL) plans to set up a manufacturing complex to produce phenol, acetone and isopropyl alcohol (IPA) at a cost of Indian rupee (Rs) 35 billion ($407 million). The company will build a 300,000 tonne/year phenol unit, a 185,000 tonne/year acetone plant and a 100,000 tonne/year IPA line at Dahej in the western Gujarat state, its parent firm Deepak Nitrite Ltd (DNL) said in a statement to the Bombay Stock Exchange (BSE) on 9 April. It expects to fund the new project through a mix of debt and equity. DCTL is a wholly owned subsidiary of DNL. “The new capacity of phenol and acetone would be integrated to produce polycarbonate (PC) resins,” DNL said. In November 2024, DCTL announced plans to build a new 165,000 tonne/year PC plant in Dahej using technology from US-based engineering materials producer Trinseo. Trinseo sold its PC technology license, as well as all of its proprietary PC equipment at Stade, Germany to DCTL last year. DCTL expects to begin operations at all the new plants in the fiscal year ending March 2028. Once the plants are operational, DCTL “will be one of the most integrated producers of PC,” it said, adding that the complex will help Deepak to meet India's growing market demand for PC-based products. To make its Dahej complex fully integrated, DNL’s wholly owned subsidiary Deepak Phenolics Ltd (DPL) entered into a 15-year agreement with Petronet LNG for the procurement of 250,000 tonne/year of feedstock propylene and 11,000 tonnes/year of hydrogen in October 2024. DPL currently produces 330,000 tonnes/year of phenol, 200,000 tonnes/year of acetone and 80,000 tonnes/year of IPA at its production complex at Dahej. In March, Deepak Advanced Materials Limited (DAML), another wholly owned subsidiary of DNL, began operations at its PC compounds facility at Vadodara in the Gujarat state. This facility produces PC compounds for the electronic and mobility sectors. Separately, DCTL also plans to invest Rs2.20 billion to build a plant that will manufacture specialty fluorochemicals. DNL also plans to commission its greenfield 40,000 tonne/year methyl isobutyl ketone (MIBK) and 8000 tonne/year methyl isobutyl carbinol (MIBC) plants before September 2025. ($1 = Rs86.01)

11-Apr-2025

SINGAPORE (ICIS)–Asian chemical shares fell on Friday amid deepening concerns over a global trade war after the White House clarified that the US' tariffs on China has risen to 145%. By 01:15 GMT, Japanese producers Asahi Kasei and Mitsui Chemicals had fallen by 5.16% and 4.03% lower respectively in Tokyo, while LG Chem was down by 2.89% in Seoul. Malaysian producer PETRONAS Chemicals Group (PCG) was down by 1.03% in Kuala Lumpur while palm oil and oleochemicals major Wilmar International fell by 1.27% in Singapore. Japan's bellwether Nikkei 225 fell by 4.60% to 33,018.51 while South Korea's KOSPI Composite was down by 1.65% at 2,404.77. US chemical shares fell again, offsetting most gains on 10 April after Trump reduced nearly every reciprocal tariff on other countries besides China to 10%. An escalating trade war initially as both Trump and China ratcheted up their tariffs, but the US president said on 10 April he was willing to make a deal to end the war. China has pivoted to trade talks with the EU as it seeks to improve trade relations with other states and has said it will “fight to the end” any trade war initiated by the US. The cumulative tariff rate on China now stands at 145%, consisting of the new 125% duty on goods, on top of the 20% rate already imposed earlier to pressure China to clamp down on alleged fentanyl trafficking. China’s own 84% retaliatory tariffs on US imports came into effect on 10 April. Thumbnail image shows Shanghai Port in China (Source: Costfoto/NurPhoto/Shutterstock) Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy.

11-Apr-2025

SINGAPORE (ICIS)–Asian chemical shares soared on Thursday after US President Donald Trump announced a 90-day pause for countries hit by higher tariffs. However, the trade war with China has escalated after Trump at the same time increased tariffs on goods from China to 125%, accusing Beijing of a "lack of respect" after it retaliated by saying it would impose tariffs of 84% on US imports set to begin on Thursday. Trump had previously imposed 104% tariffs on Chinese imports. By 01:00 GMT, Japanese producers Asahi Kasei and Mitsui Chemicals rose by 5.88% and 8.27% higher, respectively in Tokyo, while LG Chem was up by 5.41% in Seoul. Malaysian producer PETRONAS Chemicals Group (PCG) was up by 7.86% in Kuala Lumpur while palm oil and oleochemicals major Wilmar International rose by 2.29% in Singapore. Japan's bellwether Nikkei 225 rose by 8.36% to 34,297.27 while South Korea's KOSPI Composite was up by 4.64% at 2,400.23. Overnight, US-listed shares of chemical companies skyrocketed with the S&P 500 jumping more than 9% after Trump's announcement while the Nasdaq Composite Index jumped by the most since 2001. Trump said he was authorizing a universal "lowered reciprocal tariff of 10%" as negotiations continued, with the reversal coming around 13 hours after higher duties on some 60 countries and the EU took effect. "It isn’t immediately clear which trade partners will receive this tariff relief," Japan's MUFG Research FX strategist Llyod Chan said. "Given most Asian economies have not retaliated against the US, we believe they could be among the recipients of this tariff relief." Despite the tariff easing, global trade uncertainty remains very high, given the unpredictability of Trump’s protectionist policies, Chan said. "This will likely continue to weigh on business confidence, putting investments on hold as firms wait for clarity about US trade policies." Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy.

10-Apr-2025