Mixed plastic waste and pyrolysis oil

LONDON (ICIS)–Venezuelans go to the polls on Sunday with the hope of a free and fair election, in which case President Nicolas Maduro is widely expected to lose office in a country where the economy has been battered by years of mismanagement, corruption, and US sanctions. In the crude oil-rich country – Venezuela holds the world’s largest reserves – petrochemicals could naturally develop given the raw materials advantage. Back in the 1990s, with crude oil output at its peak, petrochemicals were tilted as a growing and booming sector in the country. The industry never took off. Since 2001, Venezuela has been run by the socialist PSUV party, first under the late President Hugo Chavez, who died in 2013, and later under his appointee successor, Nicolas Maduro, who won an election in 2018 widely seen as not free: the PSUV-led coalition won 256 out of 277 seats in the National Assembly. Venezuela’s demise has been rapid and deep: practically no institution in the country has been spared from the PSUV taking over it, and the election on Sunday has several times been postponed as Maduro tries to cling onto power for as long as he can. The powerful military are still for the most part rallying behind him. A state of terror has been the norm in the past few years, and the economy took a turn for the worse in the late 2010s and pushed around seven million Venezuelans to flee, mostly to neighboring countries or, those with the means, to countries such as the US or Spain. Sunday’s election is momentous because it has been tilted as one in which Maduro could allow a free vote – but many still fear that is not his nature. But independent opinion polls have consistently showed him trailing behind the unity opposition candidate, Edmundo Gonzalez, a 74-year-old diplomat who managed to avoid, like other opposition candidates before him, being banned from running. PETROCHEMICALSBefore North America renewed its status as a global energy power with the advent of the shale gas boom, crude oil derivatives were – and continue to be in most Latin American countries – the only game in town when it comes to petrochemicals raw materials. In the past 30 years, crude oil output peaked in 2000 at slightly more than 3 million barrels/day, stayed mostly stable under Chavez’s rule at around 2.5 million barrels/day, but has been on a downward trend since, according to data from the US Energy Information Administration (EIA). VENEZUELA CRUDE OIL PRODUCTIONJanuary 2000-July 2023 Million barrels/day Source: US’ Energy Information Administration Currently, Venezuela produces around 700,000 barrels/day. The reserves continue to be there, underground, but the facilities to extract that wealth have also been victims mismanagement and have had little maintenance. In 2023, as the world’s energy sector reeled from Russia’s attack against Ukraine, the US softened some of its sanctions on Venezuela – its crude oil was now more needed than ever – and signed the so-called Barbados Accords, which would imply lifting sanctions in exchange for a free and fair electoral process. Maduro backtracked from his word earlier in 2024 – as he kept banning candidates from the opposition to run in the process – and the US reimposed the sanctions which, in the abyss the country is, are used by the government as the excuse for the country’s malaise. Amid this backdrop over the past decades, the 1990s talk about petrochemicals being a sector which could potentially be a powerful exporter of downstream materials to the rest of the world has all but died. In June, the Venezuelan government said it was mulling building production facilities for petrochemicals and fertilizers together with Turkey’s industrial conglomerate Yildirim, but without giving much detail about timelines or budgets. However, such deals have been signed before and nothing came to fruition out of them. Yildrim had not responded to a request for comment at the time of writing. Meanwhile, in an interview with ICIS in May, an executive at chemicals distributor Manuchar – Belgium-headquartered but focused on emerging markets, with strong presence in Latin America – told the sad fate the company was victim of in the late 2010s. By then, the economy worsened sharply and, with it, security – or the lack of it, rather – created a dangerous country to live in, from Caracas to the provinces. The government’s terror state has included paramilitary groups which have had little regard for their own people. Most of Manuchar’s employees fled the country while they still had the means, and the human resources problem forced the company to basically idle all its facilities there, which remain dormant to this day, said Manuchar’s head for South America, Stefan Van Loock “We still have a legal entity in Venezuela, although it is dormant, and we do not have any sales there since the end of the 2010s. During our last months there, the situation had become untenable: we could not import materials, there were hardly any dollars available, so even if you got the imports, you could not pay for them most times…,” he said. “It was also becoming a human resources problem. I saw many Manuchar colleagues resign: ‘I cannot stay in Venezuela any longer, it has become too dangerous, and I am leaving’. It was a combination of all those factors that made us decide to wind down our operations there. We can only hope things improve.” It is interesting to read this piece published on ICIS in 2013 when Chavez died. At the time, there were still hopes petrochemicals could be developed as the country’s crude oil sector was still worth the name. Little we knew how much the country would quickly deteriorate in the next five years, although the article already hinted at constrains which would only become much bigger later. “Venezuela potentially could attract significant petrochemical industry investment although major industry players have tried and failed in the past to establish footholds in the country,” the article’s author, ICIS expert Nigel Davis, wrote at the time. “State-controlled producer Pequiven has plans to nearly triple its plastics production capacity to 1.86 million tonnes/year in 2016 from 694,000 tonnes/year, although its ability to do so is questioned against the backdrop of feedstock, power, and financing constraints.” And looking further into the archives, even with Chavez in power, companies across the world such as major ExxonMobil wanted to tap into Venezuela’s petrochemicals. In this agreement from 2004, the US energy major and domestic producer Pequiven was mulling a 50:50 joint venture to build a $2.5-3 billion petrochemicals complex – once again, it never got to break ground. HOPE LAST THING TO LOSEMillions of Venezuelans abroad are following the electoral campaign and, for the most part, are hoping their compatriots at home go and vote em masse on Sunday: the polls have consistently and overwhelmingly showed Maduro behind, so if a free election is held, the Chavismo may be coming to and in a few months. The structures it leaves behind will take years to dismantle, anyway, and success in building a fairer and freer Venezuela is not guaranteed. Even this week, as he sees his position threatened, Maduro rallied supporters with a violent rhetoric which raised alarms across Latin America: he said that if his party does not win the election, there could be a bloodbath. Even Brazil’s President Luiz Inacio Lula da Silva, normally shy in openly criticizing Maduro as he has a worrying tendency to flirt with far left and authoritarian leaders in the region, was blunt about his feelings. "I was shocked by Maduro's statement that if he loses the election, there will be a bloodbath … Maduro has to learn that when you win, you stay; when you lose, you leave and prepare to run again in the next election," said Lula, quoted by Brazil’s public news agency Agencia Brasil. Lula has sent to Venezuela his personal adviser on foreign policy, Celso Amorim, as part of international delegations who are to be observers in the election. Jose Marquez, a Venezuelan journalist exiled in Buenos Aires, said Sunday’s election could be the last chance to put Maduro out of office, calling on his compatriots to vote em masse against Maduro. “There are people who emigrated who are right now traveling to Venezuela just to vote on Sunday. The fact that there are people in the country who decide not to vote, perhaps in the last opportunity to remove Maduro from power, is disappointing but, above all, very sad,” said Marquez. Front page picture: Facilities operated by PDVSA Source: PDVSA Insight by Jonathan Lopez

26-Jul-2024

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Earlier this week I suggested that there would be no end to the petrochemicals downcycle until 2026. But what if this isn’t just a normal downcycle? What if we see no return to the old petrochemical market conditions because of long-term shifts in the global economy due to the end of the China “economic miracle”, ageing populations in most of the world, the sustainability push and the impact on economies of climate change? Might artificial intelligence lead to such a large loss of employment that petrochemicals demand growth takes a further hit? In as little as three years’ time, in handy bullet points, this is what the petrochemicals world could look like: There is sufficient petrochemical supply already available to meet demand as global demand is shrinking. As China is said to be some 45% of global petrochemicals and other manufacturing capacity, and because it is so plugged into global supply chains, this is one of three locations where we are seeing some petrochemicals capacity growth. China is adding more capacity, where it can find sufficiently competitive feedstocks, for supply security reasons. The other locations are the Middle East because of its feedstock advantages, now improving because of more natural-gas liquids discoveries, and the US where government policy continues to support manufacturing. Major consolidation is taking place elsewhere to accommodate this new supply and shrinking demand. Petrochemical plant closures are taking place in Europe, South Korea, Singapore, Japan, and possibly even Southeast Asia. When electrification of vehicles took off, excitement began over petrochemicals demand replacing lost oil demand into transportation fuels. Good look with that idea as petrochemicals demand is, as mentioned, actually shrinking. Can you afford just one scenario, one plan? No, of course. Everything points to a much more ambiguous future than the comfortable and predictable petrochemicals world see enjoyed during the 1992-2021 Supercycle. 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.

26-Jul-2024

SINGAPORE (ICIS)–Typhoon Gaemi slammed into Fujian province in southern China on the evening of 25 July, bringing heavy rains as it continues to move inland on Friday, with the strong downpour expected to last three days. At 06:00 local time (22:00 GMT), Gaemi has weakened into a tropical storm and is centered at Yongtai County in Fuzhou City, according to China's Meteorological Administration (CMA) in its latest update. Gulei, which is a major chemical production site in Fujian, is not in the direct path of Typhoon Gaemi. No disruptions to production were reported. According to China's CCTV state news channel, Gaemi struck Fujian province at 19:50 local time on 25 July and is projected to cause widespread heavy rainfall across the country as it tracks northwest path. An orange typhoon warning has been issued, the second-highest level in China's four-tier warning system. The storm is expected to pass through Jiangxi province and continue to move north, gradually weakening in intensity. Heavy rains and strong winds are expected to batter eastern China from 26 to 27 July, with coastal areas and the East China Sea forecast to experience gale-force winds. Authorities in Fujian province initiated a mass evacuation, relocating more than 150,000 people from vulnerable areas ahead of Gaemi's arrival. Transportation services across the region have been severely disrupted, with train services suspended in parts of Fujian and most flights canceled at Quanzhou Jinjiang International Airport. Schools and offices have also been shuttered in many parts of Fujian province. The impact of Typhoon Gaemi has extended beyond Fujian, with Zhejiang province experiencing ferry suspensions and flight cancellations. Guangdong province has also canceled many eastbound train services in anticipation of the storm's arrival. PORT OPERATIONS AFFECTED Numerous ports along China's eastern seaboard have been closed, ferry services halted, and vessels ordered back to shore, according to crisis management firm Crisis24. The berthing of chemical and oil vessels in Ningbo is being controlled due to safety or environmental concerns, according to a shipping broker. There are restrictions in place for vessels mooring in Ningbo, possibly due to congestion or maintenance, the broker said. Vessels navigating the south channel of Zhangjiagang port must have a freeboard of more than four meters due to shallow water or strong currents, according to the broker. The north channel of Zhangjiagang was closed due to strong winds that occurred early on 25 July, causing safety concerns or difficulties for navigation, the broker said. Dense fog was also present in the Dalian area, causing navigation difficulties or reducing visibility, according to the broker. In Taiwan, the southern port city of Kaohsiung was particularly hard hit by Gaemi, with meteorologists reporting 135 centimeters (53 inches) of rainfall and extensive flooding after it made landfall shortly before midnight on 24 July. Kaohsiung is home to two major oil refineries belonging to Formosa Petrochemical Corp (FPCC) and CPC Corp that are connected to downstream petrochemical facilities. There have been no immediate reports of major disruptions to petrochemical production facilities in Kaohsiung. Meanwhile, operations at the Mailiao port are expected to resume on Friday after a three-day shutdown. The port is operated by Taiwanese major Formosa Petrochemical Corp (FPCC) which primarily serves the company’s Mailiao refinery and petrochemical complex. Taiwan's major petrochemical complexes are in Toufen and Mailiao in the northwest; and Ta-sheh and Linyuan in Kaohsiung City in the south. Separately, a Philippine-flagged oil tanker carrying 1.4 tonnes of industrial fuel oil sank amid inclement weather on 25 July, prompting fears of an oil spill. The MT Terra Nova sank near Lamao Point in Limay, Bataan, a province northwest of the capital, Manila, early on 25 July, the Philippine Coast Guard said. Sixteen crew members were rescued and at least one person died, it added. While the Philippines was spared a direct hit from Gaemi, the storm exacerbated seasonal monsoon rains, leading to extensive flooding in Metro Manila and surrounding areas. Additional reporting by Hwee Hwee Tan and Fanny Zhang

26-Jul-2024

BARCELONA (ICIS)–European petrochemical leaders should take inspiration from Japan, which is further ahead in reducing base chemicals while expanding in specialties and low carbon technologies. Japan hit by with high naphtha feedstock costs, growing global overcapacity 70% of crackers are more than 50 years old More than 10% of Japan’s crackers could close Downstream production also closing such as polyethylene terephthalate (PET) and paraxylene (PX) Japan basic chemicals losing ground, new focus on specialties Pushing materials for semiconductors, electronics Also expanding into bio-naphtha and pyrolysis oil Japanese companies want to licence their chemicals technologies Using ammonia and hydrogen to reduce dependence on LNG South Korea chemicals face existential crisis In this Think Tank podcast, Will Beacham interviews ICIS senior market development manager Itaru Kudose, ICIS senior consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

25-Jul-2024

SINGAPORE (ICIS)–South Korea's economy posted a slower second-quarter annualized growth of 2.3% compared with the 3.3% pace set in the preceding quarter amid sluggish domestic consumption, preliminary central bank data showed on Thursday. Q2 private consumption rose by 0.9% year on year, slowing from the 1.0% expansion in the first three months of 2024, the Bank of Korea (BoK) said in a statement. Manufacturing for the period rose by 4.5%, slowing from the 6.5% growth registered in January-March; while exports grew at a slower pace of 8.7% compared with the 9.1% expansion in the first three months of the year. On a quarter-on-quarter seasonally adjusted basis, the South Korean economy unexpectedly shrank by 0.2% in April-June, reversing the 1.3% growth posted in the first three months of this year. "We had expected South Korea’s GDP to slow sharply, but not to the point of falling into contraction territory," Dutch banking and financial information services provider ING said in a note. Q2 domestic growth components were weak except for government spending, which rose by 0.7% quarter on quarter, it said. Private consumption, construction, and facility investment dropped by 0.2%, 1.1% and 2.1%, respectively, The downside surprise came mainly from trade, as imports grew faster than exports, ING said. Q2 export growth moderated to 0.9% quarter on quarter, just half the 1.8% increase posted in Q1. Exports in Q2 were supported by higher shipments of chemicals and motor vehicles. Meanwhile, import growth rebounded to 1.2%, compared with a contraction of 0.4% in Q1, mainly buoyed by higher imports of crude oil and petroleum products. "Given the weaker-than-expected second quarter 2024 GDP, we have revised the annual GDP outlook downwards from 2.6% year-on-year to 2.3%," ING said. "We recently warned that the BOK would face challenges in its monetary policy decision as inflation cools towards 2% and sluggish domestic growth supports a rate cut, but at the same time, concerns about rising household debt are growing." In its latest forecast in May, the BoK raised its 2024 GDP growth forecast to 2.5% from 2.1% previously amid strong exports driven by robust chip demand. For inflation, the forecast average was unchanged at 2.6% for this year.

25-Jul-2024

EGPC seeks another five LNG cargoes Local industry restarts, power cuts suspended Egypt to bring in up to 26 cargoes over summer LONDON (ICIS)–Egypt is in the market for another five LNG cargoes as the country continues to address declining domestic gas production and soaring summer demand. Egyptian General Petroleum Corporation (EGPC) has issued a TTF-linked DES tender covering 13-14 and 25-26 August and 3-4, 12-13 and 21-22 September delivery windows, traders said on Wednesday. The two cargoes for delivery in August and the middle cargo in September would be delivered to Egypt’s Ain Sukhna terminal, while the first and third September cargoes would be sent to Jordan’s Aqaba terminal for further pipeline delivery. The tender closes on 29 July at 12:00 noon Cairo time and is valid to 18:00 on the same day. This is the fourth LNG tender round Egypt has issued covering the summer period this year, as the country has been forced to turn from LNG exports to imports. EGPC has previously been in the market seeking a total of 22 cargoes in three separate rounds. All cargoes were reported to have been awarded, expect for the 1-2 September cargo in a two-cargo tender that closed on 22 July, one trader said. If the latest tender is fully awarded, this could bring a total of 26 spot cargoes into Egypt from mid-June to mid-September. UREA PRODUCERS RESTART Latest data from association JODI shows a continued decline in domestic gas production. Average May production was around 138 million cubic meters (mcm)/day, down from 142mcm/day in April and 163mcm/day in May 2023. However, the flow of LNG seems to have brought some relief to local industry. Some Egyptian urea producers shut down for a day last week but then restarted, sources said, with one source attributing the ramp up to LNG imports. Five cargoes have been delivered since the start of July, according to ICIS data. As of this week, urea plants in Egypt are running at around 80% capacity on average. “I believe this will [be sustained] till the end of summer period,” a urea source said. “Heard also that old electricity stations have started to work with fuel oil as an alternative [for] gas,” they added. Only one of Abu Qir’s prilled urea lines is down, while its other two lines are running as normal. The government has also suspended its electricity load-shedding program from 21 July until mid-September, as recently announced by Prime Minister Mostafa Madbouly. The Prime Minister said the power cuts halted after the arrival of some LNG cargoes. The cuts were introduced last summer and resulted in daily two-to-three hour power cuts across most of the country. Additional reporting by Deepika Thapliyal.

24-Jul-2024

HOUSTON (ICIS)–The US election could see Donald Trump return as president with majorities in both legislative chambers, which could bring a reduction in excessive red tape, weaker support for electric vehicles (EVs) and impose even more ponderous tariffs and trade restrictions. Incumbent President Joe Biden has dropped out of the race, and current polls show Trump ahead in the election The House of Representatives and the Senate are closely split between the nation's two major parties, so the Republican party could obtain majorities in both legislative chambers Regardless of who wins the presidential election on 5 November, the outlook remains pessimistic for tariff relief and trade deals in the US US TRADE POLICY WILL REMAIN RESTRICTIVERegardless of who wins the presidential election, US trade policy will remain restrictive, which could leave the nation's chemical exports vulnerable to retaliatory tariffs imposed during a trade dispute. Also, tariffs could increase the cost of imports of critical chemical intermediates. Biden's campaign website did not discuss trade policy, and he recently dropped out of the race. But he maintained many of the tariffs that Trump introduced during his presidency in 2016-2020. In addition, Biden raised tariffs on EVs from China. He signed bills passed by Congress that required local content rules for government programs. Trump's platform proposed a baseline tariff, with the candidate mentioning 10% for most imports. For China, he mentioned tariffs of more than 60% during an interview on the television program Fox News. Trump's campaign website proposes a reciprocal trade act, under which the US could match tariffs that another country imposes on its exports. Although the platform concedes that reductions are possible, the proposal focuses on the potential of higher tariffs. TRUMP TO ROLL BACK BIDEN'S EV POLICIESBiden did not mention EVs on his campaign website. But during his presidential term, the federal government used multiple laws and regulatory statutes to promote EV adoption. If Trump becomes president, he has pledged to cancel what he calls the electric vehicle mandate. He specified many of Biden's policies that encouraged the adoption of EVs. EVs typically consume more plastics on a per unit basis than automobiles powered by internal combustion engines (ICEs). EVs also pose different material challenges, which is increasing demand for different plastics and compounds. Policies that prolong the use of ICE-based vehicles could extend the operating life of the nation's refineries. Companies could be more willing to invest in maintenance and repairs if they are confident that they could recoup their investments. Refineries produce many building block chemicals, such as propylene, benzene, toluene and mixed xylenes (MX). BIDEN, TRUMP PRESENT EXTREMES ON CHEM REGULATIONSBiden and Trump lay on opposite extremes of regulations and policy. Under Biden, the federal government has adopted numerous regulations, many of which the chemical industry has said provided them with little benefit given the time and expense of compliance. The past six months has been described as the worst regulatory environment that the chemical industry has ever seen. That burdensome regulatory climate could persist if a Democrat wins the election, since personnel from the Biden administration could remain in place. The following lists some of the regulatory policies that could either persist under a Democratic administration or weaken under a Trump administration: The Environmental Protection Agency (EPA) has adopted a whole chemical approach in determining whether a substance poses an unreasonable risk under the nation's main chemical-safety program, known as the Toxic Substances Control Act (TSCA). The regulator is currently reviewing vinyl chloride monomer (VCM), acrylonitrile (ACN) and aniline, a feedstock used to make methylene diphenyl diisocyanate (MDI). Changes to the Clean Waters Act, the Risk Management Program (RMP) and the Hazard Communication Standard that were made by Biden. Biden has promoted environmental justice throughout the federal government. Environmental justice could make it harder for chemical companies to expand existing plants or build new ones. Because these are federal policies, a different president could reverse them. Trump could try to unravel some of Biden's rules to the degree possible under executive authority. However, some of the rules will persist because of entrenched bureaucracy or because they are final. The pace of new regulations would likely slow under a Trump presidency. He has pledged to restore his order that for every new regulation introduced by the federal government, two existing ones must be eliminated. OTHER POLICY DIFFERENCESSuperfund tax: If Trump wins the presidency and Republicans win the legislative branch, that could set up a repeal of the Superfund tax, which imposes taxes on several building-block chemicals and their derivatives. Republican legislators have already introduced bills to repeal the tax. Trump tax cuts: Trump has pledged that he would make his 2017 tax cuts permanent. These are set to expire at the end of 2025 from his previous term in 2016-2020. Oil production: Biden has imposed several restrictions on oil and gas production on federal land and on offshore leases, although this did not stop production from surging in the Permian Basin, much of which is outside of government control. Trump has pledged to remove those restrictions. Insight by Al Greenwood Thumbnail shows US capitol. Image by Lucky-photographer

22-Jul-2024

LONDON (ICIS)–Mexican petrochemicals have much to gain under President-Elect Claudia Sheinbaum as the country taps into the nearshoring trend, which will require large public and private investments, according to an executive at polymers producer Braskem Idesa. Sergio Plata, head of institutional relations and communications at the mostly polyethylene (PE) producer, added that nearshoring – North American companies bringing back to the region production facilities – will require a large country effort, which the public sector alone now dominates the energy sector, will not be able to provide. Plata added that the first signs from Sheinbaum towards chemicals were encouraging: even as President-Elect, she has already visited the petrochemicals production hub in the state of Veracruz – the largest in the country. In it, she mentioned specific industry issues such as supply of certain raw materials which were very much welcomed by executives. Last week, ICIS published the first part of this interview, in which Plata said supply of ethane from Mexico’s state-owned crude oil major Pemex had stabilized after a renegotiation of the contract’s terms, although he added global PE market remained in the doldrums and a recovery may not arrive until the second half of 2025. Braskem Idesa operates the Ethylene XXI complex in Coatzacoalcos, south of the industrial state of Veracruz, which has capacity to produce 1.05 million tonnes/year of ethylene and downstream capacities of 750,000 tonnes/year for high-density polyethylene (HDPE) and 300,000 tonnes/year for low-density polyethylene (LDPE). Braskem Idesa is a joint venture made up of Brazil’s polymers major Braskem (75%) and Mexican chemical producer Grupo Idesa (25%). WHAT SORT OF PRESIDENT SHE WILL BESheinbaum won an overwhelming majority in the Presidential election in June, with 60% of the vote, and her party Morena achieved a ‘supermajority’ in parliament of two-thirds which initially spooked financial markets and brought the Mexican peso down. Financial analysts have warned that, for Mexico to tap into the nearshoring trend, its infrastructure – transport but also aged electricity transmission lines – will need to be upgraded during the remaining of this decade. That effort, most analysts agree, will only be possible with large sums of private investment, so the state-owned electricity utility CFE may need to give some way to private players. Equally, during Andres Manuel Lopez Obrador’s term, Mexico’s emissions rose, in opposition to the country’s commitments agreed in the 2015 Paris Accord and later enshrined into its domestic law. Lopez Obrador handpicked Sheinbaum to succeed him. Despite not being that apart generationally – he is 70, she is 62 – the President-Elect is a climate scientist who started her career in environmental roles, and most analysts think she may run free from her successor – by personal choice or forced by the circumstances – in issues like climate, if she wants to keep Mexico as a respected economy which fulfils its commitments. “I think she has a very clear vision in this regard – she knows the commitments [Mexico adhered to]. Something we are liking a lot is the appointments she is making – people with experience to work in the departments they are being appointed to: they have the necessary technical knowledge,” said Plata. “We have also seen her approaching the private sector and that, without a doubt, for us as an industry that is a very good start. In those meetings, our concerns about compliance with regulations have been raised. Something is very clear: to grasp the opportunities in nearshoring, collaboration with private sector is essential to bring real benefits to all Mexicans.” Plata said that, while Sheinbaum has not met Braskem Idesa yet, she has had a busy schedule meeting with industrialists, including with the country’s chemicals trade group Aniq as well as the Veracruz industrial trade group, which Plata presides. “When she visited the south of Veracruz, she talked about reactivating the petrochemical industry, and talked about very specific issues that the industry is worried about, such production of ethane, of ethylene, of ammonia: things that sounded very good to us,” said Plata. MEXICO, VENEZUELA COMPARISONSHe was asked if, given Morena’s ‘supermajority’ in parliament, Mexico could become a new Venezuela – when the governing party takes over all resorts of power and the country stops being a democracy worth the name. “I really believe that her vision is constructive, and she intends to work with the private sector so her Administration can work for everyone. We will have to see what decisions she takes along the way. For instance, she has spoken many times about the interoceanic corridor [a project to link Mexico’s east and west coasts by water],” said Plata. “Precisely, the promotion of the corridor has at its base the chemicals and the petrochemicals industries, because one of the objectives of the corridor is to take advantage of the raw materials in the area, which would benefit petrochemicals but also agriculture, for instance, and give added value. We see plenty of opportunities there.” Front page picture: Braskem Idesa’s facilities in Coatzacoalcos Source: Braskem Idesa Interview article by Jonathan Lopez

22-Jul-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 19 July. Westlake appoints Jean-Marc Gilson as new CEO, effective today US-based chemical and building materials producer Westlake Corp has appointed Jean-Marc Gilson as president and CEO, effective 15 July. He succeeds Albert Chao, who becomes executive chairman of the Westlake board of directors. SW '24: US fertilizer demand lacking as farm economics unsupportive Unfavorable farming fundamentals, including weaker grain prices, high cost of credit, and weather issues will continue to hit demand for fertilizers, said market participants on the sidelines of the Southwestern fertilizer conference (14-18 July). SHIPPING: USG-Asia liquid chem tanker rates plunge on ample space availability after Beryl Liquid chemical tanker rates from the US Gulf to Asia are plunging this week as plant shutdowns and delays in the aftermath of Hurricane Beryl have led to “gaping large holes of space”, shipping brokers said on Wednesday. INSIGHT: OUTLOOK: US chems may see revival of programs, UN plastic treaty The US chemical industry could see the return of some popular trade and chemical-safety programs later this year, and customers of the major railroads could get their first chance to switch carriers if they get bad service. Global IT issues impact energy trading; Trayport services return IT issues that impacted energy trading systems on Friday morning were gradually being resolved, with market participants regaining access to critical applications. ICIS Economic Summary: US eyes coming interest rate cuts as consumer spending, inflation eases With solid progress on disinflation and the labor market easing, financial markets are sharpening their focus on the coming interest rate cut cycle, with the first move expected in September. Ten-year Treasury yields are collapsing and economically sensitive stocks surging, as consensus moves to as much as three cuts of 25 basis points by the Federal Reserve in 2024 and further easing next year.

22-Jul-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 19 July. NEWS Braskem Idesa ethane supply more stable, PE prices to recover in H2 2025 – exec Supply of ethane from Pemex to polyethylene (PE) producer Braskem Idesa is now more stable after a renegotiation of the contract – but the global PE market remains in the doldrums, according to an executive at the Mexican firm. INSIGHT: Colombia’s wide single-use plastics ban kicks off amid industry reluctance Colombia’s single-use plastic ban, which affects a wide range of products, kicks off amid some industry reluctance after a hurried implementation, and with provisions to revise the legislation after a one year trial period. Brazil’s chemicals capacity utilization falls to record low in May at 58% The utilization rate at Brazil's chemical plants fell to 58% in May, the lowest level since records began in 1990, the country’s chemicals trade group Abiquim said on Wednesday. Brazil’s floods hit GDP growth in 2024 but strong recovery in 2025 – IMF The IMF has revised Brazil’s economic outlook for 2024, with GDP growth now forecast at 2.1%, down from an earlier projection of 2.2%, because of the floods in Rio Grande do Sul. Mota-Engil, PEMEX agree to build new ammonia, urea and AdBlue plant in Mexico Mota-Engil, through its subsidiary MOTA-ENGIL MEXICO, has signed an agreement with Pemex Transformación Industrial, a subsidiary of state-owned energy major Petróleos Mexicanos (“PEMEX”), to construct a fertilizer plant in Escolin in the state of Vera Cruz. Harvest Minerals undertakes rare earth elements exploration at Brazil fertilizer project Fertilizer producer Harvest Minerals announced a two-phase rare earth elements exploration program has commenced at its Arapua project in Brazil. Stolthaven Terminals chosen as potential operator for Brazil green ammonia export terminal Logistics firm Stolthaven Terminals announced that in cooperation with Global Energy Storage (GES), it has been selected as the only potential operator to design, build and operate a green ammonia terminal in Brazil to be located within the industrial export zone at Pecem in the state of Ceara. Silver Valley Metals selling Idaho project to refocus on Mexico lithium and SOP project Brownfield exploration company Silver Valley Metals announced it has signed an asset purchase agreement for the Ranger-Page project in Idaho which will allow it to refocus efforts at its lithium and potash project in central Mexico. BHP enters into further agreement with Vale over 2015 Brazil dam failure BHP announced it has entered into an agreement with Vale regarding group action proceedings in the UK in respect of the Fundao Dam failure in Brazil which occurred in 2015. PRICING Lat Am PE international prices stable to up on higher US export offers International polyethylene (PE) prices were assessed as steady to higher across Latin American countries on the back of higher US export offers. PP domestic prices fall in Argentina on sluggish demand, ample supply Domestic polypropylene (PP) prices were assessed lower in Argentina on the back of sluggish demand and ample supply. In other Latin American countries, prices were unchanged. US Gulf sees PVC price decline, Latin America stays stable Polyvinyl chloride (PVC) demand in Brazil has shown fluctuations from weak-to-stable this July, accompanied by sufficient supply. Although market prices have stabilized, local prices continue to face pressure following a recent price drop in the US Gulf market.

22-Jul-2024