Methyl methacrylate (MMA) and polymethyl methacrylate (PMMA)

TORONTO (ICIS)–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. In an election debate on Thursday evening, Prime Minister Mark Carney and Pierre Poilievre, leader of the Conservatives, both said that retaliatory tariffs were necessary to deter the US tariff threat. However, Carney said that Canada could not impose full-scale “dollar-for-dollar” counter-tariffs, given that the US economy is more than 10 times larger than Canada’s economy. Rather, the Liberals would aim at counter-tariffs that have maximum impact on the US, but only minimum impact on Canada. In opinion polls about the elections, the Liberals are currently on track for their fourth consecutive victory since 2015. Carney took over from former Prime Minister Justin Trudeau on 14 March. AUTO EXEMPTION Carney also confirmed that the government will be granting exemptions to its 25% retaliatory tariffs on US autos that took effect on 9 April. The exemptions will apply to automakers that maintain production and investments in Canada, he said. According to information on the website of Canada’s finance ministry, a “performance-based remission framework” would allow automakers that continue to manufacture vehicles in Canada to import “a certain number” of US-assembled, USMCA-compliant vehicles into Canada, free of retaliatory tariffs. The number of tariff-free vehicles a company is permitted to import would be reduced if there are reductions in the automakers’ Canadian production or investments, according to the ministry. The automotive industry is a major global consumer of petrochemicals that contributes more than one-third of the raw material costs of an average vehicle. The automotive sector drives demand for chemicals such as polypropylene (PP), along with nylon, polystyrene (PS), styrene butadiene rubber (SBR), polyurethane (PU), methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). Please also visit the ICIS topic pages:Automotive: Impact on chemicals, and US tariffs, policy – impact on chemicals and energy Thumbnail photo of Stellantis' Canadian auto assembly plant at Windsor, Ontario, where production was suspended because of tariff uncertainties (photo source: Stellantis)

18-Apr-2025

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US reversed direction and edged slightly higher this week as US tariffs went into effect and as capacity tightened. The increases are in line with global average rates, which ticked higher by 3% this week, according to supply chain advisors Drewry and as shown in the following chart. Rates from Shanghai to Los Angeles rose by 3% and rates from Shanghai to New York rose by 2%, as shown in the following chart. Drewry expects rates to increase in the coming weeks due to tariffs and reduced capacity. Rates from online freight shipping marketplace and platform provider Freightos also rose over the week, with Asia-USWC rates up by 3% and Asia-USEC rates up by 5%. Judah Levine, head of research at Freightos, said many shippers rushed to get cargo loaded in the small window before tariffs went into effect, but noted that there are concerns that the sudden policy changes could also mean delays at US customs for arriving shipments. Levine said he expects to see a drop in demand for containers into the US as shippers wait for the situation to stabilize. Peter Sand, chief analyst at ocean and freight rate analytics firm Xeneta, said global maritime supply chains have become more complex amid the trade war between the US and China. “Shippers will be monitoring freight costs across the major and secondary trades,” Sand said. “Japan, for example, is one the key trade partners with the US, so a rush to frontload goods could put upward pressure on spot rates on this trade.” Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES HOLD STEADY US liquid chemical tanker freight rates as assessed by ICIS held steady this week despite downward pressure for several trade lanes. There is downward pressure on rates along the USG-Asia trade lane as charterers are seeking to divert cargoes to other regions. Overall, most market participants continue to struggle with tariff uncertainties and other alternatives. As a result of the limited cargo activity, spot rates appear to be softening. However, methanol requirements from the region remain active to Asia. Similarly, rates from the USG to Rotterdam were steady this week, even as space among the regular carriers remains limited. However, several larger size cargos of caustic soda, methanol, MTBE, ethanol and styrene were seen in the market. Several outsiders have come on berth for both April and May, adding to the available tonnage for completion cargos. Easing demand for clean tankers has attracted those vessels to enter the chemical sector. Contract tonnage continues to prevail, with interest in styrene, methyl tertiary butyl ether (MTBE), methanol and ethanol. For the USG to South America trade lane, rates remain steady with a few inquiries for methanol and ethanol widely viewed in the market. Overall, the market was relatively quiet with fewer COA nominations, putting downward pressure on rates as more space has become available. On the bunker side, fuel prices have declined as well, on the back of plummeting energy prices, as a result week over week were softer. Additional reporting by Kevin Callahan Thumbnail image shows a stack of shipping containers. Image by Shutterstock

11-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)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 March. Japan Mar manufacturing activity deteriorates as output, new orders fall By Nurluqman Suratman 24-Mar-25 12:28 SINGAPORE (ICIS)–Japan's manufacturing purchasing managers' index (PMI) fell to 48.3 in March, marking its lowest point since February 2024 amid a sharp drop in output and new orders, preliminary estimates from au Jibun Bank showed on Monday. INSIGHT: Chandra Asri prioritizes Indonesia chlor-alkali-EDC project By Pearl Bantillo 24-Mar-25 19:42 SINGAPORE (ICIS)–Indonesian producer Chandra Asri Petrochemical is proceeding with its flagship chlor-alkali (CA) ethyl dichloride (EDC) project, taking a bottom-up approach in its planned second petrochemical complex amid a challenging global landscape. Asia MEK faces demand slowdown, mounting cost pressure entering Q2 By Joy Foo 25-Mar-25 13:19 SINGAPORE (ICIS)–Asia’s methyl ethyl ketone (MEK) prices have declined in March due to weakened demand, but Chinese makers’ cost pressure and low inventories may limit further market downside in the near term. INSIGHT: China's solar policy deadlines fuel volatility of EVA market By Joanne Wang 26-Mar-25 12:00 SINGAPORE (ICIS)–The recurring “rush-to-install” phenomenon in China’s photovoltaic (PV) industry- marked by deadlines like April 30 and May 31 – has profound ripple effects on China’s EVA (Ethylene Vinyl Acetate) market, a critical material for PV encapsulation films. INSIGHT: Can Q2 heavy turnarounds pull Asia MEG market out of its malaise? By Judith Wang 26-Mar-25 13:00 SINGAPORE (ICIS)–Asia's monoethylene glycol (MEG) prices had plunged to a six-month low by late March driven by slower-than-expected demand recovery and ample domestic supply in China. Emission regulations, lower cost needed for alternative marine fuels support – IEA By Jonathan Yee 26-Mar-25 17:41 SINGAPORE (ICIS)–Accelerating the transition to cleaner energy in the maritime sector will require emission regulations and financial incentives surrounding alternative fuels such as methanol and ammonia, according to the International Energy Agency (IEA)’s Regional Cooperation Centre. China presses on with PP exports as supply pressure intensifies By Jackie Wong 27-Mar-25 12:18 SINGAPORE (ICIS)–With self-sufficiency on the rise and even more production capacities coming onstream through 2027, China is pressing on with its polypropylene (PP) exports, even as weak economic conditions and slow end-product demand persist. Asia automakers’ shares slump on US’ 25% tariffs on car imports By Jonathan Yee 27-Mar-25 12:14 SINGAPORE (ICIS)–Shares of automotive companies in Asia slumped on Thursday after US President Donald Trump signed an executive order imposing 25% tariffs on all foreign-made cars from 2 April. Asia imports more US ethane feedstock on diversification, trade diplomacy By Jonathan Yee 27-Mar-25 15:30 SINGAPORE (ICIS)–Asian petrochemical firms are expected to import more US ethane feedstock in the coming years as energy diversification efforts grow in the region, alongside southeast Asian leaders looking to improve trade relations with the US amid President Donald Trump’s tariff threats on countries with trade surpluses. S Korea carmakers call for government measures to mitigate US tariff impact By Nurluqman Suratman 28-Mar-25 12:44 SINGAPORE (ICIS)–South Korea’s automotive industry leaders on Friday called on the government to implement measures to soften the expected impact of US tariffs, which will take effect in early April. INSIGHT: Asia adipic acid waits on verdict from Europe ADD investigations By Josh Quah 28-Mar-25 13:00 SINGAPORE (ICIS)–An ongoing anti-dumping duty investigation from the European Commission on adipic acid imports from China have rocked Asia adipic markets in recent weeks.

31-Mar-2025

LONDON (ICIS)–Shell is looking to improve performance of its chemicals asset base by exploring strategic partnerships in the US and closures in Europe, the UK-based oil and gas major said on Tuesday. Presented at the firm’s capital markets day on Tuesday, Shell is looking to improve returns and cut capital spent on chemicals by 2030, through “high-grading” and closing select assets in Europe and potentially reducing its equity in US operations. The Wall Street Journal reported earlier this month that the company had tapped Morgan Stanley to conduct a strategic review of its chemicals portfolio, with potential sales of US and European assets on the table. The company did not comment on the reports in early March, but the focus on partnerships for its US chemicals assets points to the company retaining stakes in operations such as its Pennsylvania cracker and polyolefins complex. Shell has already rationalised part of its chemicals footprint in Asia with the sale of its Singapore refinery and petrochemicals assets to CAGPC, a partnership between Chandra Asri and Glencore Asian Holdings. The deal is expected to close in the first quarter of 2025. The firm has also announced some smaller closures in Europe over the last few years, including its orthoxylene and paraxylene assets in Wesseling, Germany, and its methyl ethyl ketone (MEK) production in Pernis, Netherlands. The Wesseling assets closed in 2023, with the Pernis measures expected in March-May this year. A spokesperson for the company declined to comment on what European assets are currently under review, or the timeline for the process. The capital market day strategy also includes a more substantial push on liquefied natural gas (LNG), targeting a 4-5% annual increase in sales through to 2030. The company is also looking to increase upstream production with annual oil and gas sales targeted to grow 1% to 2030, meaning that its 1.4 million barrel/day production levels over the next half-decade. “We want to become the world’s leading integrated gas and LNG business… while sustaining a material level of liquids production,” said CEO Wael Sawan. The producer is also looking ramp up cost-cutting, from $2 billion – 3 billion by the end of this year compared to 2022 levels, to $5 billion to $7 billion by the end of 2028. Thumbnail photo source: Shell

25-Mar-2025

SAN ANTONIO (ICIS)–Here is a summary of chemical market stories, heading into this year’s International Petrochemical Conference (IPC). Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 23-25 March in San Antonio, Texas. AFPM ‘25: US tariffs, retaliation risk heightens uncertainty for chemicals, economies The threat of additional US tariffs, retaliatory tariffs from trading partners, and their potential impact is fostering a heightened level of uncertainty, dampening consumer, business and investor sentiment, along with clouding the 2025 outlook for chemicals and economies. AFPM '25: New US president brings chems regulatory relief, tariffs The new administration of US President Donald Trump is giving chemical companies a break on regulations and proposing tariffs on the nation's biggest trade partners and on the world. AFPM ’25: Shippers weigh tariffs, port charges on global supply chains Whether it is dealing with on-again, off-again tariffs, new charges at US ports for carriers with China-flagged vessels in their fleets, or booking passage through the Panama Canal, participants at this year's IPC have plenty to talk about. AFPM ’25: LatAm chemicals face uncertain outlook amid oversupply, trade policy woes Latin American petrochemicals face ongoing challenges from oversupplied markets and poor demand, with survival increasingly dependent on government protectionist measures. AFPM ’25: US propane supply long; ethane prices rising The US petrochemical industry is seeing a glut of upstream propane supply and rising prices for key feedstock ethane. AFPM ’25: Weak demand takes toll on US ethylene as supply concerns ease Persistently poor demand, underpinned by worries over global tariff policies and a sluggish US economy are putting downward pressure on US ethylene prices. AFPM ’25: US propylene demand weak despite recent supply disruptions Weak demand in the US propylene market has counterbalanced recent supply disruptions, pushing spot prices and sentiment lower. AFPM ’25: US BD supply lengthening; rubber demand optimistic US butadiene (BD) has been rather balanced in Q1 despite a couple of planned turnarounds and cracker outages limiting crude C4 deliveries, but supply is expected to lengthen, and demand is cautiously optimistic. AFPM ’25: US aromatics supply ample amid low demand Domestic supply of aromatics is ample and demand is relatively poor. AFPM ’25: US methanol exports, bunker fuel demand to grow, but domestic demand sentiment low US methanol participants’ outlook on the key downstream construction and automotive sectors has dimmed, but optimism continues for export growth and bunker fuel demand. AFPM ’25: Tariffs, weak demand weigh on US base oils Uncertain US trade policy paired with already weak finished lubricant demand weighs on base oil market sentiment. AFPM ’25: Trade policies dampening outlook for Americas PE The US polyethylene (PE) industry started 2025 with some early successes amid the backdrop of lower year-on-year GDP growth. Now, with the impact of volatile tariff policy on top of the aforementioned lower GDP forecast, the outlook for PE has fallen. AFPM '25: Tariffs to shape the trajectory of caustic soda in US and beyond The North American caustic soda market is facing continued headwinds coming via potential tariffs, a challenged PVC market and planned and unplanned outages. US President Donald Trump has threatened to implement tariffs on Mexico, Canada and the EU as well as on products that are directly tied to caustic soda but has delayed enactment on multiple occasions. These delays have bred uncertainty in the near-term outlook, impacting markets in the US and beyond. AFPM '25: US PVC to face headwinds from tariffs, economy The US polyvinyl chloride (PVC) market is facing continued headwinds as tariff-related uncertainties persist. The domestic PVC market is expected to grow between 1-3% in 2025 but continues to face challenges in housing and construction. Meanwhile, export markets continue to wrestle with the threat of protectionist policies and tariffs at home and abroad. AFPM ’25: US spot EG supply balanced-to-tight on heavy turnaround season; EO balanced Supply in the US ethylene glycols (EG) market is balanced-to-tight as the market is undergoing a heavy turnaround season. The US ethylene oxide (EO) market is balanced as demand from derivatives including surfactants is flat. AFPM ’25: US PET prices facing upward price pressure on tariffs, China’s antimony exports ban, peak seasonUS polyethylene terephthalate (PET) prices continue to face volatility as the market assesses the impacts of potential tariffs on imports from Canada and Mexico. AFPM ’25: US PP volatility persists amid weak demand The US polypropylene (PP) market is facing weak demand, raw material volatility and tariff uncertainty. AFPM ’25: US ACN rationalization inevitable amid declining demand Production of acrylonitrile (ACN) in the US is being reduced or shuttered as already weak demand continues to fall and as downstream plants are shutting down. Changes to the supply/demand balance, trade flows and tariff uncertainties are weighing on market participants. AFPM ’25: US nylon trade flows shifting amid global capacity changes, tariff uncertainties US nylon imports and exports are changing as capacity becomes regionalized and geographically realigned. The subsequent changes to trade flows, price increase initiatives and tariff uncertainties are weighing on market participants. AFPM ’25: US ABS, PC face headwinds from closure and oversupply The US acrylonitrile butadiene styrene (ABS) and polycarbonate (PC) markets are lackluster and oversupplied. Demand remains soft kicking off the year, and the closure of INEOS’s Addyston, Ohio, ABS facility and tariff uncertainties continue to pressure ABS and PC markets. AFPM ’25: US styrene market facing oversupply amid weak demand, trade uncertainty The US styrene market is transitioning from a period of supply tightness to one of potential oversupply, driven by weak derivative demand and the recent restart of Styrolution’s Bayport, Texas, unit. This return to full operation, coupled with subdued demand, suggests ample supply in the short term. AFPM ’25: US PS faces slow start to 2025 amid weak demand Domestic polystyrene (PS) demand started the year off weaker than expected, with limited restocking and slower markets. AFPM ’25: US phenol/acetone face challenging outlook heading into Q2 US phenol and acetone are grappling with a lot of moving pieces. AFPM ’25: US MMA facing new supply amid volatile demand heading into Q2 US methyl methacrylate (MMA) is facing evolving supply-and-demand dynamics. Roehm's new plant in Bay City, Texas, is in the final stage of start-up, but is not in operation yet. There is anticipation of sample product being available in Q2 for qualification purposes. AFPM ’25: US epoxy resins in flux amid duties, tariffs heading into Q2 US epoxy resins is grappling with changes in duties and trade policies. AFPM ’25: Acetic acid, VAM eyes impact of tariffs on demand, outages on supply The US acetic acid and vinyl acetate monomer (VAM) markets are waiting to see what impact shifting trade and tariff policy will have on domestic and export demand, while disruptions are beginning to tighten VAM supply. AFPM '25: US etac, butac, glycol ethers markets focus on upcoming paints, coatings demand US ethyl acetate (etac), butyl acetate (butac) and glycol ethers market participants are waiting to see if the upcoming paints and coatings season will reinvigorate demand that has been in a long-term slump. AFPM ’25: Low demand for US oxos, acrylates, plasticizers countering feedstock cost spikes US propylene derivatives oxo alcohols, acrylic acid, acrylate esters and plasticizers have been partly insulated from upstream costs spikes by low demand, focusing outlooks on volatile supply and uncertain demand. AFPM ’25: N Am expectations for H2 TiO2 demand rebound paused amid tariff implementations After initial expectations of stronger demand for titanium dioxide (TiO2) in the latter half of 2025, the North American market is now in flux following escalating tariff talks. AFPM ’25: US IPA, MEK markets look to supplies, upstream costs US isopropanol (IPA) market has an eye on costs as upstream propylene supplies are volatile, while the US methyl ethyl ketone (MEK) market is evaluating the impact of global capacity reductions. AFPM ’25: US melamine prices continue to face upward pressure on duties, tight supply US melamine is experiencing upward pricing pressure, thanks in large part to antidumping and countervailing duty sanctions and tight domestic supply. AFPM '25: US polyurethane industry braces for cascade effect of tariffs US polyurethane prices for toluene diisocyanate (TDI), methylene diphenyl diisocyanate (MDI) and a variety of polyether and polyester polyols continue to see increase pressure as the market assesses the impacts of potential tariffs on imports from Canada and Mexico. AFPM ’25: US BDO market eyes costs, demand outlook uncertain US 1,4 butanediol (BDO) production costs have been mounting, and margins have been crunched. Supply is ample and demand has been lackluster. AFPM ’25: US propylene glycol demand begins softening after prior feedstock-driven uptick After a cold winter with strong demand for seasonal propylene glycol (PG) end-uses in antifreeze and de-icers in many parts of the US, demand is starting to cool. AFPM ’25: US MA sentiment cautious ahead of potentially volatile Q2 US maleic anhydride (MA) is facing a volatile economic backdrop. Spot feedstock normal butane has fallen below $1/gal in March due to the end of peak blending season and strong production. AFPM ’25: US PA, OX face trade uncertainty, production constraints US phthalic anhydride (PA) and orthoxylene (OX) demand remains relatively weak. Prices have been remaining flat and are expected to settle lower this month after losing mixed xylene (MX) price support and underlying crude oil price declines. AFPM '25: Tight feedstock availability to keep US fatty acids, alcohols firm despite demand woes Tight supplies and high prices for oleochemical feedstocks are expected to keep US oleochemicals prices relatively firm, as continued macroeconomic headwinds, including escalating trade tensions between the US and other countries, only further weigh on consumer sentiment and discourage players from taking long-term positions. AFPM '25: Historic drop in biodiesel production to keep US glycerine relatively firm A drop in US biodiesel production to levels not seen since Q1 2017 is likely to keep the floor on US glycerine prices relatively firm through at least H1 as imports of both crude and refined material fail to fully offset the short-term shortfalls in domestic supply. PRC ’25: US R-PET demand to fall short of 2025 expectations, but still see slow growth As the landmark year, 2025, swiftly passes, many within the US recycled polyethylene terephthalate (R-PET) industry doubt the demand and market growth promised by voluntary brand goals and regulatory post-consumer recycled (PCR) content minimums will come to fruition. PRC ’25: US pyrolysis recycling players churning through regulatory, economic uncertainty As both regulatory and economic landscapes continue to change, production and commercialization progress among pyrolysis based plastic recyclers continues to be mixed. Pyrolysis, a thermal depolymerization/conversion technology which targets polyolefin-heavy mixed plastic waste, or tires, is expected to become the dominant form of chemical recycling over the next decade. Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Macroeconomics: Impact on chemicals topic page Visit the Logistics: Impact on chemicals and energy topic page Visit the Recycled Plastics topic page

22-Mar-2025

SINGAPORE (ICIS)–Weak downstream demand, exacerbated by economic and geopolitical uncertainties, keeps sentiment bearish and buyers cautious across petrochemical markets in Asia. Sluggish demand to continue into Q2 amid oversupply China’s surging exports a concern among Asia producers China, South Korea prepare stimulus measures amid US tariffs REGIONAL PRODUCERS FEEL STRAIN China’s aggressive capacity expansion which led to increased exports has been exerting pressure on other Asian producers. For caprolactam (capro), the country turned into a net exporter in 2024, with shipments doubling from two years ago. This flood of Chinese exports has intensified regional competition, forcing capro plant closures in Japan and Thailand due to unsustainable margins. In the ethylene vinyl acetate (EVA) market, massive capacity expansions in the next three years are projected to push China’s production capacity to 63% of the global total by 2027. As a result, the country’s EVA imports are likely to decline further, while exports are projected to continue increasing. In the naphtha market, supply constraints due to limited arbitrage cargoes and higher demand from new cracker start-ups in China and Indonesia have driven intermonth spreads to the highest levels seen in a year on 11 March. Refinery maintenance in China has also further restricted domestic naphtha supply, tightening overall availability in Asia. For aromatics such as benzene, toluene, xylene, paraxylene (PX), and mixed xylene (MX), prices fell in the week ended 14 March, weighed down by ample inventories and subdued demand. For acetone, prices have risen on tight supply because of plant maintenance, squeezing the margins of downstream isopropanol (IPA) producers, with LG Chem planning to shut its plant for a month from end-March. Meanwhile, palm oil prices in southeast Asia remain elevated due to lower production and stock levels, prompting a shift to cheaper alternatives like soybean oil in key markets such as India. Meanwhile, palm oil prices in southeast Asia remain elevated due to lower production and stock levels, prompting a shift to cheaper alternatives like soybean oil in key markets such as India. Consequently, downstream fatty alcohols prices increased. Although plants in Malaysia and Indonesia have expanded capacities, these will be offset by expected turnarounds during March to May. BEARISH SENTIMENT AMID TRADE WARS Industry players are navigating highly volatile markets amid the revival of the US-China trade war, with fears of a more widespread trade disruption amid the US’ protectionist measures under President Donald Trump. Buyers are generally cautious about building too much inventory amid continued weakness in demand. In the MX market, buyers in southeast Asia are maintaining sufficient inventories and avoiding additional spot purchases. For methyl methacrylate (MMA), domestic market in China remains sluggish due to high stocks and lackluster demand, while a strong US dollar was further dampening export demand. Similarly, the vinyl acetate monomer (VAM) market is also facing weak demand in China, with traders struggling to offload high inventories due to slow spot trade activity. US’ tariffs on all steel and aluminum imports which took effect on 12 March are adding to regional economic concern, particularly for South Korea, which is as major steel exporter to the world’s biggest economy. China, whose economy has been slowing down, plans “promote reasonable wage growth by strengthening employment support in response to economic conditions”, to boost domestic consumption, its State Council said on 16 March. Among the new economic stimulus measures are implementing paid annual leaves for workers, expanding property income channels and accelerating development in new technologies. Focus article by Jonathan Yee Additional reporting by Jasmine Khoo, Angeline Soh, Samuel Wong, Isaac Tan, Chris Qi, Helen Yan, Rita Wang, Elaine Zhang, Yvonne Shi, Li Peng Seng and Joanne Wang Thumbnail image: Qingdao Port Trade, China – 13 March 2025 (Costfoto/NurPhoto/Shutterstock)

17-Mar-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 February. Egypt eyes 3.1m tonne/year capacity at proposed $7bn petrochemical complex By Nurluqman Suratman 24-Feb-25 12:58 SINGAPORE (ICIS)–Egypt’s proposed $7 billion petrochemical complex in New Alamein City is slated to produce 3.1 million tonnes/year of "eight specialized" products, according to project leader Shard Capital Partners. INSIGHT: Suez Canal shipping cautiously picks up amid Israel-Hamas ceasefire By Nurluqman Suratman 24-Feb-25 15:12 SINGAPORE (ICIS)–Forty-seven ships have re-routed to the Suez Canal in Egypt since early February, indicating a cautious pick-up of activity in the crucial trade lane – the shortest connection between Asia to Europe – amid a ceasefire between Israel and Palestine militant group Hamas in Gaza. Middle East, Pakistan PP/PE trade activity expected to be slow throughout Ramadan By Nadim Salamoun 24-Feb-25 16:24 DUBAI (ICIS)–Trade activity for polypropylene (PP) and polyethylene (PE) in the East Mediterranean (East Med), Pakistan, and GCC (Gulf Cooperation Council) markets has already slowed down by mid-February ahead of the Ramadan seasonal lull, and is expected to remain slow until the end of Eid al-Fitr during the first week of April. INSIGHT: China PE demand growth to lag capacity growth for 2025 By Amy Yu 25-Feb-25 13:00 SINGAPORE (ICIS)–Inner Mongolia Baofeng’s new 550,000 tonne/year coal-based PE facility is set to start trial runs in late February, marking the third new unit for the company following two similar facilities starting the commercial operation in November 2024 and January 2025. India’s Mar methanol supply to tighten after Qatar Fuel Additives announces FM By Damini Dabholkar 26-Feb-25 13:28 SINGAPORE (ICIS)–Qatar Fuel Additives Co (QFAC) on 25 February announced a force majeure on its methanol supply after shutting down its 1.1 million tonnes/year plant in Mesaieed due to a technical issue. INSIGHT: India petrochemical production pivots to imported ethane feed By Priya Jestin 26-Feb-25 16:00 MUMBAI (ICIS)–A growing number of petrochemical companies in India are looking at using more ethane instead of the more expensive naphtha as feedstock for production, which may help reduce the south Asian country’s trade deficit with the US in the coming years. INSIGHT: China benzene market sees narrow fluctuations on strong cost, snug supply, slow demand recovery By Yoyo Liu 26-Feb-25 19:28 SINGAPORE (ICIS)–Crude-based benzene prices fluctuated moderately at high levels after the Lunar New Year (28 January-4 February) holidays, on elevated crude, ethylbenzene (EB) futures and falling port inventories. Slow demand recovery continues to weigh on the market, with upcoming spring turnarounds and inventory depletion in focus. SE Asia, Mideast petrochemical markets slow ahead of Ramadan By Jonathan Yee 27-Feb-25 12:41 SINGAPORE (ICIS)–Trades in southeast Asian and Middle East petrochemical markets have slowed down ahead of Ramadan, when working hours would be shorter in some markets in March. Asia MMA sentiment dampened by China local price volatility By Jasmine Khoo 27-Feb-25 13:01 SINGAPORE (ICIS)–Asia's methyl methacrylate (MMA) sentiment has been impacted by price volatility observed in the Chinese domestic market in recent weeks, with most market players adopting a cautious stance towards trade. INSIGHT: Asia, Europe could bear brunt of US tariffs on Chinese MDI By Shannen Ng 27-Feb-25 16:37 SINGAPORE (ICIS)–Recent escalations in the US-China tariff war are set to create waves in the Asian and European import markets for methylene diphenyl diisocyanate (MDI). Asia petrochemical shares fall after Trump vows additional 10% tariff on China By Jonathan Yee 28-Feb-25 11:16 SINGAPORE (ICIS)–Asian petrochemical shares fell on Friday after US President Donald Trump said he would impose additional 10% tariffs on Chinese goods from 4 March. Thai SCG Chemicals signs EPC deal for Vietnam ethane storage tanks By Nurluqman Suratman 28-Feb-25 15:01 SINGAPORE (ICIS)–Thai producer Siam Cement Group Chemicals (SCGC) on 27 February said that it has signed the engineering, procurement, and construction (EPC) contract for the construction of ethane storage tanks at the Long Son Petrochemicals Complex (LSP) in Vietnam.

03-Mar-2025

HOUSTON (ICIS)–US-based Cornerstone announced on Thursday the decision to mothball its acrylonitrile (ACN) operations in Waggaman, Louisiana, effective 30 June. “Despite significant efforts to adapt to an evolving marketplace, the [ACN] business’ financial challenges, exacerbated by oversupplied global markets for [ACN] and increasing raw material costs, have led to the difficult but necessary decision to exit the business at this time,” the company said. The plant has a capacity of 240,000 tonnes/year, according to ICIS Supply & Demand Database, and makes up about 15% of US ACN capacity. Unigel had stopped ACN production in Brazil in 2024. ICIS forecasts that US ACN demand in 2025 would be 130,000-200,000 tonnes lower than in 2024. Roehm will end methyl methacrylate (MMA) production in Fortier, Louisiana – where Cornerstone is located – by June. Roehm’s new plant in Bay City, Texas is expected to start operations in Q1. This facility will not use hydrogen cyanide, which is a by-product of ACN manufacturing. Downstream of ACN, several companies downstream have announced plans to close facilities. INEOS Styrolution is closing its acrylonitrile butadiene styrene (ABS) production site in Addyston, Ohio. The plant has a capacity of 195,000 tonnes/year, according to ICIS Supply & Demand Database. Decommissioning will commence in Q2. US-based nylon 6,6 producer Ascend Performance Materials is shutting down remaining operations in Greenwood, South Carolina by early 2025. The nylon 6,6 fibers plant has a capacity of 135,000 tonnes/year, according to ICIS Supply & Demand Database. Export demand for US ACN has also weakened. US ACN exports in 2024 fell by 40% from 2023. With additional reporting by Ramesh Iyer Thumbnail Photo: Cornerstone site

20-Feb-2025

SINGAPORE (ICIS)–S-Oil plans to spend about South Korean won (W) 3.5 trillion ($2.4 billion) in its Shaheen crude-to-chemical project in Ulsan, which accounts for the bulk of the refiner’s capital expenditure (capex) set for the year. Shaheen project on track for H1 '26 completion S-Oil plants run below full capacity over past three years Full-year net loss caused by heavy refining losses, lower petrochemicals profit The project capex for the year was increased by about a third from W2.61 trillion in 2024, and accounts for 86% of the total for the current year, S-Oil stated in a slide presentation to investors dated 24 January upon announcing its Q4 results. The project, whose name was derived from the Arabic word for falcon, is now 55% complete and is on track for commercial operations in H2 2026, S-Oil said on 17 February. S-Oil is 63%-owned by Saudi Aramco, the world’s biggest exporter of crude oil. Shaheen will have a 1.8 million tonne/year mixed-feed cracking facility; an 880,000 tonne/year linear low density polyethylene (LLDPE) unit; and a 440,000 tonne/year high density PE (HDPE) plant. The site will have a thermal crude-to-chemical (TC2C) facility, which will convert crude directly into petrochemical feedstocks such as liquefied petroleum gas (LPG) and naphtha, and the cracker is expected to recycle waste heat for power generation in the refinery. “The project is progressing smoothly as planned,” S-Oil had said in the presentation, noting that completion rate as of end-December stood at 51.8%. Installation is underway for 10 cracking heaters, pipe rack modules at steam cracker and aboveground piping, it added. Construction of the multibillion US dollar project at the Onsan Industrial Complex of Ulsan City started in March 2023, with mechanical completion targeted by the first half of 2026. Over the past two years, S-Oil had poured nearly W5 trillion into the project, about half of the estimated project cost of $7 billion, based on capex. “Shaheen Project is a pivotal expansion into chemical business with industry-leading competitiveness, which will enable another leap forward in future profit generation capacity,” S-Oil said. The project is expected to yield 70% more chemicals, with a capex/operating expenditure savings pegged at 30-40% versus conventional process. At its Onsan site, S-Oil currently produces a range of petrochemicals and fuels including benzene, mixed xylenes, ethylene, methyl tertiary butyl ether (MTBE), paraxylene, polypropylene, propylene, propylene oxide, biodiesel, and potentially bio-based aviation and other bio-derived products. The second-biggest item in S-Oil’s 2025 capex list is upgrade & maintenance at W463 billion, up by more than 75% from 2024, noting that its residual fluid catalytic cracking unit (RFCC) is scheduled for turnaround this year, based on the presentation. For the past three years, the company’s plants have not been running at full capacity, with a marked reduction of run rates at its paraxylene (PX) plants. For the whole of 2024, the company incurred a net loss of W163.4 billion, reversing the profit of nearly W1 trillion in the previous year, on heavy losses from refining and a 29% profit decline in petrochemicals. in billion won (W) Q4 2024 Q4 2023 Yr-on-yr % change FY2024 FY2023 Yr-on-yr % change Revenue 8,917.0 8,830.0 1.0 36,637.0 35,727.0 2.5 Operating income 260.8 (56.4) – 460.6 1,354.6 (66.0) Net income  (102.1) 160.5 – (163.4) 948.8 – Refining operating profit  172.9 (311.3) – (245.4) 353.5 – Petrochemical operating profit  (28.1)  33.9 – 134.8 190.6 (29.3) Lube operating profit 115.9 221.0 (47.6) 571.2 810.5 (29.5) In the first quarter of 2025, S-Oil expects additional demand for PX and upstream benzene as new downstream facilities start up, “offsetting ample supply”, it said, adding that a recovery in gasoline blending demand may further support the markets. Polypropylene (PP) and propylene oxide (PO) will "continue to see capacity expansions in China while demand recovery is anticipated from China's economic stimulus measures,” it said. China, the world’s second-biggest economy is a major market for South Korean exports. Amid an economic slowdown, the Chinese government have been introducing measures to boost consumption and revive its ailing property sector. Focus article by Pearl Bantillo ($1 = W1,441)

19-Feb-2025