Oleochemicals

HOUSTON (ICIS)–US sustainability companies are starting to buckle, with a chemical recycling plant and a bioplastic producer both going bankrupt. Brightmark's Indiana operations filed for bankruptcy protection under Chapter 11, a move that will protect it from creditors while it tries to sell its underutilized chemical recycling plant. The bankruptcy will not affect the other operations of the parent company or its plans to build another chemical recycling plant in Georgia. Danimer Scientific is winding down operations at its plants in Bainbridge, Georgia, and Winchester, Kentucky. Danimer makes polyhydroxyalkanoates (PHA) and formulates polylactic acid (PLA). DANIMER GOES BANKRUPT AFTER ANNOUNCING PLANT CLOSUREDanimer had bet big on PHA, a renewable polyester made by fermenting natural oils. It became the owner of the world's first commercial scale PHA plant in 2022 after it expanded capacity at its site in Winchester, Kentucky, to 55 million lb/year (25,000 tonnes/year), said Frank Pometti, a partner of AlixPartners, the proposed financial advisor for the company. He made his comments in a court filing. By then, Danimer had already broken ground on another plant in Bainbridge that would have produced another 125 million lb/year of PHA. However, Danimer was increasing capacity faster than its customers were enacting sustainability initiatives. Since 2020, Danimer's operating rates never exceeded 15% of capacity. Moreover, Danimer was expanding capacity right when inflation was taking off. Companies like Phillips 66 were revising cost estimates for capital projects by 50%. Danimer would later suspend work on the new PHA plant after a prospective customer indicated that it wasn't ready to switch to the company's bioplastics. To date, Danimer has sunk nearly $190 million into the project. For years, Danimer had courted what it described as a new and significant customer that would have purchased the company's bioplastic to supply an internationally recognized quick-service restaurant with cutlery for all of its locations in North America. By 2025, securing a firm commitment from that customer became critical. Danimer was facing liquidity challenges, and its shares were taken off the New York Stock Exchange (NYSE) in January 2025. A firm volume commitment from that customer could allow Danimer to attract fresh capital from a potential investor, from which the company received a non-binding indication of interest. The customer would not provide the commitment. In March, Danimer reached out to its lenders and another customer in a last-ditch effort to secure a deal to keep the business running. That effort also failed. In mid-March, Danimer announced the shutdown of its operations in Bainbridge, home to the company's corporate headquarters, its PHA demonstration plant and its PLA reactive extrusion plant. It also plans to wind down operations at its plant in Kentucky. Days later, Danimer filed for bankruptcy protection in Delaware Bankruptcy Court. It plans to sell its plants and liquidate the uncompleted project in Bainbridge. The case number is 25-10518. BRIGHTMARK'S CHEM RECYCLING PLANT RUNS AT 5%Brightmark's chemical recycling plant in Indiana has required substantial re-engineering and re-design after starting up in 2023, said Craig Jalbert, chief restructuring officer. He made his comments in court filings. The plant needs $800,000/week just to maintain operations and fund improvement projects – all while working under $172 million of senior debt. To date, the plant's upgrade system has not worked, according to Jalbert. That system was made up of a hydrotreater that cleaned the pyrolysis oil (pyoil) and a fractionator that separated the cleaned oil. After starting up in 2023, the plant only managed to produce 10 million lb (4,500 tonnes ) of pyoil, or 5% of its 100,000 tonne/year capacity. So far, three petrochemical producers have bought its pyoil, which it sold under the brand name PyBright. Pybright did command a premium, but it was not high enough to offset the low run rates and the capital needs of the company. That plant will need more than $100 million in capital investments before it can operate at a high enough rate to be profitable, Jalbert said. Brightmark's parent company had been funding the plants operations and capital expenditures through equity contributions. These have totalled more than $210 million. By February, the parent company determined that it could no longer make the contributions. A $12.9 million payment was due on 1 March. The recycling company defaulted on the payment and filled for Chapter 11 bankruptcy protection on 14 March. Brightmark will continue to operate the Indiana plant while it tries to sell it. If necessary, Brightmark will hold an auction on 7 May. Meanwhile, Brightmark continues to work on its second chemical recycling plant that it is developing in Thomaston, Georgia. The next step is to file for air permits, the company said. The Georgia plant will have a capacity of 400,000 tonnes/year. Brightmark has not said when operations will start. Brightmark filed bankruptcy in Delaware. The case number is 25-10472. Insight article by Al Greenwood

20-Mar-2025

SINGAPORE (ICIS)–Indonesia’s central bank kept its policy rate unchanged at 5.75% on Wednesday, a day after local stocks closed nearly 4% lower, on concerns over the country’s economic growth prospects and government finances. Jakarta composite index shed 3.8% on 18 March Rupiah remains under control, central bank says Economy projected to grow by 4.7-5.5% in 2025 Bank Indonesia (BI) kept the benchmark seven-day reverse repurchase rate steady at 5.75% and left its overnight deposit facility and lending facility rates unchanged at 5.00% and 6.50%, respectively. The rupiah (Rp), which initially fell in early trade, stabilized after BI’s announcement at Rp16,515 per US dollar, near its lowest level in five years. The BI’s move to keep rates stable was “consistent with efforts to keep the 2025 and 2026 inflation forecasts” within the target of 2.5% plus or minus one percentage point; “maintain rupiah exchange rate stability in line with fundamentals amidst persistent high global uncertainty, and contribute to economic growth”, the central bank said in a statement. BI also said that the rupiah exchange rate remains under control, supported by stabilization policies. The rupiah strengthened by 0.94% against the US dollar in March after weakening by 1.69% in February 2025, “influenced by reduced foreign capital inflows into regional stocks, including Indonesia, in line with global uncertainty”, BI said. “Bank Indonesia is looking for opportunities to lower rates, but a rate cut this month may come too soon following the policy easing in January. We look for the next policy rate cut in Q2,” said Lloyd Chan, senior currency analyst at Japan-based MUFG Global Markets Research Asi, in a note. In January, the central bank issued a surprise rate interest rate cut to support economic growth amid expectations of continued low inflation in 2025 and 2026. The move had sent the rupiah tumbling to a six-month low against the US dollar. BI’s decision comes after its benchmark Jakarta Composite Index (JCI) had slumped by 5%, triggering a temporary trading halt, and fell by as much as 7% at one point upon resuming trade, partly fueled by speculations that finance minister Sri Mulyani Indrawati is resigning. Sri Mulyani late on 18 March dispelled the resignation rumors, according to media reports, saying she will stay on as the finance chief, emphasizing that Indonesia’s fiscal health remains sound and the budget deficit for 2025 will stay at 2.5% of GDP. A budget deficit is a shortfall that occurs when government expenditures exceed revenues. The JCI was volatile in early Wednesday trade, initially tumbling by more than 1%, before rebounding to trade 1.42% higher at 6,311.66 as of 09:00 GMT. Indonesia’s sole cracker operator Chandra Asri's shares were up by 13.4% on Wednesday. Indonesia is a net importer of several petrochemicals, including polyethylene (PE) and polypropylene (PP); while it is a major exporter of crude palm oil (CPO) and its downstream oleochemicals. ELEVATED FISCAL RISKS Japan’s Nomura Global Markets Research in a note said that it continues to see elevated fiscal risks and forecast a widening of the fiscal deficit to 2.9% of GDP in 2025, from 2.3% last year and versus the government's target of 2.5%. “Recent changes pushed by President [Subianto] Prabowo, including an expansion of his priority programs, will cost an additional 0.9% of GDP, by our estimate,” Nomura said. The Indonesian government has not introduced any new revenue-generating measures, instead relying on enhanced tax administration efforts, which are expected to have a limited impact, it said. “President Prabowo’s instruction to perform budget cuts worth 1.3% of GDP could provide some offset, but this will likely be very difficult to achieve, given public pushback, in our view, and would weigh on domestic demand,” Nomura said. “Local sentiment, in our view, has dropped significantly, as these domestic policy concerns are exacerbating external risks.” 2025 GROWTH Indonesia's economic growth is projected to remain strong in the range of 4.7-5.5% in 2025, despite persistent global uncertainties, BI said. Southeast Asia’s largest economy expanded by 5.03% in 2024, slowing from the 5.05% growth in 2023. Prabowo’s government aims to increase the real GDP growth rate to 8% within two to three years, from the 5% average over the past 10 years (excluding the Covid pandemic years of 2020-2021). This optimistic outlook is supported by robust household consumption, bolstered by consumer confidence, government spending and seasonal demand, BI said. Increased private investment, driven by positive producer sentiment and expanding order volumes, is expected to contribute significantly to this growth, it said. While external factors present challenges, particularly in mining and processing, growth in non-oil and gas exports and the agricultural sector are anticipated to offset these effects. Focus article by Nurluqman Suratman

19-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

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 7 March 2025. Europe glycerine spot prices rise on prolonged shortages Constrained crude glycerine availability evident over an extended length of time has exerted upward pricing pressure on all glycerine grades in the European market, resulting in spot prices rising this week. INSIGHT: Half a decade on from the pandemic, feedstock pricing volatility remains widespread and perhaps irreversible Next week marks half a decade since major lockdowns were enforced across Europe in response to the coronavirus pandemic, and the obvious thing to do would be to reflect back on how much life has changed over the past five years. Europe colorless PET bottle bale prices rise for first time since Q2 2024 Reduced supply and higher demand from the downstream recycled polyethylene terephthalate (R-PET) flake sector have seen colorless (C) post-consumer PET bottle bale prices in northwest Europe (NWE) rise for the first time since April 2024. Europe chems stocks tank amid tariff-driven global sell-off European chemicals stocks fell on Tuesday in line with a wider market sell-off as the US prepares to impose wide-ranging tariffs on Mexico and Canada and China announced retaliatory tariffs on the US, deepening global trade tensions. BASF not looking to tailwinds for 2025 earnings growth BASF expects to increase earnings in 2025, with most units other than chemicals expected to contribute to annual growth, but it is not expecting much support from economic tailwinds this year.

10-Mar-2025

SINGAPORE (ICIS)–Sentiment in Asia’s petrochemical markets remains cautious with prices of some products – particularly in the southeastern region – were rising on tight supply, amid escalating trade tensions between the US and its major trading partners, including China. China’s oversupply-driven exports weigh on markets; post-Lunar New Year demand weaker than expected US tariff fears cause jitters across downstream industries Methanol supply constraints persist TRADES REMAIN SUBDUED Market activity in key chemical segments remains muted as buyers were staying on the sidelines, waiting for clarity on US trade policies and overall demand recovery. In the benzene market, South Korea’s January exports to the US slumped by 81% year on year to 15,000 tonnes, according to ICIS data. The decline was attributed to increased European supply to the US. “The market is cautious as everyone is waiting for more clarity on US tariff policies,” a trader said. South Korea faces potential hefty tariffs under the US’ plan to impose reciprocal tariffs from 2 April, even though the two countries have an existing free trade agreement. In the caprolactam (capro) market, producers are grappling with poor margins while supply within China continues to grow. “Capro margins have been bad for six months now, and demand didn’t pick up post-Lunar New Year,” said a Chinese producer. Chinese producers were exporting more to southeast Asia and Europe, in view of a general oversupply of petrochemicals and muted demand in the domestic market and following the US’ new 20% tariffs on all Chinese goods. For polypropylene (PP), China has ramped up exports to Vietnam and other southeast Asian nations which were exerting downward pressure on prices. With more Chinese capacity coming online, this trade flow is likely to continue. Chinese producers are increasingly willing to accept lower margins to capture market share in the polyolefin markets, creating ripple effects across Asia and beyond, forcing regional producers to adjust pricing strategies to remain competitive. However, these actions could be met with antidumping duties (ADD) as southeast Asian governments act to protect domestic producers. SHIPPING SECTOR WARY OF US POLICIES US protectionism is on the rise again under President Donald Trump’s administration, with an ongoing probe being conducted on China’s shipbuilding industry, which may be slapped with potential duties of up to $1.5 million per vessel. This move aims to deter reliance on Chinese-built ships and, instead, encourage investment in the US shipbuilding sector. China dominates the global shipbuilding industry, with over 81% of new tankers being built in the country, according to shipbroker Xclusiv in a November report. The fear is that if these tariffs come through, immediate cost impacts will be felt, especially on long-haul trades. Meanwhile, weaker freight demand post-Lunar New Year has also softened freight rates. Most downstream producers in China resumed operations in H2 February, after an extended holiday break. China was on official holiday from 28 January to 4 February. The northeast Asia winter was milder than expected, which reduced seasonal trade flows. DISRUPTIONS TIGHTEN SUPPLY While some chemical markets struggle with oversupply, others are experiencing tight supply due to plant outages. For methanol, supply is constrained in Malaysia, with Petronas’ unit experiencing operational issues, and Sarawak Petchem’s unit shut from late January. Iranian methanol plants have also been offline due to winter gas shortages, pushing Indian import prices up by $60/tonne within a week. Meanwhile, Russian supply disruptions due to drone attacks have tightened naphtha availability, strengthening prices. On the acetic acid front, plant turnarounds in China, Malaysia, and Japan initially tightened supply, but these units have since restarted, thereby improving availability of the material. OUTLOOK MIXED Market players remain wary of near-term price movements as supply and demand fundamentals shift across regions. March shipments for PE and PP in southeast Asia have largely been sold out, while Indonesian buyers are reluctant to commit to April purchases amid the Muslim fasting month of Ramadan, which started 1 March. Ramadan is observed in most parts of southeast Asia including Indonesia, southeast Asia’s biggest economy with a predominantly Muslim population. With uncertainties surrounding US’ trade policies, Chinese exports, and geopolitical risks, market sentiment remains mixed. Players are closely monitoring tariff developments and the potential impacts of further supply disruptions in key markets. Focus article by Jonathan Yee Additional reporting from Seng Li Peng, Isaac Tan, Tan Hwee Hwee, Angeline Soh, Jasmine Khoo, Julia Tan, Josh Quah, Damini Dabholkar, Doris He, Jackie Wong Thumbnail image: At Qingdao Port in Shandong province, China on 6 March 2025. (Costfoto/NurPhoto/Shutterstock)

10-Mar-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 7 March. China Feb manufacturing activity rebounds on seasonality By Fanny Zhang 03-Mar-25 11:47 SINGAPORE (ICIS)–China's official manufacturing purchasing managers' index (PMI) in February marked a return to expansion territory after a soft January reading as factories resumed operations after the Lunar New Year (LNY) holiday. INSIGHT: China set to maintain "around 5%" growth target By Nurluqman Suratman 04-Mar-25 11:00 SINGAPORE (ICIS)–China's "Two Sessions" this week will be closely watched as the government work report is released, outlining the country's policy priorities for the year amid escalating trade tensions with the US. UPDATE: ADNOC, OMV agree on polyolefins JV worth $60 billion By Jonathan Yee 04-Mar-25 16:45 SINGAPORE (ICIS)–Austria’s OMV and the UAE’s Abu Dhabi National Oil Co (ADNOC) on Tuesday agreed to form a $60 billion joint venture (JV) by combining polyolefins businesses Borouge and Borealis following two-year talks. Asia acetic acid market softens on easing supply, downstream turnarounds By Hwee Hwee Tan 05-Mar-25 14:05 SINGAPORE (ICIS)–Asian spot prices for acetic acid imports and exports are being dampened by lengthening supply and softening demand tied to a downstream sector. China targets record 2025 budget deficit to rev up economy By Fanny Zhang 05-Mar-25 14:50 SINGAPORE (ICIS)–China has set its 2025 fiscal deficit target at a record yuan (CNY) 5.66 trillion ($780 billion), equivalent to around 4% of GDP, to fund the government’s stimulus measures and ensure the world’s second-biggest economy would post a 5% growth. Thai central bank lowers interest on slower economic growth, global trade tensions By Jonathan Yee 05-Mar-25 15:34 SINGAPORE (ICIS)–Slower than expected economic growth and downside risks such as escalating global trade tensions spurred by US trade policy led Thailand’s central bank to cut its key interest rate by 0.25 percentage points to 2.00 on 26 February, the Bank of Thailand (BOT) said. PODCAST: Asia propylene demand curbed by weaker PO margins By Damini Dabholkar 06-Mar-25 00:07 SINGAPORE (ICIS)–The northeast Asian propylene import markets have been weighed down by lengthening supply amid restarts at propane dehydrogenation (PDH) units. However, lower affordability levels from derivatives such as propylene oxide (PO) have also curbed import demand. China PP suppliers persist with export end goal amid margin challenges By Jackie Wong 06-Mar-25 11:08 SINGAPORE (ICIS)–Despite poor margins for polypropylene (PP), suppliers in China are expected to continue to persevere with their plans to expand their export sales network and win market shares in southeast Asia. South Korea Feb inflation eases amid growing economic headwinds By Nurluqman Suratman 06-Mar-25 13:50 SINGAPORE (ICIS)–South Korea's headline inflation eased in February, giving the central bank flexibility to loosen monetary policy to boost economic activity amid a slowdown. Thai PTTGC hopes to snap out of losses; eyes US ethane feed for crackers By Nurluqman Suratman 07-Mar-25 14:46 SINGAPORE (ICIS)–Imports of US ethane feedstock will be a key component of Thai producer PTT Global Chemical's (PTTGC) broader strategy to recover from recent losses, alongside initiatives to enhance competitiveness and expand into high-value businesses.

10-Mar-2025

HOUSTON (ICIS)–US-listed shares of chemical companies fell sharply – many by more than 5% – on Monday as the US proceeds with plans to impose tariffs on Canada, Mexico and China, its three biggest trading partners. The selloff in chemical shares was sharper than that for the general market. The following table shows the stock indices followed by ICIS. Index 3-Mar Change % Dow Jones Industrial Average 43,191.24 -649.67 -1.48% S&P 500 5,849.72 -104.78 -1.76% Dow Jones US Chemicals Index 851.42 -17.99 -2.07% S&P 500 Chemicals Industry Index 901.32 -17.93 -1.95% Shares of every US-listed company followed by ICIS fell. TUESDAY'S TARIFFSUnless the nations reach last-minute deals, the US will impose 25% tariffs on all imports from Mexico, 10% tariffs on all energy imports from Canada and 25% tariffs on all other imports from Canada. The US will also proceed with an additional 10% that it proposed on all imports from China, according to a post from the White House’s Rapid Response account on social media platform X. This is on top of the 10% in new tariffs that the US already imposed earlier in 2025 on imports from China. EFFECT ON US MARKETSWhile the US has large trade surpluses in polyethylene (PE), it still imports large amounts of the plastic from Canada. Many of these imports go to processors in the bordering states of Illinois, Michigan and Ohio. These states are far from most of the plastic plants in the US, which are concentrated in Texas and Louisiana. Processors in these states that border Canada will need to pay the tariffs or pay higher shipping costs to secure material from suppliers farther away. The US also imports notable amounts of purified terephthalic acid (PTA) from Canada and Mexico as well as methylene diphenyl diisocyanate (MDI) from China. The US receives large Canadian shipments of ammonia and potassium chloride, which is also known as muriate of potash (MOP). At least one company, Canada's Chemtrade Logistics, said it expected to pass a larger part of the tariffs to its customers. Chemtrade Logistics exports sodium chlorate, chlorine and sulfuric acid to the US. RETALIATIONChina already has retaliated by imposing tariffs on US imports of coal, liquefied natural gas (LNG), crude oil, farm equipment and some vehicles. China has restricted exports of antimony and bismuth. Antimony is used to make catalysts for polyethylene terephthalate (PET), and bismuth is used to make catalysts for polyurethanes. Canada had proposed retaliatory tariffs of 25% on Canadian dollars (C$) 155 billion ($107 billion) worth of US imports. The tariffs would be imposed in two phases. The first phase would cover C$30 billion of US imports of beverages, cosmetic, paper products and some finished plastics products, among others. Canada was preparing a second list, worth C$125 billion. All three countries could impose retaliatory tariffs on the substantial exports of PE, polyvinyl chloride (PVC) and other ethylene derivatives from the US. OTHER POSSIBLE US TARIFFSThe US has threatened to impose tariffs of 25% on imports from the EU. On 12 March, the US will impose tariffs of 25% on all imports of steel and aluminium, a move that will remove exemptions that it granted to some countries. The US will expand the tariff to cover more products made of steel and aluminium. In early April, the US said it would introduce retaliatory tariffs on imports from the rest of the world. These tariffs will consider what the US considers non-tariff trade barriers, such as value added tax (VAT) systems. CHEM STOCK PERFORMANCEThe following table shows the performances of US-listed shares followed by ICIS. Symbol Name $ Current Price $ Change % Change ASIX AdvanSix 26.82 -1.10 -3.94% AVNT Avient 41.23 -1.54 -3.60% AXTA Axalta Coating Systems 35.1 -1.11 -3.07% BAK Braskem 3.52 -0.17 -4.61% CC Chemours 13.86 -1.09 -7.29% CE Celanese 47.02 -3.92 -7.70% DD DuPont 78.83 -2.53 -3.11% DOW Dow 36.06 -2.05 -5.38% EMN Eastman 94.46 -3.39 -3.46% FUL HB Fuller 55.73 -1.01 -1.78% HUN Huntsman 16.04 -0.89 -5.26% KRO Kronos Worldwide 8.43 -0.32 -3.66% LYB LyondellBasell 73.41 -3.42 -4.45% MEOH Methanex 41.47 -2.57 -5.84% NEU NewMarket 562.65 -7.46 -1.31% NGVT Ingevity 45.24 -2.42 -5.08% OLN Olin 23.87 -1.52 -5.99% PPG PPG 111.72 -1.50 -1.32% RPM RPM International 123.09 -0.80 -0.65% SCL Stepan 58 -3.375 -5.50% SHW Sherwin-Williams 356.73 -4.75 -1.31% TROX Tronox 7.02 -0.615 -8.06% TSE Trinseo 4.62 -0.30 -6.10% WLK Westlake 108.71 -3.59 -3.20% ($1 = C$1.45) Please also visit the US tariff, policy – impact on chemicals and energy topic page Thumbnail shows money. Image by ICIS.

04-Mar-2025

HOUSTON (ICIS)–LyondellBasell has approved plans to build a metathesis unit in Channelview, Texas, that will convert ethylene into propylene, the producer said on Monday. Construction should start in the third quarter of 2025, and operations should begin in late 2028, LyondellBasell said. The metathesis unit will produce 400,000 tonnes/year of propylene, the company said. LyondellBasell plans to use the propylene in its internal polypropylene (PP) and propylene oxide (PO) units. The company started up its new PO/tertiary butyl alcohol (PO/TBA) plant in Channelview in 2023. By producing its own propylene, LyondellBasell limits its exposure to volatile feedstock prices, said Kim Foley, executive vice president, Global Olefins & Polyolefins and Refining. “This capacity expansion strengthens our ability to meet increasing customer demand and improve our self-sufficiency as we grow and upgrade a core business line for LyondellBasell.” Thumbnail shows PP, which is made from propylene. Image by Shutterstock.

03-Mar-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 28 February. Any new ethylene for VCM expansion would require cost review – US Westlake Before Westlake would consider expanding ethylene capacity at a joint-venture cracker, it would need to conduct a cost analysis that would take into account higher labor and material costs caused by inflation, the chief financial officer said on Monday. INSIGHT: Global fatty alcohols markets decouple as Europe, US tight despite weak sentiment in Asia Global fatty alcohol markets are decoupling from recent movements in southeast Asia, heading into the Palm & Lauric Oils Price Outlook Conference (POC) this week, as European and to a lesser degree US supplies tighten despite demand-driven downward pressure in southeast Asia. INSIGHT: Dematerialization and its implications for plastics, synthetic rubbers and fibers George Harrison once sang about “…living in the material world”, a perfect setting for the subject at hand – dematerialization. It’s a subject I first wrote about back in 1982. The recent DeepSeek AI model release employed a “do more with less” strategy that provided me with the idea to take another look at dematerialization. US-Mexico import tariffs deal could be finalized this week – Sheinbaum Mexican President Claudia Sheinbaum is seeking to finalize an agreement with the US administration this week so her country could prevent 25% import tariffs on Mexican goods scheduled to take effect next week. US to proceed on Mexican, Canadian tariffs; raise China rate by another 10% The US will proceed with its proposed 25% tariffs on most goods from Canada and Mexico, and the nation will increase tariffs on imports from China by another 10%, all effective on 4 March, the president said on Thursday. INSIGHT: US PE exports most vulnerable to retaliatory tariffs – ICIS analysis Among the massive exports of cost-advantaged US chemicals and plastics across the world, none is more vulnerable to retaliatory tariffs than polyethylene (PE). SHIPPING: US fees on China-based ships to cause unintended consequences – analysts The US Trade Representative’s (USTR) proposal to charge up to $1.5 million to Chinese-owned ships entering US ports could cause severe congestion and delays to supply chains, according to shipping analysts.

03-Mar-2025

LONDON (ICIS)–Annual inflation in the eurozone fell slightly in February from the previous month as energy costs eased, official figures showed on Monday. The February rate of inflation is expected to be 2.4%, down from 2.5% in January, according to a flash estimate from statistics agency Eurostat. Among the main components driving higher prices, energy cost inflation was at the back of the queue, cooling to 0.2% from 1.9% in January. Services had the highest rate of annual inflation in February, followed by food, alcohol and tobacco, non-energy industrial goods, and energy. The European Central Bank (ECB) has pursued a rate cutting campaign as it tries to balance weak economic growth with a high inflation environment. Its next interest rates decision is on Thursday this week. Eurostat’s latest Economic Sentiment Indicator showed an uptick in confidence for the eurozone in February, with the index rising to 96.3 from 95.3 in January.

03-Mar-2025