Expandable polystyrene (EPS) and polystyrene (PS)

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A versatile plastic used to make a wide variety of consumer products, expandable polystyrene (EPS) and polystyrene (PS) are integral in industries such as food packaging, appliances, construction, and some niche automotive applications for polystyrene, and for expandable polystyrene construction, white goods packaging, and fish boxes packaging. These industries and more are impacted every day by the dynamics of global and regional PS and EPS markets, as well as developments in the upstream styrene market.

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Expandable polystyrene (EPS) & polystyrene (PS) news

VIDEO: China's SM market to remain oversupplied, awaits stimulus

SINGAPORE (ICIS)–Watch ICIS analyst Aviva Zhang discuss the implications of China's growing styrene monomer (SM) capacity, which is poised to open up export opportunities for the remainder of 2024. Chinese SM capacity currently at over 20 million tonnes/year; market pressured by new capacity ⁠Downstream acrylonitrile-butadiene-styrene (ABS) margins still negative while polystyrene (PS) margins are constrained Implementation of new macroeconomic policies is expected to stimulate end-use demand, which players are closely watching ICN

15-Oct-2024

Florida power outages approach 3.4 million after Hurricane Milton

HOUSTON (ICIS)–Nearly 3.4 million outages have been reported in Florida in the aftermath of Hurricane Milton, which made landfall as a powerful Category 3 hurricane near Sarasota, Florida, south of the important fertilizer hub of Tampa. Milton may have caused more damage had it passed over Tampa, according to CoreLogic, an insurance data company. RAIL UPDATERailroad company CSX said it has relocated all of its locomotives and cars from low-lying areas in Tampa and rerouted them. CSX operations will continue in and out of Waycross from the north, east and west directions. It will continue operating into and out of the intermodal ramps at Jacksonville, Florida. On 8 October, CSX said it had taken the following steps. Closed the Central Florida ILC intermodal gate. Closed the Tampa, FL intermodal gate. Closed the TRANSFLO terminals at Tampa, Tampa Port and Sanford. Another railroad company, Norfolk Southern, has not updated its notice from 7 October, when it said it was monitoring and preparing for Hurricane Milton. FLORIDA PORTS REMAIN CLOSEDMany ports in Florida have maintained their Zulu port conditions, which means they are closed to inbound and outbound vessels. The following table summarizes the conditions among the major ports in Florida. Port Status Condition Port of Pensacola Open Normal Port Panama City Open Draft restrictions Port St Joe Open Normal Port Tampa Bay Closed Zulu SeaPort Manatee Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Closed Zulu Fort Pierce Closed Zulu Port Canaveral Closed Zulu Jaxport Closed Zulu Port of Fernandina Closed Zulu Source: US Coast Guard. IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin (UPR) production in Lakeland and Kathleen, Florida. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida’s Big Bend region. On 30 September, Mosaic said its Riverview operations were off line following water intrusion from a storm surge caused by Hurricane Helene. POSSIBLE DAMAGEHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau CoreLogic, the insurance data company, said Milton’s shift to the south of Tampa could limit the magnitude of insured losses. CHEMS AND RECONSTRUCTIONFor hurricanes in general, reconstruction can translate into increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. PUs are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High-density polyethylene (HDPE) is used in pipes. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPRs) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives.

10-Oct-2024

Railroad shuts many Florida terminals ahead of Hurricane Milton

HOUSTON (ICIS)–Railroad company CSX is suspending operations at several of its intermodal and TRANSFLO terminals in Florida ahead of Milton, which has shifted its path away from Tampa, a major fertilizer hub. If Milton maintains its latest forecasted path, it could spare Tampa of the worst damage, according to CoreLogic, an insurance data company. Milton's maximum sustained winds are nearly 145 miles/h (230 km/h), making it a Category 4 hurricane, according to the National Hurricane Center (NHC). Milton is expected to weaken to a Category 3 hurricane and make landfall later on Wednesday south of Tampa near Sarasota, Florida, CoreLogic said. Milton will then pass over central Florida. RAIL DISRUPTIONSRail shipments through the Tampa area will likely face delays until Milton passes, CSX said. It expects multiple downed trees and power outages in the Wildwood, Lakeland and surrounding Tampa subdivisions. Lakeland and nearby Kathleen are near Tampa and are home to some thermoset resin plants. CSX has taken the following actions: Closed the Central Florida ILC intermodal gate. Closed the Tampa, FL intermodal gate. Closed the TRANSFLO terminals at Tampa and Tampa Port. Will close the Sanford TRANSFLO terminal midday on Wednesday. Another railroad company, Norfolk Southern, has not updated its notice from 7 October, when it said that it is monitoring and preparing for Hurricane Milton. MORE PORTS CLOSESome of Florida's ports on the Atlantic coast have set conditions to Zulu, meaning that they are closed to inbound and outbound vessels. The following table summarizes the port conditions along the eastern and western coasts of Florida. Port Status Condition Port of Pensacola Open Port Panama City Open X-Ray Port St Joe Open X-Ray Port Tampa Bay Closed Zulu SeaPort Manatee Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Closed Zulu Fort Pierce Closed Zulu Port Canaveral Closed Zulu Jaxport Closed Zulu Port of Fernandina Closed Zulu Source: ports, US Coast Guard IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin (UPR) production in Lakeland and Kathleen, Florida. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida's Big Bend region. On 30 September, Mosaic said its Riverview operations were offline following water intrusion from a storm surge caused by Hurricane Helene. POSSIBLE DAMAGEHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau The following map shows the expected path of Milton. Source: National Hurricane Center CoreLogic, the insurance data company, said Milton's shift to the south of Tampa could limit the magnitude of insured losses. The following map compares three insured loss scenarios based on Milton's path. Source: CoreLogic The following map shows Milton's expected storm surges. Source: National Hurricane Center. The following map shows three-day rain totals. Source: CoreLogic CHEMS AND RECONSTRUCTIONFor hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows an image of Hurricane Milton. Image by the National Hurricane Center. 

09-Oct-2024

Mexico's Alfa completes key step towards Alpek spinoff

HOUSTON (ICIS)–The proposed spinoff of Mexican polyester producer Alpek has reached a key milestone, with corporate parent Alfa saying on Tuesday that it has solicited consents from more than 90% of the holders of a batch of senior notes. Alfa needed consents to amend some covenants and provisions that would allow it to spin off Alpek, it said. Alfa did not provide a timeline for the spinoff. Alfa has been discussing the possible spinoff for months. Alfa was once a large conglomerate that owned Alpek, Nemak (aluminum and auto parts), Sigma (refrigerated foods), Alestra (IT and communications) and Newpek (natural gas and hydrocarbons). If Alfa completes the spinoff, it would be left with Sigma. Alpek produces polyethylene terephthalate (PET) and recycled PET (rPET) as well as polypropylene (PP) through its Indelpro joint venture with LyondellBasell and expandable polystyrene (EPS) through Styropek.

08-Oct-2024

Florida ports close as Hurricane Milton approaches Tampa fertilizer hub

HOUSTON (ICIS)–Ports along Florida's Gulf Coast are closed to vessel traffic as Milton approaches the state's fertilizer hub in Tampa as a Category 4 hurricane. Port Tampa Bay and the nearby SeaPort Manatee have set Port Condition Zulu, which means that they are shut down to inbound and outbound vessel traffic. The following table shows the conditions of some of the ports in Florida. Port Status Condition SeaPort Manatee Closed Zulu Port Tampa Bay Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Open Yankee Fort Pierce Open Yankee Port Canaveral Open Yankee Jaxport Open Yankee Port of Fernandina Open Yankee Source: Ports, US Coast Guard LANDFALL ON WEDNESDAYMilton is expected to make landfall on Wednesday near Tampa, Florida, after weakening to a Category 3 hurricane, according to the meteorological firm AccuWeather. Milton will remain a major hurricane when it makes landfall, with maximum sustained wind speeds of 111-129 miles/hour (178-208 km/hour). The following map shows the expected path of Milton Source: National Hurricane Center IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin production in Lakeland and Kathleen, Florida. Both are near Tampa. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida's Big Bend region. On 30 September, Mosaic said its Riverview operations were offline following water intrusion from a storm surge caused by Hurricane Helene. RAIL CONTINUES RUNNINGOn 7 October, CSX said it is maintaining normal operations at its yards and terminals. Meanwhile, the railroad company is putting its safety protocols in place. Also on 7 October, Norfolk Southern warned customers to prepare for delays if they have shipments moving through the southeastern US. RECONSTRUCTION FOLLOWING MILTONHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau Tampa and Sarasota could suffer storm surges of 10-15 feet (3.0-4.6 meters), according to the National Hurricane Center. Storm surges of 3-5 feet could hit the areas from Port Canaveral northwards, including Jacksonville, Florida. AccuWeather warned that the hardest hit areas could have storm surges of 23 feet. "We are very concerned that Hurricane Milton could become one of the most damaging and costliest storms that Florida has ever seen," said Jon Porter, AccuWeather chief meteorologist. “Our forecast for 120 miles per hour to 140 miles per hour wind gusts will result in significant destruction. We expect roofs to fail, as well as long-lasting and widespread power outages. These damaging winds will push inland right along the Interstate 4 corridor,” For hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. POTENTIAL FOR DISRUPTION TO GULF OILHurricane Helene disrupted US oil and gas production in the Gulf of Mexico even though it passed through the eastern portion of the body of water. Hurricane Milton could have the same potential as it approaches the US. Additional reporting by Mark Milam Thumbnail shows Hurricane Milton. Image by National Hurricane Center.

08-Oct-2024

Hurricane Milton on track to hit US fertilizer hub in Tampa

HOUSTON (ICIS)–Milton strengthened on Monday into a powerful Category 4 hurricane, and it is expected to continue strengthening before making landfall by midweek near Tampa, Florida, a major fertilizer hub that was drenched by an earlier major hurricane. That earlier hurricane, Helene, made landfall on September 26 far to the north of Tampa. However, Tampa still saw storm surges of 6-10 feet (1.8-3.0 meters), according to AccuWeather, a meteorology firm. Tampa and other ports along Florida's Gulf Coast had shut down because of Helene. AccuWeather estimates that Hurricane Helene caused $225 billion to $250 billion of damage and economic loss in Florida and the southeastern US. As of September 30, fertilizer companies were assessing the damage caused by Hurricane Helene. A week later, they will now prepare for another major hurricane that will pose a greater risk. AccuWeather is warning that, due to Milton, the Tampa Bay region could be hit by a storm surge of 10-15 feet, wind gusts of 120-140 miles/hour (193-225 miles/hour) and more than 2 feet (60 cm) of rain. "Milton may be a historic, once-in-a-lifetime storm for Floridians," said Jon Porter, AccuWeather chief meteorologist. "Milton has the potential to become one of Florida's most damaging and costly hurricanes." For Tampa, the magnitude of Milton's storm surge will depend on its path, according to AccuWeather. If it makes landfall south of Tampa, it will cause dangerous, but not extreme, storm surges. If landfall is north of Tampa, parts of the Bay could suffer from storm surges of 20 feet, AccuWeather said. FERTILIZER HUB, PHOSPHATES AT RISKTampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. For chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin production in Lakeland and Kathleen, Florida. Both are near Tampa. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. PORT TAMPA BAY REMAINS OPENPort Tampa Bay remains open to inbound and outbound vessel traffic, but it has set Port Condition X-RAY. That means gale force winds that could disrupt maritime operations could occur in the next 48 hours. SeaPort Manatee, a deepwater port on Tampa Bay, also set Port Condition X-Ray. It handled bulk, breakbulk and container traffic. RAIL STILL RECOVERING FROM HELENEOn October 4, railroad company CSX warned customers to expect delays despite progress in restoring power and clearing trees. Disruptions to operations are concentrated in the Carolinas. Railroad company Norfolk Southern said it has already started monitoring Hurricane Milton, although its lines are operating as scheduled. POTENTIAL FOR DISRUPTION TO GULF OILHurricane Helene disrupted US oil and gas production in the Gulf of Mexico even though it passed through the eastern portion of the body of water. Hurricane Milton could have the same potential as it approaches the US. RECONSTRUCTION DEMAND FOR CHEMSFor hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows the forecasts path of Hurricane Milton. Image by the National Hurricane Center.

07-Oct-2024

Latin America stories: weekly summary

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 4 October. NEWS Brazil’s manufacturing expands healthily again in September on stronger demandBrazil’s manufacturing sectors posted a significant improvement in September on the back of an increase in production, stronger job creation, and accelerated sales growth, analysts at S&P Global said on Tuesday. Mexico’s manufacturing contraction deepens in September as perfect storm gathers paceMexico’s petrochemicals intensive manufacturing sectors deepened their contraction during September as a perfect storm of lower orders, lower output and lower employment levels is forming, analysts at S&P Global said on Wednesday. Colombia manufacturing falls further into contraction in SeptemberThe manufacturing sector in Colombia fell further into contraction territory in September on the back of weak demand which dented factory output, analysts at S&P Global said. Chile’s manufacturing starts Q4 in good form, central bank forecasts healthier growthChile’s economy has had several ups and downs in the past 12 months, including flirting with a recession, but the petrochemicals-intensive manufacturing sectors and macroeconomics point to healthier growth in Q4 and into 2025. INSIGHT: Brazil’s booming economy creates problems of its own – but chemicals absent from bonanzaBrazil's economy has beaten the odds in 2024, and GDP growth is expected to top 3% for the year, although this success is coming accompanied by a series of challenges – not least inflation and interest rates, which remain high. INSIGHT: Optimism over Mexico’s Sheinbaum tempered by fears of executive over-reachClaudia Sheinbaum’s historic swearing-in this week as the first female Mexican president and the optimism it infused could quickly turn sour if her party Morena continues approving one-party, structural reforms thanks to the ‘supermajority’ of two thirds of seats in parliament. Agribusiness titan Bunge concludes sale of its share in BP Bunge Bioenergia in BrazilGlobal agribusiness titan Bunge announced it has completed the previously announced sale of its 50% share in BP Bunge Bioenergia to BP, which now owns 100% of the business. Verde AgriTech successfully renegotiates loans with their creditors in BrazilFertilizer producer Verde AgriTech has announced a successful renegotiation with the banks holding 73% of its outstanding loans. Brazil’s Innova BOPP capacity to nearly double with Polo Films acquisitionChemicals producer Innova is to increase its production capacities for biaxially oriented polypropylene (BOPP) film by 86% to 130,000 tonnes/year if its planned acquisition of Polo Films goes ahead as planned. Colombia’s central bank cuts rates by 50 basis points to 10.25%Colombia’s Banco de la Republica decided late on Monday to cut its benchmark interest rate by 50 basis points to 10.25% in a split decision among members of its monetary policy committee. PRICING Mexico PP domestic prices fall tracking propyleneDomestic polypropylene (PP) prices dropped in Mexico tracking lower propylene costs. In other Latin American countries prices were assessed unchanged. Mexico domestic PE prices fall on ample supply, soft demandDomestic polyethylene (PE) prices fell in Mexico on ample supply and soft demand while being unchanged in other Latin American countries.

07-Oct-2024

Vietnam Q3 economy grows 7.4% despite heavy typhoon losses

SINGAPORE (ICIS)–Vietnam’s economy expanded by 7.4% year on year in the third quarter despite hefty losses from Typhoon Yagi, with growth marking its strongest in two years on robust exports. Yagi causes $3.3 billion in economic losses Jan-Sept GDP average growth at 6.82% Exports grow at double-digit annual rate The third-quarter GDP print represents an acceleration from the revised 7.09% year-on-year expansion in Q2, despite taking huge economic hit from Typhoon Yagi, which wrought havoc in Vietnam’s northern regions in September. For the first nine months of 2024, the economy posted an average annualized growth of 6.82%. Yagi, which was Asia's strongest storm to date – killed 345 people in Vietnam, with total economic damage to the country estimated at around $3.3 billion, the General Statistics Office (GSO) said on 6 October. The agriculture, forestry and the fishery sectors were especially affected by Yagi, the GSO said. In September, the country’s manufacturing activity indicated a contraction, with its purchasing managers ‘s index (PMI) falling to 47.3, way below the expansion threshold of 50 and down by 52.4 in August, according to a survey by financial information services provider S&P Global. “Typhoon Yagi had a major impact on the Vietnamese manufacturing sector during September, with heavy rain and flooding leading to temporary business closures and delays across production lines and supply chains,” S&P Global said on 1 October. Vietnam is the fourth-biggest economy in southeast Asia and is a net importer of petrochemicals. Operations at its major petrochemical complexes were unscathed as their locations were not in Yagi’s path. Long Son Petrochemical is in the southern province of Ba Ria-Vung Tau; while the Dung Quat petrochemical complex is in the central Quang Ngai province; and the Nghi Son petrochemical complex is in the north-central Thanh Hoa province. EXPORTS DRIVE UP GDP GROWTH Vietnam, like most Asian economies, count exports as a major pillar of growth, which is being threatened by overall weakness in the global economy. But the country’s overall exports managed to post a double-digit annualized growth of 10.7% in the third quarter. For the first nine months of this year, Vietnam’s exports rose by 15.4% year on year to $299.6 billion while imports grew at a faster rate of by 17.3% at $278.8 billion, indicating robust domestic activity. The US is Vietnam’s biggest market, accounting for a third of the southeast Asian country’s exports for the period. Its biggest source of imports was China, whose share of the total was around 38% in the first nine months of 2024. The International Monetary Fund (IMF) forecasts Vietnam's economic growth is projected to recover to 6.1% in 2024, "supported by continued strong external demand, resilient foreign direct investment, and accommodative policies". The forecast is higher than the previous year’s GDP growth of 5.05% and was near the low end of the Vietnamese government’s target of 6.0-6.5%. However, Vietnam's export-driven economy remains vulnerable to a global growth slowdown, persistent geopolitical tensions, and escalating trade disputes, the IMF warned. Focus article by Nurluqman Suratman Thumbnail image: An aerial drone photo shows a steel bridge collapsed in Phu Tho Province of northern Vietnam, 9 September 2024. (Xinhua/Shutterstock)

07-Oct-2024

Brazil’s manufacturing expands healthily again in September on stronger demand

SAO PAULO (ICIS)–Brazil’s manufacturing sectors posted a significant improvement in September on the back of an increase in production, stronger job creation, and accelerated sales growth, analysts at S&P Global said on Tuesday. The capital goods sub-sector, which had been a weak point in August, emerged as the best performer in terms of sales and output growth in September. Brazil manufacturing September August July June May April March February January December 2023 November October PMI index 53.2 50.4 54.0 52.5 52.1 55.9 53.6 54.1 52.8 48.4 49.4 48.6 Source: S&P Global Manufacturing jobs expanded markedly, fueled by tech investment, demand resilience, and an increased need for skilled workers, and the pace of job creation was quicker than in August. Additionally, firms increased their input purchases, extending the current expansion streak to nine months. However, the sector faced some challenges. Supplier pressures escalated, with lead times lengthening to the greatest extent in over two years. This was attributed to slow international logistics, congestion at Asian ports, and shortages of key inputs among distributors. Price pressures remained historically high, with both input costs and output charges rising at one of the fastest rates seen in over two years. The increase in input costs was linked to currency depreciation, rising transportation costs, and demand exceeding supply. Despite these pressures, manufacturers maintained a positive outlook. About 62% of surveyed firms expressed optimism about output growth in the coming year, although overall sentiment slipped to a six-month low. International demand provided some support, with new export orders rising marginally. Companies reported gains from various regions including Africa, Asia, Latin America and Europe. While the September data was encouraging, it is worth noting that the average PMI reading for the third quarter was the lowest in 2024 so far, indicating some volatility in the sector's performance. Overall, the report paints a picture of a manufacturing sector that is growing and creating jobs, but also grappling with supply chain issues and inflationary pressures. "A significant factor in this resurgence was a marked improvement in sales, particularly within the capital goods sector which had previously shown weakness,” said Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence.

01-Oct-2024

Eurozone manufacturing output falls to nine-month low in September

LONDON (ICIS)–Manufacturing output in the eurozone fell at its steepest rate this year in September to hit a nine-month low. Key measures of factory strength such as production, new orders, employment and procurement activity all declined at quicker rates, according to purchasing managers’ index (PMI) data on Tuesday. The HCOB (Hamburg Commercial Bank) eurozone manufacturing PMI fell to 45.0 in September from 45.8 in August, while manufacturing output declined to 44.9, also from 45.8 in the previous month. Both were at a nine-month low, said S&P Global which compiles the indexes. A figure above 50 indicates growth, and below 50 contraction. “Lower output volumes were a response to the prevailing demand environment, which deteriorated further during September,” the market intelligence group said in a statement. Growth in Spain and Greece was offset by weakness elsewhere, particularly in the eurozone’s largest manufacturing sector Germany, which recorded its most pronounced worsening of factory conditions for 12 months. Countries ranked by PMI: September Spain 53.0 4-month high Greece 50.3 12-month low Ireland 49.4 3-month low Italy 48.3 2-month low Netherlands 48.2 2-month high France 44.6 3-month high Austria 42.8 6-month low Germany 40.6 12-month low “While handling the global manufacturing downturn surprisingly well, Spain just does not have enough weight to lift the rest of the eurozone with it,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. “The worsening industrial slump in Germany, for example, is too big for Spain’s momentum in September to make much of a difference.” In the UK, the picture was brighter as solid expansion in the sector continued in September. Although the manufacturing PMI declined to 51.5 from August’s 26-month high of 52.5, it has remained above 50 for five successive months. The main drivers of September expansion were the consumer and intermediate goods sectors, both of which recorded stronger increases in output and new business.

01-Oct-2024

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