
Polyvinyl chloride (PVC)
Trusted data and intelligence for this vital market
Discover the factors influencing polyvinyl chloride (PVC) markets
Construction, electronics, and healthcare are just a few of the industries that rely on this flexible material. Polyvinyl chloride (PVC) is indispensable to modern day life in uses such as pipes and window profiles and other building materials. Global production volume amounted to 44.3 million metric tons in 2018. Understanding and engaging with such a significant market requires relevant and trusted data and insight.
With uncertainty around every corner, ICIS exists to provide clarity in complex markets such as for PVC. This enables our partners to see and seize opportunities the moment they arise. Our network of expert analysts across the globe brings into focus the widest global viewpoint and geographical coverage of PVC, delivering world-class commodity intelligence. Trusted market data and analytics can transform the way you make decisions.
RELATED LINKS:
Other plastics that we cover
Learn about our solutions for polyvinyl chloride (PVC)
Pricing, news and analysis
Maximise profitability in uncertain markets with ICIS’ full range of solutions for PVC, including current and historic pricing, forecasts, supply and demand data, news and analysis.
Data solutions
Learn about Insight, Hindsight and Foresight, our dedicated commodity solutions accessible through our subscriber platform, ICIS ClarityTM or Data as a Service channels.

ICIS training
Keep up to date in today’s rapidly evolving commodity markets with expert online and in-person workshops and courses covering chemical and energy supply chains and market dynamics. ICIS offers a range of introductory and advanced topics as well as bespoke, in-house training.
Polyvinyl chloride (PVC) news
CORRECTED: INSIGHT: US tariffs unleash higher costs to nation's chem industry
Correction: In the ICIS story headlined “INSIGHT: US tariffs unleash higher costs to nation's chem industry” dated 3 February 2025, the wrong volumes were used for the following imports: Canadian ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94; Canadian polyethylene having a specific gravity of 0.94 or more, in primary forms; Canadian polyethylene having a specific gravity of less than 0.94, in primary forms; Canadian polypropylene, in primary forms; Canadian mixed xylene isomers; Mexican polypropylene, in primary forms; and Mexican cyclohexane. The US did not import cyclohexane from Mexico in 2023. A corrected story follows. HOUSTON (ICIS)–The tariffs that the US will impose on all imports from Canada, Mexico and China will unleash higher costs for the nation's chemical industry, create supply-chain snarls and open it to retaliation. For Canada, the US will impose 10% tariffs on imports of energy and 25% tariffs on all other imports. For Mexico, the US imposed 25% tariffs on all imports but the countries' presidents said on Monday the tariffs are being paused for a month. For China, the US will impose 10% tariffs on all imports. US IMPORTS LARGE AMOUNTS OF PE FROM CANADAUS petrochemical production is concentrated along its Gulf Coast, which is far from many of its manufacturing hubs in the northeastern and midwestern parts of the country. As a result, individual states import large amounts of polyethylene (PE) from Canada – even though the nation as a whole has a large surplus of the material. Even Texas imports large amounts of PE from Canada – despite its abundance of plants that produce the polymer. In addition, polyester plants in North and South Carolina import large amounts of the feedstocks monoethylene glycol (MEG) and purified terephthalic acid (PTA) from Canada. The US as a whole imports significant amounts of polypropylene (PP) and polyvinyl chloride (PVC) from Canada – again, despite its surplus of these plastics. The following table lists some of the main plastics and chemicals that the US imported from Canada in 2023. The products are organized by their harmonized tariff schedule (HTS) code. HTS PRODUCT MEASUREMENT VOLUMES 3901.40.00 Ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94 kilograms 1,319,817,405 3901.20.50 Polyethylene having a specific gravity of 0.94 or more, in primary forms kilograms 1,088,071,523 3901.10.50 Polyethylene having a specific gravity of less than 0.94, in primary forms kilograms 420,561,390 2917.36.00 Terephthalic acid and its salts kilograms 407,710,439 2905.31.00 Ethylene Glycol kilograms 329,542,378 3902.10.00 Polypropylene, in primary forms kilograms 271,201,880 3904.10.00 Polyvinyl chloride, not mixed with any other substances, in primary forms kilograms 188,800,413 2902.44.00 Mixed xylene isomers liters 746,072 2905.12.00 Propan-1-ol (Propyl alcohol) and Propan-2-ol (isopropyl alcohol) kilograms 87,805,095 3901.30.60 Ethylene-vinyl acetate copolymers kilograms 71,372,396 Source: US International Trade Commission (ITC) IMPORTS FROM MEXICOMexico is not as large of a source of US petrochemical imports as Canada, but shipments from the country are still noteworthy. The following table lists some of the main plastics and chemicals that the US imported from Mexico in 2023. HTS PRODUCT MEASUREMENT VOLUMES 2917.36.00 Terephthalic acid and its salts kilograms 69,230,708 3901.10.50 Polyethylene having a specific gravity of less than 0.94, in primary forms kilograms 34,674,435 2915.24.00 Acetic anhydride kilograms 25,294,318 3904.10.00 Polyvinyl chloride, not mixed with any other substances, in primary forms kilograms 24,005,371 2915.31.00 Ethyl acetate kilograms 18,855,544 3901.20.50 Polyethylene having a specific gravity of 0.94 or more, in primary forms kilograms 14,469,582 3902.10.00 Polypropylene, in primary forms kilograms 8,849,478 Source: US International Trade Commission (ITC) IMPORTS FROM CHINAChina remains a significant source for a couple of noteworthy chemicals despite the effects of the tariffs that US President Donald Trump imposed during his first term in office. The following table shows 2023 US imports from China. HTS PRODUCT MEASUREMENT VOLUMES 29152100 Acetic acid kilograms 21,095,566 39093100 Poly(methylene phenyl isocyanate) (crude MDI, polymeric MDI) kilograms 206,642,886 Source: US International Trade Commission (ITC) China's shipments of plastics goods are more significant. OIL TARIFFS WILL HIT US REFINERSCanada and Mexico are the largest sources of imported crude oil in the US, and the heavier grades from these countries complement the lighter grades that the US produces in abundance. Those imports help fill out refining units that process heavier crude fractions, such as hydrocrackers, cokers, base oil units and fluid catalytic cracking (FCC) units. Refiners cannot swap out heavier Canadian and Mexican grades with lighter US grades. Instead, they will need to pay the tariffs or find another supplier of heavier grades, possibly at a higher cost. The following table shows the largest sources of imported crude in 2023. Figures are listed in thousands of barrels/day. COUNTRY IMPORTS % Canada 3,885 59.9 Mexico 733 11.3 Saudi Arabia 349 5.4 Iraq 213 3.3 Colombia 202 3.1 Total US imports 6,489 Source: Energy Information Administration (EIA) US refiners could take another hit from higher catalyst costs. These are made from rare earth elements, and China remains a key source. TARIFFS TO RAISE COSTS FOR FERTILIZERCanada is the world's largest producer of potash, and it exports massive amounts to the US. It is unclear how the US could find another source. Russia and Belarus are the world's second and third largest potash producers. Together, the three accounted for 65.9% of global potash production in 2023, according to the Canadian government. Canada accounts for significant shares of other US imports of fertilizers. The following table lists some of Canada's fertilizer shipments to the US in 2023 and shows its share of total US imports. Figures are from 2023. HTS PRODUCT MEASUREMENT VOLUME % 31042000 Potassium chloride metric tonne 11850925 88.8 31023000 Ammonium nitrate, whether or not in aqueous solution metric tonne 295438 76.6 31024000 Mixtures of ammonium nitrate with calcium carbonate or other inorganic nonfertilizing substances metric tonne 29203 75.7 31055100 Mineral or chemical fertilizers, containing nitrates and phosphates metric tonne 1580 66.1 31022100 Ammonium sulfate metric tonne 947140 49.6 31052000 Mineral or chemical fertilizers, containing the three fertilizing elements nitrogen, phosphorus and potassium metric tonne 147850 41.4 Source: US ITC SUPPLY CHAIN SNARLSIf US companies choose to avoid the tariffs and seek other suppliers, they could be exposed to delays and supply chain constraints. Other companies outside of the petrochemical, plastic and fertilizer industries will also be seeking new suppliers. The scale of these disruptions could be significant because Canada, Mexico and China are the largest trading partners in the US. The following table lists the top 10 US trading partners in 2023 based on combined imports and exports. Country Total Exports ($) General Imports ($) TOTAL Mexico 322,742,472,406 475,215,965,697 797,958,438,103 Canada 354,355,997,349 418,618,659,183 772,974,656,532 China 147,777,767,493 426,885,009,750 574,662,777,243 Germany 76,697,761,127 159,272,068,221 235,969,829,348 Japan 75,683,130,214 147,238,042,342 222,921,172,556 South Korea 65,056,093,590 116,154,470,335 181,210,563,925 UK 74,315,228,810 64,217,031,774 138,532,260,584 Taiwan 39,956,725,574 87,767,403,487 127,724,129,061 Vietnam 9,842,922,146 114,426,076,081 124,268,998,227 Source: US ITC RETALIATIONUS petrochemical exports would be tempting targets for retaliation because of their magnitude and the global capacity glut. China, in particular, could impose tariffs on US chemical imports and offset the disruptions by increasing rates at under-utilized plants. So far, none announced plans to target chemicals on Sunday. Canada's plans to impose 25% tariffs on $30 billion in US goods does not include oil, refined products, chemicals or plastics. That batch of tariffs will take place on February 4. Canada will impose 25% tariffs on an additional $125 billion worth of US goods following a 21-day comment period, it said. The government did not highlight plastics or chemicals in this second batch of tariffs. Instead, it said the tariffs will cover passenger vehicles and trucks, including electric vehicles, steel and aluminium products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles and recreational boats. In a statement issued on Sunday, Mexico's president made no mention of retaliatory tariffs. Instead, she said she will provide more details about Mexico's response on Monday. China said it will start legal proceedings through the World Trade Organization (WTO) and take corresponding countermeasures. RATIONALE BEHIND THE TARIFFSThe US imposed the tariffs under the nation's International Emergency Economic Powers Act (IEEPA), which gives the president authority to take actions to address a severe national security threat. In a fact sheet, Trump cited illegal immigration and illicit drugs. Saturday's executive order is the first time that a US president imposed tariffs under IEEPA. Prior IEEPA actions lasted an average of nine years. They can be terminated by a vote in Congress. Insight article by Al Greenwood (Thumbnail shows containers, in which goods are commonly shipped. Image by Shutterstock)
03-Feb-2025
Samsung A&E bags $1.7bn deal to build UAE's first methanol plant
SINGAPORE (ICIS)–Abu Dhabi Chemicals Derivatives Co (TA’ZIZ) said on Monday it has awarded South Korea’s engineering firm Samsung E&A a $1.7 billion contract to build the first methanol plant in the UAE, which is slated to be completed in 2028. The plant, to be built in Al Ruwais Industrial City in western Abu Dhabi, will have a capacity of 1.8 million tonnes/year, TA’ZIZ said in a statement posted on the website of its parent firm Abu Dhabi National Oil Co (ADNOC). TA’ZIZ is a joint venture (JV) between ADNOC and sovereign wealth fund ADQ. Samsung A&E was formerly known as Samsung Engineering. “The [methanol] plant will enhance the UAE’s position as a leader in sustainable chemicals production and strengthen TA’ZIZ’s role in enabling ADNOC’s global ambition to lead the chemicals sector,” TA’ZIZ CEO Mashal Saoud Al Kindi said. The company said that the plant will be "powered by clean energy from the grid, making it one of the world’s most energy-efficient methanol plants". Set up in 2020 to develop industrial projects and diversify the economy away from oil in the UAE, TA'ZIZ is expected to produce 4.7 million tonnes/year of chemicals by 2028 in its initial phase, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), and caustic soda. Several of these chemicals will be produced for the first time in the UAE. ADNOC is moving in the specialty chemical space as part of its growth. On 1 February, ADNOC announced that it is in talks with Austrian petrochemical firm OMV to acquire Canada's Nova Chemicals from Mubadala, another Abu Dhabi sovereign wealth fund. If the acquisition goes through, a new global polyolefins group combining Nova Chemicals, Borealis, and Borouge will be formed, it said. Borealis is a 75:25 joint venture between OMV and ADNOC, while Borouge is jointly owned by ADNOC (54%) and Borealis (36%).
03-Feb-2025
Asia top stories – weekly summary
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 31 January. Inflationary pressure continues to dampen Asia recycling demand By Arianne Perez 27-Jan-25 09:53 SINGAPORE (ICIS)–Annual inflation rates posted in December 2024 across major Asian markets were mostly showing gains month on month, keeping demand for recycled plastics sluggish. Asia petrochemical trades wane; Trump’s tariff threat weighs on Feb outlook By Jonathan Yee 27-Jan-25 11:11 SINGAPORE (ICIS)–Trades in Asia’s petrochemical markets have slowed down ahead of the Lunar New Year holiday, with a general oversupply in the region and the threat of US tariffs clouding the outlook in February. China industries contract in January; official PMI falls to 49.1 By Nurluqman Suratman 27-Jan-25 12:29 SINGAPORE (ICIS)–China's official manufacturing purchasing managers' index (PMI) slipped back into contraction mode, with a January reading of 49.1, as factory activity wound down ahead of the eight-day Lunar New Year holiday, official data showed on Monday. Asia SBR, PBR trades stall amid uncertain demand, strong BD cost By Ai Teng Lim 28-Jan-25 11:29 SINGAPORE (ICIS)–Spot imports discussions in Asia of various synthetic rubber grades are stalling, not just because of extensive holiday market closures, but also due to shaky downstream demand prospects and mounting feedstock butadiene (BD) cost pressures. Asia melamine outlook hinges on post-Lunar New Year cost, demand support By Joy Foo 28-Jan-25 14:48 SINGAPORE (ICIS)–China’s melamine market stabilized from mid-January, driven by bullish signals in China's urea market. This put a pause to a broad downtrend in the melamine market that began in H2 October 2024. India PVC prices at two-year low; market eyes government spending boost By Aswin Kondapally 29-Jan-25 15:34 MUMBAI (ICIS)–India's polyvinyl chloride (PVC) prices plunged to a more than two-year low in the second half of January, owing to sluggish demand along with uncertainty over the exact timeline for the implementation of antidumping duties (ADDs). Asia naphtha demand to find support from Q1 cracker start-ups By Li Peng Seng 31-Jan-25 12:28 SINGAPORE (ICIS)–Asia’s naphtha demand will be supported post-Lunar New Year as new crackers starting up in China would temporarily mitigate concerns about impending trade wars exacerbating weak petrochemical margins.
03-Feb-2025
INSIGHT: US states near Canada face massive tariff bill on plastics imports
HOUSTON (ICIS)–Customers in several US states closer to Canada than its Gulf Coast petrochemical hubs import large amounts of plastics and chemicals from the country, including materials that the US produces in abundance, and these shipments could soon become subject to tariffs totalling hundreds of millions of dollars. US President Donald Trump has said he could announce on February 1 tariffs of up to 25% on imports from Canada and Mexico. Even though the US has large surpluses of many plastics and chemicals, domestic companies still import large amounts of these materials from Canada. These customers face the prospects of higher tariffs from Canadian imports or potentially higher shipping costs from suppliers that are farther away. CANADIAN EXPORTS TO NORTHERN STATESUS plastics and chemicals production is concentrated on the Gulf Coast in the south, which is far from the manufacturing and plastic processing hubs in Michigan, Illinois and Ohio in the north. These and other northern US states are much closer to Canada's petrochemical plants in Sarnia, Ontario province, than they are to the Gulf Coast. The following table shows various plastics and chemicals that Canadian exported in 2023 to Michigan, Illinois and Ohio. The bottom row shows how much customers from each state would pay if a 25% tariff was levied on the total value of these 2023 exports. Export figures are in tonnes. HTS Code Description Michigan (tonnes) Illinois (tonnes) Ohio (tonnes) 3901.10.00 PE having a specific gravity of less than 0.94 30,403 41,967 59,908 3901.20.00 PE having a specific gravity of 0.94 or more 125,693 66,493 85,328 3901.40.00 Ethylene-alpha-olefin copolymers 163,543 155,042 88,793 3902.10.00 Polypropylene 6,232 122,970 20,694 3901.30.00 Ethyl vinyl acetate copolymer 55 55,012 2,526 2905.31.00 Ethylene glycol 5 152,746 8,634 Total tariff bill $119,027,186 $243,701,358 $103,054,090 Source: Statistics Canada CANADIAN IMPORTS FROM THE CAROLINASNorth and South Carolina are also large destinations for Canadian exports. These states are home to auto plants as well as facilities that make polyethylene terephthalate (PET), which uses monoethylene glycol (MEG) and purified terephthalic acid (PTA) as feedstocks. The following table shows 2023 shipments made to these states. The bottom row shows how much customers would pay if a 25% tariff was levied on the total value of these exports. Export figures are in tonnes. HTS Code Description South Carolina (tonnes) North Carolina (tonnes) 3904.10.00 PVC, not mixed with any other substances 428 134,433 2905.31.00 Ethylene glycol 66,973 2,731 2917.36.00 Terephthalic acid and its salts 102,162 162,505 3901.10.00 PE having a specific gravity of less than 0.94 25,379 13,076 3901.20.00 PE having a specific gravity of 0.94 or more 79,301 30,278 3901.40.00 Ethylene-alpha-olefin copolymers 98,070 40,879 3902.10.00 Polypropylene 38,763 1,033 Total tariff bill $168,380,231 $166,512,281 Source: Statistics Canada Even though Texas is home to many plastics and chemical plants, it is still a destination for a large amount of plastic exports from Canada. The following table shows 2023 shipments made to Texas. The bottom row shows how much customers would pay if a 25% tariff was levied on the total value of these exports. Export figures are in tonnes. HTS Code Description Texas (tonnes) 3901.10.00 PE having a specific gravity of less than 0.94 62,300 3901.20.00 PE having a specific gravity of 0.94 or more 189,247 3901.40.00 Ethylene-alpha-olefin copolymers 185,610 3902.10.00 Polypropylene 21,315 Total tariff bill $145,297,714 Source: Statistics Canada CONSEQUENCES OF TARIFFSWhether the US proposes the tariffs on February 1 is still up in the air. Trump has used the threat of tariffs as a negotiating tool in the past, as he did against Mexico during his first term and against Colombia earlier this month. In both cases, the US reached agreements with the countries without imposing the tariffs. If the US does impose the tariffs, customers could pay the additional tax, or they could find another supplier. For states closer to Canada, new suppliers could increase shipping times and costs. If the tariffs are broad enough, customers will be competing for cargo space with other companies that are also procuring supplies from new suppliers. The tariffs could make the US plastic and chemical markets more vulnerable to weather disruptions because most of its production is concentrated along the Gulf Coast. This region of the US is vulnerable to hurricanes and, increasingly, to sub-freezing temperatures. Since 2021, the Gulf Coast has had spells of sub-freezing temperature every winter season. The region's plants were not designed to operate in such low temperatures, so they typically suffer from unplanned outages during the winter. Canadian material made US chemical and plastic supply chains more resilient by offering an alternative to Gulf Coast material. HOW CANADIAN TARIFFS COULD UNFOLDIf the US does pursue tariffs against Canada, it will likely do so under the International Emergency Economic Powers Act (IEEPA) of 1977, said Jacob Jensen, a data analyst for the American Action Forum (AAF), a think tank. The IEEPA allows the president to propose actions to address a severe national security threat. In the case of tariffs, immigration, fentanyl or both would be declared as national emergencies, and that would trigger IEEPA. Once the president notifies Congress through a letter or a speech, the tariffs could be imposed. Imposing tariffs under IEEPA would be a first for the US, Jensen said. It could also be long term. The average duration of an IEEPA order is nine years. They can be terminated by a vote in Congress. The US can impose tariffs under other laws, but the ones that Trump proposed for Canada do not meet the parameters under those regulations. Tariffs under Section 301 address unfair trade practices and require investigations. The US has not started such an investigation on Canadian trade practices. Tariffs under Section 232 cover specific products and are not broad-based like the ones Trump proposed against Canada. Tariffs under Section 201 are intended to provide temporary relief for a group of products or an industry. They are not broad-based. Tariffs under Section 122 have a limit of 15%. Tariffs under Section 338 have no precedence and could face court challenges. OTHER POTENTIAL TARIFFSSince winning the election, Trump also proposed tariffs of 25% on imports from Mexico and 10% on imports from China. During his campaign, Trump proposed the following tariffs: Baseline tariffs of 10-20% on all imports. Tariffs of 60% on imports from China. A reciprocal trade act, under which the US would match tariffs that other countries impose on its exports. Insight by Al Greenwood
30-Jan-2025
India launches antidumping probe on EU, Japan PVC paste resins
MUMBAI (ICIS)–India has initiated an antidumping investigation into imports of polyvinyl chloride (PVC) paste resin from the EU and Japan. In a notification on 24 January, the country’s Directorate General of Trade Remedies (DGTR) said the probe was in response to a complaint from domestic producer Chemplast Sanmar Ltd. Chemplast and Finolex Industries are the only domestic producers of PVC paste resins. The ADD investigation will cover 18 months from 1 April 2023 to 30 September 2024, while the injury investigation period will be three fiscal years from April 2020 to March 2023. India’s fiscal year ends in March. It is expected to last one year, with preliminary findings usually made within 60 to 70 days from the start of the probe. In December 2024, the DGTR recommended imposition of ADDs of $89/tonne to $707/tonne on PVC paste resin imports from China, South Korea, Malaysia, Norway, Taiwan and Thailand for five years. PVC paste resin is usually mixed with plasticizers and additives and used to create various products including wallpapers, automotive sealant, industrial coatings, tarpaulins, adhesives, gloves and synthetic leather.
28-Jan-2025
UPDATE: US freeze shuts numerous chem plants, major ports
HOUSTON (ICIS)–Winter storm Enzo, which caused a hard freeze along the US Gulf Coast, led to widespread shutdowns among chemical plants and refineries. Companies shut down at least five ethylene glycol (EG) units and at least eight crackers because of bad weather. Other plants, such as a propane dehydrogenation (PDH) unit, also shut down. Pre-emptive shutdowns and operational disruptions reported so far include: BASF idles Geismar, Louisiana, EO operations following winter weather BASF TotalEnergies cracker shuts down due to weather Dow's Plaquemine, Louisiana, glycol ethers site down following winter weather Dow's Taft, Louisiana, glycol ethers site down following winter weather Dow idles Taft, Louisiana, EO site following winter weather Dow's Taft, Louisiana, ethanolamines site down following winter weather Enterprise's PDH1 unit in Texas has unplanned shutdown Formosa shuts Louisiana PVC unit ahead of freeze GCGV Portland, Texas, EG site down ahead of freezing temperatures Indorama's Clear Lake, Texas, EG site down for winter weather Indorama Lake Charles cracker shut due to weather Indorama shuts Port Neches, Texas, cracker ahead of winter storm Indorama's Port Neches, Texas, ethanolamines unit down due to winter weather Indorama's Port Neches, Texas, EG unit down ahead of winter weather Ingleside, Texas, cracker shut before winter storm LACC Lotte/Westlake Louisiana cracker and EG unit down ahead of winter weather Lyondell Channelview, Texas, crackers flaring on operations issues Lyondell La Porte, Texas, cracker shutting due to weather Shell's Geismar, Louisiana, EO, EG site down following winter weather SHUTDOWNS AT REFINERIES AND BIOFUELSMotiva's refinery in Port Arthur, Texas, experienced unexpected interruptions and shutdowns of several critical pieces of equipment, it said in a filing with the Texas Commission on Environmental Quality (TCEQ). The disruptions caused emissions at a catalytic reformer, a fluid catalytic cracking (FCC) unit and a delayed coker unit. Renewable Biofuels conducted a planned shutdown at its biodiesel plant in Port Neches, Texas, for freeze protection, according to a filing with the TCEQ. MIDSTREAM DISRUPTIONSIn some cases, midstream companies reported freeze offs and hydrates forming. If these happen on a wide enough scale, they could interrupt the supply of natural gas. Chemical plants and refineries burn natural gas to produce process heat, and power plants use it to produce electricity. PORTSPorts in Houston and New Orleans were closed through Wednesday because of cold weather. Container vessel operations will begin at Port Houston at 19:00 local time on Wednesday, while all Port Houston facilities will begin normal operations on Thursday. NO WIDESPREAD POWER OUTAGES Texas avoided the widespread power outages that had led to several plant shutdowns during winter storm Uri in 2021. FREEZING TEMPERATURES TO END BY FRIDAYTemperatures rose above freezing during Wednesday, and daily highs should continue to rise as the week progresses. Lows should be just below freezing on Wednesday and Thursday, according to meteorologists. (Thumbnail shows snow, which can precipitate in the type of cold weather that can disrupt plant operations. Image by Michael Ainsworth/AP/Shutterstock)
22-Jan-2025
INSIGHT: Trump's first-day orders lay groundwork for future tariffs
HOUSTON (ICIS)–US President Donald Trump did not propose any new tariffs on his first day in office, but he did issue an executive order that calls for his administration to conduct the investigations needed to impose them under several sections of the law – in many cases, repeating the same playbook Trump used during his first term in office. While the investigations take place, the US can use the threat of possible tariffs to negotiate agreements. If the negotiations fail, the US would have taken the steps necessary to respond with tariffs. Trump did indicate that he is considering imposing tariffs on Canada and Mexico as early as 1 February. This could rely on using existing laws in unprecedented ways. The US chemical industry is vulnerable to tariffs because it has deficits in commodities such as benzene, melamine and methyl ethyl ketone (MEK). Its large exports of plastics make it vulnerable to retaliatory tariffs. TRUMP LAYS FOUNDATION FOR TARIFFSAmong the investigations that will be launched by Trump's executive order, those into national security could lead to Section 232 tariffs, which Trump imposed on steel during his first term. Discriminatory trade practices would open the door to Section 201 tariffs, which were imposed on washing machines and solar panels. Unfair trade practices could lead to Section 301 tariffs. The US imposed these against numerous Chinese imports. That unleashed a trade war, with China imposing retaliatory tariffs, many of which targeted US exports of plastics and chemicals. POSSIBLE NEW TARIFFSTrump's first-day order pointed to other reviews that his administration could complete faster and lead to new tariffs imposed under different sections of the law. These could fall under the International Emergency Economic Powers Act of 1977 (IEEPA), Section 338 and Section 122. Trump's first-day order did not mention these specific laws, but it did mention national security, discriminatory actions against US products and balance of payment deficits – all issues that these laws were designed to address. These laws could allow Trump to impose tariffs on a faster schedule. The IEEPA only requires consultation with Congress, and Section 1222 can apparently be imposed unilaterally, according to the American Action Forum (AAF), a think tank. THREAT OF CANADIAN, MEXICAN TARIFFS ON 1 FEBRUARYTrump would need such speed if he were to impose 25% tariffs on Canada and Mexico goods on 1 February, a possibility that he mentioned on Monday, according to CNBC and other publications. Drug trafficking and immigration could provide the national security basis needed under these laws. REVISITING THE PHASE 1 AGREEMENT WITH CHINATrump's first-day order called for a review of the Economic and Trade Agreement to determine if China is living up to its end of the deal. The agreement is more commonly known as the phase one deal, and the two countries signed it in January 2020. It included commitments by China to purchase more goods from the US; to adopt policies that will protect intellectual property; and to reduce pressure on companies to transfer technology. China has not fulfilled its import commitments under the agreement, and Trump's order said the country could impose additional tariffs in response. US CHEMS VULNERABLE TO TARIFFSUnless Trump carves out exceptions, his proposed tariffs on China and Mexico could raise costs for US chemical producers. Canada provides US refiners with heavier grades of oil that are not produced in sufficient quantities domestically for the nation's refineries. Canadian oil complements the light grades of oil that the US produces in abundance from its shale fields. Regional US markets may rely on Canadian imports because they are closer than the more distant sources along the US Gulf. Those customers will have to reroute their supply chains if they want to avoid tariffs. For the broader tariffs that Trump proposed in his campaign, they could prompt countries to impose retaliatory duties on US shipments of plastics and chemicals. The US is vulnerable to such tariffs because it has large surpluses of many plastics and chemicals, such as vinyl acetate monomer (VAM), methanol, ethylene glycols (EG), polyethylene (PE) and polyvinyl chloride (PVC). Tariffs on Chinese imports of rare earth materials would increase production costs for catalysts. Tariffs on fluorspar and hydrofluoric acid (HF) could increase costs for US producers of fluorochemicals and fluoropolymers. Insight article by Al Greenwood (Thumbnail shows cranes and containers, which make up important infrastructure used in international trade. Image by Costfoto/NurPhoto/Shutterstock)
21-Jan-2025
UPDATE: US Gulf Coast chemical plants reel from cold snap
HOUSTON (ICIS)–Cold weather in the US Gulf Coast on Tuesday is expected to disrupt petrochemicals operations in Texas and Louisiana as companies take preventive measures. Temperatures fell sharply overnight from Monday and are expected to stay lower than the average for the time of the year in coming days, with potential rain, sleet and snow. The Houston metropolitan got snow in the early hours of Tuesday. The city is to record freezing temperatures all nights this week to Friday (see bottom table). CHEMICALS PLANTSUS Gulf Coast crude and petrochemicals players’ memories of the last disrupting cold snap in 2024 and winter storm Uri in 2021 are still fresh, with many fearing similar disruption this week as key petrochemicals hubs in the area are set to witness a similar cold snap. In such a scenario, companies have done all they could to minimize the disruption, although some factors could be outside their control despite the preparations. Germany’s chemicals major BASF said in a written response to ICIS late on Monday that its operations in Freeport, Texas, would “continue to run at as much capacity as possible” but conceded that potential snowfall could greatly complicate access to and from the site. As of Monday, BASF said: “[Due to the snow] roads possibly being impassable. As a result, BASF will have ride out crews arriving Monday evening and remaining until conditions improve, which is expected to be on Wednesday late morning,” said a spokesperson for the company. “Non-critical employees will work from home. The BASF site in Vidalia, Louisiana, will idle operations beginning Monday evening with a planned restart of Wednesday at noon.” As Houston recorded heavy snowfall overnight, BASF was enquired again about its impact on Freeport, but the company had not responded to the request at the time of writing. BASF’s spokesperson added the company’s sites in Geismar and North Geismar, in the state of Louisiana, would continue to run as normal. In another written response to ICIS, a spokesperson for Brazil’s polymers major Braskem said the company had activated its severe weather preparedness plan for its assets in La Porte, Seadrift, and Oyster Creek, all in Texas. “We will continue to monitor the severe weather and follow our protocols to ensure our team members and assets are safe during this time. We are working with our clients to minimize the impact of this weather event,” it added. A spokesperson for CPChem also said the company was monitoring the weather and “taking steps to prepare” its plants for any potential impact. A spokesperson for European chemicals major INEOS said the company's olefins, polyethylene (PE) and polypropylene (PP) units "have initiated winter storm" protocols. LyondellBasell would not comment. A spokesperson for the company said to ICIS: “As a matter of practice, we don’t provide specific details about our units, operational status, production figures, or supply for competitive reasons.” Pre-emptive shutdowns and operational disruptions reported so far include: BASF TotalEnergies cracker shuts down due to weather Formosa shuts Louisiana PVC unit ahead of freeze GCGV Portland, Texas, EG site down ahead of freezing temperatures Indorama's Clear Lake, Texas, EG site down for winter weather Indorama Lake Charles cracker shut due to weather Indorama shuts Port Neches, Texas, cracker ahead of winter storm Indorama's Port Neches, Texas, EG unit down ahead of winter weather Ingleside, Texas, cracker shut before winter storm LACC Lotte/Westlake Louisiana cracker and EG unit down ahead of winter weather Lyondell Channelview, Texas, crackers flaring on operations issues Lyondell La Porte, Texas, cracker sees weather-related flaring THREAT OF POWER OUTAGES AND GAS OUTAGESWhile industrial plants can avoid direct damage from cold weather, they can still be subject to power outages or the loss of natural gas supplies. If the forecasts for sleet and snow hold true, then this could cause powerlines to snap. Spikes in demand for heating can overwhelm the power grid in Texas, leading to widespread blackouts. Chemical plants and refineries rely on electricity to power motors and pumps. As of Tuesday, power supply should be sufficient to meet demand through 28 January, according to the Electric Reliability Council of Texas (ERCOT), which manages the flow of electricity in most of the state. The electricity grid in Texas was holding up reasonably well as of Tuesday morning, with nearly 48,000 power outages recorded according to Poweroutage.us. The figure is reasonably low for Texas' grid standards and was much lower than the more than 80,000 outages reported in California, a US state with similar population to Texas which is still reeling from wildfires around Los Angeles. Cold temperatures can also affect the flow of natural gas, potentially causing freeze-offs during which water or hydrates freeze or can create blockages. One such freeze-off caused on Monday a shutdown of a scrubber at an amine treater in Winkler county in west Texas, according to a filing with the Texas Commission on Environmental Quality (TCEQ). Low temperatures could disrupt operations at the plants that process natural gas. Since 2021, cold weather has disrupted US natural gas production during every winter, according to the Energy Information Administration (EIA). PROLONGED STRETCH OF FREEZING TEMPERATURESThe following table shows the weather forecast for the Houston metropolitan area this week, with temperatures listed in Fahrenheit first and, in brackets, in Celsius. Tuesday Wednesday Thursday Friday High 36 (2.2) 42 (5.6) 48 (8.9) 52 (11) Low 22 (-5.6) 29 (-1.7) 29 (-1.7) 37 (2.8) Source: National Weather Service Eric Berger, an analyst at Houston’s weather blog Space City Weather, said on Tuesday that infrastructure disruption should have cleared by Wednesday morning, although in some locations it may last practically all day. “After a cold start, high temperatures on Wednesday are expected to reach 40 degrees [Fahrenheit] or even a little warmer under sunny skies. The combination of mostly sunny skies and sublimation should allow for roads to mostly dry out, but for some locations, this may not happen until after noon,” said Berger. “I realize the uncertainty is no fun, but such snow and ice events are relatively rare in Houston, so we are working on limited data about local roads and their response to icy conditions. Most of Houston will fall into the upper 20s [Fahrenheit] on Wednesday night.” Front page picture: Houston's suburbs after heavy snowfall overnightSource: Adam Yanelli/ICIS Additional reporting by Al Greenwood, John Donnelly and Melissa Wheeler
21-Jan-2025
Asia petrochemical shares, China futures markets mixed as Trump takes US reins
SINGAPORE (ICIS)–Shares of petrochemical firms in Asia and China’s commodity futures markets closed mixed on Tuesday, with no immediate announcement of new tariffs from the US on the first day of Donald Trump’s second term as president. South Korea’s LG Chem closed 4.75% lower in Seoul , while Japan’s Mitsubishi Chemical finished 1.85% higher in Tokyo. China’s state oil and gas firm PetroChina was down 1.40%, while chemicals major Sinopec ended down 1.62% in Hong Kong. The CSI 300 Index, a benchmark for Chinese mainland shares, edged up 0.08% to close at 3,832.61. Japan's benchmark Nikkei 225 rose by 0.32% to settle at 39,027.98, while South Korea's KOSPI Composite Index ended 0.08% lower at 2,518.03. Hong Kong's Hang Seng Index finished the session 0.91% higher at 20,106.55. Singapore's Straits Times Index (STI) was trading 0.27% lower at 3,797.61 at 08:44 GMT. Analysts said that markets have already pre-digested the “Trump effect”. In his presidential campaign, Trump had threatened to impose tariffs on all US imports. His first four-year term as US president in 2017-2021 sparked the US-China trade war. In China, six out of nine petrochemical futures markets posted declines on Tuesday. CNY/tonne 21-Jan % change from previous session Linear low density polyethylene (LLDPE) 7,808 -0.3% Polyvinyl chloride (PVC) 5,304 0.6% Ethylene glycol (EG) 4,753 -0.2% Polypropylene (PP) 7,400 -0.7% Styrene monomer (SM) 8,520 0.0% Paraxylene * 7,420 -0.1% Purified terephthalic acid (PTA)* 5,192 -0.2% Methanol* 2,591 0.6% Polyethylene terephthalate (PET)* 6,388 -0.2% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Overall trading activity in China’s petrochemical markets is waning as many players have suspended trading to prepare for the upcoming Lunar new year holiday, which will last eight days from 28 January. ($1 = CNY7.28) Additional reporting by Nurluqman Suratman
21-Jan-2025
US President Trump proposes no tariffs on first day in office
HOUSTON (ICIS)–US President Donald Trump proposed no new tariffs on his first day of office, and instead instructed his administration to investigate the nation's trade deficit and other areas of trade policy. The absence of any tariff proposal marks a contrast to his campaign platform and his subsequent threats after winning the election. Tariffs would expose the US chemical industry to disruptions in trade flows, increased costs for chemicals in which the nation has deficits and the threat of retaliatory tariffs on its exports of polyethylene (PE), polyvinyl chloride (PVC) and other plastics and chemicals. Instead of proposing tariffs, Trump issued a memorandum that called for the following: The Secretary of Commerce to investigate the nation's deficit and its consequences to the economy and to national security. The Secretary of the Treasury to investigate the creation of an External Revenue Service to collect tariffs and duties. The US Trade Representative to investigate any unfair trade practices. The US Trade Representative to prepare for the July 2026 review of the United States-Mexico-Canada Agreement (USMCA), which is the name of the countries' trade agreement that replaced NAFTA. The US Secretary of the Treasury to investigate exchange rates. The US Trade Representative to review and recommend revisions to existing trade agreements. The US Trade Representative to negotiate bilateral or sector-specific agreements to open markets. The Secretary of Commerce to review policies and regulations regarding antidumping and countervailing duty laws. A review of several trade issues with China, including the Economic and Trade Agreement. This is also known as the phase one agreement, under which China failed to fulfil its import commitments. The absence of first-day tariff proposals does not mean that Trump will not make any later in his presidency. In some cases, the US president has the authority to propose them even without investigations. For example, the International Emergency Economic Powers Act (IEEPA) of 1977 allows the president to propose tariffs that would address a severe national security threat. It requires only a consultation with Congress. During Trump's presidential campaign, he proposed the following tariffs: Baseline tariffs of 10-20% on all imports. Tariffs of 60% on imports from China. A reciprocal trade act, under which the US would match tariffs that other countries impose on its exports. After winning office, he threatened to impose tariffs of up to 25% on imports from Canada and Mexico and up to 10% on imports from China. Thumbnail image: Inauguration Ceremony for President Donald Trump in Washington, District of Columbia, United States – 20 January 2025 (By Chip Somodevilla/UPI/Shutterstock)
21-Jan-2025
Events and training
Events
Build your networks and grow your business at ICIS’ industry-leading events. Hear from high-profile speakers on the issues, technologies and trends driving commodity markets.
Training
Keep up to date in today’s dynamic commodity markets with expert online and in-person training covering chemicals, fertilizers and energy markets.
Contact us
Partner with ICIS and unlock a vision of a future you can trust and achieve. We leverage our unrivalled network of chemicals industry experts to support our partners as they transact today and plan for tomorrow. Capitalise on opportunity in today’s dynamic and interconnected chemicals markets, with a comprehensive market view based on trusted data, insight and analytics.
Get in touch today to find out more.
READ MORE
