Engineering plastics (POM, PBT)

HOUSTON (ICIS)–Announced this week, beverage giant The Coca-Cola Company has updated many of their 2030 sustainability goals, in some cases delaying and minimizing targets, in other cases removing tangible goals all together. All goals have now been extended to a 2035 timeline. In support of this move, the company notes that they have assessed progress and identified challenges to achieving their original 2030 goals. This comes as companies grapple with the premium often associated with sought after food-grade, clear recycled resins, especially amid a weaker global macroeconomic environment. "These challenges are complex and require us to drive more effective and efficient resource allocation and work collaboratively with partners to deliver lasting positive impact," noted Bea Perez, Executive Vice President and Global Chief Communications, Sustainability & Strategic Partnerships Officer at The Coca‑Cola Company. This comes as the company has faced rocky unit case sales volumes in the North American market over the last several quarters. Most recently, the company posted flat quarter on quarter results, an improvement over negative volumes the prior quarter. In relation to packaging, the original goal of 50% recycled content by 2030 has been downgraded to a target of 35-40% recycled content in primary packaging. Specifically, they aim to reach 30-35% recycled content in their plastic packaging, which makes up nearly 50% of their packaging mix by number of units. In 2023, the company noted 27% of their primary packaging material by weight came from recycled content, 17% of which was recycled plastic. This now leaves a 10-year runway to achieve an additional increase of just 8% to reach their new recycled content target and 13% to reach their recycled plastic target. Additionally, the company has reduced their beverage container collection target from 100% by 2030 to 70-75% by 2035. As of 2023, the company noted 62% of the equivalent bottles and cans introduced into the market were collected for recycling or reuse. When looking at packaging design, the company noted they had converted more than 95% of their packaging to recyclable formats, nearing the 100% by 2025 goal. As many other converters and brand companies have also reckoned with, it can be very difficult to convert the final items, ones which typically require a complete re-design or additional cost to comply with recycling requirements. The company has now removed a virgin resin reduction goal, amid a poor result in 2023, where virgin plastic use actually increased due to business related growth. The prior reuse and refill goal was also removed. Coca-Cola now joins several other brand companies, such as Unilever, PepsiCo who have delayed or reduced their original ambitious goals amid bottom line pressure. It is uncertain how brand companies will demonstrate their commitment to packaging circularity sustainability in the long term, especially as leaders around the globe continue negotiating towards a global treaty on plastic pollution. While voluntary goals have boosted demand for recycled plastics markets, many recyclers and suppliers note that actual procurement efforts have been inconsistent. Many believe regulatory requirements are the only solution to securing long term demand for these materials.

05-Dec-2024

MUSCAT (ICIS)–Thailand’s PTT Global Chemical (PTTGC) is expected to begin producing sustainable aviation fuel (SAF) at its refinery in Map Ta Phut early next year, the company’s CEO Narongsak Jivakanun said. “We are commissioning, although it is on a small scale, but it is an important step – SAF [production] in Q1 next year using our existing oil refinery but blended with non-fossil fuel based raw material,” Jivakanun told ICIS on the sidelines of the 18th Annual Gulf Petrochemicals and Chemicals (GPCA) Forum in Muscat, Oman. The company plans to produce 500,000 liters of SAF per month, using up to 1,700 tonnes of used cooking oil per month as feedstock. SAF is used as a direct replacement for traditional fossil-based jet fuel to power aircraft. Moreover, by leveraging the mass balance approach, the change in how the refinery accommodates use of alternative feedstock in the production of SAF enables it to claim a portion of its downstream aromatics, polymers, and olefins output as non-fossil chemical products, he said. PTTGC is the first Thai company to upgrade its refinery with advanced technology to accommodate used cooking oil as feedstock. The company’s biorefinery project is a component of the company's three-pronged growth strategy – “Step Change, Step Out and Step Up” – which, in part, prioritizes business sustainability through decarbonization efforts, according to Jivakanun. PTTGC is also on track to fully start up a new fully integrated polylactic acid (PLA) unit at the Nakhon Sawan Biocomplex (NBC) by the end of next year, he said. The PLA project is being carried out by NatureWorks, the equal joint venture firm between the US’ Cargill and PTTGC and will use sugarcane sourced locally as feedstock. THAI SPECIALTIES HUB AMBITIONS  Allnex, a global specialty chemicals subsidiary of PTTGC, is currently planning to expand its specialty resins production in Map Ta Phut with an aim to develop the site to become a hub for selected coating resins serving the southeast Asia region, according to Jivakanun. “The plan is to develop a hub in Map Ta Phut so that they can share the infrastructure that [PTT]GC already has, utilities, the engineering and operational support," he said. "Expertise sharing between GC and allnex will enhance potential of value engineering resulted in cost savings into the project." The project is in the stage of finalizing the scope with an aim to produce specialty resins that most fit customer demands and requirements Allnex specializes in the production of industrial coating resins and additives. “We will go through the feasibility study as usual and we aim to confirm the investment for allnex Map Ta Phut hub within next year," Jivakanun added. Interview article by Nurluqman Suratman

04-Dec-2024

MUMBAI (ICIS)–India’s PCBL Ltd began commercial operations at its 20,000 specialty chemicals expansion project at its Mundra complex in the western Gujarat state on 28 November. This plant forms the second and final phase of the company’s 40,000 tonne/year brownfield expansion project, the company said in a disclosure to the Bombay Stock Exchange (BSE) on 29 November. The company began operations at the first phase of the project in July 2023. The enhanced capacity will allow PCBL to meet growing demands of its existing customers and also explore new opportunities, it said. The company, formerly known as Phillips Carbon Black Ltd, produces more than 40 grades of performance and specialty chemicals which service various segments like the tyres, engineering plastics, inks & coatings, and batteries industries.

04-Dec-2024

BARCELONA (ICIS)–Plastics and chemical producers need to find more effective ways to tackle the problem of plastic waste after UN treaty negotiations ended without agreement at the weekend. Consumer demand will drive improvements in plastic waste management Chemical companies need to reconnect with brands/consumers We will move out of current ‘trough of despair’ about recycling End of globalization may mean national/regional treaties are more effective UN Intergovernmental Negotiating Committee concluded in Busan, South Korea, on 1 December, with no definitive agreement Around 100 countries backed proposals, with a small number of hold-outs In this Think Tank podcast, Will Beacham interviews ICIS market engagement executive Nigel Davis and Paul Hodges, chairman of New Normal Consulting. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

03-Dec-2024

MUSCAT (ICIS)–Dow has attributed problems with plastics pollution to a lack of plastics recycling and not production, the US producer’s chair and CEO said at the 18th Annual Gulf Petrochemicals and Chemicals Association (GPCA) on Tuesday. Plastics are “essential” to the modern world, according to Jim Fitterling, and demand will only rise in the years ahead – but most countries have no roadmap to recycle plastics, let alone reduce production. Tensions between oil-producing nations, led by Saudi Arabia, and other nations advocating for a cut in plastics production, have stalled global treaty talks at the Intergovernmental Negotiating Committee (INC-5) in South Korea. The session concluded on 1 December with no definitive agreement. “When policymakers take it upon themselves to decide one type of energy is right and another type of energy is wrong, rather than asking what is right for each unique situation, that's when progress stops.” Dow is embracing innovation in its energy transition goals, with Fitterling asserting that its energy transition is “here to stay”. Through the company’s plan to “decarbonize and grow”, Dow aims to boost underlying earnings by over $3 billion while reducing greenhouse gas emissions by 5 million tonnes by 2030. Dow is working to transform plastics waste and other alternative feedstocks to commercialize 3 million metric tons of circular and renewable solutions annually,  and generate an anticipated $500 million of incremental run rate EBITDA by 2030, said Fitterling. However, Fitterling added that there is a need to “combat” the notion that recycling does not work, that “success will come from elimination rather than innovation”, as he asserted that recycling simply “isn’t available” to over three billion people globally. “Because for a vast majority of the world, it's not that recycling hasn't worked. It's that recycling isn't available.” Globally, less than 10% of plastic is recycled and approximately one-third of plastic packaging escapes collection systems, said Fitterling. The 18th edition of the GPCA is being held for the first time in Muscat, Oman this year and will conclude on 5 December. Thumbnail photo: Waste plastic bottles (Source: Shutterstock)

03-Dec-2024

MUSCAT (ICIS)–In this special edition of the ICIS podcast, Asia deputy news editor Nurluqman Suratman speaks with ICIS market development executive John Richardson on the sidelines of the 18th Annual Gulf Petrochemicals and Chemicals (GPCA) Forum on current issues facing the industry. Ongoing issues over a UN plastics treaty highlight divide between major producers and smaller players Upcoming US tariffs to change trade flows, dynamics for Middle East Global oversupply remains in focus as China demand growth slows Thumbnail image: At the 18th Annual GPCA Forum in Muscat, Oman – 3 December 2024 (By Nurluqman Suratman)

03-Dec-2024

MUSCAT (ICIS)–Gulf Cooperation Council (GCC) petrochemical players must formulate strategic international partnerships and invest in optimization and innovation to remain competitive, according to the secretary general of the Gulf Petrochemicals and Chemicals Association (GPCA). “In the short term, the [GCC petrochemicals] industry needs to urgently adapt to shifting market dynamics and explore new opportunities within products and markets,” Abdulwahab Al Sadoun told ICIS ahead of the 18th Annual GPCA Forum in Muscat, Oman on 2-5 December. "Formulating the right strategic partnerships, particularly with regards to the region’s top export market – China – will also be important in securing growth," he said. The GCC comprises six Middle Eastern countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. The forum took place outside the UAE for the first time in 2022, when it was held in Riyadh, Saudi Arabia; in Doha, Qatar the following year; and in Muscat, Oman this year. The GCC petrochemical industry’s performance is closely interlinked with the health of the global economy, including changes in consumer demand patterns, regulatory and policy updates and demand fluctuations in end markets, Al-Sadoun said. “Aligning itself with key global objectives and ensuring their products and services provide meaningful solutions to the challenges we face will be vital in securing the industry’s future.” Al-Sadoun said that the forum’s theme of “Industry’s Next Chapter: Driving Sustainable Advancement for Global Progress” was timely as the GCC petrochemicals industry now stands at a crossroads in the chemical industry’s evolution. The world today is faced with "insurmountable challenges", Al-Sadoun said. Geopolitical turmoil, climate change, food insecurity, supply chain disruptions, and waste management are some of the megatrends impacting the chemical industry, society and planet, according to Al-Sadoun. “As the external environment around us continues to be in a state of change, so does the chemical industry need to evolve apace…The chemical and petrochemical sector plays an instrumental role as a solutions provider to some of these key challenges,” he said. “At the heart of our chemistry solutions lies the vision to contribute to global sustainable advancement – simultaneously enhancing our contributions to socio-economic prosperity, while at the same time preserving our planet and developing solutions that contribute to the energy transition and the circular economy.” DUAL CHALLENGE As the global population is projected to reach 9.7 billion by 2050, the industry will be faced with the dual challenge of meeting growing chemicals demand driven by an expanding, urbanized population, while at the same time meeting its obligations to decarbonize and preserve the environment, Al-Sadoun said. “As global discussions intensify around renewable energy sources and low-carbon technologies, major GCC players have announced net-zero emissions goals and are investing in green technologies, such as hydrogen production and renewable energy integration.” Advancing the circular economy is also an important factor in driving the sustainable transition, he said. Notable innovations across the GCC industry include Kuwait producer EQUATE’s Viridis 25, the region's first food-grade polyethylene terephthalate (PET) incorporating 25% chemically recycled material, reducing reliance on virgin PET, Al-Sadoun noted. Similarly, UAE polymers major Borouge has advanced recyclability through mono-material laminates and flexible packaging solutions, while Saudi Arabia chemicals giant SABIC continues to lead with its certified circular polymers made from 100% recycled plastic. Government-driven initiatives, such as Saudi Arabia’s Vision 2030 and the UAE’s Net Zero by 2050 Strategy, will also provide a supportive policy framework for industry-wide sustainability transitions, he noted. “However, industry players are under no illusion that the road to sustainability is long and ridden with challenges,” Al-Sadoun said. “It requires true collaboration, Public Private Partnerships (PPP) and the entire value chain to pull their weight to chart a viable pathway to sustainability,” he said. “The journey to achieving big goals is often a series of small, consistent steps…And this is what the industry needs to focus on – taking impactful, consistent actions every day." Interview article and infographic by Nurluqman Suratman Thumbnail image: GPCA secretary-general Abdulwahab Al-Sadoun (Source: GPCA)

02-Dec-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 29 November. Final round of UN plastics treaty talks begin in South Korea By Nurluqman Suratman 25-Nov-24 12:23 SINGAPORE (ICIS)–The fifth and final round of United Nations (UN)-led negotiations for a global plastics treaty to combat plastic pollution kicked off in Busan, South Korea, on Monday. INSIGHT: China cuts PV export tax rebate; EVA sector faces margin squeeze By Joanne Wang 25-Nov-24 18:04 SINGAPORE (ICIS)–China's Ministry of Finance and the State Administration of Taxation announced on 15 November a reduction in export tax rebate rate for solar products, including photovoltaic (PV), batteries and other certain products, from 13% to 9%. Asia petrochemical shares slip; Trump eyes 10% new tariffs for China By Nurluqman Suratman 26-Nov-24 12:00 SINGAPORE (ICIS)–Asian petrochemical shares were mostly lower on Tuesday after US President-elect Donald Trump threatened to impose an additional 10% tariffs on Chinese goods. Asia fatty alcohol mid-cuts demand weighed down by feedstock PKO volatility By Helen Yan 27-Nov-24 10:23 SINGAPORE (ICIS)–Asia’s fatty alcohol mid-cuts market is likely to see a lull in spot activities in the near term as a widening buy-sell price gap has hampered trades. World Plastics Council, Global Plastics Alliance urge governments to secure UN plastics treaty By Nurluqman Suratman 27-Nov-24 12:12 SINGAPORE (ICIS)–The World Plastics Council (WPC) and Global Plastics Alliance (GPA) members are urging governments to finalize a landmark treaty to end plastic pollution through scaled-up waste management and recycling, while respecting countries’ differing needs. Thailand to compete for spot Asia ACN, MMA as PTTAC plants close By Jonathan Yee 27-Nov-24 15:22 SINGAPORE (ICIS)–Thailand will have to tap the spot Asian markets for acrylonitrile (ACN) and methyl methacrylate (MMA) for its domestic requirements starting 2025 following closures of PTT Asahi Chemical (PTTAC)’s plants in Map Ta Phut. S Korea central bank cuts key interest rate anew; trims GDP forecasts By Jonathan Yee 28-Nov-24 11:56 SINGAPORE (ICIS)–South Korea’s central bank on Thursday made a surprise cut to its key interest rate, following a similar move in the previous month, amid concerns over economic implications of the US’ impending tariffs on all foreign goods. Asia butac, etac markets languish in slow demand By Melanie Wee 29-Nov-24 13:44 SINGAPORE (ICIS)–Asia-Pacific butyl acetate (butac) markets were undermined by slowing demand entering the year-end lull against a backdrop of ample regional supply.

02-Dec-2024

TORONTO (ICIS)–Shipments in Canada’s chemistry sector are expected to grow between 1-4% in 2025 and in the plastic sector they are expected to grow 2-3%, David Cherniak, policy manager, Business and Transportation, at the Chemistry Industry Association of Canada (CIAC), said in a webinar. Trade disputes and tariffs Canadian elections bring political uncertainties Renewed labor disruptions CIAC’s projections assume a pick-up in the global economic growth in 2025, he said but also warned of downside risks, in particular from possible US tariffs and Canada’s elections next year. The Ottawa-based trade group speaks for both Canada’s chemical and plastic industries. In chemicals, the 2025 growth would come after projected growth of about 2% for 2024, which was weaker than CIAC initially expected as interest rates did not fall by as much as had been anticipated, Cherniak said. The higher rates affected demand for chemicals from interest-sensitive end markets, in particular housing and auto, “which take up a lot of chemicals”, he said. TAILWINDS IN 2025 For 2025, CIAC sees a number of tailwinds for the industry, Cherniak said: Interest rates coming down, driving up demand for chemicals and plastics from housing, autos and other interest-rate sensitive markets, probably more towards the second half of the year. Increased diversification as Canada ships chemicals from its West Coast ports to new markets. Shutdowns of older plants in the global chemical industry. Canada’s “structural advantage” in production costs, due to low natural gas and energy prices. A weak Canadian dollar, which is “definitely a tailwind” for Canada’s highly export-dependent chemicals sector. New investments, with CIAC tracking 26 projects that could move to final investment decisions. HEADWINDS However, the industry is also facing “high political uncertainties” as Canada is heading into an election year, Cherniak said. A change in government could affect programs and incentives for investments in low-emission chemical projects, he noted. Another major headwind for the chemical industry is trade tensions, Cherniak said and went on to note the threat earlier this week by US President-elect Donald Trump to put a 25% tariff on all imports from Canada and Mexico. The US is the largest market by far for Canada’s chemicals industry. CIAC, for its part, will be making the case that the US-Canada chemical industry is integrated and that both the Canadian and the US economies are relying on the industry to perform well, he said. If implemented, Trump’s tariffs would not just harm the chemical and plastics industries but would have broad impacts across the overall economy, he added. However, tariffs were not just a US issue, he said. Rather, trade tensions related to chemicals were increasing globally, he said. In the past year alone, countries such as China, India, South Korea or Brazil targeted chemical products in trade disputes, he said. Brazil plans an investigation into polyethylene (PE) arriving from Canada and the US. According to CIAC data, Canada exports about Canadian dollar (C$) 4 million/month (US$3 million/month) of PE resin products to Brazil. Domestically, labor disputes and disruptions at Canada’s freight railroads or ports could yet again pose challenges for chemical producers in 2025, following this year’s disruptions, he said. A labor union has already obtained a mandate for a strike at freight rail carrier Canadian National that could begin on 1 January, and it is planning a strike vote at Canadian Pacific Kansas City (CPKC), it said this week. Taken together, trade tension and transport disruptions have made it harder to move chemicals around the world. Combined with weakness in key end markets, the entire global market could become unstable, he said. “A lot of different clouds are circling on the horizon, a lot of different things" could slow down what CIAC otherwise expects to be "a decent year", he said. (source: CIAC) (US$1=C$1.40) Thumbnail image show logo of Ottawa-based Chemistry Industry Association of Canada/Association canadienne de l’industrie de la chimie

29-Nov-2024

TORONTO (ICIS)–New US tariffs on US-Canada trade would have a devastating impact on manufacturers, workers and consumers on both sides of the border, trade group Canadian Manufacturers and Exporters (CME) said on Tuesday. “This is truly a lose-lose proposition,” the group said in reacting to news on Monday that President-elect Donald Trump plans to impose a 25% tariff on all imports from Canada and Mexico. “On January 20th, as one of my many first executive orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on ALL products coming into the United States, and its ridiculous open borders,” Trump said on social media. The tariffs would remain in place until Canada and Mexico took action on drugs and immigrants entering the US, Trump said. Notably, he did not mention an exemption for US-Canadian energy trade. Trump previously proposed to raise tariffs by 10-20% on all imports, and by 60% on imports from China. CME said that Canada’s exports to the US were primarily materials and inputs used by US businesses to manufacture other products. As such, imposing tariffs would not just harm Canada’s economy – it would also hurt US manufacturers by increasing their costs and disrupting the deeply integrated supply chains that made North American manufacturing globally competitive, the group said. The economic relationship between Canada and the US is “enormous”, with Canadian dollar (C$) 2.5 billion (US$1.8 billion) in goods crossing the border every day in 2023, it said. Of that trade, 75% consists of manufactured goods, the group said. Trump claims that he wants US manufacturing to grow and thrive, but “these tariffs would have the opposite effect,” CME said. The group added that it was working closely with the federal government in Canada and partners at the US National Association of Manufacturers (NAM) to ensure the new Trump administration and other decision-makers “fully understand the consequences of this proposal”. “We believe Canada and the US must work together on policies that support the growth of manufacturing while strengthening our shared economic and national security and not pursuing policies that will undoubtedly harm US manufacturers, in addition to Canadian businesses and workers,” it added. CME represents all of Canada’s manufacturers. Among many others, its members include NOVA Chemicals and other chemical producers. The Chemistry Industry Association of Canada (CIAC), which speaks for Canada’s chemicals and plastics industries, said that companies on both sides of the border were still digesting the news of Trump's tariffs, as was CIAC. The group expects to be able to provide comment soon. According to previous CIAC data, about 80% of Canada’s chemicals production goes into export, with about 80% of those exports going to the US. CANADIAN POLITICIANS REACT Canadian government officials said that Prime Minister Justin Trudeau spoke with Trump shortly after Trump announced the tariffs. The details of the conversation were not disclosed. Trudeau also spoke with the premiers (governors) of Canada’s Ontario and Quebec provinces, who warned of the risks the US tariffs pose to their respective economies. The premier of Ontario urged Trudeau to call a meeting with all premiers. The premier of oil-rich Alberta province, Danielle Smith, said on social media that the incoming Trump administration had “valid concerns related to illegal activities at our shared border”. Canada’s federal government needed to work with the US “to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the US”, she said. “As the largest exporter of oil and gas to the US, we look forward to working with the new administration to strengthen energy security for both the US and Canada,” she added. Last week, Canada’s finance minister and deputy prime minister Chrystia Freeland said that unlike Mexico, Canada was “more aligned today than ever” with the US with regard to concerns about China’s trade practices. Canada had followed the US tariffs on electric vehicles (EVs), steel and aluminum from China, meaning it was not a back door for Chinese goods into the US, she said. Meanwhile, some Canadian politicians have called for a US-Canada trade deal that would exclude Mexico. The current US-Mexico-Canada (USMCA) trade deal will be renegotiated in 2026. Last week, experts at Oxford Economics said that new US tariffs, and Canada’s retaliatory tariffs, would raise inflation. Oxford, in its models, assumes that US-Canada energy trade will be exempted from the tariffs. (U$1 = C$1.41) Thumbnail of photo Trudeau (left) meeting Trump in Washington in 2019 during Trump’s first presidency; photo source: Government of Canada

26-Nov-2024