Propylene oxide (PO)

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Discover the factors influencing propylene oxide (PO) markets

Crucial in the manufacture of a range of end products from cosmetics to antifreeze, propylene oxide is industrially produced and traded on a major scale. Keeping track of trading activity, prices, output levels and demand fluctuations across all the key markets around the world means monitoring vast amounts of data. The rapidly changing market dynamics create opportunities for producers, buyers, sellers and traders of propylene oxide. However, the key to success is world class market intelligence. Be sure you are on top of all the market fundamentals to act quickly and decisively to secure a profitable deal.

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Propylene oxide (PO) news

APIC '24: PODCAST: Asia C3 derivative demand still slow amid uncertainty

SINGAPORE (ICIS)–Asia's oxo-alcohols buyers maintained a wait-and-watch approach on the market amid possibility of added plant capacities in China. The acrylonitrile (ACN) market continues to see limited spot demand in northeast Asia. Even with recent higher production rates at downstream acrylonitrile-butadiene-styrene (ABS) plants, ACN producers were unlikely to increase operating rates. For the acrylates downstream, butyl-A market in Asia continues to take direction from Chinese domestic prices. With India's Bureau of Indian Standards (BIS) requirements preventing Chinese-origin imports, cargoes from China were flowing into southeast Asia and northeast Asia. In this podcast, ICIS editors Julia Tan and Corey Chew discuss trends in the Asia propylene (C3) and derivatives markets. (This podcast first ran on 15 May.) Visit ICIS during APIC ’24 on 30-31 May at Booth 13, Grand Ballroom Foyer of the Grand InterContinental Seoul Parnas in South Korea. Book a meeting with ICIS here.

28-May-2024

APIC '24: PODCAST: Weak demand persists for Asia propylene, downstream PO

SINGAPORE (ICIS)–Asia's propylene market will continue to see weak demand, although potential curbs in plant run rates in China amid weak margins could lend market support. Downstream, China’s propylene oxide (PO) import demand may continue to be adversely impacted by domestic start-up capacities, while demand in the main downstream polyols sector is unlikely to recover in the second quarter. South Korea June-loading propylene volumes likely to increase month on month Domestic Chinese PO start-ups to keep domestic supply lengthy, hampering import demand Global PO supply ex-China remains tight; downstream polyols likely muted in Q2 In this chemical podcast, ICIS editors Julia Tan and Shannen Ng discuss trends in the Asian propylene and PO markets. (This podcast first ran on 9 May.) Visit ICIS during APIC ’24 on 30-31 May at Booth 13, Grand Ballroom Foyer of the Grand InterContinental Seoul Parnas in South Korea. Book a meeting with ICIS here.

27-May-2024

Proman Stena Bulk launches methanol-fueled chemical tanker in Singapore

SINGAPORE (ICIS)–Proman Stena Bulk, a joint venture between Sweden-based tanker firm Stena Bulk and Swiss methanol producer Proman, on Thursday officially launched its sixth methanol-fueled joint venture chemical tanker in Singapore. The 49,900-deadweight tonnage (DWT) vessel called Stena Prosperous will be bunkered with a 20:80 green methanol and conventional methanol blend, they said in a joint statement. The fuel blend used by the vessel delivers carbon dioxide equivalent (CO2e) savings of 31% compared with a ship that runs on Very Low Sulphur Fuel Oil (VLSFO), with lower emissions of particulate matter (PM), sulphur oxides (SOx), and nitrogen oxides (NOx). Stena Prosperous is the last of six vessels in Proman Stena Bulk’s joint venture fleet of methanol-fueled tankers order placed in 2019, with the first ship delivered in June 2022. “With its cleaner burning qualities, methanol delivers immediate air quality benefits today, and the pathway demonstrated by our 20/80 blending strategy here in Singapore means that ship owners are also increasingly seeing it as a viable marine fuel for the future,” Proman CEO David Cassidy said. All six vessels running on methanol are now in commercial operation, with two on long-term time-charter. The fleet is currently crewed and operated by Stena Sphere company Northern Marine Group, which has highlighted that technical similarities of the tankers to conventionally fueled vessels mean they do not require a completely new set of operating procedures. Using methanol instead of conventional marine fuels virtually eliminates particulate matter and SOx, and cuts NOx by up to 80% during combustion. Technologies such as carbon capture, storage and utilization used in the production process cut emissions further, and green methanol produced from biogas can bring more than 90% greenhouse gas (GHG) emissions savings. Additional reporting by Keven Zhang

23-May-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 17 May 2024. Asia melamine makers grapple with increased costs, slowing demand By Joy Foo 17-May-24 11:53 SINGAPORE (ICIS)–Asia’s melamine spot market for China-origin product was largely stable in the first half of May, even though feedstock urea prices continued to rise, but demand may weaken for the rest of the month. Singapore's April petrochemical exports rise 26.5%; NODX down 9.3% By Nurluqman Suratman 17-May-24 10:45 SINGAPORE (ICIS)–Singapore's petrochemical shipments rose by 26.5% year on year in April to Singapore dollar (S$) 1.34 billion, reversing the 3.6% decline in the previous month, official data showed on Friday. PODCAST: China PP exports to weigh on SE Asia on ample propylene supply By Damini Dabholkar 16-May-24 21:55 SINGAPORE (ICIS)–The ample supply of propylene in Asia and new polypropylene (PP) capacities in China are expected to weigh on discussions in southeast Asia over the coming months. Tanker incident triggers rate hike on South Korea-Japan trades By Hwee Hwee Tan 16-May-24 11:28 SINGAPORE (ICIS)–The intra northeast Asia tanker market is expected to remain stable despite recent volatility in South Korea-Japan chemical freight rates, following a fatal tanker incident off Japan’s west coast. US hikes tariffs on $18bn worth of China imports, including EVs By Nurluqman Suratma 15-May-24 12:20 SINGAPORE (ICIS)–US President Joe Biden is ramping up tariffs on $18 billion worth of imports from China, including electric vehicles (EVs), semiconductors, batteries and other goods, in a move that the White House said was a response to unfair trade practices and intended to protect US jobs. Asia polyester discussions stable amid reduced supply, lower feedstock prices By Judith Wang 14-May-24 14:55 SINGAPORE (ICIS)–Asia’s polyester export discussions were little changed as the pressure of reduced supply in China was balanced out by weaker feedstock prices.

20-May-2024

India’s GAIL to set up C2/C3 pipeline for Pata petrochemical complex

MUMBAI (ICIS)–State-owned GAIL (India) Ltd plans to lay an ethylene/propylene (C2/C3) liquid pipeline from its gas processing complex at Vijaipur in the central Madhya Pradesh state to its Pata petrochemical complex at Auraiya in the northern Uttar Pradesh state. “The project will augment feedstock availability with additional polymer production at Pata Petrochemical Complex, reduce energy consumption and carbon footprint,” the company said in the notes accompanying its fiscal Q4 results. GAIL’s financial year ends in March. The proposed project is expected to cost Indian rupees (Rs) 17.9bn ($215m) and will be commissioned within 32 months, it said. Once operational, the pipeline will have the capacity to transport 950,000 tonnes/year of liquid feedstock to the Pata complex, it added. GAIL reported on 16 May a near-fourfold jump in net profit for the fourth quarter ending 31 March 2024 to Rs21.8bn, from Rs6.0bn in the same period last year. For the full fiscal year 2023-24, GAIL’s net profit increased by 67% year on year to Rs88.4bn. “The robust performance during the year was primarily driven by better physical performance across all major segments, despite lower prices in petrochemicals and liquid hydrocarbons,” GAIL managing director and chairman Sandeep Gupta said. GAIL currently operates a 200,000 tonne/year high density polyethylene (HDPE) plant; two linear low density polyethylene (LLDPE)/HDPE swing plants with capacities of 230,000 tonnes/year and 400,000 tonnes/year; and a 10,000 tonne/year butene-1 line at its Pata complex. The company is also setting up a 60,000 tonne/year polypropylene (PP) unit at the complex which is expected to come on stream in the current calendar year 2024. ($1 = Rs83.45)

17-May-2024

PODCAST: China PP exports to weigh on SE Asia on ample propylene supply

SINGAPORE (ICIS)–The ample supply of propylene in Asia and new polypropylene (PP) capacities in China are expected to weigh on discussions in southeast Asia over the coming months. Asia C3 to lengthen after PDH restarts in China, SE Asia volumes China PP exports to weigh on SE Asia discussions Asia PP prices to come under pressure in June-July In this podcast, ICIS editors Julia Tan, Jackie Wong and Lucy Shuai discuss current trends in Asia's propylene and PP markets, and what we can expect going forward. Visit us at Booth 13 at the Grand Ballroom Foyer at the Grand InterContinental Seoul Parnas! Book a meeting with ICIS here.

16-May-2024

PODCAST: Asia propylene derivative demand still slow amid uncertainty

SINGAPORE (ICIS)–Asian oxo-alcohols buyers maintained a wait and watch approach, amid the possibility of added plant capacities in China weighing on market sentiment. The acrylonitrile (ACN) market continues to see limited spot demand in the northeast Asia market. Even as downstream acrylonitrile-butadiene-styrene (ABS) has seen higher production rates recently, ACN producers were unlikely to increase operating rates. For the acrylates downstream, butyl-A market in Asia continues to take direction from Chinese domestic prices. With India's Bureau of Indian Standards (BIS) requirements preventing Chinese origin imports, cargoes from China were flowing into SE Asia and NE Asia. In this podcast, ICIS editors Julia Tan and Corey Chew discuss trends in the Asia propylene and derivatives markets. Visit ICIS during APIC ’24 on 30-31 May at Booth 13 in the Grand Ballroom Foyer in the Grand InterContinental Seoul Parnas. Book a meeting with ICIS here.

15-May-2024

Europe top stories: weekly summary

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 10 May. Europe propylene supply rebalancing on derivative restart, cracker issues Propylene spot supply is returning to a more balanced position with a key derivative unit now back on stream and a couple of cracker issues disrupting output. Europe businesses face tough market and regulatory hurdles in long term – LyondellBasell Market conditions in Europe are likely to remain challenging in the long term while changing regulations are increasing costs for businesses, LyondellBasell Industries said on Thursday, after announcing a strategic review for most of its operations in the region. LyondellBasell launches review of European assets LyondellBasell has launched a strategic review of the bulk of its operations in Europe, the producer said on Wednesday, based on its strategy to focus on assets perceived to have long-lasting competitive advantage Chandra Asri aspires to become regional player with Shell Singapore purchase Chandra Asri is looking to develop its presence in southeast Asia and become a key regional player with its purchase of Shell’s refining and petrochemicals assets in Singapore alongside commodities major Glencore, the Indonesia-based firm said on Wednesday. IPEX: April index rises for fourth month in a row on firmer pricing in northwest Europe, northeast Asia The ICIS Petrochemical Index (IPEX) was up 1.5% in April month on month as production constraints continue to push contract prices up across some commodities, mainly in northwest Europe and northeast Asia. BASF puts ammonia, methanol, melamine plants up for sale at Ludwigshafen BASF has engaged plant sale specialists International Process Plants (IPP) to sell idled ammonia, methanol and melamine units located at its loss-making Ludwigshafen site in Germany.

13-May-2024

Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 10 May 2024. PODCAST: APIC ‘24: Asia recycled plastics sees sustainable finance focus By Damini Dabholkar 10-May-24 12:22 SINGAPORE (ICIS)–Sustainable finance is a key interest for companies seeking to enter the recycled plastics market in Asia or to expand their current capacities. Despite the various financial instruments available, the absence of a clear entry point often results in uncertainty for firms. In this podcast, ICIS analysts Chua Xin Nee and Joshua Tan explore the different types of sustainability-related loans available and their successful use cases. China-SE Asia arbitrage flow for MTBE unworkable on oil price falls By Keven Zhang 10-May-24 11:50 SINGAPORE (ICIS)–The arbitrage of methyl tertiary butyl ether (MTBE) from China to southeast Asia can be reopened, after blenders in southeast Asia finish consuming their existing inventory. PODCAST: Weak demand expected for Asia propylene and downstream PO By Damini Dabholkar 09-May-24 15:02 SINGAPORE (ICIS)–Asia's propylene market will continue to see weak demand, although potential curbs in plant run rates in China amid weak margins could lend support. China exports return to growth in April amid signs of improving demand By Nurluqman Suratman 09-May-24 14:31 SINGAPORE (ICIS)–China’s April exports rose by 1.5% year on year to $292.5 billion in April, reversing the 7.5% contraction in March supported by signs of improved global demand, customs data showed on Thursday. China petrochemical market edges up in Apr, demand outlook remains weak By Yvonne Shi 08-May-24 13:20 SINGAPORE (ICIS)–China’s petrochemical market edged up in April, with the ICIS China Petrochemical Index – which tracks 17 key products in the domestic market – rising slightly by 1.60% to 1267.60 by the end of the month as compared with March. Singapore April manufacturing slows amid persistent external headwinds By Nurluqman Suratman 07-May-24 11:59 SINGAPORE (ICIS)–Singapore’s manufacturing activity fell in April as a result of decreased export orders triggered by external demand headwinds and high global interest rates. NE Asia C3 talks to kick off, but supply concerns weigh on buyers By Julia Tan 06-May-24 12:02 SINGAPORE (ICIS)–Discussions for June arrivals will kick off as China returns from the Labour Day holidays, even with the potential headwinds of poor downstream demand and ample supply from Southeast Asia.

13-May-2024

PODCAST: Weak demand expected for Asia propylene and downstream PO

SINGAPORE (ICIS)–Asia's propylene market will continue to see weak demand, although potential curbs in plant run rates in China amid weak margins could lend support. Downstream, China’s propylene oxide (PO) import demand may continue to be adversely impacted by domestic Chinese start-up capacities, while demand in the main downstream polyols sector is unlikely to recover in the second quarter (Q2). South Korea June-loading propylene volumes likely to increase month on month Domestic Chinese PO start-ups to keep domestic supply lengthy, hampering import demand Global PO supply excluding China remains tight, downstream polyols likely muted in Q2 In this chemical podcast, ICIS editors Julia Tan and Shannen Ng discuss trends in the Asian propylene and PO markets.

09-May-2024

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