Styrene

HOUSTON (ICIS)–Chemical companies continue to assess the impact from Hurricane Francine on Thursday after the storm made landfall on Wednesday as a Category 2 hurricane on the Louisiana coast. Ascension parish, home to Geismar and its many chemical plants, was among the regions hardest hit by Hurricane Francine, which has caused hundreds of thousands of power outages. Meteorologists at the National Hurricane Center (NHC) have downgraded Francine to a post-tropical cyclone that is continuing to produce heavy rainfall across parts of Tennessee, Mississippi, Alabama, Georgia and the Florida panhandle, as shown in the following image. Source: National Hurricane Center (NHC) CHEMICAL OPERATIONS Several chemical companies shut down their plants ahead of Francine's landfall on Wednesday evening and are assessing damage on Thursday, while some are in the process of restarting. Shell's refinery and chemical sites in Louisiana do not appear to have serious damage from Hurricane Francine, the producer said "at this early stage" on Thursday. Shell is conducting a thorough post-hurricane damage assessment at Geismar and Norco to ensure the integrity of its equipment, systems and processes. Downstream issues have caused Shell to curtail oil and gas production at Appomattox, Mars, Vito, Ursa and Olympus following Hurricane Francine, it said Thursday morning. Shell did not specify the downstream issues. Dow said its sites in Louisiana are safely resuming normal operations. It is unclear what steps it took in preparation for the storm and whether those steps had any effect on operations or production. BASF is assessing the impacts from Hurricane Francine at facilities located in the path of the storm, the company told ICIS in an update on Thursday. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene (EB), styrene and low density polyethylene (LDPE). UTILITIES More than 262,000 customers in Louisiana were without power as of Thursday afternoon, according to the website poweroutage.us. The total was higher than 350,000 earlier in the day. There were more than 38,000 without power in Alabama, 13,000 in Mississippi and 11,000 in Tennessee. Ascension and Assumption parishes as well as the coastal parts of Lafourche and Terrebonne parishes appear to be among the hardest hit, said Entergy, a power company. OIL AND GAS The Louisiana Offshore Oil Port (LOOP) suspended all marine operations on 11 September, according to its website. An estimated 41.74% of current US oil production and 53.32% of US natural gas production in the Gulf of Mexico was shut in as of Thursday, according to the Bureau of Safety and Environmental Enforcement (BSEE). PORTS The US Coast Guard has not yet activated Port Condition Recovery at the Port of New Orleans, but pilots are understood to be ready and able to start moving traffic once cleared. Lake Charles is also currently closed awaiting the Coast Guard to survey the channel, which may happen early on Friday. Operations at Pascagoula, Florida, and Mobile, Alabama, have also been suspended due to adverse weather, according to GAC Hot Port News. RAILROADS Railroads are telling customers to expect delays as they assess damage from the storm. BNSF issued an embargo impacting traffic between Beaumont, Texas, and New Orleans, Louisiana, including Amelia, Texas. The embargo affects interchanges at Amelia, Beaumont and New Orleans. While the embargo is in effect, permits may not be issued until the storm’s impact has been assessed. CSX is closely monitoring the remnants of Hurricane Francine as it moves north-northwest, potentially affecting the CSX network. While no service areas are currently impacted, customers with shipments through the CSX Southeast and Southwest regions could experience potential delays. Leading up to the storm, CSX implemented measures to protect its employees, customers and communities. "Our team is working diligently to ensure minimal service disruptions while maintaining the highest safety standards," CSX said. Norfolk Southern is operating as scheduled and a market participant told ICIS the railroad said it will work with connecting carriers to utilize alternative gateways where possible. The New Orleans Public Belt Railroad said on Thursday that it resumed operations at 14:00 local time (19:00 GMT) following damage assessments. With the Port of New Orleans shut down, railroad companies warned customers of delays as traffic will be diverted following the port's flood-gate closure. Additional reporting by Tracy Dang, Al Greenwood, Stefan Baumgarten, Emily Burleson, Bryan Campbell and Melissa Wheeler Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024.

12-Sep-2024

HOUSTON (ICIS)–Ascension parish, home to Geismar and its many chemical plants, was among the regions hardest hit by Hurricane Francine, which has caused hundreds of thousands of power outages. UTILITIESNearly 350,000 power outages were reported in Louisiana, according to the website poweroutage.us. Ascension and Assumption parishes as well as the coastal parts of Lafourche and Terrebonne parishes appear to be among the hardest hit, said Entergy, a power company. CHEMICAL OPERATIONS Several chemical companies shut down their plants ahead of Francine's landfall on Wednesday evening. On Wednesday, BASF idled operations at Geismar, North Geismar and Vidalia, it said. The company is conducting safety assessments, and operations will resume once those are completed. Roehm is taking its methyl methacrylate (MMA) plant in Fortier, Louisiana, offline. Meanwhile, Dow said its sites in Louisiana are safely resuming normal operations. It is unclear what steps it took in preparation for the storm and whether those steps had any effect on operations or production. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene (EB), styrene and low density polyethylene (LDPE). Upstream, an estimated 38.56% of current US oil production and 48.77% of US natural gas production in the Gulf of Mexico was shut in as of Wednesday, according to the Bureau of Safety and Environmental Enforcement (BSEE). OIL AND GASHurricane Francine caused liquefied natural gas (LNG) loadings to drop 22% this week. If disruptions to LNG loadings last long enough, it could cause an increase in domestic gas supplies, which could cause prices to fall. That, in turn could lead to a decline in prices for ethane, the predominant feedstock that US crackers use to produce ethylene. The ports of Cameron and Lake Charles in Louisiana remained closed, according to the US Coast Guard. That halted access to the Cameron LNG plant and Venture Global’s Calcasieu Pass LNG. The Sabine channel near US Sabine Pass LNG, however, was open, though no cargoes have departed the plant since 10 September. Oil future prices rose by more than a dollar in late morning trading. LOGISTICSThe New Orleans Public Belt Railroad said on Thursday that it will resume operations at 14:00 local time (19:00 GMT) following damage assessments. The Port of New Orleans has shut down, and railroad companies warned customers of delays as traffic will be diverted following the port's flood-gate closure. BNSF has issued a temporary permit embargo affecting all traffic originating or destined to move through the area. STORM UPDATEFrancine has weakened into a tropical depression, with maximum sustained wind speeds of 35 miles/h (55km/h), according to the National Hurricane Center (NHC). The following map shows Francine's projected path. Source: National Hurricane Center Earlier, the storm made landfall on Wednesday evening as a Category 2 hurricane, with maximum sustained wind speeds of about 100 miles/h, according to the NHC. Additional reporting by Emily Burleson, Bryan Campbell and Joseph Chang Thumbnail shows Francine. Image by National Hurricane Center Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024.

12-Sep-2024

SINGAPORE (ICIS)–Energy giant Saudi Aramco has signed new agreements to advance separate expansion plans with Chinese petrochemical producers Rongsheng and Hengli. Signing conducted during China Premier Li’s state visit to Saudi Arabia Deals with the Chinese firms part of Aramco's downstream expansion Aramco moves closer to acquire 10% of Hengli Petrochemical Chinese Premier Li Qiang and Saudi Crown Prince Mohammed Bin Salman on 11 September discussed cooperation in energy, investment, and trade, according to state news agency Saudi Press Agency (SPA). In a separate meeting with GCC secretary general Jasem Mohamed Albudaiwi in Riyadh, Li called on China and Gulf Cooperation Countries (GCC) countries to align their development strategies and “speed up free trade agreement negotiations”, according to Chinese state media Xinhua. Li is in the Middle East on 10-13 September for state visits to Saudi Arabia and the UAE, both members of GCC. The four other members of GCC are Bahrain, Kuwait, Oman and Qatar. PLANS WITH RONGSHENG The new agreements follow a previously signed framework agreement with Rongsheng Petrochemical for a potential joint-venture expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. SASREF operates a 305,000 barrel/day refinery complex in Al-Jubail, Saudi Arabia with downstream aromatics units that can produce 260,000 tonnes/year of toluene and 275,000 tonnes/year of benzene, according to the ICIS Supply and Demand Database. Aramco now owns 10% of Rongsheng Petrochemical, bought for $3.4 billion, with further plans between the two companies to take stakes in each other’s subsidiaries. Rongsheng Petrochemical manufactures and distributes a range of petrochemical and chemical fiber products, including purified terephthalic acid (PTA), polyester yarns, polyester filaments, and polyethylene terephthalate (PET). The Saudi oil giant intends to acquire 50% of Ningbo Zhongjin Petrochemical (ZJPC), which is fully owned by Rongsheng, with plans to upgrade existing assets and jointly develop a new materials project in Zhoushan. The proposed Chinese yuan (CNY) 67.5 billion Zhoushan new materials project would produce polyethylene (PE), propylene oxide (PO), styrene, ethylene vinyl acetate (EVA), polyolefin elastomer and bisphenol A (BPA). Rongsheng, in turn, would acquire a 50% stake in Aramco’s SASREF, which operates a refinery in Jubail. POTENTIAL DEALS WITH HENGLI With Hengli, talks have advanced relating to Aramco’s potential acquisition of a 10% stake in the Chinese group’s petrochemical arm, subject to due diligence and required regulatory clearances.’ The two companies had signed a memorandum of understanding (MoU) on the proposed transaction in in April 2024. Hengli Group operates across the entire production chain of oil refining, petrochemicals, polyester film, and textiles. It is one of the biggest PTA producers in China. "China is an important country in our global downstream growth strategy," Aramco downstream president Mohammed Al Qahtani said. "These agreements reflect our collective intention to elevate our relationships in vital sectors to advance our downstream objectives." Aramco is targeting a fourfold increase in its crude oil-to-chemicals conversion capacity to four million barrels/day by 2030. Focus article by Nurluqman Suratman Thumbnail image: Chinese Premier Li Qiang meets with Saudi Crown Prince and Prime Minister Mohammed bin Salman Al Saud, and co-chairs the Fourth Meeting of the High-Level Chinese-Saudi Joint Committee with him at Riyadh's al-Yamamah Palace in Saudi Arabia on 11 September 2024.

12-Sep-2024

HOUSTON (ICIS)–Several chemical companies are shutting down plants in Louisiana, with others taking other precautionary measures as the eye of Francine – now a Category 2 hurricane – approaches the coast for imminent landfall. Roehm is taking its methyl methacrylate (MMA) plant in Fortier, Louisiana offline. BASF earlier on 10 September started procedures to idle operations in Geismar, North Geismar and Vidalia, Louisiana. Shell has shut in oil and gas production in the Gulf of Mexico at its Perdido, Auger and Enchilada/Salsa assets, but its chemical production sites in Geismar and Norco, Louisiana, and Deer Park, Texas, were operating normally as of Shell's latest update on 10 September. Operations were continuing at ExxonMobil's Baton Rouge, Louisiana plant as of 10 September. Louisiana is home to just above 25% of the total ethylene capacity in the US, according to the ICIS Supply and Demand Database. It also has close to 50% of the country’s vinyls chain capacity – for polyvinyl chloride (PVC), chlorine, ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda. Other significant exposures close to 50% of total US capacity include methanol, ethylbenzene, styrene and low density polyethylene (LDPE). Upstream, an estimated 38.56% of current US oil production and 48.77% of US natural gas production in the Gulf of Mexico was shut in, according to the Bureau of Safety and Environmental Enforcement (BSEE). The Port of New Orleans has shut down, and railroad companies are warning customers of delays as traffic will be diverted following the port's flood-gate closure. Track the latest updates on Hurricane Francine and its impact on chemicals on the Topic Page: Storm Season 2024. Thumbnail shows wind speed probabilities of Hurricane Francine from the US National Hurricane Center Focus article by Joseph Chang

11-Sep-2024

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. So, you want to just sit back and wait for global chemicals and polymer markets to correct themselves, for the Old Normal to come back? As today’s post on styrene suggests, even assuming thins do eventually return to normal, you will be on for an awful long wait: I estimate that global styrene capacity would have to shrink by an average 174,000 tonnes a year between 2024 and 2030 for operating rates to reach their historic and very healthy long-term average of 88%. The ICIS base case assumes an average 2024-2030 operating rate of 75% as capacity expands by 811,000 tonnes a year. Clearly, and this is same across many other products, the commercial decisions necessary for a turnaround on this scale would take several years. But I anyway see hanging around and waiting for a return to the Old Normal as a waste of precious time, as the global chemicals landscape will never return to the way it was during the 1992-2021 Chemicals Supercycle. The data on styrene underlines the direction of travel including, as mentioned, the scale of global overcapacity and the collapse of Northeast Asian margins since the late 2021 “Evergrande Moment”. Also note the distorting impact of China dominance of global styrene demand. In 1992, China accounted for just 2% of global demand and 22% of the global population, but by the end of this year ICIS expects China to account for 46% of global demand from just 18% of the world’s population. And crucially, China’s demand growth is shrinking as its share of global capacity increase – again just 2% in 1992 rising to a forecast 53% in 2030. The numbers are similar across many other products. It is time for chemicals companies to think long and hard about where their future competitive advantages lie in the light of the ten interconnected forces that I believe are reshaping the global landscape. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

28-Aug-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 23 August. Aviation fuel prices hit new lows amid growing bearishness European spot jet fuel quotations plunged to 14-month lows towards mid-week, bearing the brunt of tepid demand and ongoing upstream softness, with the short-term outlook unclear as the peak travel season winds down. Europe SAN contract prices increase double digits in August August contract prices have increased €70/tonne in the European styrene acrylonitrile (SAN) market, the first price increase since April 2024, mainly driven by composite costs of the €78/tonne contract price increase for upstream styrene, and the €36/tonne contract price increase for secondary feedstock acrylonitrile (ACN). EU plans up to 36.3% definitive tariffs on EV imports from China The European Commission (EC) has announced a draft decision to impose up to 36.3% definitive countervailing duties on imports of battery electric vehicles (EVs) from China. Quantafuel cancels pyrolysis-based chemical recycling project in Sunderland, UK Quantafuel Sunderland Limited, part of UK recycling major Viridor, has halted the development of its planned pyrolysis-based chemical recycling plant in Sunderland, a company spokesperson confirmed late on Monday. IPEX: Global index down on softer prices in NW Europe, NE Asia Lower chemical prices in northwest Europe and northeast Asia drove the global spot ICIS Petrochemical Index (IPEX) down by 0.2% in the week ending 16 August.

26-Aug-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 16 August 2024. China July industrial output growth slows; H2 outlook dims By Nurluqman Suratman 15-Aug-24 16:49 SINGAPORE (ICIS)–China's industrial output growth in July slowed to a four-month low of 5.1%, aggravating concerns about continued manufacturing slowdown, with a growing set of data suggesting the world's second-largest economy is struggling to gain momentum. Asia PBT market faces logistical challenges amid Q3 lull By Corey Chew 15-Aug-24 10:29 SINGAPORE (ICIS)–The Asia polybutylene terephthalate (PBT) market saw the Indian region being affected by logistical challenges to a larger extent compared to northeast Asia. Major S Korea producers withdraw ADD probe petition against China SM By Luffy Wu 14-Aug-24 18:45 SINGAPORE (ICIS)–South Korean producers Hanwha Total Energies and Yeochon NCC are withdrawing their request for an antidumping probe on styrene monomer (SM) imports from China, based on a petition they filed with the Korea Trade Commission on 12 August. Singapore’s 2024 key exports growth forecast trimmed on demand concerns By Nurluqman Suratman 13-Aug-24 15:30 SINGAPORE (ICIS)–Singapore's non-oil domestic exports (NODX) growth forecast for 2024 has been revised downward to 4-5%, Enterprise Singapore (EnterpriseSG) said on 13 August. China July petrochemical index falls as demand remains sluggish By Yvonne Shi 12-Aug-24 15:55 SINGAPORE (ICIS)–The ICIS China petrochemical index dropped by 3.07% month on month to 1,241.5 in July, with acetone experiencing the largest decline due to weak downstream demand.

19-Aug-2024

SINGAPORE (ICIS)–South Korean producers Hanwha Total Energies and Yeochon NCC are withdrawing their request for an antidumping probe on styrene monomer (SM) imports from China, based on a petition they filed with the Korea Trade Commission on 12 August. The probe, which was initiated upon requests from Korean producers, has been ongoing since 9 April and was supposed to end on 8 September. This petition withdrawal by the two companies is likely to conclude the four-month ADD investigation which have triggered significant concerns of Asian market players on a potential change in intra-Asia SM trade landscape since South Korea is China’s biggest export market for SM. Expectations heightened in June that Korea will launch antidumping duties (ADDs) on China-origin SM after China extended its five-year ADDs on SM imports from three origins, including Korea. KTC had held discussions and hearings in June to determine whether Chinese SM imports are causing material damage to Korea’s domestic market. China is no longer a regular importer of Korean SM, but some market players were expecting China’s ADD extension could trigger retaliations by Korea as a political countermeasure. Korea’s probe on SM imports from China has faced strong opposition from local end-users in downstream acrylonitrile-butadiene-styrene (ABS) industry which rely on feedstock from China to run their plants. During the period of June 2023 to June 2024, South Korea accounted for around 74% of China's total SM exports, according to ICIS Supply and Demand Database. Although Chinese cargoes are no longer expected to be subject to Korean ADDs in near term, high logistics costs and elevated domestic spot prices in China could continue to hamper China-Korea SM talks. Some Chinese suppliers may also continue searching for alternative markets to diversify their sales portfolio. Focus article by Luffy Wu Thumbnail image: At Taicang Port in China on 12 January 2024.(Costfoto/NurPhoto/Shutterstock)

14-Aug-2024

SINGAPORE (ICIS)–South Korean producers Hanwha Total Energies and Yeochon NCC are withdrawing their request for an antidumping probe on styrene monomer (SM) imports from China, based on a petition they filed with the Korea Trade Commission on 12 August. The probe, which was initiated upon requests from Korean producers, has been ongoing since 9 April and was supposed to end on 8 September. Expectations heightened in June that Korea will launch antidumping duties (ADDs) on China-origin SM after China extended its five-year ADDs on SM imports from three origins, including Korea.

14-Aug-2024

SINGAPORE (ICIS)–Asian shares rebounded on Tuesday, staging a relief rally after historic losses the previous day, as fresh US economic data for July alleviated recession fears. Meanwhile, oil prices surged by over $1/barrel in early Asian trade, fueled by escalating concerns about the spreading conflict in the Middle East. Japanese Nikkei 225 index jumps 9.55% in early Asian trade Asian petrochemical shares follow regional market rebound, Asahi Kasei gains China's petrochemical futures continue decline In Europe the main stock markets stabilized, opening slightly up before falling back. The UK’s FTSE 100 was down 0.08% at 11:20 London time, while Germany’s DAX and France’s CAC 40 were 0.17% and 0.46% lower respectively. The stronger-than-expected US Institute for Supply Management (ISM) Services Survey for July helped ease growth worries. The overall services purchasing managers' index (PMI) improved to 51.4 in July, swinging into expansion and beating the consensus for a rise to 51.0 from 48.8 in June. A PMI reading above 50 indicates growth in the services sector. By 02:30 GMT, Japan's benchmark Nikkei 225 was up 9.55%, South Korea's KOSPI was 3.07% higher and Hong Kong's Hang Seng Index rose by 0.06%. Singapore's Straits Times Index (STI) was down by 0.96% while China’s benchmark Shanghai Composite Index inched 0.20% higher after shedding 1.54% on Monday. Asian petrochemical shares tracked the rebound in regional bourses, with Japanese major Asahi Kasei jumping nearly 14% and South Korean producer LG Chem up by 4.59%. China’s petrochemical futures, however, continued lower in early trade on Tuesday. At 10:30 local time (02:30 GMT), futures of petrochemical commodities, including plastics, methanol and glycols, were trading lower, after losing 0.4-2.1% in the previous session. Product Yuan (CNY)/tonne Change Linear low density polyethylene (LLDPE) 8,231 -0.3% Polyvinyl chloride (PVC) 5,650 -0.5% Ethylene glycol (EG) 4,590 -0.5% Polypropylene (PP) 7,570 -0.4% Styrene monomer (SM) 9,183 -0.2% Paraxylene * 8,120 -0.9% Purified terephthalic acid (PTA)* 5,644 -0.8% Methanol* 2,468 -0.5% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange The global equity market sell-off intensified on Monday, with a wave of declines sweeping across major bourses worldwide. The rout began in Asia, where the Nikkei 225 index plummeted 12.4% day on day, marking its worst performance since 1987 while the KOSPI posted its steepest decline in its closing price to date. In Europe, the Stoxx Europe 600 index fell 2.2%, with all sectors and major indexes closing in negative territory. Utilities and oil and gas stocks suffered the steepest losses, leading the downturn in European markets. In the US, the Dow Jones Industrial Average plunged by about 1,000 points or down 2.6%, the Nasdaq dived 3.4% and the S&P 500 slid 3.0%. This marked the largest losses since September 2022 for the Dow and S&P, following a downturn late last week due to poor US jobs data and weak manufacturing PMI, which sparked recession fears. The unwinding of the yen "carry trade" after the Bank of Japan raised interest rates last week also added fuel to the retreat in global markets. For now, the US Federal Reserve has no intention of delivering an emergency rate cut before the Federal Open Market Committee (FOMC) meeting on 18 September, Singapore-based DBS Group Research said in a note on Tuesday. "The Fed wants markets to view the coming rate cuts as preserving the soft landing and supporting jobs, not as a delayed response to a weakening economy," it said. GEOPOLITICAL TENSIONS BOOSTING OILOil prices rose by more than $1/barrel in early Asian trade on Tuesday after dipping in the previous session, driven by supply concerns amid escalating tensions in the Middle East. "Markets are still waiting to see how Iran responds to Israel after it vowed retaliation for the assassination of Hamas’ political leader on Iranian soil," Dutch banking and financial information services firm ING said in a note. "Oil has been unable to escape the broader risk-off move seen across assets, as concerns grow over the potential for a US recession following some weaker macro data in recent weeks. This only adds to worries over Chinese demand." Reports that the Sharara oilfield in Libya has completely stopped production due to protests at the site also supported oil prices. This oilfield has a production capacity of 300,000 barrels/day but was producing around 270,000 barrels/day prior to the disruption. Focus article by Nurluqman Suratman Additional reporting by Fanny Zhang Thumbnail photo shows a stock market indicator board (Source: BIANCA DE MARCHI/EPA-EFE/Shutterstock) Updates, adding Europe detail in fourth paragraph

06-Aug-2024