Energy

HOUSTON (ICIS)–Australian global miner Rio Tinto has announced it will develop Pongamia seed farms in Australia as part of a new biofuels pilot and explore the potential of Pongamia seed oil as a feedstock for renewable diesel, a cleaner alternative to traditional fossil fuels. The company also wants to determine if it can contribute to Rio Tinto's renewable diesel needs while potentially contributing to the growth of a new biofuel sector in Australia. Pongamia is a legume tree native to Australia which is fast-growing, resilient and produces oil-rich seeds that can be processed into renewable diesel with the seed able to be harvested annually, leaving the trees and soil intact to store carbon dioxide. ​ Rio Tinto said it is in the final stages of acquiring approximately 3,000 hectares of cleared land near Townsville in north Queensland to establish farms to study growth conditions and measure seed oil yields. It has partnered with Midway Limited, to oversee the planting and management of the Pongamia seed farms and who will also engage with nurseries, agricultural experts and research organizations throughout the pilot. As part of its ongoing efforts to achieve net-zero Scope 1 and 2 carbon emissions by 2050, Rio Tinto is actively exploring the potential of biofuels in the low-carbon energy mix. The company said it sees biofuels as an avenue to reduce reliance on fossil diesel, while fleet electrification technologies mature. It is also investigating how biofuels could be used in scenarios where electrification may face practical limitations. “Diesel accounts for around 10 percent of our emissions footprint in Australia. While we continue to pursue electrification as the long-term solution for displacing the majority of our diesel use, the Pongamia seed pilot is an important parallel pathway that could reduce our reliance on diesel in the mid-term,” said Jonathon McCarthy, Rio Tinto Chief Decarbonisation Officer. “Australia does not yet have a biofuel feedstock industry sufficient to meet domestic demand. A sustainable biofuels industry here could enhance the region’s fuel security, create local economic opportunities and contribute to emissions reductions targets.” The company said this pilot follows a smaller-scale trial at Rio Tinto Gove operations in the Northern Territory where Pongamia saplings were planted to learn more about their response to low soil quality, heat and other climatic conditions in northern Australia.​

20-Sep-2024

HOUSTON (ICIS)–US subsea mineral exploration company Odyssey Marine Exploration announced it has been awarded $37.1 million in its arbitration with Mexico under Chapter Eleven of the North American Free Trade Agreement (NAFTA). Odyssey said it has received notification from the International Centre for Settlement of Investment Disputes (ICSID) of the arbitral award on the claims involving Odyssey and its subsidiary, Exploraciones Oceanicas (ExO) related to a planned offshore phosphate project. The company took legal action in 2018 over the rejection of an environmental permit in 2016. Finding it difficult to resolve, Odyssey said it took the NAFTA action after it determined it needed to commence the arbitration to protect its shareholders’ investment. The award orders Mexico to pay the fine for breaching its obligations under NAFTA, plus interest at the one-year Mexico Treasury bond rate, compounded annually, from 12 October 2018, until paid in full as well as the arbitrators’ fees and ICSID administrative costs. The company said the amounts awarded are net of Mexican taxes and Mexico may not tax the award and that it expects most, or all will be used to satisfy its litigation financing obligations. Odyssey said ExO is also once again challenging the decision of the environmental agency before Mexico's highest federal administrative court, the Tribunal Federal de Justicia Administrativa. It did not reveal when it expects a decision. Company officials said the ruling validates their position that the environmental agency wrongfully denied the permit despite it having received extensive input to determine not only an economically feasible development plan but one which is environmentally responsible. “The project remains strategically significant and commercially viable,” said Mark Gordon, Odyssey Marine Exploration CEO. “We are poised to continue advancing our projects globally, while also collaborating with nations interested in exploring their underwater mineral resources to meet the escalating demand for critical minerals. “ “Our focus remains on minerals that offer solutions to pressing global challenges, such as mitigating carbon emissions through renewable energy adoption and enhancing fertilizer accessibility to support an ever-growing global population.”

19-Sep-2024

HOUSTON (ICIS)–RWE Supply & Trading announced it has signed a memorandum of understanding (MoU) with AM Green Ammonia (AMG) for the long-term supply of green ammonia from its plants based in India. The terms outline the supply of up to 250,000 tonnes/year of green ammonia to be sourced from AMG's production sites in Kakinada and Tuticorin, India. Deliveries from AMG’s sites are expected to start by 2027 with a subsequent offtake agreement between RWE and AMG forthcoming which will detail the contractual provisions. The plan is that initially there will be 50,000 tonnes coming from the Kakinada site, with the remaining volume of up to 200,000 tonnes to be sourced from the Tuticorin facility. AMG's ammonia manufacturing facilities will be powered entirely by carbon-free energy sources such as solar, wind, and hydroelectric power and the produced ammonia will meet standards for Renewable Fuels of Non-Biological Origin (RFNBO). AMG’s facility in Kakinada has already been pre-certified for RFNBO compliance. Pre-certification for other facilities is underway. “RWE is committed to investing in hydrogen and its low-carbon derivatives to help industries achieve their climate goals. For this end, we are building strong supply chains with partners globally. Partnering with AMG allows us to secure green ammonia capacities at an early stage,” said Costas Papamantellos, RWE Supply & Trading Head of International Hydrogen Investments.

18-Sep-2024

HOUSTON (ICIS)–US ammonia-to-power solutions provider Amogy has announced a partnership with HD Korea Shipbuilding & Offshore Engineering, POSCO Holdings, Seoul National University and the American Bureau of Shipping to explore the feasibility of an innovative offshore ammonia cracking solution to deliver low-cost, accessible clean hydrogen fuel. Amogy said under this partnership, HD Korea Shipbuilding will design the ammonia supply system and integrate it into the overall system, and it will provide its ammonia-cracking technology. Seoul National University will contribute expertise in process design and simulation, while POSCO Holdings intends to harness its proprietary cracking process design technology to optimize the systems needed for ship application. The American Bureau of Shipping will oversee certification of the design as the class society. Amogy said ammonia, a hydrogen carrier, offers a more cost-effective and convenient alternative to liquefied hydrogen due to its established storage and transport infrastructure. Additionally, with energy density 2.7 times greater than hydrogen, ammonia is emerging as an optimal carbon-free fuel for the maritime industry. Further, the company said their technology unlocks the potential of ammonia as a hydrogen carrier by leveraging state-of-the-art catalyst materials to crack ammonia into hydrogen and nitrogen at lower reaction temperatures with high durability thereby reducing heating and maintenance requirements. “We are excited to join forces with this esteemed consortium to develop an innovative offshore ammonia cracking solution,” said Seonghoon Woo, Amogy CEO. “This partnership marks a pivotal advancement in leveraging ammonia to achieve net-zero emissions.”

17-Sep-2024

SAO PAULO (ICIS)–The likely increase in Brazil’s import tariffs for dozens of chemicals will start improving beleaguered domestic producers’ poor margins even though petrochemicals prices remain low, according to an analyst at US credit rating Fitch. Marcelo Pappiani, credit analyst for Brazilian chemicals producers, added that imports into Brazil and the wider Latin America remain high and are likely to continue that way as China and the US work through their overcapacities. Despite that, prices have stabilized, albeit at low levels, and “the worst of this downturn” seems to have subsided, said Pappiani. The two largest chemicals producers in Brazil, polymers major Braskem and chlor-alkali and polyvinyl chloride (PVC) producer Unipar, are covered by Fitch. The two companies have posted several quarters of poor financial results on the back of low prices and competition from overseas producers. TARIFFS UPBrazil’s chemicals producers – represented by trade group Abiquim, in which Braskem has a commanding voice – were hoping the Brazilian cabinet would increase import tariffs on dozens of chemicals in September. However, there have been contradictory reports on this, with some expecting the hike to be approved as soon as Wednesday (18 September), while other reports citing government sources have said the decision would be pushed back to December. The increases would follow a public consultation earlier this year in which Abiquim as well as individual companies proposed increasing tariffs in more than 100 products, most of them from 12.6% to 20%. Braskem is, at the same time, partly owned by the country’s state-owned energy major Petrobras, so the Abiquim/Braskem lobbying tandem tends to find open ears in the corridors of power in Brasilia under the current government, which has committed to expand the industrial sector. Pressure not to increase import tariffs has also been strong from other sectors, not least plastic transformers represented by Abiplast, but the producers’ proposals are expected to have won the day. “Petrochemicals prices in Brazil and the wider Latin America seem to have reached the bottom and we are seeing slightly less pressure on companies, despite of course still imports coming into the region in big numbers, from China, the wider Asia and the US,” said Pappiani. “Companies have lobbied the government strongly for an increase in import tariffs as well as other measures to prop up the chemicals industry. Import tariffs seem set to increase and that should soon make Brazilian producers more competitive.” Pappiani is in no doubt higher import tariffs in several chemicals – when around half of the Brazilian industry’s demand is covered imports – are likely to translate into higher prices for consumers, precisely the reasoning used by those who oppose the hike. “President Lula has said he wants to foster the chemicals sector and has met on several occasions with CEOs from the industry as well Abiquim,” said Pappiani. “But, of course, consumers will end up paying for higher import tariffs – this happens in all economic sectors, not just petrochemicals, of course.” COMPETITIVENESS THROUGH TARIFFSAs well as higher prices for consumers, those opposing the hike in import tariffs argue that Brazilian petrochemicals producers should speed up their modernization and diversification, so they are not as dependent on government policy for their profitability. Pappiani said Braskem is a well-managed company with international assets which would make it a profitable enterprise even without government measures which prop up its competitiveness in its domestic market. However, critics of protectionist measures continue their campaign against the increase in import tariffs, although according to most analysts the dice has been cast. On Tuesday, the president of Abiplast published a charged article in Brazil’s daily Estadao in which he wondered if Braskem would always need state indirect help to keep afloat, even if its second largest shareholder is Petrobras, which in theory should make accessing cheaper raw materials easier. “Why are foreign suppliers of petrochemical products able to be more competitive in their exports to Brazil, even bearing the costs of transportation, logistics and exposure to exchange rate variations? Over the past 40 years, we have exported many of these products to China; if the Chinese (and other countries) become competitive by importing Brazilian oil, why can't Brazilian [petrochemicals] producers become competitive?” said Jose Ricardo Roriz Coelho. “The exaggerated protection of the few petrochemical companies in Brazil results in them directing investments to countries where they face greater competition in order not to lose market share. Europe, which is not competitive due to its lack of raw materials for petrochemicals, has chosen to add value further down the production chain by importing resins from countries that are more efficient in production. “Structural problems, such as insufficient supply of inputs, cannot be solved with short-term remedies. The debate on new tariffs and the production chain is crucial,” concluded Roriz. Indeed, the prospect of high import tariffs being approved as soon as this week has already propped up Braskem’s market capitalization in the past few weeks. On 13 September, for instance, the company’s stock rose by nearly 8% as investors expect an imminent decision on the increase in import tariffs, according to a report by InfoMoney. The increase in import tariffs could automatically translate into higher earnings before interest, taxes, depreciation, and amortization (EBITDA) for Braskem, to the tune of $300 million/year, according to some analysts. Under current business conditions, that would be roughly the same EBITDA amount the producer posted in the second quarter of this year. “In our view, this additional tariff would help contain Braskem’s cash burn in recent quarters. The company would then be better positioned to capture a future cycle of increases in petrochemical spreads,” said analysts at XP cited by InfoMoney. Front page picture: Facilities operated by Brazilian polymers major Braskem in the state of Sao Paulo Source: Braskem Interview article by Jonathan Lopez 

17-Sep-2024

Ursula von der Leyen announces key energy roles for Denmark, Spain and the Netherlands Teresa Ribera will oversee delivery of the bloc’s Green Deal, with former Danish energy minister Dan Jorgensen to take the energy brief Parliamentary hearing needed to confirm candidates in post LONDON (ICIS)–European Commission president Ursula Von der Leyen named former Danish energy minister Dan Jorgensen as her pick for the energy brief on 17 September, as she unveiled the structure of the incoming College of Commissioners. The role is likely to work closely with big green portfolios for Spain and the Netherlands, as von der Leyen presented a leaner, more cross-cutting college than in the previous mandate. Spain’s Teresa Ribera, one of six executive vice-presidents, will be responsible for a “clean, just and competitive transition”. Her work will involve ensuring the EU stays on track to meet its goals under the bloc’s Green Deal and proceed with both decarbonising and industrialising the economy in parallel. Ribera has been Spain’s ecological transition minister since 2018, a role which covers both energy and environmental policy. She was a key figure in finalising a number of energy files, including the electricity market reforms, when Spain held the rotating EU presidency in the second half of 2023. Ribera will also pick up responsibility for competition policy from outgoing Danish commissioner Margrethe Vestager. Current Dutch commissioner Wopke Hoekstra will retain the climate brief he has held since August 2023, becoming commissioner for “climate, net-zero and clean growth”. His responsibilities will include climate diplomacy and decarbonisation, alongside implementation and adaptation. The former Dutch finance minister will also pick up responsibility for taxation. Jorgensen’s work will focus on lowering energy prices, investment in clean energy and cutting dependencies. His brief will also cover housing, which covers aspects including energy efficiency. Von der Leyen told reporters that Jorgensen’s broad experience as an energy minister made him a good fit for the role. She pointed to topics including the energy crisis, building an energy union and lessening Europe’s dependence on fossil fuels as key agenda items, alongside deepening Europe’s interconnections and supply corridors. Von der Leyen also said Jorgensen was well suited to continue work on joint energy procurement, which she called “one of the top topics to increase the market power of the [EU] on the global energy market”. Jorgensen was Denmark’s minister for climate, energy and utilities from 2019-2022, before he became minister for development cooperation and global climate policy. The commissioners-designate must be approved by the European Parliament before they take up their roles. Von der Leyen said it was impossible to say when the process would be complete but she hoped it would be soon. The initial goal was 1 November, but that may slip. The parliament can accept or reject the whole Commission, and has previously used its role to replace certain candidates and demand adjustments to portfolios. COORDINATION IS KEY Asked about overlap between Ribera’s and Hoekstra’s briefs, von der Leyen told reporters that all commissioners and executive vice-presidents would need to work closely together. “You cannot put reality in little boxes and separate the different topics from each other. “Reality: everything is intertwined and interlinked,” she said, stressing that coordination and cooperation were paramount. Von der Leyen also cut an additional layer of commission vice-presidents in the new college, which she said meant a “leaner structure, more interactive and interlinked”. CZECH DEVELOPMENTS Josef Sikela, a contender for the energy job, will instead become commissioner for international partnerships. Sikela was well regarded for his work during the energy price crisis, when the Czech presidency convened multiple energy councils in the second half of 2022 to stabilise the situation. His work will involve oversight of the €300bn Global Gateway programme, which invests in infrastructure abroad. Von der Leyen said the role had links with energy and trade, pointing to examples of working with African countries on renewable energy or critical raw materials to help underpin the bloc’s competitiveness.

17-Sep-2024

SAO PAULO (ICIS)–Brazil and other Latin American countries have been grappling with severe wildfires in recent weeks, affecting even typically moist areas as they struggle with an intense drought. Millions are seeing their livelihoods disrupted across the Americas in an early showing of the worse effects of global warming, a signal of what the new normal will mean for the economy with recurrent disruption to logistics potentially the new normal. While Brazil is now battling wildfires, just three months ago the country suffered its worst floods ever, hitting the southernmost state of Rio Grande do Sul, a key petrochemicals and industrial hub where the economy came to a standstill for more than a month. Meanwhile, a severe drought is for the second consecutive year hitting the northern state of Amazonia, where the mightily Amazon River is already recording lower water levels than normal. In 2023, a similar situation brought havoc to petrochemicals logistics as the area is home to the Manaus Free Trade Zone (Zona Franca de Manaus, or ZFM in Portuguese) via which large amounts of imported chemicals make their way onto the rest of the country. Experts have warned Brazil is ill-prepared for the consequences of global warming, despite its huge progress on renewable energy’s implementation, and have asked policymakers to make climate change preparedness a cornerstone of all regulations approved. In another example of extreme weather affecting the Latin American chemicals industry, the Mexican petrochemicals hub in Altamira, in the east of the country, was brought to its knees earlier this year by a months-long drought. The authorities in Altamira prioritized water supplies to households and imposed restrictions to industrial players, making many companies' operations untenable and leading to several force majeure declarations. BRAZIL: FIRE EVERYWHEREThe current wildfires crisis in Brazil began in August and worsened due to widespread drought – numerous fires still burning. Blazes are also raging near the capital, Brasilia, and in the northern coastal state of Bahia, state which is being hit by the same drought than Amazonia. Active wildfires on the outskirts of Sao Paulo, the Americas' most populous metropolitan area with 20 million inhabitants, have significantly polluted the air over the past week, casting a grey pall over the city and exacerbating the city's already congested traffic. The state's Civil Defense reported ongoing fires in eight municipalities on 15 September. The state government has mobilized all available aerial resources to combat the blazes, deploying five fixed-wing and eight rotary-wing aircraft. And, just over the weekend, the waters of Sao Paulo's major Pinheiros River turned emerald green due to an algae bloom caused by the drought. The state's environmental agency attributed the river's color change to low water levels and the smoky air to a hot, dry mass trapping pollutants from ongoing wildfires in nearby forested areas. Over the weekend, President Luiz Inacio Lula da Silva surveyed the Brasilia National Park by air after a fire erupted there, having already consumed 1,200 hectares. In Serra do Cipo, in the municipality of Muquem de São Francisco in western Bahia, firefighters have been battling a blaze for 30 days. Persistent challenging weather conditions, including high temperatures, strong winds, and low humidity, are hampering efforts to contain the fire. The situation is further complicated by a prolonged drought, with no rainfall in the region since May. Brazil’s rich greenery, meanwhile, continues to be threatened by deforestation. The Amazon is the largest rainforest in the world and it acts as a key absorber of emissions, reason why the world’s eyes are on Brazil and its efforts – or lack of on occasion – to preserve the area. Last week, analysis by green group Amazon Conservation showed that significant portions of the Amazon rainforest remain unprotected. The study, based on satellite imaging and machine-learning models, identified key unprotected areas in Peru, Brazil, French Guiana, and Suriname. These regions contain large, dense trees and continuous canopy cover, making them vital carbon stores. The analysts reiterated Brazil’s urgent need to expand its conservation efforts to safeguard the Amazon's critical role in global climate regulation. While Lula’s first and second terms (2003-2011) registered lower deforestation rates, successive administrations overlooked the issue and partly reversed prior progress. Lula’s environment minister Marina Silva, widely praised for the initial success in the early 2000s, is back in the cabinet to achieve the same feat in what perhaps is the world's last chance to save the vital rainforest. However, as the Amazon quickly deteriorates, experts are embroiled in a scary debate: some studies are already suggesting the area may turn from a net absorber of carbon into a net emitter. Without its key lung taking in emissions, the effects of climate change on Earth could become considerably worse. OVERWHELMEDCritics have accused the Brazilian government of responding too slowly when the wildfires crisis began in August, potentially exacerbating the situation. However, the reality is that no Brazilian administration has ever faced such widespread wildfires over such an extended period – the country has traditionally been seen as the archetypal tropical country, where rainfall is common and often torrential. After thousands of hectares have been lost to the flames, Lula's administration appeared to fully acknowledge the reality last week, announcing measures to assist residents and municipalities in the areas most affected by the drought. This week, following Lula's aerial survey of the devastation in Brasilia National Park, the government announced the creation of a National Climate Agency, tasked with addressing extreme natural phenomena, as the country's vast geography makes it susceptible to opposing weather events within just a few months. The agency was one of Lula's plans after he took office for the third time in January 2023, but it was repeatedly delayed. The multiple climate crises Brazil has endured since May have now made its establishment essential. LATIN AMERICA IS GETTING DRIERElsewhere in Latin America, other countries are also battling record-high numbers of wildfires. Satellite data from Brazil's National Institute for Space Research (INPE) recorded 346,112 fire outbreaks across all 13 South American countries as of 11 September. This figure surpasses the previous record of 345,322 cases set in 2007, in a history dating back to 1998. Recent satellite imagery has revealed a smoke corridor stretching diagonally across the continent from Colombia to Uruguay. Despite efforts by Brazilian and Bolivian authorities, the blazes continue unabated, fueled by extreme temperatures and challenging weather conditions. Within petrochemicals, it is not only players in Brazil’s Manaus area who are having to learn how to do logistics under a new reality. In a recent trip to Buenos Aires, a source at a chemicals trader also operating in neighboring Paraguay and Uruguay described how low water levels in the equally mighty Parana River are putting a strain on the company’s logistics. The Parana River runs through Brazil, Paraguay, and Argentina for some 4,880 kilometers and it is the second largest river in South America, only behind the Amazon River. As water levels in the Parana have been unstable and reached record lows in the past two years, the Argentinian trading source said the company is slowly shifting the way it moves its cargo. “With low water levels, barges cannot fully load, so more barges are needed to transport the same amount of material. This obviously increases logistics costs quite a bit,” said the source. “We have always used the Parana River to bring product from Uruguay’s capital Montevideo, where it is shipped to from across the world, to landlock Asuncion, the capital of Paraguay. This has become a nuisance in recent months, and we are increasingly turning to trucks to transport the materials which can be transported by road.” Insight by Jonathan Lopez

17-Sep-2024

HOUSTON (ICIS)–The US Department of Energy (DOE) has announced a conditional commitment for up to $1.559 billion to Wabash Valley Resources to help finance a commercial-scale waste-to-ammonia production facility using carbon capture and sequestration (CCS) technology. The government funding would be part of a total investment of $2.4 billion that Wabash Valley Resources would secure for the project through private investment. Located in West Terre Haute, Indiana, the project is being planned to produce 500,000 tonnes of anhydrous ammonia annually and permanently sequestering 1.6 million tonnes of carbon dioxide annually. Officials said it will have the potential to be the world’s first, carbon-negative ammonia production facility and that the company would be repurposing an industrial gasifier to utilize petroleum coke. This will be the US’ first efforts to utilize petroleum coke to produce ammonia and store the associated emissions via permanent geologic sequestration. Wabash Valley Resources said it is their intention to demonstrate a commercially and environmentally viable end-use alternative for petroleum coke, which is a waste product generated during the oil refining process. Officials said this project would play a critical role in securing domestic fertilizer supply for the region commonly known as the Corn Belt, contributing to both food security and climate goals. This low-carbon ammonia would be cost-competitive compared to existing ammonia imports, helping to drive down costs for local businesses and consumers. It was noted that while ammonia fertilizer is a crucial element of the US agricultural system, its production is a significant contributor to climate change. Globally, the manufacturing of the nutrient accounts for 1% to 2% of all carbon dioxide emissions. Through this project, Wabash Valley Resources is striving to reduce the agricultural industry’s emissions. In addition to its environmental benefits, the project is expected to create 500 construction jobs and 125 operations jobs.

17-Sep-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 13 September. NEWS Argentina chemicals, industrial July output falls as industry bears brunt of recession Argentina’s chemicals and manufacturing outputs fell in July by 5.4% and 2.6% year on year, respectively, as the industrial sectors remain the most affected by consumers’ squeezed budgets. Argentina’s progress on fiscal consolidation still challenged by inflation – economist The Argentinian’s government attempt to turn the economy around has had certain successes in the fiscal front, but high inflation is still challenging the outlook as it continues to eat up on gains elsewhere, according to an economist at Buenos Aires-based Fundacion Capital. Brazil's Petrobras launches natural gas processing unit in Rio de Janeiro Petrobras has begun start-up procedures for Brazil's largest natural gas processing unit (UPGN) in Itaborai, near Rio de Janeiro, the state-owned energy major said on Wednesday. Brazil’s inflation breaks upward trend in August, but some subsectors keep rising Brazil’s annual rate of inflation fell to 4.24% in August, down from 4.50% in July, but analysts pointed to how some price rises in certain sectors continue unabated. Mexico inflation falls below 5% in August, paves way for more interest rate cuts Mexico's annual rate of inflation fell quite considerably in August to 4.99%, down from July’s 5.57%, a development which is to reinforce the next cut to interest rates later this month, according to analysts. Argentina’s August inflation falls below 240% but monthly price increases remain over 4% Argentina’s annual rate of inflation fell in August to 237%, down from July’s 263%, but monthly price rises stood over the 4% mark, the country’s statistical office Indec said this week. Dutch Nouryon expands sodium chlorate capacity in Brazil, starts up new site Nouryon has expanded its sodium chlorate capacity in Brazil by starting up a new manufacturing site in Ribas do Rio Pardo, state of Mato Grosso do Sul, the Dutch chemicals producer said on Tuesday. Petrobras, Gerdau sign MoU for decarbonization projects Brazil’s Petrobras and steelmaker Gerdau have signed a non-binding Memorandum of Understanding (MoU) to evaluate commercial opportunities in decarbonization initiatives, the Brazilian energy major said this week. PRICING LatAm PP international prices steady to lower on cheaper imports International polypropylene (PP) prices were assessed as steady to lower across Latin American countries due to competitive offers from abroad and lower US propylene spot prices. LatAm international PE prices steady to lower on cheaper offers from abroad International polyethylene (PE) prices were assessed as steady to lower across Latin American countries due to cheaper offers from abroad. Latin America PVC business monitors potential supply tightening due to maintenance in Q3 Polyvinyl chloride (PVC) prices in Latin America remained steady this week, with the market closely watching US Gulf prices for potential changes in pricing strategies.  

16-Sep-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 13 September. Customers more willing to pay green premium as net zero transition gathers pace Chemical companies will find it easier to charge a green premium as the cost of carbon increases, fossil feedstock availability declines and customers realize the true value of the products they are buying. Global oil demand growth lowest since 2020 on China slowdown Global crude oil demand continued to decelerate in the first half of the year, the International Energy Agency (IEA) said on Thursday, with consumption growth of 800,000 bbl/day year on year the weakest since 2020. IPEX: Index falls in August as weak demand, softer crude put downward pressure on chemical prices in Asia The ICIS Petrochemical Index (IPEX) was down 1.3% in August month on month as weak downstream demand and softer upstream crude oil costs continued to exert downward pressure on chemical prices in northeast Asia. Europe PX, OX spot prices tumble on softer Asian market, lower contract values Europe paraxylene (PX) and orthoxylene (OX) spot prices plummeted week on week in the week ending 6 September, on the back of softer values in the influential Asian market and lower domestic contract prices, respectively. Demographic drag on chemicals to deepen A continuing flow of poor economic data caused further stock market jitters in September, and as the prospect of a meaningful recovery in the global economy recedes into next year, new analysis suggests that the demographic drag on growth may be stronger than previously thought.

16-Sep-2024