News library
Subscribe to our full range of breaking news and analysis
Expert pricing, news and analytics
Complete your details, and a member of our Sales team will guide you through the purchase process.
Viewing 1-10 results of 56562
Speciality Chemicals27-Mar-2024
SAN ANTONIO (ICIS)–Lubricant additives demand
may recover this year following major
destocking in 2023, said the head of LANXESS’
business.
“What we hear from our customer end-use
segments is that in most cases, destocking is
over and inventories are at reasonably low
levels. The general theme that’s playing out is
that customers are manufacturing to the extent
of what is potential real demand, and not
restocking,” said Neelanjan Banerjee, senior
vice president of Lubricant Additives at
LANXESS.
ICIS interviewed Banerjee on the sidelines of
the International Petrochemical Conference
(IPC), hosted by the American Fuel &
Petrochemical Manufacturers (AFPM).
“We saw that play out very strongly in Q1 in
many areas, such as automotive engine oils,
where there was the biggest collapse last year.
So that’s been a decent comeback,” he added.
However, given the volatility from geopolitical
tensions, high inflation and high interest
rates impacting consumer behavior, how that is
going to play out in the coming quarters has to
be very closely watched, he pointed out.
One area of growth is in calcium sulfonate
greases which are increasingly replacing
lithium greases because of lithium’s extreme
price volatility over the past two years tied
to electric vehicles (EVs).
LANXESS’ calcium sulfonate greases are used in
passenger vehicle, heavy duty vehicle and
marine applications.
SURGE IN INDUSTRIAL
LUBRICANTSThe company is also
seeing higher demand for sustainable industrial
oil additives that also offer high performance,
he said.
“This is driving innovation in the industry by
suppliers who have the ability to conduct
R&D and offer the molecules that meet the
highest safety standards – favorable HSC
profile, low VOC emissions and low carbon
footprint,” said Banerjee.
“We also expect there to be consolidation in
the industry for players that cannot meet these
requirements,” he added.
In the US, increased investment from the US
Inflation Reduction Act (IRA), the CHIPS Act
and the Bipartisan Infrastructure Law (BIL) has
spurred increased demand for industrial
lubricants, said the executive.
This includes additives and packages for
metal-working fluids, hydraulic fluids, gear
oils, compressor oils, greases, as well as
increasing demand for formulated calcium
sulfonate complex greases.
“As a result, we are increasing our resources
dedicated to providing solutions to industrial
customers and applications in the Americas,”
including sales, technology and potentially
laboratory support in the US, said Banerjee.
EV TRANSITION IMPACTThe
EV transition is expected to happen but more
slowly than initially anticipated in the US,
with 16.3% of total US light vehicle sales
being EVs in 2023 – up from 12.9% in 2022, he
noted.
However, EVs comprised just 1.2% of the US car
parc (number of vehicles on the road) in 2022,
he added.
In the internal combustion engine (ICE) market,
lubricant sales are primarily driven by the
replenishment and maintenance market, and this
continues to dominate, the executive pointed
out.
EV fluids will more likely be filled one time
for the life of the vehicle and primarily sold
to OEMs, and it will be years before the impact
of EV fluid volumes becomes significant,
Banerjee said.
The industry is working to understand and
develop specifications for a variety of fluids
required by EVs such as driveline fluids,
hybrid engine oils, specialty greases and
immersion cooling fluids, and LANXESS has
active solution development under way for all
these EV fluids.
Regulations and legislation could drive EV
adoption higher, but the trajectory is highly
uncertain as automakers and consumers may not
be ready, he said.
“I still feel ICE technology will be there for
years to come… Regulations are a topic that has
to play out with governments worldwide,” said
Banerjee.
Challenges for the EV transition include price
volatility in battery materials, retraining of
the automotive workforce, and overall high
prices for EVs, he noted.
“People were very excited about the
possibilities, but the harsh reality today is
that even with all the new regulations in play,
the cars are getting heavier and more
expensive,” said Banerjee.
“The world has to get that right – it’s not
that easy,” he added.
COOLING FOR DATA
CENTERSAn emerging growth end
market is data centers which enable cloud, AI,
autonomous driving and cryptocurrency mining
capabilities.
“The lubricants industry has been busy
positioning their basestocks as suitable
immersion cooling fluids for both EVs and data
centers,” said Banrjee, who noted that LANXESS
has developed two families of cooling fluids
based on synthetic basestocks and formulated
with antioxidants, yellow metal inhibitors and
antifoams.
“We believe a sizeable market will develop for
these cooling fluids in the next few years,” he
added.
Unlike in EVs, direct immersion cooling of data
centers is being applied today.
LANXESS is developing both single-phase and
two-phase immersion cooling solutions.
“Once you dunk a computer into a liquid,
materials compatibility is a design
requirement, and one key trend is also to move
away from fluorinated hydrocarbon coolants due
to PFAS health effects,” said Banerjee.
Interview article by Joseph
Chang
Front page picture source:
LANXESS
Hosted by the American Fuel & Petrochemical
Manufacturers (AFPM), the IPC took
place on 24-26 March in San Antonio, Texas.
Speciality Chemicals27-Mar-2024
Updated on 27 March.
On this topic page, we gather the latest news,
analysis and resources, to help you to keep
track of developments in the area of
sustainability in the fertilizers industry.
LATEST NEWS HEADLINES
New urea
application rules to be implemented in England
from 1 April
By Deepika Thapliyal 27-Mar-24 LONDON
(ICIS)–In England, famers will only be able to
apply solid or liquid urea that is treated with
an inhibitor from 1 April, according to new
regulations from the Department for
Environment, Food & Rural Affairs (Defra)
that come into force next month.
UPM Biochemicals
launches new range of bio-based plant
stimulants By Sylvia Traganida
27-Mar-24 LONDON (ICIS)–UPM Biochemicals
has launched a new range of bio-based plant
stimulants which is an alternative to fossil
raw materials-based products, the Finnish paper
and renewable chemicals firm said on Tuesday.
Mabanaft signs
letter of intent for supply of green ammonia
from Canada
By Sylvia Traganida 19-Mar-24 LONDON
(ICIS)–Germany-headquartered energy firm
Mabanaft has signed a letter of intent (LOI)
with US-based Pattern Energy for the supply of
green ammonia to Mabanaft.
Yara Growth
Ventures invests in electrolysis technology for
low-cost renewable hydrogen By
Sylvia Traganida 08-Mar-24 LONDON
(ICIS)–Norwegian fertilizer major Yara has
invested in Danish electrolysis technology
company Dynelectro through its corporate
venture capital team Yara Growth Ventures.
Yara signs
agreement with Acme Cleantech subsidiary on
green ammonia
By Sylvia Traganida 01-Mar-24 LONDON
(ICIS)–Norwegian fertilizer major Yara has
signed an agreement with GHC SAOC for supply of
ammonia with reduced carbon emissions from Acme
to Yara on a long-term basis.
Idemitsu to join
US clean ammonia project By Stefan
Baumgarten 27-Feb-24 LONDON
(ICIS)–Idemitsu Kosan has agreed to join a 1.2
million tonne/year clean ammonia project that
Mitsubishi Corp and Proman plan to develop at
Lake Charles, Louisiana, US, it said on
Tuesday.
Germany’s Heraeus
invests in Japanese ammonia tech company By
Stefan Baumgarten 22-Feb-24 LONDON
(ICIS)–German technology group Heraeus has
invested an undisclosed amount in Tsubame BHB,
a Japanese company that has developed a
precious metal-based technology for
decentralized ammonia production.
Malaysia’s PCG,
Sarawak Petchem agree to study low-carbon
ammonia and urea plant By
Nurluqman Suratman 21-Feb-24 SINGAPORE
(ICIS)–Malaysia’s PETRONAS Chemicals Group
(PCG) and methanol producer Sarawak Petchem on
Wednesday signed an agreement for a joint
feasibility study aimed at establishing a
low-carbon ammonia and urea production facility
in Bintulu, Sarawak.
Egypt’s Helwan
signs agreement to produce black
urea By Deepika Thapliyal
20-Feb-24 LONDON (ICIS)–In Egypt, Helwan has
signed an agreement with SML-INNO UK Ltd to set
up the world’s first vertical integrated unit
to produce black urea, with a capacity of
130,000 tonnes annually, the company said
today.
EU eases climate
proposals after widespread farmer
protests
By Chris Vlachopoulos 07-Feb-24 LONDON
(ICIS)–European Commission President Ursula
von der Leyen announced on Tuesday that the EU
has agreed to ease key demands in its climate
proposal plans, following intense protests from
farmers.
Tecnimont awarded
engineering contract for Portugal green
hydrogen, ammonia plant By Graeme
Paterson 05-Feb-24 LONDON (ICIS)–Tecnimont has
been awarded an engineering contract to develop
an integrated green hydrogen and green ammonia
plant at Sines, Portugal, its parent company
Maire said.
EU CARBON BORDER ADJUSTMENT MECHANISM
(CBAM) EXPLAINED
What is it?
The risk of carbon leakage frustrates the EU’s
efforts to meet climate objectives. It occurs
when companies transfer production to countries
that are less strict on emissions, or when EU
products are replaced by more carbon-intensive
imports.
This new mechanism would counteract this risk
by putting a carbon price on imports of certain
goods from outside of the EU.
How will it work?
EU importers will buy carbon certificates
corresponding to the carbon price that would
have been paid, had the goods been produced
under the EU’s carbon pricing rules.
Conversely, once a non-EU producer can show
that they have already paid a price for the
carbon used in the production of the imported
goods, the corresponding cost can be fully
deducted for the EU importer.
This will help reduce the risk of carbon
leakage by encouraging producers in non-EU
countries to make their production processes
greener.
A reporting system will apply from 2023 with
the objective of facilitating a smooth roll out
and to facilitate dialogue with non-EU
countries. Importers will start paying a
financial adjustment in 2026.
How is the fertilizer industry
affected?
The fertilizer industry is one of the sectors
to fall under the CBAM.
The more energy-intensive nitrogen fertilizers
will be affected most in the sector by the
mechanism.
NEW UREA APPLICATION NORMS
IN ENGLAND
The UK’s Department for
Environment, Food & Rural
Affairs (DEFRA) has imposed new
regulations on urea application in
England.
Famers will only be able to apply
solid or liquid urea that is
treated with an inhibitor from 1
April.
The move is aimed to reduce ammonia
emissions, and would increase costs
for farmers by an estimated
£40/tonne.
The new rules apply to any
fertilizer that contains 1% or more
of urea nitrogen, with applications
of solid urea or liquid (urea
ammonium nitrate) fertilizer from 1
April having to include a urease
inhibitor
Untreated solid urea or liquid UAN
fertilizer can be applied between
15 January to 31 March each year.
Untreated liquid UAN fertiliser can
be applied after 1 April if
agronomic justification is provided
by a certified fertilizers advisor,
mentioning ammonia losses will be
at or below the level of when a
urease inhibitor is included.
Foliar urea applications targeting
the crop, using normal spray
nozzles do not require a urease
inhibitor.
The implementation of the Defra
regulations was delayed by two
years due to higher fertilizer
prices and lack of supply following
the covid pandemic and the Ukraine
war.
PREVIOUS NEWS HEADLINES
EU
proposes relaxation in policy following farmer
protests
Biden
Administration invests $207m in domestic
fertilizer and clean energy endeavours
Brazil’s state of Ceara,
Bp sign MoU for green hydrogen site
Atome
Energy in talks with buyers for green
fertilizer from Paraguay unit
Sweden’s Cinis targets
Asia potash market with Itochu partnership
Helwan selects
Eurotecnica’s Euromel G5 technology for new
melamine facility in Egypt
India’s Adani Group plans
$24bn green energy park; RIL to commission giga
complex
INPEX
and LSB pick technology for US ammonia
project
Bayer
partners with energy firms on hydrogen cluster
in Germany
S
Korean group picks KBR tech for Malaysian green
ammonia project
Abu
Qir signs MoU for green ammonia project in
Egypt
Yara
aims to launch first container ship to run off
clean ammonia
India’s Odisha state
approves green hydrogen, ammonia, methanol
projects
ADM
announces launch of regenerative agriculture
program in Brazil
Fertiglobe completes
first renewable ammonia shipment with carbon
certification
Allied Green Ammonia
picks Topsoe’s tech for Australia project
Germany’s VNG looks to
secure offtake from Norwegian low carbon
ammonia plant
Gentari enters into
agreement with AM Green to invest into a green
ammonia delivery platform
ITOCHU Corporation,
Orascom Construction sign MOU for development
of ammonia bunkering in Suez Canal
India
developing port infrastructure for green
hydrogen exports
S
Korea, Saudi Arabia firms sign 46 pacts,
includes blue ammonia project
INSIGHT: CBAM reporting
begins, fertilizer exporters to EU challenged
to account for carbon
KBR
to supply green ammonia tech to Madoqua Power2X
site in Portugal
Germany’s SOM to build
green hydrogen, ammonia facility in Brazil’s
Piaui state
US
ADM and Syngenta sign MoU to collaborate on low
carbon oilseeds to meet biofuel demand
Tecnicas Reunidas, Allied
Green Ammonia to build green hydrogen and green
ammonia plant in Australia
Australian fertilizer
producer Orica accelerates climate change
targets
Nestle, Cargill and CCm
Technologies launch joint UK trial on
sustainable fertilizer
EnBW acquires stake in planned
Norwegian ammonia plant
Yara
Germany signs agreement for decarbonisation of
cereal cultivation using green fertilizers
Hyphen, ITOCHU ink MoU to
explore potential Namibia hydrogen
collaboration
INSIGHT: BASF grapples
with demand trough, slow road back
SABIC
AN ships low-carbon urea to New Zealand
US
Cargill and John Deere collaborate to enable
revenue for farmers adopting sustainability
Canada’s Lucent Bio
announces approval of biodegradable nutrient
delivery patent
Aker,
Statkraft’s 10-year PPA to spur European
renewable ammonia push further
BASF,
Yara Clean Ammonia to evaluate low-carbon blue
ammonia production facility in US Gulf
Coast
Yara
Clean Ammonia, Cepsa to launch clean hydrogen
maritime corridor
EU
details CBAM reporting obligations
Saudi
Arabia’s Ma’aden exports its first low-carbon
blue ammonia shipments to China
US
Bunge and Nutrien Ag announce alliance to
support sustainable farming practices
Maire
subsidiary Stamicarbon wins US green ammonia
engineering contract
India’s IFFCO launches
liquid nano-DAP fertilizer
EU
Parliament backs CBAM, emissions trading
measures
OCP
granted €100m green loan to build solar plants
at Morocco facilities
EU unveils plans to tackle greenwashing
India’s IFFCO and CIL to
manufacture nano DAP for three years
USDA awards Ostara funds to boost sustainable
phosphate fertilizer output
Canadian prime minister confirms fertilizer
emission goal is voluntary
US fertilizers industry increases carbon
capture in 2021 – TFI
Indian president calls for reduction in
chemical fertilizer use
IFFCO plans to export nano urea to 25
countries
Amman selects Elessent Clean Technologies for
Indonesia sulphuric acid plant
Lotte
Chemical forms clean ammonia consultative body
with RWE and Mitsubishi Corporation
Global 2020-2021
specialty fertilizer demand growth led by north
America, Asia
BASF
and Cargill extend enzymes business and
distribution to US
Saudi Aramco awards sulphur facilities overhaul
contract to Technip
India
sets green hydrogen targets for shipping, oil
& gas, fertilizer sectors
Germany misses climate target despite lower
energy consumption
TFI reacts to US Congress passing the Water
Resources Development ActHelm
becomes a shareholder in UK bio-fertilizer
company Unium Bioscience
Yara
inks deal to deliver fossil-free green
fertilizers to Argentina
Canadian firms plan fuel
cell generator pilot using green ammonia
Deepak Fertilizers awards contract to reduce
emissions, increase productivity
Saudi Aramco launches $1.5bn sustainability
fund to support net zero ambition
CF
Industries and ExxonMobil plan CCS project in
Louisiana
Canada’s plan to cut
fertilizer emissions is voluntary –
minister
Canada’s fertilizer emission goal raises food
production concerns
Uniper, Vesta to cooperate on renewable ammonia
site in the Netherlands
German Uniper to work with Japan’s JERA on US
clean ammonia projects
ADNOC ships first cargo of low-carbon ammonia
to Germany
US
Mosaic and BioConsortia expand collaboration to
microbial biostimulant
IMO deems Mediterranean Sea area for sulphur
oxides emissions control
Canada’s Soilgenic launches new enhanced
efficiency fertilizers technology for
retail
Austria’s Borealis aims to produce 1.8m
tonnes/year of circular products by 2030
European Parliament rejects proposed carbon
market reform
IFA
’22: southern Africa looks to bio-fertilizer as
cheaper, sustainable option
IFA ’22: Indian farmers will struggle to
embrace specialty fertilizers – producer
Canadian Nutrien plans to build world’s largest
clean ammonia facility in Louisiana
Japan’s JGC Holdings awards green ammonia plant
contract to KBR
Bayer to partner with Ginkgo to produce
sustainable fertilizers
Australia Orica and H2U Group partner on
Gladstone green ammonia project
Canada sets tax credit of up to 60% for carbon
capture projects
UK delays urea restrictions to support farmers
as fertilizer costs at record high
EU states agree to back carbon border tax
Yara to develop novel green fertilizer from
recycled nutrients
USDA
announces plans for $250m grant programme to
support American-made fertilizer
Canada seeks guidance to
achieve fertilizer emissions target
Fertilizer titan Pupuk Indonesia develops
hydrogen/blue ammonia business
India
launches green hydrogen/ammonia policy, targets
exports
Canada AmmPower to develop green hydrogen and
ammonia facility in Louisiana
US DOE awards grant to project to recover rare
earth elements from phosphate production
Fertiglobe, Masdar, Engie to develop green
hydrogen for ammonia production
Czech Republic’s Spolana enhances granular AS
production
India’s Reliance to invest $80bn in green
energy projects
Yara, Sweden’s Lantmannen aim to commercialise
green ammonia by 2023
Novatek and Uniper target Russia to Germany
blue-ammonia supply chain
Fertz giant Yara goes green with
electrification of Norwegian
factoryCanada
Arianne Phosphate exploring use of phosphate
for hydrogen technology
FAO and IFA renew MoU to promote sustainable
fertilizer use
Sumitomo Chemical, Yara to explore clean
ammonia collaboration
Sri
Lanka revokes ban on imports
Tokyo scientists convert bioplastic into
nitrogen fertilizer
Aramco plans Saudi green hydrogen, ammonia
project
China
announces action plan for carbon peaking &
neutrality
Saudi Aramco targets net zero emissions from
operations by 2050
Fertiglobe goes green with Red Sea zero-carbon
ammonia pro
Australian fertilizer major Incitec Pivot teams
up for green ammonia study
INTERVIEW: BASF to scale
up new decarbonisation tech in second half of
decade – CEO
India asks fertilizer companies to speed up
production of nano DAP
Japan’s Itochu set to receive first cargo of
blue ammonia for fertilizer use
Norway’s Yara acquires recycled fertilizers
maker Ecolan
Bayer Funds US start-up aims to cut nitrogen
fertilizer use by 30%
BP: Green ammonia production in Australia
feasible, but needs huge investment
Origin and MOL explore shipping green ammonia
from Australia
India’s IFFCO seeks to
export nano urea fertilizer
Sri Lanka reinstates ban on import of chemical
fertilizers
Nutrien to cut greenhouse gas emissions 30% by
2030
RESOURCES
IFA – Fertilizers and climate change
TFI –
Sustainability report
Speciality Chemicals27-Mar-2024
SAN ANTONIO (ICIS)–The EU must take action on
industrial policy instead of just talking about
it, to stem the tide of deindustrialization,
the CEO of Huntsman said.
While the US is boosting its manufacturing base
with programs such as the Inflation Reduction
Act (IRA), as imperfect as it may be, the EU
has yet to implement any meaningful policies to
support manufacturing, according to Huntsman
chief Peter Huntsman.
“One thing the IRA does is transmit to the rest
of the world is that the US is open for
business, or trying to be open for business…
whereas Europe is sending a sign that it’s
really not open for business,” he said.
Huntsman spoke at a breakfast meeting at the
International Petrochemical Conference, hosted
by the American Fuel & Petrochemical
Manufacturers (AFPM).
Recalling recent conversations with EU prime
ministers, European Commission President Ursula
von der Leyen and industry CEOs, he expressed
disappointment at the outcome from these
meetings.
“All I heard during the entire meeting was, ‘We
need to talk about it’,” said Huntsman.
‘BEYOND THE POINT OF
TALKING’“It’s beyond the point
of talking. When you start to see the rapid
deindustrialization with plants shutting down”,
it is not readily reversible, he added.
Companies that decide to invest in chemical
projects elsewhere are not going to suddenly
come back to Europe if it ever regains
competitiveness, he said.
“You’re not going to get companies coming back
to Europe. You’re just [trying] to stop the
bleeding and that’s what Europe should be
focused on right now – and I don’t believe that
is happening, unfortunately,” said Huntsman.
The US needs a strong Europe – economically,
militarily and diplomatically, he pointed out.
“The world is at a loss when Europe is
meandering in the dark, unsure what to do with
its industrial policy,” said Huntsman.
“I’m not here bashing Europe – I’m here begging
Europe… I’ve spent almost half my time in
Europe, especially in the last 12 months. I’ve
met more politicians and have spent more time
lobbying in Europe than I have in my entire
career combined,” he added.
UNREALISTIC ENERGY
EXPECTATIONSPlans to rapidly
transition away from hydrocarbons and towards
renewables are not well thought out, he said.
Huntsman supports the Antwerp Declaration for a
European Industrial Deal but said it needed
stronger policy around hydrocarbons and the use
of oil and gas for industrial development.
Powering Europe’s cement, steel, electric
vehicle (EV) and chemical industries – just
those industries along – by 2050 would require
around 500,000 onshore wind turbines on an area
the size of Spain, or solar panels covering an
area the size of Ireland, or 836 nuclear
plants, he said, citing a study by Accenture.
“Do policies take this into account?” Huntsman
asked.
The International Energy Agency (IEA)’s
projections on rapidly declining oil, natural
gas and coal supply through 2050 for Europe as
well as the rest of the world are completely
unrealistic, he said.
“The problem is that people are making policy
around this” and companies believe they will be
penalized if they don’t meet these targets,
said Huntsman.
“This is going back to the Stone Age, and
nobody seems to care. They are making policy
around this,” he added.
The fall in Europe’s energy consumption in the
past several years and the more recent fall in
costs are not so much due to conservation or
sound policy but to deindustrialization, he
contends.
“That is not an incentive to invest. It’s quite
the opposite,” said Huntsman.
Deindustrialization is being reflected in the
stock prices of European chemical stocks, which
are trading at around a 15% discount to their
US-based counterparts on an EV/EBITDA
(enterprise value/earnings before interest,
tax, depreciation and amortization) basis, the
CEO pointed out.
Europe also has to determine if it will fight
more effectively in trade against dumping from
other countries – not just China, as well as
how it implements carbon taxes on imports, he
said.
ENERGY AND REGULATORY
PRESSURESHuntsman said he is
“comfortable” on the position of its assets in
Europe today but wants to see how energy and
industrial policy plays out in the next year or
so.
While European energy prices have subsided
recently, they are still high and subject to
the vicissitudes of international trade until
Europe decides to secure its own energy future,
he said.
And on the regulatory front, a third-party
study commission by Huntsman found that EU
regulations will cost the company an additional
€75-80m over the next 8-10 years, nearly half
of its payroll in the region.
“To offset that, we either have to raise
prices, which makes Europe that much less
competitive, or cut the workforce,” said
Huntsman.
As this is simply unsustainable for companies
like Huntsman, Europe has to decide if they
want industry or not. Offshoring supply chains
and thus also CO2 emissions, will only worsen
competitiveness as well as harm the
environment, he said.
“A lot more is being said than done. I’m not
terribly optimistic there will be any [shift
in] industrial policy in Europe. But perhaps
the upcoming election will do something,” he
added, referring to the EU Parliamentary
elections in June.
Europe will land on its feet – it’s just a
matter of how much it will cost before it does
so, he noted.
“We’ve got to be able to work together as an
industry. We’ve got to be able to speak more
loudly and advocate for what we all know to be
true, and mot worry about being cancelled,”
said Huntsman.
Hosted by the American Fuel & Petrochemical
Manufacturers (AFPM), the IPC took
place on 24-26 March in San Antonio, Texas.
Thumbnail photo: Huntsman’s Europe
headquarters in Everberg, Belgium (Source:
Huntsman)
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Ethylene27-Mar-2024
SINGAPORE (ICIS)–Asia’s ethylene (C2) market
will see northeast Asia supply in Q2
remain ample on the back of relatively high run
rates at northeast Asian crackers.
Similarly, propane dehydrogenation (PDH) units
in the region are also expected to sustain
current run rates for Q2.
In this podcast, ICIS market editors Josh
Quah and Julia Tan discuss Asia’s olefins
flows, with a forward view on the Q2 market.
NE Asia C2 supply ample, SE Asia C2 supply
tight
NE Asia and SE Asia C3 supply ample
Deep-sea movements as arbitrage windows
open
Speciality Chemicals26-Mar-2024
HOUSTON (ICIS)–All vessel traffic in and out
of the Port of Baltimore on the US East Coast
has been suspended until further notice after
the container ship Dali struck the
Francis Scott Key bridge early Tuesday morning.
The 1.6-mile bridge, which collapsed after the
impact, spans the Patapsco River and is at the
entrance to the port, as shown in the following
map.
Source: Maryland.gov
The port has five public terminals and 12
private terminals.
From a chemical perspective, Sasol North
America has a terminal at the port, as does
specialty chemical producer WR Grace.
A distributor in the Northeast US told ICIS
that the incident will likely have a large
impact on maritime shipments in the region.
“Rerouting will cause severe congestion,” the
distributor said. “It is also the main bridge
for hazardous materials since they can not go
through the tunnels.”
The port is one of the busiest ports for auto
imports and exports, as well as coal, steel,
sugar and other commodities.
The Dali is owned by Grace Ocean and
operated by Synergy Group and was under a time
charter with Maersk.
Maersk said in a customer advisory that it is
omitting the Port of Baltimore on all its
services for the foreseeable future.
“For cargo already on water, we will omit the
port, and will discharge cargo set for
Baltimore, in nearby ports,” Maersk said in the
advisory. “From these ports, it will be
possible to utilize landside transportation to
reach final destination instead.”
Port of Baltimore officials said trucks are
still being processed at marine terminals.
The 4-lane bridge handles about 11.3 million
vehicles/year.
Vehicle traffic will have to detour to I-895,
which is further north from the site.
In June 2023, a bridge in Philadelphia collapsed after a
tanker carrying gasoline caught fire while
under the highway overpass.
In that instance, federal, state and local
governments worked around the clock to reopen
the bridge, which took about two weeks.
Replacing the four-lane bridge in Baltimore
will be more challenging.
The bridge opened in 1977 after five years of
construction. Including the connecting
approaches, the bridge is 10.9 miles long.
The National Transportation Safet Board (NTSB)
sent a team to investigate the incident and
will hold a press conference later in the day.
Additional reporting by Kevin Callahan,
Antulio Borneo
Thumbnail image shows the container ship
Dali. Source: VesselFinder.com
Recycled Polyethylene Terephthalate26-Mar-2024
GRAPEVINE (ICIS)–The Plastics Recycling
Conference is underway in Grapevine, Texas, and
Senior Market Editor Emily Friedman and Senior
Analyst Andrea Bassetti break down the key
topics among discussions and presentations at
the show:
US R-PET market experiencing a divergence
from historic trend, as well as stark regional
differences
Chemical recycling capacities still set to
grow through 2028
Recycling markets facing virgin, import
price pressure and sluggish demand in H1 2024
To learn more, ICIS recycled plastics experts
Emily Friedman and Andrea Bassetti will be
giving a presentation “Insights from the
Analysts” on Wednesday, 27 March at 10:00AM
CST.
The Plastics Recycling Conference (PRC) takes
place on 25-27 March in Grapevine, Texas.
Please reach out on LinkedIn to connect with us
at the show!
Gas26-Mar-2024
LONDON (ICIS)–Gas in Focus deputy editor Marta
Del Buono talks about key drivers for the
current weeks affecting European gas market:.
Increasing geopolitical tensions support
European gas prices
ICIS technical analysis also indicates some
bullish sentiment in the oil and coal prices
US hurricane season may have a knock-on effect
on European gas markets
Click
here to watch
Ethylene26-Mar-2024
NEW YORK (ICIS)–The US Federal Reserve is
sticking to its forecast of three quarter-point
rate cuts this year and is now planning to soon
slow the pace of its quantitative tightening
(QT) program of draining liquidity from the
financial system to the tune of $95 billion a
month – all good news for the overall economy
and the chemical sector.
Economists are becoming more sanguine on the
outlook with upward revisions to 2024 GDP
forecasts, though inflation expectations are
also ticking a bit higher.
ICIS projects US GDP growth of 2.2% for 2024,
down from 2.5% in 2023 – a year in which every
economist forecast a recession. However, growth
is expected to slow from the surprisingly
strong 3.3% pace in Q4, bottoming out at 1.2%
in Q2 and Q3.
US GDP forecasts – a soft
landing
Source: US Bureau of Economic Analysis,
ICIS forecasts
Inflation is easing, but the road will be bumpy
with services pricing remaining sticky and
goods prices potentially slowing in their pace
of decline. On the services side, rents have
been stubbornly high. The US Consumer Price
Index (CPI) in February was up 3.2% year on
year with core CPI (excluding food and energy)
up 3.8% – still too high for rate cuts.
Forecasts for the timing of the first cut are
coalescing around the summer with June a
distinct possibility.
US retail sales came in weaker than expected,
rising 0.6% month on month in February and up
just 1.5% from a year ago. Notable year-on-year
gains were in ecommerce (+6.4%) and bars and
restaurants (+6.3%). Declining categories were
led by furniture and home furnishing stores
(-10.1%), building material and garden
equipment dealers (-6.1%) and gas stations
(-4.5%).
The labor market remains healthy with the
unemployment rate at 3.9% and wage gains
continuing.
While the US economy overall has proven
resilient, the manufacturing sector is still in
recession. The ISM US Manufacturing Purchasing
Managers’ Index (PMI) in February fell to 47.8
from 49.1 in January, its 16th consecutive
month in contraction (below 50). On the other
hand, the Services PMI has seen 14 consecutive
months of expansion.
The chemical industry is off to a tepid start
to 2024. Dow reiterated its forecast of flat Q1
sales versus a better-than-expected Q4 that was
bereft of the usual seasonal destocking, as
inventories had already been drawn down. Indeed
destocking in the chemical sector is now
largely done. LyondellBasell sees “modest
improvement” in Q1 with solid demand for
polyethylene (PE) domestically and in the
export market.
The outlook for two key end markets is
brightening somewhat. ICIS projects housing
starts to rise from 1.42 million in 2023 to
1.47 million in 2024 and 1.50 million in 2025.
Light vehicle sales are expected to rise from
15.5 million units in 2023 to 15.9 million in
2024 and 16.4 million in 2025 – still below
pre-pandemic levels of 17.0 million in 2019.
US housing starts in February jumped 10.7% to a
1.52 million pace – up 5.9% year on year, with
January figures also revised higher. Light
vehicle sales rebounded 6.0% to a 15.81 million
unit pace in February.
Meanwhile, geopolitical turmoil and disruptions
to shipping in the Red Sea will continue to be
a headwind for the global economy. With major
elections worldwide this year, including in the
US, the chemical industry is on watch for
policy shifts in regulations as well as trade.
The reshoring/deglobalization trend is on the
ascent – hand in hand with protectionism as
global competition intensifies.
Crude Oil26-Mar-2024
SINGAPORE (ICIS)–China has a “vitally
important” place in Saudi Aramco’s global
investment strategy, with the energy giant
actively developing additional investment
opportunities with its Chinese partners in the
chemicals sector, Aramco president and CEO Amin
Nasser said.
The global oil major’s strategic goals in
chemicals are “well-aligned” with China’s, he
said in a keynote speech at the China
Development Forum in Beijing on 25 March,
noting that the country “is already a
powerhouse representing 40% of global
[chemical] sales”.
Aramco, through its chemicals arm SABIC, is
planning to increase its liquids-to-chemicals
throughput to 4m barrels per day by 2030,
Nasser said.
Saudi Aramco accelerated its push
into China’s refining and petrochemical
sector last year with strategic
investments that are aligned with Saudi
Arabia’s Vision 2030 diversification goals.
This includes the 10% stake acquisition in
Rongsheng Petrochemical Co for $3.4bn last
year.
Saudi Aramco, together with Chinese partners
Norinco Group and Panjin Xincheng Industrial
Group (PXIG), is also building a
300,000 bbl/day refining and ethylene-based steam
cracking complex in Panjin City, in
northeast China’s Liaoning province at a cost
of around $12bn.
The Liaoning project is expected to come online
in 2026.
“We are also pleased that SABIC’s partnership
in Fujian is on-track to commence construction
of a major chemicals facility at an estimated
cost of $6.4 billion,” Nasser said.
The Fujian complex will
include a mixed-feed steam cracker with up to
1.8m tonne/year ethylene (C2) capacity and
various downstream units producing ethylene
glycols (EG), polyethylene (PE), polypropylene
(PP) and polycarbonate (PC), among other
products.
SABIC’s other major investments in China
include three compounding plants in Shanghai,
Guangzhou and Chongqing; a joint venture with
Sinopec in Tianjin; a technology centre in
Shanghai and a customer centre office in
Guangzhou.
SUSTAINABLE DEVELOPMENT
Demand for lower greenhouse gas emissions (GHG)
materials – especially advanced composites and
non-metallics in general – is growing rapidly,
Nasser noted.
Aramco’s research efforts in developing GHG
materials are consistent with Chinese President
Xi Jinping’s stance that sustainable
development is the “golden key” for future
success, he said.
“We agree with China’s pragmatic and prudent
approach to energy transition…I believe there
are wide-ranging opportunities to jointly
develop advanced GHG emission reduction
technologies.”
China has distinct strengths in renewables and
critical materials, while Aramco and Saudi
Arabia have a clear interest in solar, wind,
hydrogen, and electro fuels, Nasser said.
“These areas have great long-term potential,
and combining our strengths could match our
ambitions,” he added.
Focus article by Nurluqman
Suratman
Contact ICIS
If you want to find out how our decision-making tools can help you navigate market shifts, contact us today. Simply fill in your details, submit the form and a member of our team will get in touch with you.
Need Help?