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 56673
Crude Oil23-Apr-2024
SINGAPORE (ICIS)–Saudi Aramco continues its
quest for downstream petrochemical investments
in the world’s second-biggest economy, adding
Hengli Petrochemical in a list of target companies in
which the global energy giant intends to
acquire a strategic stake.
The acquisitions in China are in line with
Aramco’s Vision 2030 of expanding its
downstream business.
Aramco is currently in discussion to acquire a
10% stake in Hengli Petrochemical as the
companies signed a memorandum of understanding
(MOU) on 22 April covering supply of crude and
raw material, product sales and technology
licensing.
Hengli Petrochemical owns and operates a
refinery and petrochemical complex at Liaoning
province with 400,000 bbl/day of refining and
1.5 million tonnes/year ethylene capacities.
The Chinese producer also operates several
chemical plants in Jiangsu and Guangdong
provinces.
The deal “aligns with Aramco’s strategy to
expand its downstream presence in key
high-value markets, advance its
liquids-to-chemicals program, and secure
long-term crude oil supply agreements”, Aramco
said in a statement on 22 April.
Since 2022, Aramco has embarked on major
investments in China, which involved taking
strategic stakes in companies with major
petrochemical projects under way.
Chinese companies
Planned investments
Date of announcement
Remarks
Hengli Petrochemical
10% stake
22 Apr 2024
Rongsheng Petrochemical
Cross acquisition
talks – Rongsheng to acquire 50%
stake in Saudi Aramco Jubail Refinery Co
(SASREF); Aramco to take a maximum 50%
stake in Rongsheng’s Ningbo Zhongjin
Petrochemical
2 Jan 2024
To jointly develop Zhongjin’s
upgrading/expansion and a new advanced
materials project in Zhoushan
Shandong Yulong Petrochemical
10% stake
11 Oct 2023
Shandong Energy is currently building a
refining and petrochemical complex in
Yantai called Shandong Yulong
Petrochemical – a joint venture project
with Chinese conglomerate Nanshan Group
Shenghong
Petrochemical
10% stake
27 Sept 2023
Rongsheng Petrochemical
10% stake
27 Mar 2023
Deal completed in
Jul ’23
Huajin Aramco Petrochemical Co (HAPCO)
a $12 billion joint venture, Aramco holds
30%
11 Mar 2022, final investment
decision made
Project broke ground in Mar ’23; to come
on stream in 2026
Aramco CEO Amin Nasser in late March indicated
that the company intends to continue making
further investments in
China’s chemicals sector with local
partners, noting that the country has a
“vitally important” place in the company’s
global investment strategy.
The energy giant aims to increase its
liquids-to-chemicals throughput to 4 million
barrels per day by 2030, which will require a
wider footprint in China, the world’s biggest
chemical market, analysts said.
The investments will fuel further growth in the
Chinese economy, they added.
Focus article by Fanny Zhang
Thumbnail image: The Guoyuan Port Container
Terminal in Chongqing, China, on 29 February
2024. (Costfoto/NurPhoto/Shutterstock)
Ethylene23-Apr-2024
SINGAPORE (ICIS)–Aramco and China’s Hengli
Group have entered into discussions regarding
the potential acquisition of a 10% stake in
Hengli Petrochemical, the Chinese company said
on Tuesday.
Based on the memorandum of understanding (MoU)
signed on 22 April, the partners will also
cooperate on crude and raw material supply,
product sales as well as technology licensing,
it said.
The deal “aligns with Aramco’s strategy to
expand its downstream presence in key
high-value markets, advance its
liquids-to-chemicals program, and secure
long-term crude oil supply agreements”, Aramco
said in a separate statement.
Hengli Petrochemical owns and operates a
refinery and petrochemical complex at Liaoning
province with 400,000 bbl/day of refining and
1.5 million tonnes/year ethylene capacities.
The company also owns several chemical plants
in Jiangsu and Guangdong provinces.
Ammonia22-Apr-2024
HOUSTON (ICIS)–US corn plantings are now 12%
completed with soybeans at 8%, according to the
latest US Department of Agriculture (USDA)
weekly crop progress report.
While some areas continue to see wet weather,
the current pace of the corn crop is equal to
the 12% achieved in 2023 and ahead of the
five-year average of 10% completed.
Texas remains in the lead with 68% of its crop
finished, followed by North Carolina at 51%.
There is now 3% of the crop emerged, which is
ahead of the 2% rate of last year and the
five-year average of 2%.
Soybeans have reached 8% completed, with the
current progress equal to the 8% achieved in
2023 and above the five-year average of 4%.
The top state for plantings is Arkansas with
43% of their soybeans done, with Louisiana
close behind with 42% of its crop planted.
For the other key crops, the USDA said cotton
was now at 11% planted, with sorghum at 17% and
spring wheat up to 15% completed.
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.
Titanium Dioxide22-Apr-2024
SAO PAULO (ICIS)–US paints and coatings
producer Tronox’s shares were up strongly on
Monday after the company said its earnings in
the first quarter had come between 9-31% higher
than the analysts’ consensus.
Tronox earnings before interest, taxes,
depreciation and amortization (EBITDA) stood at
$131 million in Q1. Analyst consensus expected
that figure to be between $100-120 million.
Tronox’s shares were up 5.87% in Monday
afternoon’s trading at the New York Stock
Exchange (NYSE), compared with the last close
on 19 April.
EBITDA posted strong growth compared with the
fourth quarter, although it fell year on year.
EBITDA is the preferred metric to measure a
company’s financial health as it strips out
external factors out of the company’s control.
Sales rose in all metrics for titanium dioxide
(TiO2) and zircon, a mineral that increases
resistance on glass and metal.
In February, the company already gave a hint
its performance was proving better than
expected when it
raised operating rates for TiO2, with the
company confident at the time that pricing for
that material had bottomed out and should
start
improving after Q1.
These are Tronox’s key products – TiO2 sales
rose in Q1 by 8% year on year, and by 17%
quarter on quarter.
Zircon posted even better metrics, although its
weight within Tronox’s portfolio is much lower
than TiO2’s. In Q1, zircon sales rose by 22%
year on year, and by 54% quarter on quarter.
Tronox (in $/million)
Q1 2024
Q1 2023
Change
Q4 2023
Change Q4 2023 vs Q1
2024
Revenue
774
708
9%
686
13%
EBITDA
131
146
-10%
94
39%
EBITDA margin
16.9%
20.6%
-3.70%
13.7%
3.2%
Net income/loss
-9
25
N/A
-56
N/A
TIO2, ZIRCON AND
OUTLOOK“Costs continued to trend
favorably as a result of improved absorption
from higher production volumes and the absence
of non-repeating charges in prior quarters,”
said Tronox’s CEO, John D Romano.
The company added its priorities for the rest
of 2024 would be prioritizing investments which
“are critical to furthering our strategy” as
well as bolstering its liquidity on the back of
what it expects will be market recovery.
The Stamford, state of
Connecticut-headquartered producer added it
will also aim to resume debt payments as well
as “evaluate strategic high-growth”
opportunities for potential acquisitions but
fell short of disclosing more details.
STOCK JUMP EXPECTED
“Management attributed the guidance
raise [to Q1 financials] to demand outpacing
expectations for both TiO2 and zircon,” said
analysts at Alembic Chemical Advisors.
“Management also stated that in line with their
year-end earnings call guidance, their costs
continue to trend favorably as a result of
improved absorption from higher production
volume and the absence of non-repeating charges
in prior quarters.”
Analysts at Alembic Chemical did forecast
Monday’s sharp price increase, adding it would
return to more normal trading patterns after
the excitement subsided.
The chemical equity analysts at Alembic
recommended selling Tronox’s stock to cash in
gains while the rises on the positive Q1
preliminary results sentiment lasted.
Speciality Chemicals22-Apr-2024
SAO PAULO (ICIS)–Here are some of the stories
from ICIS Latin America for the week ended on
19 April.
NEWS
Brazil’s
Petrobras, China’s CNCEC mull petchems,
fertilizers joint projects
Petrobras and China’s chemicals major CNCEC
have signed a memorandum of understanding (MoU)
to explore petrochemicals and fertilizers joint
projects, the Brazilian state-owned energy
major said on Thursday.
INSIGHT: Argentina’s petchems hit
hardest by recession as country holds breath
under Milei
Argentina’s petrochemicals are taking a severe
hit amid the recession, with falls in demand
for some materials of up to 50%, but companies
and the country are holding firm under the new
President’s economic shock therapy.
Brazil’s
Petrobras re-enters fertilizers sector with
restart at ANSA plant
Petrobras is to restart its large-scale ANSA
fertilizers plant in Araucaria, state of
Parana, which has been idle since 2020, the
Brazilian state-owned energy major said late on
Wednesday.
Pemex to remain ‘fiscal challenge’ for
Mexico’s new administration –
S&P
Beleaguered finances at Pemex, the Mexican
state-owned energy major, will require support
from the federal budget for years to come, the
analysts at S&P said this week.
Argentina’s lower
rates helping central bank shore up balance
sheet at savers’ expense –
economist
Argentina’s latest cut to interest rates had
more to do with shoring up the central bank’s
balance sheet, possible thanks to currency
controls implemented by the prior
Administration, than the actual control of
price rises, according to the director at
Buenos Aires-based Fundacion Capital.
Latin America’s
fiscal consolidation at risk of slippages as
plans postponed – IMF
Latin America’s countries high debt levels
require fiscal consolidation plans which in
some cases are being postponed, increasing
risks for the long-term financial stability of
the region, the Director of the Western
Hemisphere Department at the IMF said
on Friday.
Chile inflation
falls to 3.7% in March
Chile’s annual inflation rate fell in March to
3.7%, down from 4.5% in February,
according to the country’s statistics office
INE.
Brazil’s
automotive output barely up in Q1, sales rise
9%
Brazil’s petrochemicals-intensive automotive
output rose by 0.4% in the first quarter, year
on year, to just below 550,000 units, the
country’s trade group Anfavea said on Monday.
LatAm PE domestic price lower in Chile
on cheaper US export offers
Domestic polyethylene (PE) prices were assessed
lower in Chile because of cheaper US export
offers. In other Latin American (LatAm)
countries, prices remained steady.
Latin America’s February lube demand
holds steady
Lube demand in Latin America was relatively
steady in February at a time of year when
consumption typically falls in other markets
like the US and Europe. The steady consumption
coincided with lower base oils output in the
region in February.
LatAm PP international prices stable to
up on higher freights from
Asia
International polypropylene (PP) prices were
assessed as stable to higher because of
increased freight rates from Asia to the
region. However, Asian offers remain
competitive compared to other origins like the
Middle East and the US.
Plant status: Dow Argentina shuts HDPE
and LDPE plants on technical issues –
sources
US chemicals major Dow’s subsidiary in
Argentina shut on 16 April a high density
polyethylene (HDPE) plant due to a mechanical
pump failure
and a low density polyethylene (LDPE) plant
due to technical failure, several sources said.
Weather conditions starts to slightly
shift PET demand in Latin
America
Polyethylene terephthalate (PET) prices
remained stable in Brazil, with a slight
softening in consumption coinciding with
stabilized temperatures. However, demand
continues to exceed expectations when compared
with the corresponding period last year.
Weather conditions starts to slightly
shift PET demand in Latin
America
Polyethylene terephthalate (PET) prices
remained stable in Brazil, with a slight
softening in consumption coinciding with
stabilized temperatures. However, demand
continues to exceed expectations when compared
with the corresponding period last year.
Speciality Chemicals22-Apr-2024
HOUSTON (ICIS)–The Panama Canal Authority
(PCA) will increase the number of slots
available for Panamax vessels to transit the
waterway beginning 16 May and will add another
slot for Neopanamax vessels on 1 June based on
the present and projected water levels in Gatun
Lake.
The PCA began limiting the number of transits
in August 2023 because of low water levels in
Gatun Lake brought on by a severe drought that
made 2023 the second driest year on record for
the Panama Canal watershed catchment area.
It was the first time in its history that
transits were limited.
The PCA opened two additional slots beginning
18 March, and a third on 25 March, bringing the
total to 27/day, after solid rainfall in the
region recently, but transits still remain well
below 36 under normal conditions.
The following table shows the number of
available slots for booking dates from 7-15
May.
The following table shows the number of
available slots for booking dates from 16-31
May.
The following table shows the number of
available slots for booking dates from 1 June –
14 July.
There will be some temporary reductions of
booking slots during scheduled maintenance
between 7-15 May, the PCA said.
The number of ships transiting the Panama Canal
daily – using a seven-day moving average – fell
to 24 as of 17 April from 27 on 8 April, and
compared with 38 on the same date a year ago,
according to the most recent update at IMF
PortWatch.
Wait times for non-booked northbound vessels
ticked higher to 1.8 days, and surged to 4.6
days for southbound vessels on 22 April,
according to the PCA vessel tracker.
Styrene22-Apr-2024
HOUSTON (ICIS)–INEOS Styrolution is
temporarily shutting its styrene plant in
Sarnia, Ontario, after nearby residents
complained they became ill from the plant’s
emissions.
“At INEOS Styrolution, ensuring the health and
safety of our employees and community is
paramount,” the company said in a statement.
“We are temporarily shutting down our facility
located in Sarnia, Ontario, Canada, to perform
maintenance and address a mechanical issue. We
will resume operations once addressed.”
The plant has capacity to produce 445,000
tonnes/year of styrene and 490,000 tonnes/year
of ethylbenzene (EB), according to the ICIS
Supply and Demand Database.
The shutdown came after the Aamjiwnaang First
Nation community asked the government to
close the plant when members
complained of becoming sick and said
that data indicated high levels of benzene in
the air. Members reported having headaches,
nausea and dizziness due to poor air quality.
Aamjiwnaang First Nation describes itself as a
community of about 2,500 Chippewa Aboriginal
peoples located on the St Clair River in the
city limits of Sarnia.
Last week, Ontario Environment Minister Andrea
Khanjin said that she expected the company to
“quickly identify and reduce” emissions at the
site, according to news reports.
In 2020, the Ministry of Environment,
Conservation and Parks created the Sarnia Area
Environmental Health Project to look into
concerns that residents expressed about air
pollutants and other quality-of-life impacts
from living close to industrial operations in
the area. The project includes regularly
measuring air quality for potential health
risks.
The shutdown will further tighten the North
American styrene market, which has experienced
a number of outages that have put upward
pressure on contract and spot prices.
Styrolution’s Texas City, Texas, plant has been
shut since mid-2023. In addition, Total remains
on force majeure from its joint-venture CosMar
unit in Carville, Louisiana, and
LyondellBasell’s propylene oxide/styrene
monomer (POSM) plant in Channelview, Texas, is
undergoing maintenance. Shell recently
restarted its Scotford, Alberta, styrene unit
but it is not operating at full capacity,
according to market sources.
US styrene contract prices in April were
assessed at their highest level since Q3 2023
due to the rise in spot prices, which are up
approximately 50% since the beginning of the
year.
Styrene is a chemical used to make latex and
polystyrene resins, which in turn are used to
make plastic packaging, disposable cups and
insulation.
Major North American styrene producers include
AmSty, INEOS Styrolution, LyondellBasell
Chemical, Shell Chemicals Canada, Total
Petrochemicals and Westlake Styrene.
Gas22-Apr-2024
LONDON (ICIS)–Deputy European gas editor Ed
Martin and deputy Gas in Focus editor Marta Del
Buono discuss European gas highlights from week
16
UK LNG imports low amid demand lull, new EU
terminals
Czech Republic relies on Ukraine storage due to
German gas fee – Czech ministry
Are cyberattacks a growing threat to energy
companies?
Click
here to watch
Ethylene22-Apr-2024
HOUSTON (ICIS)–Here are the top stories from
ICIS News from the week ended 19 April.
IPEX: Global spot
index edges down on softer values in northwest
Europe
The global spot ICIS Petrochemical Index (IPEX)
edged down on the back of lower spot values in
northwest Europe, where derivative production
problems continue to hamper appetite for some
chemicals.
Argentina’s lower
rates helping central bank shore up balance
sheet at savers’ expense –
economist
Argentina’s latest cut to interest rates had
more to do with shoring up the central bank’s
balance sheet, possible thanks to currency
controls implemented by the prior
Administration, than the actual control of
price rises, according to the director at
Buenos Aires-based Fundacion Capital.
US manufacturers
‘uniformly optimistic’ about 2024 activity –
Fed Beige Book
US manufacturers were “uniformly optimistic” in
March about the prospects for the next 12
months on expected higher sales, the country’s
Federal Reserve (Fed) Beige Book said on
Wednesday.
INSIGHT:
Argentina’s petchems hit hardest by recession
as country holds breath under
Milei
Argentina’s petrochemicals are taking a severe
hit amid the recession, with falls in demand
for some materials of up to 50%, but companies
and the country are holding firm under the new
President’s economic shock therapy.
Green shoots
spring in eastern Europe, strong interest in
PPG’s architectural division –
CEO
Amid Europe’s industrial crisis, green shots
have started to appear in eastern countries,
giving hopes the downturn in the region has
bottomed out, the CEO at US paints and coatings
major PPG said on Friday.
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.