TOPIC PAGE: War in Ukraine, gas crisis
Aura Sabadus
27-Jan-2023
Updated at 09:15 GMT on 27 January with latest headlines and updated graphics. Please scroll down to see headlines.
The war in Ukraine has caused oil and especially gas price volatility, as restricted flows from Russia to Ukraine caused values to spike to record-breaking levels.
Since December 2022, unseasonably mild winter weather hit demand, reversing gas prices though they remain above long-term averages. Millions of tonnes of chemical and fertilizer production are offline across Europe thanks to the elevated gas prices and poor macro-economic conditions which have impacted demand.
India is facing a shortage of fertilizers and edible oil amid wide-ranging trade disruptions as the Ukraine war rages on, with financial sanctions tightening on Russia.
Europe’s energy challenge is immense and put into stark relief by the response to Russia’s war in Ukraine. Cutting the ties that bind EU and non-EU nations to Russian gas and oil will be extremely painful this year and in years to come.
This topic page examines the impact of the Ukraine conflict on oil, gas, fertilizer and chemical markets.
Europe’s energy markets witnessed a year of record prices and extreme volatility in 2021. Russia’s invasion of Ukraine has led to more difficult conditions for global markets in 2022.
GAS SUMMARY
- Gas storage remains robust in Europe, winter demand has fallen thanks to mild weather
- Record shipments of liquefied natural gas (LNG) to Europe so far in 2022/23
- LNG plus Norwegian, Algerian, Azerbaijani pipeline imports compensate for Russian supply shortfall
- Europe LNG processing operating at full capacity
- Nord Stream I and II pipelines damaged by explosions, zero flows to Europe
- EU implements voluntary 15% cut to consumption, industry may face much tougher reductions
AMMONIA SUMMARY
- Russia supplies 20% of global seaborne ammonia market
- Disrupted supply has pushed up fertilizer and food prices
OIL SUMMARY
- Friendship oil pipeline flows through Ukraine
- Russian oil feeds around a quarter of Europe demand
- Europe seeks to end reliance on Russian crude oil
- EU agrees ban on seaborne imports from 5 December 2022, petroleum products from 5 February 2023
- From 5 December Russian crude oil cargoes will only be insured if subject to price cap
CHEMICALS SUMMARY
- High Europe gas, electricity prices force capacity closures
- Volatile oil and feedstock prices dent chemical producer margins
- Elevated oil, gas prices dent consumer confidence and demand
- Prospect of recession, more cheap imports from Asia
Europe is heavily reliant on Russian gas and exposed to disruptions in supply, but Russia is also an important oil exporter and a supplier of fossil fuel products, which find their way to international markets via Ukraine’s ports.
Sanctions and measures against Russian exports of oil and gas have sent shockwaves across the global economy, lifting the cost of living, impacting industrial and agricultural production and potentially leading to social unrest.
How vulnerable are energy and
energy-related Russian supplies to
disruptions?
Europe has historically depended for close to
40% of its annual gas consumption on Russian
supplies, imported via four routes – Ukraine,
Belarus-Poland as well as the Nord Stream 1 and
TurkStream corridors linking Russia to Germany
and Turkey via the Baltic and Black Sea,
respectively.
Overall Russian pipeline supplies were limited throughout 2021, and since the beginning of this year producer Gazprom has shipped only one-third of the gas that it was expected to deliver to European consumers via Ukraine as part of a five-year transit agreement.
Russia has banned exports of gas to several EU countries, and the Nord Stream I and II pipelines have been damaged. European petrochemicals players face even higher gas prices as a result. Fertilizer companies – where gas can account for 80% of costs – have been forced to curtail production. Chemicals are also now affected, especially those with high exposure to gas prices through utilities or feedstocks.
If the conflict escalates, Ukraine transit pipelines may come under attack but disruptions could be limited because the infrastructure has been built to grant flexibility, allowing the operator to reroute flows away from potentially damaged segments.
AMMONIA IMPACT
The Togliatti-Azot pipeline, the world’s
longest ammonia pipeline stretching 2,471km
from the Togliatti Azot plant in Russian Samara
Oblast to the Ukrainian Black Sea port of
Yuzhny, could be caught up in the cross-fire.
Russian ammonia supplies account for around 20%
of the global seaborne merchant ammonia market
each month.
Around two thirds of those volumes are exported via Yuzhny, with the rest reaching European and global markets via Baltic ports. Ammonia is a prime material for fertilizers, so curtailments could potentially lead to higher food prices and shortages.
Ammonia market players are scrambling to cover positions and assess options as the Russian invasion of Ukraine saw loadings at the key export hub of Yuzhny halted with immediate effect.
Russian nitrogen fertilizer major Togliatti confirmed the suspension of the transit of ammonia to the Black Sea port via pipeline to ensure the safety of people living in the vicinity of the lengthy conduit.
OIL PIPELINES VULNERABLE
Supplies on the world’s longest oil pipeline,
the Friendship (Druzhba) pipeline, could be
threatened if the conflict leads to tough
sanctions. The pipeline carries oil from
central Russia 4,000km west to Ukraine and
Belarus and runs close to the Belarus-Ukraine
border. Russia exports around 5m bbl/day, of
which half are exported to Europe, including
via this pipeline.
Russian oil accounts for about a quarter of Europe’s consumption, with the Druzhba pipeline carrying close to 1m bbl/day. Should sanctions be imposed and exports hindered, Europe will need to secure alternative cargoes from the global market.
Europe consumed most exports of Urals, Russia’s biggest export grade, in 2021 after Saudi Arabia boosted market share in China. Almost 10m tonnes of Urals went through Rotterdam in the first half of last year, up 2m tonnes on 2020.
Germany stands most exposed because it gets 25% of its oil from Russia.
CHEMICALS IMPACT
Gas and electricity are important components in
the production costs of many chemicals. Surging
gas and feedstock prices in Europe have caused
big hikes in contract and spot prices. Now
millions of tonnes of fertilizer and chemical
capacity are offline in Europe.
ICIS has also created an interactive timeline which shows the history of the gas impact since July 2021.
These products have been most badly affected by outages in Europe, with more than half of capacity offline or running at reduced rates in some cases.
Analysis by the ICIS Margin Analytics team shows the products which are most exposed to energy and gas prices in Europe as a feedstock or utility.
Europe is at a
competitive disadvantage to other regions and
some customers are seeking new sources of
lower-priced supply, especially from Asia and
the Middle East.
The conflict in Ukraine has pushed European gas prices back up to record levels, forcing exposed chemical producers to cease production, or add further energy surcharges.
Rising oil prices since late 2021 have already put chemical margins under pressure, and volatility has continued into 2022. As oil and naphtha prices soared, margins for ethylene production based on naphtha went negative for the first time ICIS record began. The are now are swinging wildy in tandem with oil price movements.
Chemical producers are struggling to pass on increasing feedstock and energy costs in Europe. Elevated oil and gas prices also dent downstream consumer confidence and spending, with recession a possibility later in 2022 or 2023.
What contingency plans are being put in
place?
Europe is preparing for a difficult winter
although rising storage fullness levels,
falling demand and more import capacity for
liquefied natural gas (LNG) could help it get
by, assuming there will not be an extensive
cold spell.
As of 16 January, storage facilities across Europe were more than 80% full.
There are also expectations that some 30bn cubic meters of new capacity would be added between September 2022 and March 2023. The capacity includes offshore terminals in the Netherlands, Germany and Estonia/Finland.
Demand has been decreasing by more than 20% in the industrial sector in north-west European countries and by 20-30% for households in Germany, according to official data.
Nevertheless, there is a possibility that Russia may completely stop its gas supplies to Europe via the last two remaining routes – Ukraine and Turkey, which could lop off some 70 cubic meters of Russian gas entering Europe daily.
In such a scenario, the most affected countries would be those in eastern and central Europe, which are landlocked and have been struggling to secure regasified LNG from importing countries.
For oil markets, in case of an attack but no international sanctions, the worst-case scenario would be for approximately 240,000 bbl/day of lost Russian exports via Ukraine.
There are other seaborne routes, including the Russian Black Sea port of Novorossiysk.
Gas rationing – impact on Europe petrochemicals, fertilizers
Embattled European fertilizer and petrochemical producers may be the first in line to cut gas consumption if the region experiences a cold snap in the weather.
As Russia, Europe’s largest gas supplier, has been limiting exports to less than a quarter of its deliveries two years ago and may stop them altogether amid its political stand-off with the EU, Brussels has now issued guidance to reduce demand by 15% between 1 August 2022 – 31 March across member states.
Policymakers recommend voluntary reductions but say these would become mandatory in case of a supply emergency jeopardising the bloc’s security.
DEMAND REDUCTION
The EU’s largest consumers include households,
accounting for 37% of total demand, electricity
and heat generation covering around 30% and
industrial consumption accounting for another
30%.
Record high gas prices and an ongoing gas supply crunch over the least year have already been forcing industrial consumers to limit or stop production or seek import substitution globally.
EU proposals for demand reduction released on 20 July indicate the industrial sector may be priority target for major reductions, with three sectors – glass, ceramics and chemicals – consuming half of the sector’s total.
FERTILIZERS
The fertilizer sector, one of the most
gas-intensive industries, has also been one of
the most affected so far as gas can account for
up to 80% of production costs. Production has
been cut back drastically because it is no
longer economic.
PETROCHEMICALS
On the petrochemicals side, there are now deep
production cuts for products such as methyl
methacrylate (MMA) and melamine which are
heavily exposed to natural gas for utilities or
as a feedstock.
Producers are making detailed plans for rationing, particularly in Germany, where the chemicals and pharmaceuticals industry uses about 140 TWh per year, or about 15 percent of Germany’s gas consumption.
Gas is mainly used by petrochemicals to generate energy such as electricity and steam as well as to fire furnaces for production complexes such as crackers.
Sites are able to lower operating rates significantly, but they may be forced to close if gas supplies drop so much that production becomes uneconomic or difficult from a technical perspective.
Companies with flexibility are switching from natural gas to liquefied petroleum gas (LPG) or other sources of energy.
Ukraine conflict threatens Europe oil supply, chemicals production
With Russia’s invasion of Ukraine, sanctions could cut supplies of crude oil through the Druzhba pipeline, threatening oil refinery operations and chemicals production at installations in Hungary, Slovakia, Czech Republic, Poland and the former East Germany.
Russian oil supplies up to a quarter of
Europe’s crude imports, with refineries in
central and eastern Europe, which are attached
to the Druzhba pipeline, particularly reliant
on these supplies. Any interruption to these
supplies could force refineries to reduce
operating rates unless they can find
alternative supplies.
Analysis of the ICIS Supply & Demand database shows that the countries Druzhba runs through, except for Germany, are reliant on Russian crude oil for more than half of their imports, led by Slovakia which obtained 96% of its supplies from Russia in 2021.
Chemical production downstream of refineries in these countries could be impacted by any reduction in operating rates. The ICIS data forecast that for 2022, 2.79m tonnes of ethylene (11% of total European capacity) and 2.34m tonnes of propylene (12% of total European capacity) are reliant on refineries located along the Druzhba pipeline. While some alternative sources of crude oil could be sourced, it is unlikely normal levels of operations could be maintained.
Michael Connolly, ICIS Principal Analyst Refining said: “Although many have built alternate sources, keeping full operating rates would be difficult for them as they rely on a consistent and reliable source of crude. Most refiners in Europe are aware of the risk of Russian crude and over the past 5-10 years have tried to reduce their dependence, or at least to build some capability to have an alternate supply – it doesn’t mean they would be unaffected, but there should be a little bit of resilience, depending on the site.”
Connolly explained that some land-locked refineries along the Druzhba pipeline have built pipelines to the coast, allowing alternative sources of crude oil to be sourced. However, these pipelines may not have capacity to feed the whole refinery.
A spokesperson for Grupa LOTOS said: “The LOTOS refinery has dealt with suspended supplies by land before. Due to the contamination of Russian oil with chlorines, PERN, the state-owned operator of transmission and storage infrastructure, had to completely discontinue the transmission of crude oil from the eastern direction between 24 April and 9 June 2019.”
He added that scheduling of oil supplies by sea helped to secure volumes sufficient to maintain an unchanged level of throughput and maximise fuel production.
UKRAINE CHEMICALS UNDER THREAT
With Russian forces present in Ukraine, chemical and fertilizer facilities may be threatened by physical damage, interrupted power and gas supplies or logistics disruption.
Karpatnaftohkhim’s cracker at Kalush has been closed down because of the imposition of martial law in Ukraine. It has capacity (tonnes/year) of 250,000 (ethylene); 117,000 (propylene) 110,000 (LLDPE), 300,000 (PVC), 100,000 (benzene).
Ammonia market players have scrambled to cover positions and assess options as the Russian invasion of Ukraine saw loadings at the key export hub of Yuzhny halted with immediate effect.
Russian nitrogen fertilizer major Togliatti confirmed the suspension of the transit of ammonia to the Black Sea port via pipeline to ensure the safety of people living in the vicinity of the lengthy conduit.
The Samara Oblast-based giant also confirmed the shut down of four of its seven ammonia units, with the other three plants operating at reduced rates.
Russia
export disruptions to shift global trade flows,
future capacities threatened
Disruptions to Russia’s chemicals and polymers
exports will
change trade flows, particularly to Europe
and Asia, as international sanctions, lack of
logistics and even “self-sanctions” limit
volumes.
While Russia’s capacities are relatively small on a global scale, they can still have a significant impact on regional markets if these exports are disrupted.
Key Russia exports include methanol, polyethylene (PE), polypropylene (PP), styrene and paraxylene (PX).
Russia has increased exports of high density polyethylene (HDPE) and polypropylene (PP) in particular in 2020 and 2021 as new capacity started up from SIBUR’s ZapSibNeftekhim complex in Tobolsk in 2020.
LATEST HEADLINES
INSIGHT: Pakistan rupee
plunges to record low amid economic crisis, US
dollar shortage
By Pearl Bantillo 27-Jan-23 15:04
SINGAPORE (ICIS)–Pakistan’s currency – the
rupee – plunged to a fresh record low on Friday
as its economic problems pile up amid a severe
lack of US dollars to pay for imports,
underscoring an immediate need for bailout
funds from the International Monetary Fund
(IMF).
US’
Eastman plans 3% cut in global workforce,
closure of Europe acetate yarn
site
By Pearl Bantillo 27-Jan-23 12:10
SINGAPORE (ICIS)–US specialty chemicals
producer Eastman is looking at trimming its
global workforce of more than 14,000 personnel
“by about 3%” as part of its $200m
cost-cutting programme, a company
spokesperson told ICIS.
US
GDP grew at 2.9% annual rate in Q4, led by
inventories
By Stefan Baumgarten 26-Jan-23 23:30
HOUSTON (ICIS)–US GDP grew at a 2.9% annual
rate in the fourth quarter, the Bureau of
Economic Analysis (BEA) said in a first
estimate of Q4 GDP growth on Thursday.
US Q1
TiO2 contract negotiations continue as demand
for key end-use markets
softens
By Deniz Koray 27-Jan-23 05:31 HOUSTON
(ICIS)–US titanium dioxide (TiO2) contract
discussions are ongoing in Q1. TiO2 prices have
seen less volatility than many petrochemicals
in the past half-year or so. However, demand
has slowed from 2021 and early 2022 levels.
Polish PGE Baltica eyes
1.1GW offshore wind project
By Simona Uhrinova 27-Jan-23 02:06 LONDON
(ICIS)– PGE Baltica could get closer to its
6.5GW offshore wind target in the Baltic Sea by
2040 after its subsidiary Elektrownia Wiatrowa
Baltica 1 was awarded on 25 January most points
in the offshore wind farms location permit
procedure announced by the Polish ministry of
infrastructures.
Europe Melamine January
contracts decrease; gas prices lower but
operating rates remain
reduced
By Melissa Hurley 27-Jan-23 01:09 LONDON
(ICIS)–The European January melamine contract
prices have decreased on a delta basis compared
with December, depending on the starting point
and the account.
PODCAST: Bulgarian energy
developments in doubt as country gears for new
elections
By Aura Sabadus 27-Jan-23 00:50 LONDON
(ICIS)— In 2022, when Gazprom stopped supplies
to Bulgaria, the country switched at short
notice from nearly full dependence on Russian
gas to complete diversification. It
commissioned a new interconnector with Greece,
tapped LNG imports and ramped up off-takes of
Caspian gas. More recently it signed a deal for
access to Turkey’s infrastructure, which could
open up a new supply route to southeast Europe.
INSIGHT: Upcoming US chem
earnings to reflect lower
margins
By Al Greenwood 26-Jan-23 22:53 HOUSTON
(ICIS)–US-based chemical companies have
flagged several reasons why their Q4 earnings
have been depressed – from weak end markets to
inventory normalisation to a decline in
margins.
INSIGHT: Dow’s targeted
cuts in Europe highlight region’s loss of
competitive edge
By Will Beacham 26-Jan-23 21:20 BARCELONA
(ICIS)–Dow’s decision to target Europe for
plant closures as it targets $1bn in cost
savings this year highlights the structural
cost disadvantage the region’s petrochemical
sector suffers.
South
Korea Q4 GDP growth slows to 1.4% on year,
contracts 0.4% on quarter
By Pearl Bantillo 26-Jan-23 14:09
SINGAPORE (ICIS)–South Korea’s economy posted
a slower annualized fourth-quarter 2022 growth
of 1.4%, bringing its full-year pace of
expansion to 2.6%, based on the government’s
advance estimates released on Thursday.
Philippines Q4 GDP
expands 7.2%; full-year ’22 growth at
7.6%
By Pearl Bantillo 26-Jan-23 13:17
SINGAPORE (ICIS)–The Philippine economy
expanded at an annualized rate of 7.2% in the
fourth quarter of last year, allowing it to log
one of the fastest 2022 GDP growths in Asia,
beating expectations.
Asia
naphtha market sentiment mixed; eyes on China’s
recovery
By Melanie Wee 26-Jan-23 12:18 SINGAPORE
(ICIS)–Asia naphtha markets are being kept
afloat by hopes of recovering China
petrochemical demand, although diminishing
downstream margins are keeping demand cautious.
Asia
MTBE balance might shift China potential
outflow
By Keven Zhang 26-Jan-23 11:47 SINGAPORE
(ICIS)–Asia’s methyl tertiary butyl ether
(MTBE) market is expected to stay amply
supplied with a potential opening of China
export arbitrage.
France likely to remain
at a discount to the UK in
February
By Karishma Sadanandan 26-Jan-23 01:32
LONDON (ICIS)–France is likely to remain at a
discount to the UK during February delivery as
nuclear availability is expected to improve
while temperatures are forecast to be bearish.
New
strikes unlikely to hamper French power
supply
By Andrea Battaglia 26-Jan-23 00:47 LONDON
(ICIS)–French power supply could be put to the
test again on 31 January as another 24-hour
national strike action has been confirmed in
opposition to the French government’s pension
reform project.
February profitability
plummets amid good fundamentals
picture
By David Battista 26-Jan-23 00:37 Wider
supply margins in Europe, fuelled by mild
temperatures and rising wind power outputs,
continue to support Asian market premiums.
Bullish outlook prompts
trade for West African
barrels
By Cecilia Barreiro 25-Jan-23 22:59 LONDON
(ICIS)–Nigerian and Angolan crude prices are
expected to garner support in March amid robust
refining margins and a favourable arbitrage
window.
Uncertainty, weak demand
persist in Europe’s oxo-alcohols
chain
By Nicole Simpson 25-Jan-23 20:45 LONDON
(ICIS)–The European oxo-alcohols and
derivatives markets continue to be defined by
weak demand and uncertainty among buyers.
Asia
petrochemicals pin hopes on China’s
post-holiday demand
By Pearl Bantillo 25-Jan-23 14:38
SINGAPORE (ICIS)–Asia’s petrochemical players
are largely betting on strong revival of
China’s demand following lifting of most
COVID-19 curbs, having built up stocks in the
weeks leading to the Lunar New Year holiday.
Argentina launches first
LNG winter tender for 30
cargoes
By Ruth Liao 25-Jan-23 12:48 HOUSTON
(ICIS)–Argentina’s gas distributor IEASA, also
known as Gas Energia, launched its winter
buying tender for LNG cargoes, seeking 30
cargoes between March and August 2023 for its
Escobar terminal.
INSIGHT: Elevated Europe
energy prices challenge business cases for some
green projects
By Tom Brown 24-Jan-23 23:31 LONDON
(ICIS)–Higher energy prices in Europe are
providing a challenge to the business cases of
some green and decarbonisation projects
compared to the competitiveness of similar
investments elsewhere in the world.
PODCAST: Europe MMA stirs
as low gas prices reawaken
petrochemicals
By Will Beacham 24-Jan-23 21:27 BARCELONA
(ICIS)–Europe methyl methacrylate (MMA)
production is on the cusp of restarting as
lower gas prices breathe life back into
region’s petrochemical sector.
Upcoming shutdowns in GCC
to affect PP/PE price stability in Middle
East
By Nadim Salamoun 24-Jan-23 18:57 DUBAI
(ICIS)–A series of shutdowns from GCC
producers, some of which are already taking
place in January, with others expected to take
place between February and March, will likely
curtail polypropylene (PP) and polyethylene
(PE) supply to the region in the near future.
Forex
shortages damage buying ability of Africa PE/PP
players
By Ben Lake 23-Jan-23 23:01 LONDON
(ICIS)–African polyethylene (PE) and
polypropylene (PP) prices have shown some sign
of life in recent weeks, as some exporters
begin to increase their prices.
Global weekly spot IPEX
up on stronger northeast Asia and US
Gulf
By Miguel Rodriguez Fernandez 23-Jan-23
21:03 LONDON (ICIS)–Global spot chemical
prices rose by 2.7% in the week to January 20
on the back of firmer prices in northeast Asia
and US Gulf, according to latest figures from
the weekly ICIS Petrochemical Index (IPEX).
INSIGHT: China polyester
industry rebound expected after
holiday
By Jimmy Zhang 23-Jan-23 20:55 SINGAPORE
(ICIS)–Since China has lifted COVID-19
restriction policies, most market participants
expect a demand recovery after the Lunar New
Year holiday.
VIDEO: China chemicals market review and
outlook
By Chris Qi 20-Jan-23 11:26 SINGAPORE
(ICIS)–Watch ICIS China information director
Chris Qi review China chemical industry in 2022
and an outlook for the industry in 2023.
China ethylene buyers’ price ideas edge
up ahead of holiday
By Yeow Pei Lin 20-Jan-23 11:14 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene prices
rebounded slightly in recent days, aided by
limited offers, improving prices for certain
derivatives in China and strong feedstock
naphtha costs.
European engineering plastics demand
stays sluggish in light of persistent economic
uncertainty
By Yashas Mudumbai 20-Jan-23 00:34 LONDON
(ICIS)–The engineering plastics markets for
polyacetal (POM) and polybutylene terephthalate
(PBT) in Europe are continuing to see lower
than usual demand, as macroeconomic challenges
cause market players to be circumspect.
INSIGHT: Chems face rough earnings
season amid warnings, lower
margins
By Al Greenwood 20-Jan-23 00:04 HOUSTON
(ICIS)–Chemical companies have kicked off the
earnings season by waring that they could miss
analysts’ estimates and struggle to keep up
with rising costs.
OUTLOOK FOR 2023: Nordic power crucial
to Baltic supply security
By Calum Andrews 19-Jan-23 19:43 LONDON
(ICIS)–Power imports from the Nordics are
likely to continue playing a key role in
ensuring security of supply across the Baltics
through 2023, following halts to Russian power
supplies in May 2022.
Malaysia central bank maintains 2.75%
key interest rate amid economic
headwinds
By Nurluqman Suratman 19-Jan-23 18:49
SINGAPORE (ICIS)–Malaysia’s central bank on
Thursday unexpectedly kept its key benchmark
interest rate unchanged amid expectations that
the country’s 2023 economic growth will
moderate this year amid a global slowdown.
Pakistani buyers struggle to pay Asian
R-PET, R-PE cargoes
By Arianne Perez 19-Jan-23 18:10 SINGAPORE
(ICIS)–As Pakistan struggles with a financial
crisis, importers of recycled polyethylene
terephthalate (R-PET) and recycled polyethylene
(R-PE) have struggled to settle payments with
suppliers.
China MDI markets see active restocking
spurred on by planned
turnarounds
By Shannen Ng 19-Jan-23 12:37 SINGAPORE
(ICIS)–News of two major methylene diphenyl
diisocyanate (MDI) producers in China planning
turnarounds for February spurred restocking
activity in the week ending 18 January, ahead
of the Lunar New Year holiday.
Oil falls by more than $1/bbl on
surprise build in US crude
inventories
By Nurluqman Suratman 19-Jan-23 12:16
SINGAPORE (ICIS)–Oil prices fell by more than
$1/bbl on Thursday after industry data showed a
surprise build in US crude inventories for the
second straight week, raising concerns of
faltering fuel demand.
Asia BDO rebounds as buyers pin hopes on
renewed post-holiday demand
By Clive Ong 19-Jan-23 11:38 SINGAPORE
(ICIS)–Asia’s 1,4-butanediol (BDO) market
surged this week as buying momentum for
February cargoes picked up on expectations of
firmer demand post-Lunar New Year.
US economy poised to enter mild
recession as inflation has peaked – ICIS
economist
By Joseph Chang 19-Jan-23 05:30 NEW YORK
(ICIS)–The US economy is likely to enter a
relatively mild recession in 2023, the ICIS
chief economist said on Wednesday.
Germany-France power Q4 ‘23 spread to
tighten on rising nuclear
availability
By Daniel Muir 19-Jan-23 01:26 LONDON
(ICIS)–The German baseload Q4 ‘23 product
discount against the equivalent French product
should tighten through 2023 on improving
fundamentals, market participants have told
ICIS.
Asian coal premium to Europe shows
signs of tightening
By David Battista 19-Jan-23 01:26
Rotterdam coal prices moved sideways between 10
and 17 January, resisting the downwards
pressure that weighed down most commodity
prices, and tightening the Asia premium over
Europe.
INSIGHT: Poor demand, high costs stifle
Europe industry despite falling gas
prices
By Aura Sabadus 18-Jan-23 22:56 LONDON
(ICIS)–Falling gas prices could reignite some
interest in European industrial output but a
combination of high operating costs and
sluggish demand, reminiscent of the 2008
financial crisis, is likely to slow recovery
this year, according to ICIS research.
European phenol struggles with costs
while acetone tightens, but demand remains
slow
By Jane Gibson 18-Jan-23 22:07 LONDON
(ICIS)–The recent fall in gas prices is good
news for the phenol and acetone chain. But this
alone is unlikely to prompt producers to
increase operating rates quite yet.
Japan’s Toyota targets record ’23 car
output of 10.6m units, with
caveat
By Pearl Bantillo 18-Jan-23 13:21
SINGAPORE (ICIS)–Global automotive giant
Toyota is targeting to produce 10.6m units in
2023, subject to a possible downward adjustment
of 10% if problems with supply of
semiconductors persist.
Bank of Japan maintains low interest
rates despite rising
inflation
By Nurluqman Suratman 18-Jan-23 12:49
SINGAPORE (ICIS)–The Bank of Japan (BOJ) on
Wednesday maintained its ultra-low interest
rate policy despite rising inflation levels and
warned that risks to the country’s economic
outlook remain extremely high.
Asia MEC underpinned by hopes of
post-Lunar New Year recovery
By Keven Zhang 18-Jan-23 11:32 SINGAPORE
(ICIS)–Asia methylene chloride (MEC) was
buoyed by spot demand in the last week before
the Lunar New Year.
Europe ECH demand muted in Q1, could
improve in Q2
By Heidi Finch 18-Jan-23 00:21 LONDON
(ICIS)–Europe epichlorohydrin (ECH) demand is
likely to face a tough first quarter, as
macroeconomic headwinds and Asian competition
continue to weigh.
OUTLOOK ’23: Chemical M&A stymied
by rates, uncertainty but may rebound in
H2
By Joseph Chang 18-Jan-23 00:00 NEW YORK
(ICIS)–High interest rates, lack of available
financing and economic and earnings uncertainty
are holding back chemical industry mergers and
acquisitions (M&A). However, activity may
be poised to rebound in H2 2023 as the backlog
of undone deals builds up, a clearer earnings
picture emerges and especially if the financing
market improves.
INSIGHT: Asia petrochemicals to rebound
in January amid demand recovery – ICIS
analysts
By Jenny Yi 17-Jan-23 21:45 SINGAPORE
(ICIS)–The Asia petrochemical market is
expected to rebound from January in view of
demand recovery in the coming months with
China’s abandonment of its strict zero-COVID
policy. The appreciation of Asia currencies
against the US dollar should also support the
outlook.
PODCAST: Europe PE, PP analytical 2023
outlook
By Ben Lake 17-Jan-23 19:35 LONDON
(ICIS)–European polymer editors Vicky Ellis
and Ben Lake are joined by analysts Emiliano
Basualto and Lorenzo Meazza to discuss the year
ahead in what could be a transitional 12 months
for the polyethylene (PE) and polypropylene
(PP) markets.
NE Asia polyester prices stable to firm;
post-holiday outlook
optimistic
By Judith Wang 17-Jan-23 16:30 SINGAPORE
(ICIS)–Spot polyester prices in northeast Asia
were stable to firm during the week, on the
back of stronger feedstock prices, while
overall buying has slowed ahead of the Lunar
New Year holiday.
China 2022 GDP growth slows to 3%;
re-opening to drive 2023
recovery
By Nurluqman Suratman 17-Jan-23 16:21
SINGAPORE (ICIS)–China’s economy grew by 3% in
2022, marking its slowest pace of expansion in
decades, highlighting the impact of the
country’s long-standing zero-COVID strategy.
India December exports fall 12.2% amid
global economic slowdown
By Priya Jestin 17-Jan-23 14:21 MUMBAI
(ICIS)–India’s merchandise exports in December
declined by 12.2% year on year to $34.5bn, with
further weakness likely in 2023 amid the global
economic slowdown, with its major markets – the
US and Europe – possibly facing a recession.
BPA prices in China, India at more than
two-year low; ample supply may
linger
By Li Peng Seng 17-Jan-23 11:38 SINGAPORE
(ICIS)–Import prices of bisphenol A (BPA) in
China and India have slumped to their lowest
levels in more than two years, weighed down by
ample supply.
INSIGHT: Weak, sometimes negative
product margins challenged petchem players in
2022
By Nigel Davis 16-Jan-23 23:54 LONDON
(ICIS)–As in the depths of the COVID-19
downturn, chemical producers, particularly
those based largely in northwest Europe, remain
focused on cash.
Global weekly spot IPEX up on rising
chemical prices across all
regions
By Miguel Rodriguez Fernandez 16-Jan-23
18:57 LONDON (ICIS)–Spot chemical prices were
up 2.2% on the back of firmer values across all
regions, according to latest figures from the
weekly ICIS Petrochemical Index (IPEX).
Qatar’s $6bn Ras Laffan project to boost
Mideast PE exports, shift trade
flows
By Nurluqman Suratman 16-Jan-23 13:49
SINGAPORE (ICIS)–Qatar’s $6bn joint venture
Ras Laffan petrochemicals complex is expected
to boost the Middle East’s polyethylene (PE)
exports and could result in a major shift to
global trade flows once it comes on stream,
according to ICIS analysts.
China re-opening bodes well for SE Asia PE, but
Lunar New Year slowdowns
ahead
By Izham Ahmad 16-Jan-23 11:53 SINGAPORE
(ICIS)–China’s surprise announcement of the
re-opening of its borders and the easing of
COVID-19 restrictions has injected renewed
vigour into the southeast Asian PE market, but
the impact could be short-lived as market
activity slows down for the typical Lunar New
Year holiday lull.
NE
Asia C2 at multi-year lows on surge in Mideast,
Malaysia exports
By Yeow Pei Lin 13-Jan-23 13:46 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene (C2)
prices fell for a second consecutive week due
to a supply glut following unexpectedly large
exports from the Middle East and Malaysia.
S
Korea central bank hikes key interest rate; ’23
GDP growth likely below 1.7%
By Nurluqman Suratman 13-Jan-23 13:26
SINGAPORE (ICIS)–South Korea’s central bank on
Friday raised its policy interest rate by 25
basis points to 3.50% to tame high inflation,
with economic growth this year now forecast to
be lower than 1.7%.
Fourth Ratcliffe-on-Soar
unit extended to September
2024
By Anna Coulson 13-Jan-23 01:40 LONDON
(ICIS)–Uniper UK confirmed that the fourth
500MW coal unit at the Ratcliffe-on-Soar power
plant, originally due to close 31 March 2023,
will be extended until the end of September
2024 as requested by the UK Government.
INSIGHT: As plastics
supply balloons, demand growth is increasingly
challenged
By Nigel Davis 13-Jan-23 00:58 LONDON
(ICIS)–Polyolefins supply is ballooning just
as expectations of recession mount and
longer-term prospects for demand growth look
increasingly uncertain. Global operating rates
are under intense pressure.
Africa PE/PP volumes
reduced after buyers fall into
arrears
By Ben Lake 12-Jan-23 21:48 LONDON
(ICIS)–Polyethylene (PE) and polypropylene
(PP) traders and producers are restricting
offers into Africa because many customers owe
them payment for previous months’ volumes.
PODCAST: China’s MTBE
export market to remain active in 2023 amid
oversupply
By Aviva Zhang 12-Jan-23 16:16 SINGAPORE
(ICIS)–In this podcast, ICIS analysts Candy
Nie and Aviva Zhang review developments in the
methyl tertiary butyl ether (MTBE) market in
2022 and discuss its outlook for 2023.
OUTLOOK FOR 2023: Less
nuke risk could curb French power
prices
By Karishma Sadanandan 12-Jan-23 13:56
LONDON (ICIS)–In the case that French nuclear
availability improves from what was witnessed
in 2022, an year of historically
low nuclear power capacity and
generation, France could see power prices fall
in comparison to last year.
China
petrochemical players build stocks on hopes of
strong post-holiday demand
By Fanny Zhang 12-Jan-23 11:20 SINGAPORE
(ICIS)–Players in China’s petrochemical
markets are actively building up stocks on
expectation of a strong recovery in post-Lunar
New Year demand.
Nuclear push unlikely to
prevent Swedish power
deficit
By Calum Andrews 12-Jan-23 01:46 LONDON
(ICIS)–Government plans for new nuclear
expansion will be “unlikely to prevent a
Swedish power deficit” according to ICIS
Analyst Nikhil Anand, adding that “nuclear is a
very time-consuming technology to bring to
market”.
Italy’s €210/MWh
industrial cap risks lifting energy
costs
By Daniel Muir 12-Jan-23 01:03 LONDON
(ICIS)–Italy’s Gestore dei Mercati Energetici
(GME), the operator of the Italian energy
exchange, announced on Wednesday the assignment
of 16TWh/year to industrial power users at a
price of €210/MWh.
Europe epoxy prices dip
on cheap imports, gas relief; demand outlook
fragile
By Heidi Finch 12-Jan-23 00:51 LONDON
(ICIS)–Europe epoxy resins are under continued
pressure into January, amid strong Asian
competition and some relief in energy costs.
INSIGHT: A turbulent
2020s requires near-term focus but clear,
longer-term strategies
By Nigel Davis 12-Jan-23 00:49 LONDON
(ICIS)–The World Economic Forum (WEF) talks of
a global risks landscape this year that “feels
both wholly new and eerily familiar” in its
Global Risks Report 2023.
East
Asia, Pacific 2023 growth seen at 4.3% on China
rebound – World Bank
By Nurluqman Suratman 11-Jan-23 15:12
SINGAPORE (ICIS)–Economies in the east Asia
and Pacific region in 2023 are expected to log
an average growth of 4.3%, accelerating from
the estimated 3.2% pace in 2022 but lower than
the previous forecast of above 5% for the
current year, the World Bank said.
Global 2023 economic
growth cut to 1.7% from 3.0% – World
Bank
By Nurluqman Suratman 11-Jan-23 13:39
SINGAPORE (ICIS)–The World Bank cut its 2023
global GDP growth forecast to 1.7% from a
previous projection of 3%, marking a sharp
slowdown from the estimated 2.9% growth for
2022.
Asia
MIBK soars on plant closure; rising COVID-19
cases in China cap gains
By Angeline Soh 11-Jan-23 13:07 SINGAPORE
(ICIS)–Asia’s methyl isobutyl ketone (MIBK)
prices have soared following a surprise
end-December shutdown of LCY Chem’s plant in
Zhenjiang, China.
INSIGHT: Downward
pressure on petchem and plastics prices
persists globally
By Nigel Davis 11-Jan-23 01:19 LONDON
(ICIS)–Falling base chemical and polymer
prices globally reflect the weaker and
uncertain demand environment while shifted
supply and demand balances have coloured spot
activity at the end of 2022 and the start of
2023 for a handful of chemical commodities.
Tighter German-French
front-quarter spread to curb
exports
By Daniel Muir 11-Jan-23 00:49 LONDON
(ICIS)–Tightening front-quarter spreads
between German and French baseload power
products are likely to result in greater
oscillation of power flows between the two
countries moving through 2023.
Global weekly spot IPEX
up on firmer prices in northeast Asia,
northwest Europe
By Miguel Rodriguez Fernandez 11-Jan-23
00:44 LONDON (ICIS)–Spot chemical prices were
up by 1.2% in the week ended 6 January, driven
by increases in northeast Asia and northwest
Europe values, according to latest figures from
the weekly ICIS Petrochemical Index (IPEX).
High
interest rates, earnings uncertainty holding
back chemicals M&A –
banker
By Joseph Chang 11-Jan-23 00:27 NEW YORK
(ICIS)–High interest rates, lack of available
financing and economic uncertainty are holding
back chemical industry mergers and acquisitions
(M&A). However, activity is poised to
rebound after this challenging period as the
backlog of deals builds up, an investment
banker said.
PODCAST: Lower gas prices
not yet stimulating Europe chemicals,
fertilizers
By Will Beacham 10-Jan-23 21:54 BARCELONA
(ICIS)–Falling gas prices have not yet revived
Europe’s ailing fertilizer and petrochemical
sectors as producers fret over recession and
future gas market dynamics.
Asia
C3 may see more spot talks on lower 2023 term
volumes
By Julia Tan 10-Jan-23 15:17 SINGAPORE
(ICIS)–2023 may see increased liquidity in the
Asia propylene spot market as some market
participants mull lower term volumes on the
back of new
capacities in Asia.
China
phenol oversupply to ease on likely output
cuts, more exports to India
By Helen Lee 10-Jan-23 14:23 SINGAPORE
(ICIS)–China’s phenol oversupply may ease as
producers were expected to cut output due to
mounting margin pressure, and amid possibility
of more exports given an open arbitrage window
to India.
Spot
LNG markets start with a twist in
2023
By Yun Xie 06-Jan-23 15:00 SINGAPORE
(ICIS)–The ICIS
northwest Europe (NEX) spot LNG levels
moved back to a discount to East Asian (EAX)
spot LNG this week for the first time since
mid-December.
OUTLOOK ’23: China’s
methanol short term demand to remain tepid,
long-term outlook better
By Sam Liang 06-Jan-23 13:53 SINGAPORE
(ICIS)–China’s methanol traditional demand in
the first quarter of 2023 appears to be weak –
a trend continuing from the second half of 2022
– though later in the year some recovery is
expected as domestic economy is expected to
improve.
OUTLOOK ’23: China ACN,
downstream capacities to expand; oversupply
challenges prevail
By Candy Nie 06-Jan-23 12:12 SINGAPORE
(ICIS)–China’s acrylonitrile (ACN) market will
continue to see a slew of capacity expansions,
particularly in the first half of 2023.
NE
Asia ethylene falls on weak China demand, ample
supply
By Yeow Pei Lin 06-Jan-23 10:56 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene market
started 2023 on a soft note due to China’s
raging COVID-19 outbreak, which has exacerbated
the seasonal downstream demand lull ahead of
the Lunar New Year holiday.
OUTLOOK ’23: China MEG
supply increase may outpace demand
growth
By Cindy Qiu 06-Jan-23 09:46 SINGAPORE
(ICIS)–China’s monoethylene glycol (MEG)
market may continue running into headwinds in
2023 after a downturn in 2022, as increasing
supply given multiple new plants’ start-up
plans may outweigh demand growth.
US
paint shares fall after RPM warns of lower
earnings
By Al Greenwood 06-Jan-23 04:41 HOUSTON
(ICIS)–Shares of RPM International fell by
more than 13% midday on Thursday, dragging down
the stock prices of other companies that make
paints, coatings and adhesives, after the
company warned that earnings for its upcoming
quarter may decline year on year.
OUTLOOK ’23: US ethylene
exports expected to surge as region maintains
competitive edge
By John Donnelly 06-Jan-23 00:24 HOUSTON
(ICIS)–Despite economic headwinds limiting
domestic derivative demand, US ethylene
producers are set to take advantage of expanded
export capacity and competitive economics
through the year.
INSIGHT – OUTLOOK ’23:
Slowdowns loom for Brazil,
Mexico
By Al Greenwood 06-Jan-23 00:10 HOUSTON
(ICIS)–Economists in Brazil and Mexico expect
GDP growth will slow down sharply in 2023, with
Brazil losing the benefits of a commodity rally
and Mexico suffering from slower growth in the
US.
OUTLOOK ’23: US chemical
equities look to rebound from 2022
backsliding
By JT Strasner 06-Jan-23 00:00 HOUSTON
(ICIS)–Chemical equities over the past year
reversed gains experienced in 2021, and will
end 2022 sharply lower year on year.
INSIGHT: ‘Tsunami’ of
legislation will harm European
competitiveness
By Morgan Condon 05-Jan-23 22:30 LONDON
(ICIS)–European chemical producers are
entering the new year facing a “tsunami” of new
regulations, according to the head of the
European Association of Chemicals Distributors
(FECC) Dorothee Arns.
OUTLOOK ’23: Europe MA
market could still grow in 2023 after hard
winter
By Anne-Sophie Briant-Vaghela 05-Jan-23
19:00 LONDON (ICIS)–European maleic anhydride
(MA) players are grinding their teeth and
hoping for at best a gradual recovery from the
weakest activity in three years.
China
Dec petrochemical markets weak; better
post-Lunar New Year demand
eyed
By Yvonne Shi 05-Jan-23 14:14 SINGAPORE
(ICIS)–China’s petrochemical markets stayed
depressed in December despite substantial
relaxation of pandemic-related lockdowns, as a
consequent spike in COVID-19 infections
continued to restrict logistics operations.
OUTLOOK ’23: China’s
acetic acid supply-demand fundamentals see
expansions in industry chain
By Jady Ma 05-Jan-23 12:56 SINGAPORE
(ICIS)–China’s acetic acid and downstream
industries will continue to see new capacity
coming on line in 2023, but the mismatch
between their start-up dates and turnaround
schedules of existing plants may lead to a
temporary imbalance in the market.
OUTLOOK ‘23: Asia ethanol
faces uncertain future on unclear economics,
tight supply
By Izham Ahmad 05-Jan-23 11:31 SINGAPORE
(ICIS)–The spot import market for fuel ethanol
and b-grade ethanol in Asia faces an uncertain
outlook for the new year, based on the cloudy
economic outlook and expectations of tighter
supply from some of the main suppliers in
Brazil.
OUTLOOK: Higher PVC
prices expected in Latin America in H1
2023
By Daniel Lopes 05-Jan-23 05:00 HOUSTON
(ICIS)–Polyvinyl chloride (PVC) prices in
Latin America are placed to follow Asia market
trends in Q1 2023, as Formosa Taiwan raised its
prices to all destinations last week and sold
out on the same day.
OUTLOOK ’23: Plant
activity will tighten US propylene balance even
as economy undermines demand
By John Donnelly 05-Jan-23 03:00 HOUSTON
(ICIS)–Derivative demand for US propylene will
remain weak until at least Q3, but plant
maintenance and a new propylene oxide/tertiary
butyl alcohol (POTBA) plant will help support
the market in the first half of the year.
OUTLOOK ’23: US PA, OX
demand expected to remain weak on economic
headwinds
By Melissa Wheeler 05-Jan-23 02:00 HOUSTON
(ICIS)–Demand for phthalic anhydride (PA) is
expected to remain weak through the beginning
of 2023 as the market continues to destock
inventories.
France pushes for support
from energy suppliers
By Karishma Sadanandan 05-Jan-23 01:26
LONDON (ICIS)– The French government announced
on 4 January that energy suppliers will commit
to supporting businesses and communities
minimising the impact of high energy costs
through various measures.
German Year 2024 clean
dark spreads hit 15-week low
By Anna Coulson 05-Jan-23 01:09 LONDON
(ICIS)–Rolling front year profit margins for
German coal-fired power plants were assessed at
€79.44/MWh on 3 January, their lowest value
since 19 September, despite rising week-on-week
fuel costs.
ICIS
TTF February ‘23 gas contract keeps sliding
amid bearish fundamentals
By Marta Del Buono 05-Jan-23 00:28 LONDON
(ICIS)–A combination of ongoing bearish
fundamentals is likely to keep the ICIS TTF
February ‘23 contract below March ‘23 ahead of
expiry.
OUTLOOK ’23: US MTBE
export demand to remain healthy as gasoline
demand recovers
By Reilly Radke 05-Jan-23 00:00 HOUSTON
(ICIS)–US methyl tertiary butyl ether (MTBE)
exports are expected remain healthy in 2023 as
the tightness in octane boosters supply
continues and global gasoline demand recovers.
OUTLOOK ’23: Economic
woes to weigh on Turkish PE/PP
demand
By Samantha Wright 04-Jan-23 21:30 LONDON
(ICIS)–Economic issues will continue to plague
the Turkish polyethylene (PE) and polypropylene
(PP) markets and determine the outlook for
these products in the first quarter of 2023.
OUTLOOK ’23: Jet kerosene
demand to increase on relaxed COVID-19
restrictions
By Cassandra Abolaji 04-Jan-23 20:00
LONDON (ICIS)–The outlook for the European jet
kerosene market is optimistic for 2023, as the
world reaches almost full recovery from
COVID-19 travel restrictions.
Singapore manufacturing
weakness to persist on poor external
demand
By Nurluqman Suratman 04-Jan-23 16:18
SINGAPORE (ICIS)–Singapore’s manufacturing
sector faces further downside in the near term
due to faltering outlook for electronics and
weaker external demand.
OUTLOOK ‘23: New
capacity, China’s COVID-19 surge weigh on Asia
EVA market
By Helen Lee 04-Jan-23 15:13 SINGAPORE
(ICIS)–Asia’s supply of ethylene vinyl acetate
(EVA) is expected to lengthen as new capacities
start-up, while surging COVID-19 cases in China
following easing of pandemic-related
restrictions could cap demand recovery in the
first quarter of 2023.
OUTLOOK ’23: Asia
methanol ready for new demand centres; capacity
expansion limited
By Keven Zhang 04-Jan-23 12:48 SINGAPORE
(ICIS)–High price volatility dominated the
Asian methanol market in the first-half of
2022, but weak macroeconomic performance in
China and India led to a drying up of liquidity
and stagnant prices in the second-half.
OUTLOOK ’23: China
plasticizers demand recovery seen
remote
By Li Peng Seng 04-Jan-23 11:46 SINGAPORE
(ICIS)–Asian plasticizers plants’ average
utilization rates for most of first-half 2023
could stay low as poor demand in key market
China is expected to linger.
UK to
bolster domestic nuclear fuel production,
aiding nuclear power
By Karishma Sadanandan 04-Jan-23 02:17
LONDON (ICIS)–The UK Energy and Climate
Minister Graham Stuart announced on 2 January a
new £75m fund for the development and
commercialisation of domestic nuclear fuel
production.
OUTLOOK ‘23: US R-PE to
see diverging trends on sustainability vs
cost-sensitive resin demand
By Emily Friedman 04-Jan-23 01:00 HOUSTON
(ICIS)–The US recycled polyethylene (R-PE)
market will continue to show diverging market
trends in 2023, depending on the recycled resin
grade. Sustainability-driven demand for
material such as post-consumer, natural
coloured recycled high-density polyethylene
(R-HDPE) or recycled low-density polyethylene
(R-LDPE) will continue to be robust as
companies make progress against regulatory and
voluntary post-consumer recycled (PCR) content
targets.
European caustic soda
prices fall in December, Q1 outlook
bearish
By Chris Barker 03-Jan-23 23:19 LONDON
(ICIS)–European caustic soda prices have
trended down strongly in December, driven by
weak demand which has outweighed lower
production and capacity utilisation.
OUTLOOK ’23: Europe
capro, nylon demand could stay low as consumer
confidence slumps
By Marta Fern 03-Jan-23 23:00 LONDON
(ICIS)–European demand for caprolactam (capro)
and nylon 6 could stay low in 2023, with
automotive offtake expected to fluctuate across
the year but remain subdued overall.
Global weekly spot IPEX
up on stronger prices in northeast Asia, US
Gulf
By Miguel Rodriguez Fernandez 03-Jan-23
22:31 LONDON (ICIS)–Spot chemical prices were
up by 0.7% in the week ended 23 December,
driven by increases in northeast Asia and the
US Gulf values, according to latest figures
from the weekly ICIS Petrochemical Index
(IPEX).
OUTLOOK ’23: China’s MTBE
export market to remain active as oversupply
persists
By Aviva Zhang 03-Jan-23 22:24 SINGAPORE
(ICIS)–In 2023, with persistent high supply of
MTBE in China, the export market is expected to
remain active.
OUTLOOK ’23: European EO
market worries over energy costs
continue
By Melissa Hurley 03-Jan-23 18:30 LONDON
(ICIS)–Production cost uncertainty remains key
for European ethylene oxide (EO) market players
in 2023.
OUTLOOK ’23: Europe epoxy
demand stifled by macro woes, Asian
competition
By Heidi Finch 03-Jan-23 18:30 LONDON
(ICIS)–The Europe epoxy resins demand outlook
is cautious and muted for 2023, weighed down by
ongoing macroeconomic headwinds and Asian
competition
China
Dec PMI at 34-month low; recovery expected to
come in Feb
By Fanny Zhang 03-Jan-23 15:44 SINGAPORE
(ICIS)–China’s official manufacturing
purchasing managers index (PMI) slumped to a
34-month low of 47.0 in December amid
fast-spreading COVID-19 outbreaks.
Caixin’s Dec China
manufacturing PMI falls to 49.0 on rising
COVID-19 cases
By Nurluqman Suratman 03-Jan-23 13:07
SINGAPORE (ICIS)–Caixin’s China manufacturing
purchasing managers’ index (PMI) fell to 49.0
in December from 49.4 in November as a rise in
domestic COVID-19 cases continue to weigh on
domestic output, the Chinese media firm said on
Tuesday.
OUTLOOK ’23: Asian PTA
supply ample, amid continual expansion
plans
By Samuel Wong 03-Jan-23 11:11 SINGAPORE
(ICIS)–Continual expansion of purified
terephthalic acid (PTA) facilities in Asia in
2023 will keep supply more than sufficient,
with demand growth expected to lag.
OUTLOOK ’23: Asia PX pins
hopes on gasoline amid bearish PTA
outlook
By Samuel Wong 03-Jan-23 10:58 SINGAPORE
(ICIS)–Asian paraxylene (PX) markets will ride
on the hopes of a strong gasoline market, with
arbitrage opportunities to the West to
continue, and on the back of capacity
expansions in both the PX and downstream
purified terephthalic acid (PTA) markets in
2023.
OUTLOOK ’23: US base oil
markets start sluggish but could
firm
By Amanda Hay 02-Jan-23 23:00 HOUSTON
(ICIS)–US base oil supply is long against weak
demand heading into 2023, but two major
turnarounds in H1 should rebalance the markets.
OUTLOOK: Lacklustre
demand affecting US paraffin wax business in H1
2023
By Daniel Lopes 03-Jan-23 03:00 HOUSTON
(ICIS)–Paraffin wax business is fiercely
competing in many niche markets, including the
tire, construction, packaging, candles, and
food industries, as product technology, design,
and price become even more important in
retaining a loyal customer base related to
slack and fully refined waxes.
OUTLOOK ’23: US fuel,
industrial ethanol facing competing factors in
H1
By Taylor Merrell 02-Jan-23 18:00 HOUSTON
(ICIS)–US fuel ethanol could face pressure in
the new year if there are competing forces such
as a recession versus if corn prices and
natural gas continue to remain slightly
elevated; whereas there could be some upward
pressure for industrial ethanol if production
and material costs remain elevated.
OUTLOOK ’23: Europe methanol prepares for
difficult year on energy costs, weak
demand
By Eashani Chavda 23-Dec-22 00:05 LONDON
(ICIS)–The European methanol market is bracing
for another turbulent year with Russian
sanctions pending, while high energy costs and
lower consumer spending drive reduced demand
for key end sectors.
ICIS cross-commodity podcast: How will energy
crisis affect fertilizers, agriculture,
chemicals in 2023?
By Morgan Condon 22-Dec-22 21:20 LONDON
(ICIS)–The war in Ukraine has had a profound
impact on commodities across the world. In this
podcast, senior reporter for Europe Morgan
Condon and senior energy markets reporter Aura
Sabadus talk to deputy managing editor for
fertilizers Deepika Thapliyal and AgSolutions
commercial products manager Scott Cogdill about
what expectations look like in 2023 and
highlight the parallels between the sectors.
OUTLOOK ’23: Europe olefins’ demand
hand-to-mouth, sustained improvements only in
H2
By Nel Weddle 22-Dec-22 18:30 LONDON
(ICIS)–The lack of visibility over ethylene
and propylene market conditions in 2023 is
unprecedented, easily surpassing the financial
crisis of 2008-2009.
Developing Asia 2023 GDP growth cut as recovery
faces strong headwinds
By Nurluqman Suratma 15-Dec-22 13:45 SINGAPORE
(ICIS)–Recurrent lockdowns in China, the
ongoing Ukraine war and weak external demand
given a strong likelihood of a recession
hitting major industrialised economies in the
west will all weigh on developing Asia’s
economic recovery in 2023.
Eurozone chemicals collapse worsens, new EU
data shows
By Will Beacham 14-Dec-22 23:47 BARCELONA
(ICIS)–The collapse in EU and eurozone
chemical output accelerated in October, driven
by a fall in most major industry locations,
according to latest figures released by
Eurostat.
South
Korea truckers vote to end weeks-long
nationwide strike – report
By Pearl Bantillo 09-Dec-22 13:54
SINGAPORE (ICIS)–South Korea’s striking cargo
truckers voted on Friday to end their
weeks-long nationwide protest, which had
severely disrupted logistics operations and
prompted the government to issue two
return-to-work orders amid a mounting economic
toll.
Weak
BD demand, ample supply shuts arbitrage window
from east China to north
China
By Aviva Zhang 09-Dec-22 15:07 SINGAPORE
(ICIS)–The arbitrage window for butadiene (BD)
products entering north China from east China
has recently closed amid lukewarm downstream
demand, expected new plant start-ups, and
cargo-holders’ relatively firm pricing stance
on cost pressure.
NE
Asia propylene demand likely to remain weak
till 2023
By Julia Tan 09-Dec-22 13:45 SINGAPORE
(ICIS)–Demand for propylene (C3) imports in
northeast Asia would likely remain subdued
until mid-January as buyers continue to assume
a wait-and-see stance amid adequate inventories
ahead of the Lunar New Year festive season.
NE
Asia ethylene stable despite bearish naphtha
market
By Yeow Pei Lin 09-Dec-22 11:12 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene import
prices held steady, with a nationwide strike by
South Korean truckers and plummeting feedstock
naphtha costs counterbalanced by restocking
activity in China.
Asia-US container rates
continue to plummet amid improved transit
times
By Adam Yanelli 09-Dec-22 06:59 HOUSTON
(ICIS)–Rates for shipping containers from east
Asia and China to both US coasts continued to
plummet this week as softening demand by US
consumers for goods and easing congestion at US
ports have improved transit times.
PODCAST: China to
dominate demand rebound Asia polyolefins in ’23
– ICIS analysts
By Morgan Condon 09-Dec-22 03:07 LONDON
(ICIS)–Despite the challenges 2022 has
presented the chemicals industry, more Asian
polyolefins capacity is set to come online in
the coming year.
Oil
prices to sustain bearish momentum as demand
remains uncertain
By Cecilia Barreiro 08-Dec-22 19:26 LONDON
(ICIS)–Oil prices are likely to remain stable
as bearish demand-side fundamentals become the
biggest driver for the market this month.
S
Korea government orders steel, petrochemical
truckers back to work
By Pearl Bantillo 08-Dec-22 16:39
SINGAPORE (ICIS)–The South Korean government
expanded on Thursday its return-to-work order
to more cargo truckers who serve the steel and
petrochemical industries, amid the mounting
economic cost of the truckers’ strike.
PODCAST: Global ACN slows
down in year-end, difficult times going into
early 2023
By Angeline Soh 08-Dec-22 16:24 SINGAPORE
(ICIS)–In this podcast, ICIS deputy managing
editor Jane Massingham (Europe) and senior
editors Lucas Hall (US) and Chng Li Li (Asia)
discuss the latest developments impacting
global acrylonitrile (ACN) markets.
China
petrochemical futures mixed; near-term demand
recovery in doubt
By Fanny Zhang 08-Dec-22 13:03 SINGAPORE
(ICIS)–China’s petrochemical futures markets
were mixed on Thursday morning as demand may
remain soft despite a further relaxation in the
country’s COVID-19 curbs.
Weather sends bullish
tone through coal, hampering
production
By Anna Coulson 08-Dec-22 00:28 LONDON
(ICIS)–Rolling front month profit margins for
German coal-fired power plants rose through
week 49, in line with rising week-on-week fuel
costs.
PODCAST: Ban on Russian
refined products will hurt Europe more than oil
restrictions
By Will Beacham 07-Dec-22 22:31 BARCELONA
(ICIS)–The ban on Russian refined products
such as naphtha from February 2023 will be more
disruptive to the European chemical markets
than this week’s EU restrictions on oil.
Asia
naphtha tumbles on crude oil losses, feeble
demand
By Melanie Wee 07-Dec-22 18:31 SINGAPORE
(ICIS)–Asia naphtha prices fell alongside
losses in global crude oil futures, while tepid
demand for petrochemicals exerted downward
pressure on market sentiment.
India
central bank hikes policy rates anew; cuts GDP
growth forecast to 6.8%
By Priya Jestin 07-Dec-22 17:41 MUMBAI
(ICIS)–India’s central bank hiked its
benchmark interest rate for the fifth time
since April as it continues to battle high
inflation, prompting a cut in GDP growth
projection for the fiscal year ending March
2023 to 6.8% from 7.0%.
INSIGHT: EU energy
crisis-hit chemicals sector under shifting
demand pressure
By Nigel Davis 07-Dec-22 01:36 LONDON
(ICIS)–Two charts from the latest of Cefic’s
regular reports on chemicals sector trends
highlight the pressure that has been put on
chemical producers in Europe for the past year
from extraordinarily high energy costs.
Saudi
Aramco cuts Arab Light OSP for Asian buyers to
lowest in 10 months on demand
worries
By James Dennis 06-Dec-22 23:20 LONDON
(ICIS)–Saudi Aramco, the world’s largest crude
exporter, issued its January Official Selling
Prices (OSP). The Saudi state oil company set
its benchmark Arab Light grade at Oman/Dubai
average plus $3.25/bbl, the lowest level for
customers in Asia since March 2022.
Global weekly spot IPEX
down on price falls across all
regions
By Miguel Rodriguez Fernandez 06-Dec-22
19:09 LONDON (ICIS)–The ICIS Petrochemical
Index (IPEX) dropped 1.4% in the week, driven
by falls across all regions.
S
Korea truckers’ strike disrupts $2.6bn worth of
shipments over 12 days
By Pearl Bantillo 06-Dec-22 17:37
SINGAPORE (ICIS)–South Korea has so far
tallied won (W) 3.5tr ($2.6bn) worth
of shipments
disrupted by an ongoing truckers’
strike now on its second week, prompting output
cuts from petrochemical producers.
GPCA
’22: Petchems oil demand to remain robust in
net zero scenario – Aramco
chief
By Tom Brown 06-Dec-22 17:08 RIYADH
(ICIS)–The petrochemicals sector is likely to
remain a substantial driver of crude oil demand
even in a net zero emissions scenario, with a
focus on decarbonising building block materials
key to meeting carbon-reduction targets, CEO of
Saudi Aramco, Amin Nasser, said on Tuesday.
GPCA
’22: GCC chemicals needs to leverage on
strengths amid cyclical headwinds – GPCA
chairman
By Nurluqman Suratman 06-Dec-22 16:48
SINGAPORE (ICIS)–The Arabian Gulf’s chemical
industry will need to leverage on its unique
strengths to counter short-term cyclical
macroeconomic headwinds impacting its
profitability, the acting CEO of SABIC said on
Tuesday.
China
Nov petrochemical markets weak; players
cautious on re-opening
By Yvonne Shi 06-Dec-22 13:29 SINGAPORE
(ICIS)–China’s domestic petrochemical markets
weakened in November due to poor demand, with
sentiment weighed down by the government’s
zero-COVID strategy.
Global oil outlook: five
factors to watch in Week 49
By Cecilia Barreiro 05-Dec-22 20:00 LONDON
(ICIS)–Oil prices edged higher after OPEC+
decided to maintain current oil production
targets, as agreed in October. Meanwhile, the
EU’s embargo on seaborne Russian oil imports
and the G7 price cap kicks off today, and
Russia, the world’s second-largest oil
exporter, said it would not sell its oil to
countries that have enforced the price cap.
OPEC+
agreed to maintain existing oil production
policy
By Cecilia Barreiro 05-Dec-22 18:08 LONDON
(ICIS)–OPEC+ has agreed to keep its oil
production targets unchanged at its meeting on
Sunday. The decision means the group will
continue to observe its 2m bbl/day production
cut, as agreed in October.
Crude
rises as OPEC+ keeps target, China COVID curbs
ease, Russia oil ban
enforced
By James Dennis 05-Dec-22 16:25 SINGAPORE
(ICIS)–Crude prices rose on Monday on news
that OPEC and its allies (OPEC+) had agreed to
maintain their present output target and that
China has further eased its strict zero-COVID
measures. Meanwhile, the EU/G7 Russia crude ban
and price cap also came into effect.
China
re-opening hopes buoy up petrochemical futures
markets
By Fanny Zhang 05-Dec-22 13:24 SINGAPORE
(ICIS)–China’s easing COVID-19 restrictions
are buoying up sentiment in most petrochemical
futures markets on Monday, as these could
translate to better demand in the coming weeks.
GPCA
’22: Collaboration key for GCC chemicals net
zero ambitions
By Nurluqman Suratman 05-Dec-22 12:00
SINGAPORE (ICIS)–Collaboration will be key for
the Gulf Cooperation Council’s (GCC) chemicals
industry if it were to meet the region’s net
zero emissions target by 2050 while meeting
demand for conventional energy resources, the
secretary general of the Gulf Petrochemicals
and Chemicals Association (GPCA) said.
Asia
acetic acid market seasonally quiet, economic
concerns linger
By Josh Quah 02-Dec-22 13:16 SINGAPORE
(ICIS)–Asia’s acetic acid market have been
quiet on the spot front after India’s Diwali
festival in October, amid a seasonal lull,
although economic concerns weighed on players’
minds while the recent trucker strikes in South
Korea could cloud the outlook further.
Deep-sea cargoes create
arbitrage opportunities in Asia capro
market
By Josh Quah 02-Dec-22 12:25 SINGAPORE
(ICIS)–Asia’s caprolactam (capro) market
dynamics have in the past few weeks been
impacted by a supply influx from deep-sea
origins and the year-end clearing out of
inventories from some sellers, in what has been
a largely challenging year for capro and its
nylon 6 derivative, and are expected to
continue in the near term.
Asian
R-LDPE producers turn to deep-sea origins for
feedstock
By Arianne Perez 02-Dec-22 12:02 SINGAPORE
(ICIS)–Asian producers of recycled low-density
polyethylene (R-LDPE) will continue to turn to
deep-sea sources of feedstock as availability
in the region was drained by lower
manufacturing rates.
NE
Asia ethylene little changed; China sees high
January spot demand
By Yeow Pei Lin 02-Dec-22 11:21 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene import
prices were broadly stable, as the emergence of
more competitive offers for December-arrival
cargoes was offset by high spot demand for
January amid limited 2023 term offers.
INSIGHT: Chlorum sees US
as next market for its small chlor-alkali
plant
By Al Greenwood 02-Dec-22 01:01 HOUSTON
(ICIS)–The chlor-alkali firm Chlorum Solutions
sees the US as the next market where it can
bring its model of developing small regional
chlor-alkali plants to serve customers eager to
avoid the trouble and expense of shipping
chlorine over long distances.
INSIGHT: Europe EV uptake
changing fuels landscape, US moving
fast
By Man Yiu Tse 01-Dec-22 20:44 SINGAPORE
(ICIS)–Electric vehicles (EVs) will make up
80% of Europe’s car fleet by 2050 while take up
of low emission vehicles in the US rises and an
estimated 30% of the country’s light duty
vehicles (LDVs) are electric by that date, new
data from ICIS show.
South
Korea truckers’ strike results in $1.2bn of
shipment disruptions in
November
By Pearl Bantillo 01-Dec-22 20:02
SINGAPORE (ICIS)–The ongoing truckers’ strike
in South Korea has caused won (W) 1.6tr
($1.2bn) worth of shipment disruptions in
November across all industries, with some
petrochemical companies now looking to reduce
production this week.
Asia
naphtha prices buoyed by crude oil; defies low
petchem demand
By Melanie Wee 01-Dec-22 15:03 SINGAPORE
(ICIS)–Asia naphtha prices are riding on the
coattails of elevated crude oil prices amid
choppy trade, even as petrochemical demand is
subdued.
India
fiscal Q2 GDP growth slows to 6.3% on high
inflation, weak exports
By Priya Jestin 01-Dec-22 14:32 MUMBAI
(ICIS)–India’s economic growth slowed down to
a 6.3% in its fiscal second quarter ending
September 2022, dragged down by contractions in
the manufacturing and mining sectors amid high
inflation and weak exports.
S
Korea Nov petrochemical exports fall 27%; Q4
GDP to contract on truckers’
strike
By Nurluqman Suratman 01-Dec-22 13:04
SINGAPORE (ICIS)–South Korea’s petrochemical
exports in November fell by 26.5% year on year
to $3.55bn due to weaker overall demand from
primary market China and amid logistics
disruptions late in the month caused by the
nationwide truckers’ strike.
US
ethylene run rates low amid weak
demand
By John Donnelly 01-Dec-22 07:13 HOUSTON
(ICIS)–The ethylene market continues to see
weak derivative demand and ample inventories.
Exports have slowed this month because of a
lack of ship availability, which is pressuring
domestic pricing.
US
propylene market sees weak demand, good supply
into next year
By John Donnelly 01-Dec-22 06:19 HOUSTON
(ICIS)–US propylene contract prices rose in
November, halting a two-month slide, but the
market remains long amid weak demand and
sufficient inventory.
Europe domestic Group I
base oils demand eases for Dec as supply
grows
By Eashani Chavda 01-Dec-22 05:43 LONDON
(ICIS)–European domestic Group I base oils
demand weakens for December while supply levels
rise. Prices continue their downtrend, driving
some suppliers to optimise diesel production.
Wide
Spanish discount to support natural gas exports
to France
By Daniela Miccoli 01-Dec-22 03:44 LONDON
(ICIS)–Spain is likely to continue exporting
natural gas to France via the VIP Pirineos
interconnection in December on the back of a
wide PVB front-month discount to France, ICIS
price assessments showed.
Energy crisis to be eased
by French power measures this
winter
By Karishma Sadanandan 01-Dec-22 01:21 LONDON
(ICIS)–With France likely to face a tight
winter, specific measures have to be followed
to ease tension for power supply.
Ukraine scrambles to
cover power peak deficit
By Valeriia Gutsalo 01-Dec-22 01:09 ARLSRUHE,
Germany (ICIS)– Ukraine is forced to continue
emergency blackouts across the country as its
supply deficit stands at 18% during peak hours,
according to ICIS analysis.
Asia
ethylene dichloride demand may stay muted amid
cloudy downstream view
By Jonathan Chou 30-Nov-22 17:44
SINGAPORE(ICIS)–Asia’s spot demand for
ethylene dichloride (EDC) is likely to be
capped in the near-term, due to main derivative
polyvinyl chloride’s (PVC) poor performance,
while spot supply could remain healthy from
deep-sea suppliers.
Asia
spot PX trade to slow amid market
uncertainties
By Samuel Wong 30-Nov-22 15:35 SINGAPORE
(ICIS)–Trade for spot physical cargoes for
paraxylene (PX) in Asia is expected to slow
amid market uncertainties and ongoing
negotiations for 2023 term contracts.
China
MEG 2023 import contract talks ongoing;
bid-offer gap wide
By Judith Wang 30-Nov-22 12:16 SINGAPORE
(ICIS)–Negotiations for China’s 2023
monoethylene glycol (MEG) import contracts are
under way, with market players having
difficulty in reconciling bids and offers.
North
American TiO2 demand weakens in Q4, still
stronger than European, Asian
demand
By Deniz Koray 30-Nov-22 07:06 HOUSTON
(ICIS)–After seeing robust demand for much of
2021 and H1 2022, demand for titanium dioxide
(TiO2) end-users has softened in Q4 2022.
PODCAST: High gas prices,
shortages here to stay, Europe chemicals must
adapt
By Will Beacham 29-Nov-22 22:04 BARCELONA
(ICIS)–Europe gas prices will remain high and
shortages will persist for 2-3 years with major
risks for winter 2023, according to a scenario
analysis by ICIS.
South
Korea government orders striking truckers in
cement industry back to work
By Nurluqman Suratman 29-Nov-22 12:19
SINGAPORE (ICIS)–South Korea’s government
issued on Tuesday an executive order to force
protesting unionised truckers serving the
cement industry to return to work, taking into
account a huge number of halted
construction projects because of the
nationwide strike.
INSIGHT: Asia BDO
entrenched in downtrend, a reversal to prior
year’s bull-run
By Clive Ong 28-Nov-22 20:01 SINGAPORE
(ICIS)–The downtrend in Asia’s 1,4-butanediol
(BDO) market appears to have become entrenched
with a further slump seen as we head towards
year end.
South
Korea’s construction projects halted as
truckers’ strike hits fifth
day
By Pearl Bantillo 28-Nov-22 18:44
SINGAPORE (ICIS)–A huge number of construction
projects in South Korea have had to be halted
as the unionised truckers’ strike in the
country has been hampering deliveries of cement
and steel deliveries over the past five days.
Global weekly spot IPEX
down with northwest Europe leading regional
declines
By Yashas Mudumbai 28-Nov-22 18:32 LONDON
(ICIS)–The ICIS Petrochemical Index (IPEX)
fell 2.5% in the week, dragged down by large
fall in northwest Europe and declines in Asia
and the US Gulf.
Crude
falls more than $2/bbl on China COVID-19
unrest, wiping out Ukraine war
gains
By James Dennis 28-Nov-22 16:59 SINGAPORE
(ICIS)–Crude prices fell by more than $2/bbl
on Monday on heightened demand concerns
following an outbreak of unrest in China.
Crude
falls by $2/bbl, Asia petrochemical shares dip
on China COVID-19 protests
By Pearl Bantillo 28-Nov-22 13:18
SINGAPORE (ICIS)–Crude prices slumped on
Monday, tumbling by more than $2/bbl, while
shares of petrochemical companies in Asia took
a beating on demand concerns amid growing
protests in China against strict pandemic
curbs.
INSIGHT: Under margin
pressure, China’s SM producers look to expand
downstream
By Tina Zhang 28-Nov-22 11:00 SINGAPORE
(ICIS)–China’s styrene monomer (SM) producers
are eying development downstream to help ease
margin pressure from oversupply following the
rapid capacity expansion of recent years.
NE
Asia ethylene output to remain weak up to at
least H1 2023
By Yeow Pei Lin 25-Nov-22 11:53 SINGAPORE
(ICIS)–Northeast Asia’s ethylene production is
expected to be constricted by heavy cracker
turnarounds, poor margins and weak downstream
demand up to at least the first half of 2023.
UK
price cap to have minimal impact on consumers,
hedging
By Jack Grant 25-Nov-22 01:45 LONDON
(ICIS)–Energy regulator Ofgem announced a
further increase to the level of the default
tariff cap to £4,279 from 1 January 2023 with
impact to consumers and suppliers remaining
minimal amid the current energy price
guarantee.
INSIGHT: Poor demand
plagues MX, PX and OX value chain in
Europe
By Zubair Adam 24-Nov-22 22:42 LONDON
(ICIS)–Sluggish consumption is widespread
among mixed xylenes (MX) and downstream
products paraxylene (PX) and orthoxylene (OX),
with no significant recovery expected in the
near term.
Malaysian shares rally as
Anwar appointed as new prime
minister
By Nurluqman Suratman 24-Nov-22 17:28
SINGAPORE (ICIS)–Malaysian shares rallied on
Thursday following news that opposition leader
Anwar Ibrahim was appointed as the country’s
new prime minister, ending a five-day political
impasse.
SE
Asia PE market dazed by China stop-start
demand
By Izham Ahmad 24-Nov-22 16:36 SINGAPORE
(ICIS)–Initial spot import offers for December
shipments of polyethylene (PE) in southeast
Asia were announced in the same range as the
previous week’s assessment or softer this week,
with market players baffled by the stop-start
nature of China’s demand for PE.
S
Korea unionised truckers’ strike begins; may
disrupt petrochemical ops
anew
By Nurluqman Suratman 24-Nov-22 13:25
SINGAPORE (ICIS)–South Korea’s unionised cargo
truck drivers began a nationwide strike on
Thursday, potentially disrupting petrochemical
production and logistics operations across the
country.
INSIGHT: A third US
cracker wave would crest much
lower
By Joseph Chang 24-Nov-22 05:42 NEW YORK
(ICIS)–Chevron Phillips Chemical (CP Chem) and
partner QatarEnergy’s announcement on a final
investment decision (FID) for their $8.5bn
integrated cracker project in Orange, Texas
will kick off speculation on whether the US
will see a new or third wave of new cracker
projects.
CDI
Economic Summary: All eyes on US inflation and
the Fed
By Joseph Chang 24-Nov-22 05:16 NEW YORK
(ICIS)–Inflation and the Fed – all eyes are on
this key metric and the central bank’s response
which will drive the U.S. economy heading into
2023. On a slightly weaker-than-expected
Consumer Price Index (CPI) print, both Treasury
and equity markets rallied hard on hopes that
the Federal Reserve may finally be ready to
ease the pace of rate increases after four
consecutive jumbo hikes of 0.75 percentage
points.
CP
Chem, partner working towards Qatar cracker
project FID for 2023 – CEO
By Joseph Chang 24-Nov-22 01:52 NEW YORK
(ICIS)–Chevron Phillips Chemical (CP Chem) and
joint venture partner QatarEnergy are working
towards a potential final investment decision
(FID) on an integrated cracker and polyethylene
(PE) complex in Qatar in 2023, said CP Chem’s
CEO.
German energy caps to
maintain demand pressure
By Daniel Muir 24-Nov-22 01:25 LONDON
(ICIS)–German domestic power and gas price cap
proposals should be sufficient to support
domestic energy reductions in the face of a
tight supply outlook, according to ICIS
analysis.
Rising fuel costs cap
coal plant margins gains
By David Battista 23-Nov-22 23:57 LONDON
(ICIS)–European coal prices climbed on cooler
temperatures and supply issues, as winter power
demand picked up following a mild start to
November.
INSIGHT: Gasoline
blending dynamics driving Asia MX and
toluene
By Jun Kai Heng 23-Nov-22 23:13 SINGAPORE
(ICIS)–Mixed xylenes (MX) and toluene prices
in the second half of 2022 have notably become
decoupled from, or even defied, the dynamics of
theIr downstream counterparts and moved more in
line with gasoline blending economics.
IMF
urges China to further recalibrate COVID-19
strategy
By Nurluqman Suratman 23-Nov-22 18:22
SINGAPORE (ICIS)–The International Monetary
Fund (IMF) has urged China to further
recalibrate its COVID-19 strategy and provide
additional support to its beleaguered property
sector to mitigate risks from a global economic
slowdown.
INSIGHT: Sustainability a
double-edged sword for China’s petrochemical
industry
By Yvonne Shi 23-Nov-22 17:00 SINGAPORE
(ICIS)–China’s accelerating sustainability
drive opens doors of opportunity for the
chemicals sector as well as posing challenges.
China’s EVA market
sentiment sluggish, supply exceeds
demand
By Joanne Wang 23-Nov-22 16:29 SINGAPORE
(ICIS)–Supply outstripped demand amid downbeat
sentiment owing to a combination of strict
zero-COVID measures and ample supply from home
and abroad.
South
Korea bracing for another truckers’ strike from
24 November
By Nurluqman Suratman 23-Nov-22 12:52
SINGAPORE (ICIS)–South Korea’s unionised cargo
truck drivers are planning to stage an
indefinite nationwide strike for the second
time this year starting 24 November,
potentially causing manufacturing and supply
chain disruptions at major petrochemical sites.
Singapore 2023 GDP growth
to ease to 0.5-2.5% on weaker external
demand
By Nurluqman Suratman 23-Nov-22 11:19
SINGAPORE (ICIS)–Singapore’s economy is
projected to grow by 0.5% to 2.5% in 2023,
slowing down from the expected growth of around
3.5% this year, on the back of worsening
external demand, official data showed on
Wednesday.
INSIGHT: China’s new
property market policy expected to drive
longer-term demand recovery
By Lina Xu 22-Nov-22 23:03 SINGAPORE
(ICIS)–On 11 November, the People’s Bank of
China and the China Banking and Insurance
Regulatory Commission jointly issued a notice
to financial institutions laying out plans to
ensure the “stable and healthy development” of
the property sector.
PODCAST: China chemicals
demand outlook poor on scheduled shutdowns,
pandemic policies
By Morgan Condon 22-Nov-22 22:13 LONDON
(ICIS)–Global holidays loom large, with
Thanksgiving taking place this week, Christmas
a month away and the Chinese Lunar New Year
celebrations on the horizon, taking place at
the end of January 2023.
Falling crude, feedstocks
weigh on NE Asia polyester; outlook
bearish
By Judith Wang 22-Nov-22 12:22 SINGAPORE
(ICIS)–The recent declines in crude and
feedstock prices have weighed on the spot
polyester export market in northeast Asia, with
the year-end outlook bearish.
China
plans CNY200bn refinancing to help delivery of
pre-sold homes
By Fanny Zhang 22-Nov-22 12:22 SINGAPORE
(ICIS)–China’s central bank is planning to
provide yuan (CNY) 200bn interest-free
refinancing to commercial banks to encourage
them to support delivery of unfinished homes,
the official Xinhua news outlet reported.
INSIGHT: A warm November,
easing costs, benefit Europe’s cracker
operators
By Nigel Davis 22-Nov-22 01:03 LONDON
(ICIS)–Gas-driven energy costs in Europe have
come off spectacular highs but petrochemical
producers in the region are still contending
with the exceptionally difficult operating
environment.
VIDEO: European power
outlook for Winter 2022
By Laura Mendes 21-Nov-22 21:02 LONDON
(ICIS)–The ICIS Power team presents the key
drivers for the remaining of Q4 ’22 and for Q1
’23 in the main
Global weekly spot IPEX
little changed as gains in NE Asia offsets
losses in NW Europe, US Gulf
By Yashas Mudumbai 21-Nov-22 18:42 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) was barely changed in the week, rising
by 0.1% as gains in northeast Asia offset
declines in northwest Europe and the US Gulf.
Asian
currency appreciation attracts limited PE pipe
grade import buying interest
By Hazel Goh 21-Nov-22 17:15 SINGAPORE
(ICIS)–Limited Asia PE black 100 pipe grade
import buying interest emerged from the
appreciation of Asian currencies against the US
dollar.
Crude, China
petrochemical futures, shares tumble on demand
concerns
By Pearl Bantillo 21-Nov-22 17:04
SINGAPORE (ICIS)–Crude prices were extending
their losses on Monday, with declines in China
equities and petrochemical futures markets, due
to demand concerns amid continued lockdowns in
the world’s second-biggest economy caused by
rising COVID-19 cases.
Yansab to shut Saudi
complex for 53 days in ’23 amid poor global
demand
By Pearl Bantillo 21-Nov-22 14:03
SINGAPORE (ICIS)–Yanbu National Petrochemical
Company (Yansab) plans to shut its complex in
Saudi Arabia at the start of 2023, for nearly
two months of turnaround amid weakening global
demand.
India
faces further LNG import decline in 2023 on
greater spot exposure, domestic supply
growth
By Joachim Moxon 21-Nov-22 10:55
SINGAPORE(ICIS)–Indian LNG imports are
tumbling to the weakest levels since 2017 and
could fall again in 2023 as the disruption in a
long-term contract has opened up a significant
supply gap.
Asia
fatty alcohol ethoxylates to remain sluggish on
weak macro conditions
By Helen Yan 18-Nov-22 16:57 SINGAPORE
(ICIS)–Asia’s fatty alcohol ethoxylates (FAEs)
spot market is expected to remain sluggish till
the end of the year due to prevailing weak
macroeconomic conditions and the global
downturn.
China’s phenol faces
headwinds from poor demand, new
capacities
By Yoyo Liu 18-Nov-22 15:16 SINGAPORE
(ICIS)–China’s phenol prices are expected to
fluctuate downwards in the short term as a
result of intensive start-ups of new capacities
and muted downstream demand, said most market
participants.
China
C2 spot buying supported up to year-end; ’23
term talks see slow start
By Yeow Pei Lin 18-Nov-22 10:50 SINGAPORE
(ICIS)–China’s spot ethylene (C2) buying is
expected to remain healthy until at least the
end of the year due to the uncertain term
supply for 2023, downstream capacity growth and
weak domestic methanol-based output.
Asia-US container rates
continue to slide despite increase in blank
sailings
By Adam Yanelli 18-Nov-22 06:44 HOUSTON
(ICIS)–Rates for shipping containers from east
Asia and China to both US coasts fell this week
as waning US consumer demand for goods has
outweighed reduced capacity along the trade
lane.
Production cuts to
continue in European P-series glycol ethers
market
By Cameron Birch 17-Nov-22 23:33 LONDON
(ICIS)–Production curtailments on P-series
glycol ethers already in place for some time
are to continue for the foreseeable future,
with the European market set to see persistent
weakness at the end of the year.
Bulgaria’s Maritsa East
2’s power selling activity to continue in the
near-term
By Luka Dimitrov 17-Nov-22 21:23 LONDON
(ICIS)–Bulgarian coal producer Maritsa East 2
(ME2) is set to continue selling forward power
futures on local exchange IBEX in the near term
as Bulgarian spot price remains high, according
to local market sources.
INSIGHT: Lacklustre
demand from various outlets impacting polyols,
TDI and toluene
By Zubair Adam 17-Nov-22 21:03 LONDON
(ICIS)–Weaker activity from the automotive and
flexible foam industries is impacting the
consumption of polyols and toluene diisocyanate
(TDI), with some additional impacts from the
latter on feedstock toluene due to lower
production. No short term demand recovery is
envisaged for the whole value chain.
Saudi
Aramco to build $7bn Shaheen petrochemical
project in South Korea
By Nurluqman Suratman 17-Nov-22 13:05 SINGAPORE
(ICIS)–Saudi Aramco, through its subsidiary
S-Oil, will build a won (W) 9.3tr ($7bn)
petrochemical project in Ulsan, South Korea
which would include a 1.8m tonne/year
mixed-feed cracking facility.
Rail
strike could fuel recession; US Congress must
act to prevent it – ACC
By Adam Yanelli 17-Nov-22 01:38 HOUSTON
(ICIS)–With the possibility of a rail worker
strike looming, the American Chemistry Council
is urging Congress to take action to prevent it
or risk pushing the US economy closer to a
recession.
Coal
prices climb on mounting supply
fears
By Jack Grant 17-Nov-22 00:29 LONDON
(ICIS)–Profit margins for German coal-fired
power plants continued to fall in week 46, with
front-year margins reaching their lowest level
since July 25 as global supply risks mounted.
Tight
nuclear in France likely to support Q1 ’23
delivery
By Karishma Sadanandan 17-Nov-22 00:06 LONDON
(ICIS)–French power supply margins are likely
to tighten significantly in Q1 ‘23 if, as is
likely, further nuclear maintenance and outages
endure into the first quarter.
PODCAST: Macroeconomics
prove challenging for global chems in 2023,
although some bright spots
remain
By Morgan Condon 16-Nov-22 22:50 LONDON
(ICIS)–After several challenging years in the
wake of the COVID-19 pandemic, volatile
geopolitical conditions and a tough
macroeconomic backdrop mean that things are
unlikely to turn a corner for global chemicals
producers heading into the new year.
INSIGHT: China’s property
rescue plan to boost some
petrochemicals
By Fanny Zhang 16-Nov-22 20:57 SINGAPORE
(ICIS)–China’s latest measures to rescue the
stressed property sector are expected to lift
some petrochemicals, although they are unlikely
to reverse bearish sentiment on the sluggish
property market, according to economists and
analysts.
Europe epoxy under
pressure in Nov; further Dec operational
actions likely
By Heidi Finch 16-Nov-22 19:03 LONDON
(ICIS)–Europe epoxy resins prices are
generally under downward pressure in November,
due to the recent easing in gas and raw
material costs, depressed demand and very
competitively priced Asian product.
China
outlook dims further on fresh COVID-19 surge,
real estate slump
By Nurluqman Suratman 16-Nov-22 13:17 SINGAPORE
(ICIS)–China’s economic outlook just turned
dimmer amid downbeat October data, with surging
domestic COVID-19 infections and slumping real
estate market threatening to aggravate weak
petrochemical demand.
INSIGHT: US refiners
prioritise diesel, limiting base oil
output
By Amanda Hay 16-Nov-22 02:06 HOUSTON
(ICIS)–Several US refiners are maximizing
distillate (diesel and fuel oils) production to
address global shortages and strong demand for
these products – a move that limits base oil
output.
Weak
demand outweighs refined COVID-19 policy,
capping China PP price rise
By Zhibo Xiao 15-Nov-22 16:02 SINGAPORE
(ICIS)–China’s polypropylene (PP) futures
surged following the release of the refined
COVID-19 policy on 11 November, but the market
may still face pressure toward the year-end
amid tepid demand recovery, intensive arrivals
of competitively-priced imports and expected
new plant start-ups.
Prompt prices to support
Dutch power exports to
Germany
By Daniel Muir 15-Nov-22 01:53 LONDON
(ICIS)–Volatile prompt prices and power
production uncertainty in France are likely to
continue to support German imports of Dutch
power throughout winter 2022.
APLA
’22: INTERVIEW: Indorama expects surfactants
demand growth in ag, oil
By Al Greenwood 14-Nov-22 21:00 CANCUN
(ICIS)–Indorama expects surfactants demand in
South America will continue to grow in the
agricultural and energy markets, an executive
said.
Global weekly spot IPEX
ticks higher after gains in all
regions
By Yashas Mudumbai 14-Nov-22 20:05 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) rose by 0.8% on the back of gains in all
three main regions.
INSIGHT: Chemicals
specialisation, focus on sustainability paying
dividends in tough operating
environment
By Nigel Davis 14-Nov-22 19:44 LONDON
(ICIS)–Specialisation and a focus on higher
added value chemicals and services provided
some shelter from the storm for certain
producers in Europe in the third quarter.
Asia
butyl acetate slides to two-year low on tepid
demand
By Melanie Wee 14-Nov-22 17:11 SINGAPORE
(ICIS)–Asia butyl acetate (butac) market
fundamentals were undermined by lacklustre
demand, sending spot prices to a two-year low,
although some pick-up in sentiment may be seen
towards year-end.
China
PC import price at over two-year low; demand
outlook poor
By Li Peng Seng 14-Nov-22 09:34 SINGAPORE
(ICIS)–China’s average import price of
moulding grade polycarbonate (PC) slumped to
more than a two-year low as poor demand
lingered while supply stayed plentiful.
APLA
’22: LatAm PE supply to remain sufficient to
good
By Bruno Menini 13-Nov-22 22:00 CANCUN,
Mexico (ICIS)–Latin America polyethylene (PE)
fourth-quarter supply is expected to remain
sufficient to good for most regional markets
amid normal plant operations and improving US
export availability as logistic challenges
eased, heading into this year’s annual meeting
of the Latin America Petrochemical Association
(APLA).
PODCAST: China’s EVA
producers overhaul plants amid price
routs
By Joanne Wang 11-Nov-22 13:07 SINGAPORE
(ICIS)–ICIS analysts Jady Ma and Joanne Wang
discuss the recent developments in China’s
Ethylene vinyl acetate (EVA) market.
Asia
ethylene little changed as players await
direction from ’23 term
talks
By Yeow Pei Lin 11-Nov-22 11:16 SINGAPORE
(ICIS)–Asia’s ethylene spot import prices for
December-arrival cargoes were broadly stable
this week, as the weak downstream margins and
strong US arrivals continued to be
counterbalanced by limited regional supply.
Bearish sentiment
dominates Asia November petrochemical
markets
By Amy Yu 11-Nov-22 10:29 SINGAPORE
(ICIS)–Bearish sentiment in Asian
petrochemical markets has risen due to weak
demand from late October, and we expect prices
of most products in the region to remain on a
downward trend in November.
German Cal ’23 facing
downward revision on bearish
fundamentals
By Daniel Muir 11-Nov-22 00:47 LONDON
(ICIS)– The German power front-year baseload
contract looks set to continue its downward
revision towards expiry on bearish winter ’22
fundamentals.
Europe capro and nylon 6
demand to stay weak
By Marta Fern 10-Nov-22 23:58 LONDON
(ICIS)–Europe caprolactam (capro) and nylon 6
demand is expected to stay subdued in November
and December and output curtailed, limiting
overproduction.
INSIGHT: Imminent US
slowdown piles up problems for Mexican
chems
By Al Greenwood 10-Nov-22 23:16 HOUSTON
(ICIS)–The imminent downturn in the US economy
will slow growth in Mexico, lowering demand for
plastics and chemicals in an industry that
can’t get enough feedstock.
Europe’s energy-intensive
chemicals could reach ‘point of no return’:
Brenntag CEO
By Will Beacham 10-Nov-22 22:50 BARCELONA
(ICIS)–Europe’s energy-intensive chemical
sector and value chains could reach the “point
of no return” as they operate at an increasing
cost disadvantage to other regions, according
to the CEO of Brenntag, the world’s largest
distributor of chemicals.
Brenntag to double
M&A war chest, expand digital
focus
By Will Beacham 10-Nov-22 22:11 BARCELONA
(ICIS)–Brenntag has doubled its annual mergers
& acquisitions (M&A) budget with an eye
to investing beyond the chemicals distribution
space to enhance its data and technology
offering.
Saudi
Arabia H1 2022 PE exports increase year on
year
By Nadim Salamoun 10-Nov-22 16:07 DUBAI
(ICIS)–Latest available data on the ICIS
Supply and Demand Database showed that Saudi
Arabia’s polyethylene (PE) exports during the
first half of 2022 increased year on year by
5.6% from a total of 4,584,012 tonnes to a
total of 4,842,267 tonnes.
VIDEO: China faces strong
gasoil demand, gasoline demand
softening
By Floria Dai 10-Nov-22 15:51 SINGAPORE
(ICIS)–Watch industry analyst Floria Dai
discuss China’s gasoline and gasoil market
which have seen varying trends in wholesale
prices.
Asia
naphtha slumps on poor downstream margins,
maintenance shutdowns
By Melanie Wee 10-Nov-22 15:13 SINGAPORE
(ICIS)–Asia naphtha markets could remain
undermined by bearish conditions, generating
downward pressure on spot prices.
Asia
BDO retreats on poor demand, weak domestic
China market
By Clive Ong 10-Nov-22 11:27 SINGAPORE
(ICIS)–The Asian 1,4-butanediol (BDO) market
trended lower as demand in the region
dissipated amid a poor economic outlook. Some
participants believe that demand in the region,
in particular China, could remain weak until
after the Lunar New Year in late January.
China, India
ethanolamines markets under downward pressure
as demand wanes
By Clive Ong 10-Nov-22 14:28 SINGAPORE
(ICIS)–The ethanolamines markets in China and
India remain under downward pressure amid
prevailing weak demand and ample supply.
British industrial demand
to remain below previous
years
By ICIS Editorial 10-Nov-22 01:05 LONDON
(ICIS)–Despite recent pressure to NBP
Day-ahead and front month gas prices, a return
to high levels of industrial offtake in Britain
is unlikely, ICIS analysis shows.
INSIGHT: Some recent
energy cost relief for Europe but demand
outlook poor
By Nigel Davis 10-Nov-22 00:35 LONDON
(ICIS)–ICIS price-based indexes have tracked
down in the second half of the year
with significant
falls pushing year on year comparison
deeply negative.
INTERVIEW: Chemical
industry must attract talent to tackle world’s
big challenges – Dow CEO
By Joseph Chang 09-Nov-22 23:42 NEW YORK
(ICIS)–The chemical industry needs to attract
qualified people to solve some of the world’s
greatest challenges such as decarbonisation,
the CEO of Dow said.
German front year clean
darks hit 3-month low
By Jack Grant 09-Nov-22 23:16 LONDON
(ICIS)–Front year profit margins for German
coal-fired power plants continued to fall going
into week 45, reaching the lowest level since
July, despite fuel costs falling and becoming
less expensive relative to revenue.
PODCAST: European
companies resume imports and gas injections in
Ukraine
By Aura Sabadus 09-Nov-22 21:14 LONDON
(ICIS)– Ukrainian energy companies are facing
one of their toughest winters ever, scrambling
to repair infrastructure damaged by ongoing
Russian missile attacks ahead of winter and
secure financial resources to keep the energy
system running. Despite the risks, European
companies are importing and injecting gas in
storage, taking advantage of falling gas prices
and Ukraine’s large available capacity.
Thailand’s PTTGC swings
to Q3 net loss amid weaker petchem
margins
By Nurluqman Suratman 09-Nov-22 16:22
SINGAPORE (ICIS)–PTT Global Chemical (PTTGC)
swung to a net loss of Thai baht (Bt) 13.4bn in
the third quarter amid weaker petrochemical
spreads, the Thai producer said on Wednesday.
Asia
petrochemical markets mixed amid high
inflation
By Felicia Loo 09-Nov-22 14:28 SINGAPORE
(ICIS)–Asia’s petrochemical markets were mixed
amid economic headwinds and dampening
consumption in China amid a slowing economy,
with no let-up on its harsh zero COVID-19
policy, dampening consumption.
SE
Asia MTBE supply shortage keeps export window
for China open
By Keven Zhang 09-Nov-22 12:38 SINGAPORE
(ICIS)–Supply of methyl tertiary butyl ether
(MTBE) tightened in Asia due to low production
and plant issues, keeping China’s export window
to the region wide open.
Dull
outlook for India synthetic rubbers import
talks amid declining offers
By Ai Teng Lim 09-Nov-22 11:29 SINGAPORE
(ICIS)–Discussions for Indian imports of
various synthetic rubbers, from
styrene-butadiene-rubber (SBR) to polybutadiene
rubber (PBR), may stay under pressure in the
near term, as import offers are softening amid
stiffer competition for market share.
INSIGHT: ICIS price
indexes continue extended downtrend on demand
concerns
By Nigel Davis 09-Nov-22 01:18 LONDON
(ICIS)–ICIS petrochemical indexes started to
turn down in mid year, with the NE Asia IPEX
taking a lead on coronavirus lockdowns and
deepening concern about China’s rate of
economic growth.
PODCAST: Asia IPA tight
despite weak demand also seen in Europe and
US
By ICIS Editorial 08-Nov-22 19:58 LONDON
(ICIS)–Demand for isopropanol (IPA) is
globally soft, though tight supply in Asia has
contributed to continued limited exports to
Europe.
Philippines’ Petron
Jan-Sept net profit surges; to build
coco-methyl ester plant
By Pearl Bantillo 08-Nov-22 15:08
SINGAPORE (ICIS)–Petron Corp posted a 64%
year-on-year increase in nine-month net profit
on the back of higher fuel demand even as
recession fears drove down oil prices in the
third quarter, the Philippine refiner said on
Tuesday.
Supply uncertainty drives
risk premium towards Dutch TTF gas curve and
away from the prompt
By Rob Dalton 08-Nov-22 00:06 LONDON
(ICIS)–Since the outbreak of conflict between
Russia and Ukraine, much of the risk premium
which was attached to the Dutch TTF gas prompt
has shifted to the curve in the second half of
the year amid supply uncertainty to the
continent.
HYDRO
MONTHLY: Less rain across continental Europe to
limit hydro stocks levels
By Laura Mendes 07-Nov-22 23:18 LONDON
(ICIS)–Lower precipitation levels than
previously anticipated throughout continental
Europe is set to decrease hydropower supply in
the region during November. This could provide
some upside for wholesale electricity prompt
prices in the near term, particularly if supply
margins tighten elsewhere.
PODCAST: India’s PVC
market sees bearish sentiment, weak
demand
By Damini Dabholkar 07-Nov-22 22:21
SINGAPORE (ICIS)–India’s polyvinyl chloride
(PVC) market has been on a steady downtrend
over the last year. In this podcast, PVC editor
Damini Dabholkar discusses recent developments
and what lies ahead for PVC.
Germany’s gas-thirsty
chemicals still at risk of shutdowns –
analysts
By Jonathan Lopez 07-Nov-22 20:09 MADRID
(ICIS)–Risks of shutdowns in German chemicals
plants dependent on natural gas for electricity
production during the winter remain, despite
storage levels at highs and gas prices in
Europe easing, according to analysts at Oxford
Economics.
Global weekly spot IPEX
down on decreases across
regions
By Yashas Mudumbai 07-Nov-22 18:14 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) fell by 2.3% on the back of declines
across all regions.
Asia
ethyl acetate markets face bearish times,
demand sluggish
By Melanie Wee 07-Nov-22 16:33 SINGAPORE
(ICIS)–Asia ethyl acetate (etac) markets could
see a downbeat demand scenario in the coming
days, faced with waning economic conditions.
NE Asia C2 sellers seek higher prices
for spot Dec cargoes; buyers
hesitant
By Yeow Pei Lin 04-Nov-22 13:47 SINGAPORE
(ICIS)–Spot ethylene (C2) buyers in China and
Taiwan headed for the sidelines due to higher
selling price indications for December-arrival
cargoes and falling downstream margins.
China BD import discussions stall on domestic
market losses; outlook mixed
By Ai Teng Lim 04-Nov-22 11:47 SINGAPORE
(ICIS)–Discussions in China for butadiene (BD)
imports stalled after domestic prices in the
country plummeted early in the week.
UK
power divergence to NBP dynamics likely to
subside
By Jack Grant 04-Nov-22 01:46 LONDON
(ICIS)–Price signals and fundamental
indicators suggest that the previous divergence
between UK power and equivalent NBP contracts
has likely subsided despite supply risks in the
first quarter of 2023.
INSIGHT: Greater
commitment needed to move climate dial
further
By Nigel Davis 04-Nov-22 01:33 LONDON
(ICIS)–The world is nearing ‘peak oil’ and,
indeed, the peak of demand for all fossil fuels
as the drive to abate rampant climate change
continues.
PODCAST: Weak MEK demand
across Europe and Asia, previous short supply
supports US demand
By Nick Cleeve 04-Nov-22 00:59 LONDON
(ICIS)–Demand for MEK is weak in Europe amid
softer natural gas and energy pricing, while
China’s ongoing zero-Covid policy is limiting
activity in Asia.
Profitability and prices
slide further, supply concerns
mount
By Jack Grant 03-Nov-22 00:23 LONDON
(ICIS)–Rolling front-month profit margins for
German coal-fired power plants plummeted going
into week 44, reaching the lowest level since 9
June, before resurging into the opening of
November.
K
FAIR ’22 PODCAST: “Less gloomy” than expected
but pessimism clear for Europe’s PE, PP, EVA,
PET markets
By Vicky Ellis 03-Nov-22 20:52 LONDON
(ICIS)–After two long years in the shadow of
COVID-19, many will have felt things are back
to normal as they returned to meetings in
person in October at K, the plastics and rubber
trade fair that filled the halls of
Dusseldorf’s Messe.
INSIGHT: Asia October PMIs point to
broadening export downturn
By Nurluqman Suratman 02-Nov-22 17:21 SINGAPORE
(ICIS)–Amid falling new orders and inventory
build-up, Asia’s export downturn is broadening
with the latest data pointing to further
weakness in factory activity across the region.
Asia glycerine suppliers target China
amid oversupply, Europe demand
slump
By Helen Yan 03-Nov-22 13:07 SINGAPORE
(ICIS)–Asia’s glycerine suppliers are
targeting the Chinese market amid an oversupply
from increased biodiesel output and slumping
demand in Europe.
INSIGHT: More pain for
chemicals as US Federal Reserve has ‘a ways to
go’ on rate hikes
By Joseph Chang 03-Nov-22 06:25 NEW YORK
(ICIS)–US and global chemical producers will
likely see more pain ahead as the US Federal
Reserve still has a “ways to go” in its
tightening cycle to bring inflation down to its
2% target. It’s not pausing or pivoting, and
not budging from its target.
Asian recyclers seek balance between feedstock
security, storage
constraints
By Arianne Perez 02-Nov-22 17:21 SINGAPORE
(ICIS)–Asian producers of recycled
polyethylene terephthalate (R-PET) and recycled
polyethylene (R-PE) require a delicate balance
between continuous purchases of feedstock while
avoiding full storage capacities at plants.
China’s Oct petchem market falls on oversupply,
poor confidence
By Yvonne Shi 02-Nov-22 12:57 SINGAPORE
(ICIS)–China’s petrochemical market fell
significantly in October. As of October 31, the
ICIS China Petrochemical Price Index (which
tracks 17 commodities) dropped 5.4% from
September 30 to close at 1220.11 points.
POWER
MONTHLY INDICES: Winter supply risk subsides
amid bearish weather signals
By Jack Grant 01-Nov-22 23:56 LONDON
(ICIS)—Fading supply risk across European
wholesale electricity markets, underpinned by
bearish weather forecasts, resulted in the
majority of November ’22 indices outturning
below their October ’22 counterparts.
INSIGHT: New prospects for China’s
petrochemical industry following 20th Party
Congress
By Joey Zhou 01-Nov-22 19:26 SINGAPORE
(ICIS)–China aims to shift its economy from
“high-speed” growth” towards “high quality”
growth, president Xi Jinping said in a report
at the opening session of the 20th National
Congress of the Communist Party of China on 16
October. The report lays out the country’s
development objectives for 2035, with the goal
of “significantly increasing economic strength,
scientific and technological capabilities, and
composite national strength”.
INSIGHT: Weak global demand to continue
dampening China PE market
confidence
By Joanne Wang 01-Nov-22 11:00 SINGAPORE
(ICIS)–Bearish domestic and overseas demand
may continue to dampen confidence in China’s
polyethylene (PE) market in the fourth quarter,
or even in 2023.
NE
Asia propylene tumbles on poor demand, upstream
in focus
By Julia Tan 01-Nov-22 17:57 SINGAPORE
(ICIS)–The average price for spot propylene
(C3) imports in northeast Asia fell in the week
ended 28 October, tracking losses in the
Chinese domestic spot markets.
US
caustic soda likely to remain in tight supply
through Q4 and into 2023
By Bill Bowen 01-Nov-22 06:41 HOUSTON
(ICIS)–Two separate factors appear likely to
keep the US liquid caustic soda market tightly
supplied for the coming months, according to an
emerging market consensus.
INSIGHT: Crashing gas
spurs fertilizer ramp up, petchems still
shuttered
By Deepika Thapliyal 01-Nov-22 01:07
LONDON (ICIS)–Around a third of European
ammonia production which shut down over the
summer has reportedly ramped up in October,
although overall gas demand remained subdued,
ICIS research shows.
Asia’s caustic soda spot supply to improve as
arbitrage demand cools
By Jonathan Chou 31-Oct-22 17:25 SINGAPORE
(ICIS)–Slowing arbitrage demand from Europe
for Asian spot material of liquid caustic soda
may lead to improved supply in Asia, while
near-term spot demand in Asia is likely to be
capped amid macroeconomic challenges.
Saudi Arabia’s SABIC Q3 net profit falls 67.1%
amid higher costs
By Nurluqman Suratman 31-Oct-22 11:34
SINGAPORE (ICIS)–Saudi petrochemicals major
SABIC posted a 67.1% year-on-year drop in its
third quarter net profit on the back of higher
costs despite an increase in sales volumes.
Asia
MEG prices plunge to a two-year low; outlook
bearish
By Judith Wang 28-Oct-22 15:14 SINGAPORE
(ICIS)–Asia’s monoethylene glycol (MEG) weekly
prices plunged to a two-year low during the
week amid weak downstream performance, while
the market outlook is expected to remain
bearish amid rising supply and low year-end
demand.
China
to continue facing strong gasoil demand, soft
gasoline demand in near term
By Floria Dai 28-Oct-22 12:31 SINGAPORE
(ICIS)–China is likely to continue facing
robust gasoil demand and weak gasoline demand
in the near-term, which has seen divergent
trends in wholesale prices for gasoil and
gasoline despite the upward adjustment in
retail ceiling prices on 25 October.
China
C2 import appetite strong despite weak
downstream margins
By Yeow Pei Lin 28-Oct-22 12:06 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene (C2)
import prices were underpinned by restocking
demand in China even as the country’s domestic
downstream prices suffered further declines
this week.
INSIGHT: A new world for
Asia olefins as capacity surges, demand remains
uncertain
By Amy Yu 28-Oct-22 12:00 SINGAPORE
(ICIS)–The Asia olefins industry is witnessing
a new world of significantly squeezed
margins for all producers, with incremental
capacity addtions set against the backdrop of
weak demand.
High
inventories, weak demand weigh on US
propylene
By John Donnelly 28-Oct-22 01:29 HOUSTON
(ICIS)–The US propylene market continues to be
well-supplied and is looking at continued weak
derivative demand through Q4.
European acrylate esters
continue to see destocking amid wider
uncertainties
By Mathew Jolin-Beech 28-Oct-22 01:20
LONDON (ICIS)–The European acrylate ester
markets are expected to see destocking continue
while the wider macro-economic uncertainties
continue.
Low
prices may limit future German onshore
subscriptions
By Daniel Muir 28-Oct-22 01:07 LONDON
(ICIS)–Concerns amongst onshore wind power
project participants suggest that the current
environment for project development could see
future German onshore wind auctions be
significantly undersubscribed.
INSIGHT: M&A to be
big part of chem’s shift to
sustainability
By Al Greenwood 28-Oct-22 00:18 HOUSTON
(ICIS)–Mergers and acquisitions (M&A) will
play a big part in what Deloitte Consultancy
sees as a pivotal moment in the chemical
industry, which will increasingly focus on
sustainability and securing supply chains.
European LNG sendout to
remain elevated early
November
By Christopher Rene 27-Oct-22 21:21 LONDON
(ICIS)–Persistently high LNG sendout is
forecast from the start of November with
unseasonably high regasification volumes
contributing to the erosion of supply risk from
shorter-dated European gas contracts
late-October.
K
Fair ‘22: Cost saving key for Europe TiO2
players in challenging
climate
By Heidi Finch 27-Oct-22 18:59 LONDON
(ICIS)–Cost saving is vital in the fourth
quarter and into 2023 in the Europe titanium
dioxide (TiO2) market, as demand is falling and
economic conditions are worsening, as discussed
by players at K Fair.
INSIGHT: China PP export
outlook – 1, trending to be a major, global
exporter
By Lucy Shuai 27-Oct-22 18:41 SINGAPORE
(ICIS)–China is trending to be a major, global
exporter of polypropene (PP) in view of massive
domestic capacity start-ups and supply pressure
that needs to find export outlets.
Asia
Group II base oils supply to be reduced until
year-end
By Matthew Chong 27-Oct-22 15:20 SINGAPORE
(ICIS)–Asia’s Group II base oils spot supply
is expected to shrink until at least the
year-end, after having been in relative
abundance from June to September earlier this
year.
Global fossil fuel demand
approaching peak – IEA
By Tom Brown 27-Oct-22 12:00 LONDON
(ICIS)–Global demand may be approaching a peak
or plateau for all fossil fuels based on
current government policy frameworks, the
International Energy Agency (IEA) said on
Thursday, with consumption potentially set to
recede in the decades ahead.
S
Korea Q3 GDP grows by 3.1% on household
consumption, construction
growth
By Nurluqman Suratman 27-Oct-22 10:39
SINGAPORE (ICIS)–South Korea’s economy grew by
3.1% year on year in the third quarter on the
back of stronger household consumption and a
recovery in the construction sector,
preliminary official data showed on Thursday.
Weak
derivative markets pulling down US
ethylene
By John Donnelly 27-Oct-22 04:06 HOUSTON
(ICIS)–The ethylene market continues to be
long with ample supply and spot prices near
ethane cracking costs. This is likely to
continue through at least the first part of Q4.
Spanish power discount to
France to maintain exports
By Daniel Muir 27-Oct-22 01:05 LONDON
(ICIS)–Large discounts between the Spanish and
French Q1 products are likely to continue to
support Spanish power exports through the
winter.
INSIGHT: BASF expecting
extremely volatile markets and further
uncertainty
By Nigel Davis 26-Oct-22 23:54 LONDON
(ICIS)–BASF is sticking with its 2022
financial forecasts and is targeting earnings
at the upper end of its €6.8-7.2bn range for
earnings before interest and tax (EBIT), a
steep fall on last year, but is having to be
creative in the way it handles the energy
crisis in Europe and the wider global economic
downturn.
Some
EU firms resume Ukraine storage injections to
clear supply overhang
By Aura Sabadus 26-Oct-22 23:49 LONDON
(ICIS)–Some EU-based companies have resumed
gas injections in Ukrainian storage as hub
prices have been falling and markets are facing
a supply overhang, several traders told ICIS.
Asia
PVC likely to see muted demand, healthy supply
in the short term
By Jonathan Chou 26-Oct-22 16:52 SINGAPORE
(ICIS)–Regional spot demand for polyvinyl
chloride (PVC) in Asia is likely to remain
muted on the back of recession fears and rising
inflation, while availability is expected to
stay healthy in the short term.
Asia
EDC demand to stay weak while deep-sea supply
grows
By Jonathan Chou 26-Oct-22 12:57
SINGAPORE(ICIS)–Asia’s spot ethylene
dichloride (EDC) demand is being weighed down
by sluggish downstream polyvinyl chloride (PVC)
market, while spot availability of the
intermediate chemical is likely to improve
toward the end of the year.
US
epoxy resins softening as market tries to gauge
2023 demand
By Tarun Raizada 26-Oct-22 06:14 HOUSTON
(ICIS)–US epoxy resins continued to be
pressured in October due
to aggressively-priced imports and slowing
demand tied to seasonal and economic headwinds.
Extension of UK nuclear
fleet would cut gas, import
reliance
By Jack Grant 26-Oct-22 00:55 LONDON
(ICIS)–EDF Energy recently announced it was
considering extending the life of two of the
UK’s nuclear plants, with a combined capacity
of 2.4GW, given the severity of the energy
crisis that has developed over the last 12
months.
PODCAST: Global chemicals
loses China as engine of demand
growth
By Will Beacham 25-Oct-22 22:10 BARCELONA
(ICIS)–China’s economic growth will continue
at low levels, removing a major source of
expanding demand for the global chemical
sector.
NE
Asia polyester extends losses on lower
feedstock cost, sluggish
demand
By Judith Wang 25-Oct-22 12:35 SINGAPORE
(ICIS)–Spot polyester prices in northeast Asia
weakened further, weighed down by lower
feedstock cost and an overall sluggish demand
for downstream textiles.
Singapore eyes hydrogen
developments to achieve net zero emissions by
2050 – minister
By Nurluqman Suratman 25-Oct-22 11:20
SINGAPORE (ICIS)–Singapore is aiming to
develop hydrogen to supply up to half of its
power needs by 2050 in a bid to accelerate its
ambitions for net zero emissions, a senior
government official said on Tuesday.
INSIGHT: Asia C3 to face
headwinds in fourth quarter
By Julia Tan 25-Oct-22 10:00 SINGAPORE
(ICIS)–The Asian propylene market is facing
headwinds as it steps into the fourth quarter
as demand looks likely to remain weak until the
end of the year on poor derivative margins.
Europe methanol storage
terminals at capacity, lengthy market
conditions for November
By Eashani Chavda 25-Oct-22 00:53 LONDON
(ICIS)–European methanol storage terminals are
full in late October, driving lengthy market
conditions heading into November.
K
Fair ‘22: Europe BPA Q4 demand low, cautious
support for early 2023
By Heidi Finch 24-Oct-22 22:38 LONDON
(ICIS)–Europe bisphenol A (BPA) demand is
downbeat in the fourth quarter, on
macroeconomic woes, the low season and residual
energy cost impacts.
INSIGHT: Europe readies
for winter without Russian gas, chemicals may
avoid rationing
By Will Beacham 24-Oct-22 19:00 BARCELONA
(ICIS)–Europe’s chemical sector may not suffer
mandatory cuts to natural gas consumption this
winter, unless exceptionally cold weather
boosts domestic heating demand significantly.
K
Fair ’22: Solvay materials unit spared from
downturn on healthy aerospace, defence
sectors
By Jonathan Lopez 24-Oct-22 15:56
DUSSELDORF, Germany (ICIS)–Solvay’s Materials
division has so far been spared from a downturn
on the back of healthy order books from the
aerospace and defence industries, according to
an executive of the Belgium-headquartered
chemicals major.
Some EU firms resume Ukraine storage injections to clear supply overhang
By Aura Sabadus 26-Oct-22 16:49 LONDON (ICIS)–Some EU-based companies have resumed gas injections in Ukrainian storage as hub prices have been falling and markets are facing a supply overhang, several traders told ICIS.
October European LNG imports could be
second highest ever
By Christopher Rene 20-Oct-22 22:39 LONDON
(ICIS)–European LNG imports are in line to hit
a seven-month high for October, narrowly
missing out on the all-time monthly high of 11m
tonnes recorded in April this year.
K Fair ‘22: Europe TiO2 market and
downstream hope adapting to challenges will
bring stability
By Heidi Finch 20-Oct-22 20:44 DUSSELDORF
(ICIS)–Strict operational and supply
management in the Europe titanium dioxide
(TiO2) and downstream markets is vital, amid a
challenging cost and demand environment, as
players long for much needed stability in these
areas, according to sources at the K Fair.
Germany
manufacturing input shortages could last beyond
mid-term shocks – ifo
By Tom Brown 18-Oct-22 16:05 LONDON
(ICIS)–Material shortages for Germany’s
manufacturing sector could last beyond current
disruptions, a researcher at economics
institute ifo said on Tuesday, with structural
changes set to persist and production
potentially set to decline.
Input shortages that have dogged the manufacturing sector in the country are likely to last beyond the COVID-19 pandemic and the Russia-Ukraine war, according to ifo researcher Joachim Ragnitz.
K Fair ‘22:
Europe R-PET market faces tough and
unpredictable Q4
By Matt Tudball 18-Oct-22
14:00 LONDON (ICIS)–The European recycled
polyethylene terephthalate (R-PET) market has
entered one of the most turbulent periods in
its history as industry veterans and newcomers
alike struggle to predict the outlook as they
meet at the K Plastics Fair.
In a case of ‘be careful what you wish for’, the R-PET market has gone from tight supply and record-high prices in the first half of the year to massive oversupply, slow demand, and record-breaking price drops in October.
US LNG surpasses
Russian natural gas flows to Europe for the
first time
By Edward Cox 17-Oct-22 16:27 LONDON
(ICIS)–US LNG supply to Europe exceeded
combined Russian gas and LNG for the first time
in September, with the trend likely to continue
based on forward market price spreads.
US LNG provided 5.3 billion cubic metres (bcm) of gas in September, with total Russian supply at 3.7bcm.
Asia
FAE market to remain
sluggish in Q4 on economic slowdown and
uncertainties
By Helen Yan 14-Oct-22 16:13 SINGAPORE
(ICIS)–Asia’s fatty alcohols ethoxylates (FAE)
market is expected to remain sluggish in the
fourth quarter amid a global economic slowdown
and gloomy macroeconomic outlook.
INSIGHT: Europe chemicals
pressured by costs, challenged by
demand
By Nigel Davis 14-Oct-22 16:00 LONDON
(ICIS)–Chemical producers in Europe know they
are facing a tough winter given exceptionally
high natural gas and electricity prices and
high oil-based feedstock costs but the collapse
in demand in late summer gives them even
greater cause for concern.
Singapore Q4 GDP growth
slows to 4.4%, monetary policy
tightened
By Nurluqman Suratman 14-Oct-22 11:37
SINGAPORE (ICIS)–Singapore’s central bank on
Friday tightened its monetary policy to dampen
persistent price pressures which has slowed its
economy to a year-on-year growth of 4.4% in the
fourth quarter.
NE
Asia C2 rebounds; China MTO output cuts boost
post-holiday import demand
By Yeow Pei Lin 14-Oct-22 10:42 SINGAPORE
(ICIS)–Northeast Asia’s spot ethylene (C2)
import prices rose for the first time in five
weeks, aided by post-holiday restocking demand
in China, limited spot offers for November and
the rising cost of US supply.
INSIGHT: Demography to
determine chemical demand – prepare for a
slower growth world
By Kevin Swift 14-Oct-22 03:25 CHARLOTTE,
North Carolina (ICIS)–From a demand side,
population determines the size of markets. It
is why companies have been attracted to China
and all those consumers. Moreover, the age
composition of the population, incomes, and the
development of downstream durable and
non-durable end-use markets, and other factors
also impact plastic resin demand.
Norway power production
tax risks investment
By Daniel Muir 14-Oct-22 00:23 LONDON
(ICIS)– Norway’s proposed power price tax
could have contrasting impacts on project
investment across the country’s bidding zones,
producers have told ICIS.
Increasing Dutch LNG
supply helps cover domestic gas
demand
By Marta Del Buono 13-Oct-22 18:19 LONDON
(ICIS)–Dutch LNG sendout in the country’s
supply mix, as well as at European level, will
represent a greater share going forward as
Russian flows to the continent have been
dropping over the past months.
2023
refinery solvents demand to reverse 2022
pattern
By Jane Gibson 13-Oct-22 17:41 LONDON
(ICIS)–Refinery solvents markets will see a
year of two halves in 2023, with the second
half expected to see a more positive outlook,
reversing the trend seen in 2022. However,
natural gas costs, downstream demand and
volatile feedstocks will remain on the
watchlist all year.
INSIGHT: Wall Street
turns more negative on TiO2 outlook on weakness
in Europe and China
By Joseph Chang 13-Oct-22 03:59 NEW YORK
(ICIS)–Wall Street analysts are turning more
negative on the outlook for titanium dioxide
(TiO2) producer earnings as demand weakens,
especially in Europe and China. While pricing
has held up in the US and Europe thus far,
downward pressure is building.
US
Plug mulls green ammonia shipments to
Europe
By Al Greenwood 13-Oct-22 03:28 HOUSTON
(ICIS)–The US green hydrogen company Plug is
thinking about some type of project that could
develop plants in Europe that would extract
hydrogen from green ammonia shipped from the
US, the CEO said on Wednesday.
EU
adds NPK, MOP, nitrates to Russian export
sanctions list
By Andy Hemphill 12-Oct-22 23:50 LONDON
(ICIS)–The European Commission’s (EC) latest
list of products sanctioned for export from
Russia to the EU has been extended to include
phosphate fertilizers, alongside muriate of
potash (MOP), nitrates, and nitrogen,
phosphorus, potassium (NPK) blends.
UK
facing two-hour daily peak demand window with
less French import potential
By Anna Coulson 12-Oct-22 23:37 LONDON
(ICIS)–French power grid operator RTE’s
assertion that France should be able to export
power during peak times this winter to the UK
may not apply to some evening peak hours.
Canada chemicals monitor
fallout from China slowdown, Ukraine war –
exec
By Stefan Baumgarten 12-Oct-22 23:21
TORONTO (ICIS)–Canada’s chemical industry is
“carefully watching” as the slowdown in China
and economic
weakness elsewhere in Asia have
created pricing pressures on some chemical
commodities, the CEO at the Chemistry Industry
Association of Canada (CIAC) said to ICIS.
IMF
trims developing Asia growth outlook on China
weakness
By Nurluqman Suratman 12-Oct-22 12:46
SINGAPORE (ICIS)–The International Monetary
Fund (IMF) has trimmed its economic growth
forecast for emerging and developing Asian
economies on account of China’s slowdown.
S
Korea raises benchmark interest rate to 10-year
high of 3%
By Nurluqman Suratman 12-Oct-22 12:40
SINGAPORE (ICIS)–South Korea’s central bank on
Wednesday raised its key interest rate by half
a percentage point to a 10-year high of 3% as
inflationary pressures, fuelled by a strong US
dollar, continue to weigh on its economy.
INSIGHT: Petchems dealing
with bottom of cycle conditions, challenged to
the core by sustainability
By Nigel Davis 11-Oct-22 23:12 LONDON
(ICIS)–Petrochemical producers globally are
having to deal with bottom of the cycle
conditions alongside the distortion primarily
created by Russia’s war in Ukraine. It has,
therefore, been very much a question of
managing through the trough and streamlining
costs to more effectively match customer
demand.
NE
Asia C3 short-term demand outlook
bleak
By Julia Tan 11-Oct-22 19:27 SINGAPORE
(ICIS)–Spot prices for northeast Asian
propylene imports firmed on Tuesday on recent
upstream gains and firmer derivative futures,
but market participants underlined that the
short-term demand outlook for the market
remains bleak.
China
September petrochemical markets up; demand
outlook still bleak
By Yvonne Shi 11-Oct-22 14:16 SINGAPORE
(ICIS)–China’s petrochemical markets were
mostly higher in September on supply tightness
in some products and aided by pre-holiday
restocking, but overall demand is not expected
to improve by much in the coming months.
Tight
supply persists for SE Asian solvent-grade
MX
By Jun Kai Heng 11-Oct-22 12:29 SINGAPORE
(ICIS)–Supply tightness in southeast Asia for
solvent-grade mixed xylenes (MX) brought about
by low regional production levels and a lack of
feasible import options continued to plague
buyers.
EPCA
’22: Bearish outlook for Europe styrene market
for Q4, at least
By Fergus Jensen 11-Oct-22 06:10 LONDON
(ICIS)–Heightened bearish sentiment has
dominated the European styrene market in recent
months and threatens to continue to overshadow
consumption through to the end of 2022, as the
broader market grapples with high inflation,
spiking energy costs and expectations of a
recession in several regions.
EPCA
’22: European MEG supply could be limited in Q4
on imports, local cuts; demand remains
uncertain
By Melissa Hurley 11-Oct-22 01:56 LONDON
(ICIS)–European monoethylene glycol (MEG)
market players have faced a challenging 2022
and there are mixed expectations for the end of
the year and beyond.
Global weekly spot IPEX
slightly up on rises in NE Asia, NW
Europe
By Miguel Rodriguez Fernandez 10-Oct-22
23:34 LONDON (ICIS)–The weekly ICIS
Petrochemical Index (IPEX) rose by 0.1%,
supported by a rise in northeast Asia and
northwest Europe spot prices.
EPCA
’22: Europe polyol demand stymied by TDI
shortages, demand forecast weaker in
‘23
By Zubair Adam 10-Oct-22 23:27 LONDON
(ICIS)–Demand for polyether polyols is
currently somewhat hindered by the shortage of
supply of toluene diisocyanate (TDI) in Europe,
with some projections for overall consumption
to be weaker in 2023.
ICE
Futures US to trade ICIS-linked Europe ethylene
monthly contracts
By Nel Weddle 10-Oct-22 20:24 LONDON
(ICIS)–The Intercontinental Exchange (ICE) has
launched its first Europe ethylene futures
contracts.
EPCA
22: INSIGHT: Europe BDO costs bite and demand
concerns grip the market
By Katherine Sale 10-Oct-22 17:00 BERLIN
(ICIS)–Uncertainty reigns in the European
butanediol (BDO) market, with local sellers hit
by potential market changing costs, and demand
looking to fall off a cliff from November.
Asia
PP import appetite marred by weak local
currencies, possible supply
lengthening
By Jackie Wong 07-Oct-22 15:05 SINGAPORE
(ICIS)–Southeast Asia’s import appetite for
polypropylene (PP) continues to be marred by
soft domestic currencies against the US dollar,
and the possible lengthening of supply from
October onwards would likely pile on the
pressure.
Asia
BD stays under pressure; demand outlook
hazy
By Ai Teng Lim 07-Oct-22 11:22 SINGAPORE
(ICIS)–Asia’s spot discussions for butadiene
(BD) were muted this week with many regional
outlets inactive amid various holidays,
including a week-long closure in China from 1-7
October.
US
labour market to remain tight even as economy
heads into recession – ICIS
economist
By Joseph Chang 07-Oct-22 04:28 NEW YORK
(ICIS)–The US labour market will continue to
be relatively tight, even with the economy
likely heading into a recession, according to
the ICIS senior economist.
INSIGHT: So far, chem
earnings highlight drag from Europe, Asia,
energy
By Al Greenwood 06-Oct-22 23:27 HOUSTON
(ICIS)–A surge in profit warnings from
chemical companies has cited high energy prices
as well as weakness in Europe and Asia as the
main reasons why producers cut their guidance
for the third quarter and for the full year.
EPCA
’22: Europe olefins preparing for the worst,
production cuts key
By Nel Weddle 06-Oct-22 21:47 BERLIN
(ICIS)–Every conversation on the sidelines of
the European Petrochemical Association (EPCA)
meeting has been the same – anyone hoping to
find some positives or even just some clarity
among all the pessimism over the months ahead
will likely not have been too successful.
Thailand’s SCG Chemicals
IPO gets SEC nod; eyes listing in
2023
By Pearl Bantillo 06-Oct-22 17:26
SINGAPORE (ICIS)–SCG Chemicals’ (SCGC)
planned initial
public offering (IPO) has secured
approval from Thailand’s Securities and
Exchange Commission (SEC), but its launch may
not happen this year, its parent firm Siam
Cement Group (SCG) said on Thursday.
EPCA
’22: Lack of visibility prompts Europe ACN
players to prepare for the
worst
By Jane Massingham 06-Oct-22 16:20 BERLIN
(ICIS)–The most common phrase heard from many
European acrylonitrile (ACN) buyers is no-one
knows what will happen and as such players are
having to prepare worst case scenarios to try
and find a way to survive the coming quarters.
Asia
Q4 petrochemical demand faces headwinds as
global economy slows
By Felicia Loo 06-Oct-22 14:28 SINGAPORE
(ICIS)–Petrochemical demand in Asia will be
largely undermined because regional factories
face continued weakness in export demand in the
fourth quarter.
Asia
naphtha gathers ground on crude oil gains,
supply driven
By Melanie Wee 06-Oct-22 13:37 SINGAPORE
(ICIS)–Asia naphtha markets are buoyed by
crude oil gains on potential supply curbs and
improved spot demand, lifting the product’s
crack spread.
Global merchandise trade
growth to slow to 1% in 2023 –
WTO
By Nurluqman Suratman 06-Oct-22 12:53
SINGAPORE (ICIS)–World trade is expected to
lose momentum in the second half of 2022 and
remain subdued in 2023 as multiple shocks weigh
on the global economy, the World Trade
Organization (WTO) said late on Wednesday.
EPCA
’22: HELM Asia, Europe sales hit by downturn,
US stable
By Will Beacham 06-Oct-22 01:24 BERLIN
(ICIS)–Poor economic conditions around the
world, especially in Europe, have hit the
revenues of Germany’s HELM, a major distributor
and marketer of bulk and intermediate
chemicals.
German front-year clean
dark spread hits two-month
low
By Jack Grant 06-Oct-22 00:20 LONDON
(ICIS)—Potential front-year profit margins for
German coal-fired electricity generation
reached €259.02/MWh on 4 October, the lowest
level since 10 August. Later-dated German clean
dark spreads have trended downwards since 26
August, with fuel costs becoming more expensive
relative to revenue.
EPCA
’22: INSIGHT: European Commission cautious on
energy as chems sector faces the
winter
By Tom Brown 05-Oct-22 19:42 BERLIN
(ICIS)–The European Commission is treading
carefully with respect to its energy policy
response, with policymakers trying to walk a
line between mitigation of high costs and
preservation of hard-won stocks as industry
faces up to a difficult winter.
EPCA
’22: Europe melamine production crippled by gas
costs, imports and poor
demand
By Melissa Hurley 05-Oct-22 17:00 LONDON
(ICIS)–European melamine market conditions
remain fraught with difficulties, as poor
demand continues to clash with high production
costs in Europe.
Asia
manufacturing faces Q4 gloom; export demand may
weaken further
By Nurluqman Suratman 05-Oct-22 13:04
SINGAPORE (ICIS)–Asia’s factories will likely
face continued weakness in export demand in the
fourth quarter as European and the US economies
may be looking at a sharp slowdown.
US
Sept auto sales rise, but headwinds persist
from higher interest rates, economic
slowdown
By Adam Yanelli 05-Oct-22 04:17 HOUSTON
(ICIS)–US September sales of new light
vehicles rose from the previous month and are
up by double digits year on year, but higher
interest rates and waning economic
fundamentals are eroding consumer purchasing
plans.
EPCA
’22: ‘Time to survive’ for the European
chemical industry
By Katherine Sale 04-Oct-22 23:19 BERLIN
(ICIS)–Survival has been a key theme of this
year’s European Petrochemical Association
(EPCA) annual meeting, with emphasis on making
it through the winter.
EPCA
’22: EU energy crisis points to ‘major’ role
for fossil fuels, need for staggered
regulations – EPCA pres
By Tom Brown 04-Oct-22 20:14 BERLIN
(ICIS)–The reinvention of the EU’s energy mix
in the wake of the Russia-Ukraine war is likely
to keep fossil fuels as a key energy source and
raw materials until the late 2030s and should
prompt a re-examination of new chemicals
legislation, according to the president of the
European Petrochemicals Association (EPCA).
EPCA
’22: ‘Two parallel worlds’ for European
chemicals – Brenntag CEO
By Will Beacham 04-Oct-22 17:38 BERLIN
(ICIS)–Europe’s chemical markets are moving in
two different directions, with declining
downstream demand hurting some value chains,
but others suffering from extreme tightness
caused by energy-related outages, according to
the CEO of Germany’s Brenntag, the world’s
largest chemical distributor.
Singapore Sept
manufacturing shrinks for first time since 2020
as outlook dims
By Nurluqman Suratman 04-Oct-22 13:41
SINGAPORE (ICIS)–Singapore’s factory activity
in September contracted for the first time in
more than two years, as external demand
continued to be weighed down by the impact of
high inflation and interest rates hikes.
CRUDE
OUTLOOK: Demand concerns to outweigh tight
supply, at least for now
By Eloise Radley 03-Oct-22 23:24 LONDON
(ICIS)–As global recession looms, oil prices
may be in for a bumpy decline for the rest of
October amid prospects of lower oil demand as
central banks tighten monetary conditions.
Global weekly spot IPEX
falls on declines in northeast Asia, US
Gulf
By Miguel Rodriguez Fernandez 03-Oct-22
19:20 LONDON (ICIS)–The weekly ICIS
Petrochemical Index (IPEX) dropped by 1.9% week
on week, on the back of price declines in
northeast Asia and the US Gulf.
INSIGHT: Plant operations
and profitability in Europe suffer as costs
mount
By Nigel Davis 03-Oct-22 17:05 LONDON
(ICIS)–EU energy ministers meeting on Friday
approved most of a proposed energy crisis
package to cut energy usage across the bloc,
cap excess revenues from power plants that
don’t use gas, and impose a levy on the
exceptional profits made in 2022 by oil and gas
companies.
Oil
prices rise by more than $2/bbl as OPEC+ eyes
huge output cut
By Nurluqman Suratman 03-Oct-22 11:47
SINGAPORE (ICIS)–Oil prices jumped more than
$2/bbl on Monday, fueled by expectations that
oil cartel OPEC and its allies (OPEC+) would
introduce a hefty production cut to bolster the
market.
NE
Asia C2 stays on downward trajectory on strong
US exports
By Yeow Pei Lin 30-Sep-22 10:39 SINGAPORE
(ICIS)–Northeast Asia’s ethylene (C2) import
prices slumped as sellers lowered offers in a
bid to re-ignite buyer interest ahead of a long
holiday in China.
INSIGHT: Trends
converging to create Q4 glut in US
plastics
By Al Greenwood 30-Sep-22 05:21 HOUSTON
(ICIS)–North American polymer markets are
facing a growing glut because of weakening
demand, expanding capacity and rising
inventories.
Lignite power generation
to bolster German power
supplies
By Daniel Muir 30-Sep-22 01:23 LONDON
(ICIS)–The German federal ministry for
economic affairs and climate action (BMWK)
announcement that five lignite-fired power
plants can return to the market from reserve
capacity from 1 October 2022 could see hard
coal and lignite-fired power generation climb
through 2023 and into 2024, according to ICIS
analysis.
FRENCH POWER MONTHLY:
Winter risks may keep October prompt prices
supported
By Karishma Sadanandan 30-Sep-22 00:18
LONDON (ICIS)–The French October is likely to
remain supported into delivery as demand rises
with colder temperatures and uncertainty
remains over nuclear availability.
Europe economic sentiment
dropping as Germany on brink of
recession
By Morgan Condon 29-Sep-22 23:13 LONDON
(ICIS)–European economic sentiment continued
falling in September, for both the EU and the
eurozone, and the German economy is heading
towards a recession, as sentiment is shaped by
sustained high energy prices.
PODCAST: Oxo-alcohol
chain developments, demand and energy cost
concerns
By Cameron Birch 29-Sep-22 21:18 LONDON
(ICIS)–The European oxo-alcohol and its
derivative markets continue to face problems
with high energy costs and demand. There are
growing fears that energy costs will spike
again in Q4 and demand will come under further
pressure as macroeconomic headwinds pick up.
Lockdowns, property
crisis to slow China 2022 GDP growth to 2.8% –
World Bank
By Nurluqman Suratman 29-Sep-22 13:30
SINGAPORE (ICIS)–China, the world’s
second-biggest economy, is projected to grow at
a much slower pace of 2.8% this year compared
with an earlier forecast of 5.0%, according to
the World Bank, amid the country’s zero-COVID
policy and ongoing property crisis.
US
EDC leads the global trend
downward
By Bill Bowen 29-Sep-22 06:25 HOUSTON
(ICIS)–Ethylene dichloride (EDC) in the US and
globally is facing shrinking demand and
collapsing prices as its downstream derivative
polyvinyl chloride (PVC) slumps worldwide.
Europe EVA Q4 sentiment
bearish on lukewarm demand
By Samantha Wright 28-Sep-22 22:44 LONDON
(ICIS)–European ethylene vinyl acetate (EVA)
market sentiment is softening for the fourth
quarter as demand erodes from some
applications.
Coal
margins retreat despite escalation in European
energy conflict
By Raymond Shi 28-Sep-22 22:43 LONDON
(ICIS)–European coal profitability continued
to retreat across the previous seven-day
period, despite a late surge in fuel prices
following an escalation in Europe’s energy
conflict with Russia.
East
Asia’s 2-EH price at 11-week high, but demand
slow
By Li Peng Seng 28-Sep-22 18:25 SINGAPORE
(ICIS)–East Asia’s import prices of
2-ethylhexanol (2-EH) hit an 11-week high while
cash margins reached the highest since June as
run rate cuts have overturned weak spot demand
in China, Asia’s largest importer of the
chemical.
Asia
petrochemical shares, oil slump on recession
fears, strong US dollar
By Pearl Bantillo 28-Sep-22 14:05
SINGAPORE (ICIS)–Shares of petrochemical
companies in Asia were trading lower early
Wednesday afternoon, with oil prices down by
more than 1%, on demand concerns amid growing
adverse global economic ramifications of
a strong
US dollar.
Mideast petchems a mixed
picture on supply and demand
By Felicia Loo 28-Sep-22 11:37 SINGAPORE
(ICIS)–Middle eastern petrochemicals is facing
a mixed picture on demand and supply, with bad
economic situations engulfing both Jordan and
Lebanon when it comes to products like
polyethylene (PE).
US Q4
epoxy resins to be pressured by slower demand,
cheaper imports
By Tarun Raizada 28-Sep-22 07:01 HOUSTON
(ICIS)–US epoxy resins continued to be
pressured in September as the sizable gap
between domestic and import prices provided
leverage in some places.
INSIGHT: ‘King Dollar’
poses growing threat to US chems, global
economy
By Joseph Chang 28-Sep-22 01:21 NEW YORK
(ICIS)–The relentless surge in the US dollar
to record or multi-decade highs against
European and Asian currencies will be a greater
headwind for US-based chemical company earnings
going forward.
INSIGHT: Exceptionally
high utility costs and historically low
consumer confidence – a toxic
mix
By Nigel Davis 27-Sep-22 23:59 LONDON
(ICIS)–Chemical prices have been falling with
the cost of oil, although it is rising
inflation and weaker demand that is of greatest
current concern.
PODCAST: China polymer
markets ‘worst in 25 years’
By Will Beacham 27-Sep-22 22:57 BARCELONA
(ICIS)–China’s polymers are in bad shape as
demand collapses amid a big uptick in capacity
additions; global markets beware.
Asia
fatty acids buyers retreat on decline in
upstream CPO and recession
fears
By Helen Yan 27-Sep-22 15:48 SINGAPORE
(ICIS)–Asia’s fatty acids buyers are
retreating to the sidelines following the
decline in the upstream crude palm oil (CPO)
price earlier this week amid mounting fears of
a global recession.
Asia’s caustic soda may
continue seeing export opportunities to Europe
in Q4
By Jonathan Chou 27-Sep-22 14:34 SINGAPORE
(ICIS)–Demand for spot liquid caustic soda in
Asia is likely to be supported by arbitrage
trade to Europe in the near term.
INSIGHT: High cost
threatens Asia petrochemical output as regional
currencies tumble
By Pearl Bantillo 27-Sep-22 12:26
SINGAPORE (ICIS)–Asia’s petrochemical
production is at risk of shrinking further as
imported raw materials get more expensive each
day that Asian currencies tumble to new lows.
INSIGHT: Russia-Ukraine
war, surging inflation continue to dim growth
expectations
By Tom Brown 27-Sep-22 00:17 LONDON
(ICIS)–The outlook for global growth is
continuing to darken as the economy loses
momentum in the wake of the Russia-Ukraine war,
with fresh economic projections pointing to a
substantial deterioration in prospects from
2023 even relative to a few months ago.
Global weekly spot IPEX
down on declines across
regions
By Yashas Mudumbai 26-Sep-22 17:27 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) was down last week, with indices across
regions declining.
Asia
naphtha market falters on feeble demand, weak
macroeconomics
By Melanie Wee 26-Sep-22 14:01 SINGAPORE
(ICIS)–Asia’s naphtha markets are being
pressured by waning demand caused by poor
downstream margins, compounded by falling
regional currencies against the strong US
dollar.
NE
Asia ethylene weakens; November outlook bleak
on deep-sea influx
By Yeow Pei Lin 23-Sep-22 12:46 SINGAPORE
(ICIS)–Northeast Asia’s ethylene prices fell
on concerns about a looming supply overhang in
November, as an influx of deep-sea cargoes will
coincide with South Korean cracker restarts and
regional capacity expansion.
Asia
BD import market slows on soft
demand
By Ai Teng Lim 23-Sep-22 11:24SINGAPORE
(ICIS)–Spot discussions for Asian butadiene
(BD) imports are limited this week as regional
buyers retreated deeper into the sidelines
amid uncertainties in
the global macroeconomic outlook.
Federal Court suspends
Barossa gas project’s drilling
permit
By Yun Xie 23-Sep-22 12:01 SINGAPORE
(ICIS)–An Australian Federal Court has ordered
the gas producer Santos to suspend drilling
and completion activities at its Barossa gas
project on 21 September.
US HB
Fuller sees rebound in Asia, slowdown in
Europe
By Al Greenwood 23-Sep-22 05:43 HOUSTON
(ICIS)–HB Fuller began to see a rebound in
Asian demand during its fiscal third quarter
because China is reopening from its COVID-19
lockdowns, the US-based adhesives producer said
on Thursday, a trend that other chemical
producers have yet to see.
Weak
demand, high costs could keep Europe capro,
nylon 6 output low
By Marta Fern 23-Sep-22 04:03 LONDON
(ICIS)–European caprolactam (capro) and
downstream nylon 6 supply could stay curtailed
in the near-term as challenging market
fundamentals, which have led to further output
reductions during August and September,
continue.
French Q4 ’22 premium to
hold over UK despite supply
support
By Jack Grant 23-Sep-22 01:02 LONDON
(ICIS)–A widening French power premium over UK
equivalents on quarterly contracts this winter
suggests French spot prices are set to deliver
higher than the UK during the high-demand
season for the first time in recent history.
Spain
confirms 1.5bcm increase gas export capacity to
France
By Andrea Battaglia 22-Sep-22 23:48 LONDON
(ICIS)–As Spain is set to increase by
1.5billion cubic metres (bcm)/year its gas
exports capacity towards France, this could
potentially offer some help to the European gas
supply this gas winter.
Asia
MEG market under pressure as downstream cuts
operation to ease high
inventories
By Judith Wang 22-Sep-22 18:13 SINGAPORE
(ICIS)–Asia’s monoethylene glycol (MEG) market
has been under pressure during the week as
downstream polyester sector initiated another
round of operation cuts in a bid to relieve
inventory pressure.
Japan
bucks global monetary tightening trend; yen
slumps to new 24-year low
By Nurluqman Suratman 22-Sep-22 17:54
SINGAPORE (ICIS)–Japan’s central bank decided
on Thursday to keep its ultra-low interest
rates unchanged, bucking the global monetary
policy tightening trend in the fight against
rising inflation, causing the yen to slump to a
fresh 24-year low.
Asia
Group II base oils supply to lengthen on
increased output
By Matthew Chong 22-Sep-22 13:21 SINGAPORE
(ICIS)–Asia’s Group II base oils spot supply
is expected to increase as several northeast
Asian refiners have already or are about to
resume full production.
Asian
petrochemicals shares tumble after US Fed
interest rate hike
By Nurluqman Suratman 22-Sep-22 11:36
SINGAPORE (ICIS)–Asian petrochemical shares
fell on Thursday as fears of a global recession
grew after the US Federal Reserve
(Fed) raised
interest rates by 75 basis points
(bps) to the highest level since early 2008.
INSIGHT: Widespread
demand reduction makes a tough quarter
tougher
By Nigel Davis 21-Sep-22 23:49 LONDON
(ICIS)–It has been a tough third quarter for
most upstream producers of chemicals and others
as weaker demand and rising costs have combined
to hit earnings and shift guidance.
Developing Asia GDP
growth forecast cut to 4.3% amid higher
inflation – ADB
By Nurluqman Suratman 21-Sep-22 11:26
SINGAPORE (ICIS)–The Asian Development Bank
(ADB) on Wednesday cut its economic growth
forecast for developing Asian economies to 4.3%
this year from a previous projection of a 5.2%
expansion amid the continued rise in inflation
in the region.
PODCAST: Europe chemicals
could benefit from lower gas
prices
By Will Beacham 20-Sep-22 21:20 BARCELONA
(ICIS)–Natural gas prices could fall
significantly in the next 2-3 years, relieving
pressure on Europe’s beleaguered petrochemical
sector.
Global weekly spot IPEX
stable despite declines in NW Europe, US
Gulf
By Yashas Mudumbai 20-Sep-22 16:52 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) was stable week on week, despite a small
decline in northwest Europe and the US Gulf.
INSIGHT: Changes on China
polyolefins trade flows
By Joey Zhou 19-Sep-22 18:49 SINGAPORE
(ICIS)–China polyolefins continue to see
decreasing imports and increasing exports in
2022 amid its fundamental changes.
China’s moulding grade PC
import price at eight-week high, but demand
seen sluggish
By Li Peng Seng 19-Sep-22 11:05 SINGAPORE
(ICIS)–Chinese import prices for moulding
grade polycarbonate (PC) rose for the first
time since March to reach an eight-week high,
as sellers raised prices to combat poor
margins.
Asia’s benzene
projections cautious on upcoming
additions
By Angeline Soh 19-Sep-22 16:27 SINGAPORE
(ICIS)–Asia’s benzene market players are
cautious about Q4 given the five upcoming
additions in China, though some pessimism was
balanced out by the scheduled derivative
additions.
Asia
petrochemical export opportunities to Europe
growing amid energy crisis
By Nurluqman Suratman 16-Sep-22 11:51
SINGAPORE (ICIS)–Asian petrochemical markets
could find new pockets of opportunities
to export
to the EU in the coming months as
European producers continues to struggle with
high production costs amid record energy
prices.
S
Korea Oct C2 output falls on turnarounds; NE
Asia supply outlook mixed
By Yeow Pei Lin 09-Sep-22 12:09 SINGAPORE
(ICIS)–Ethylene (C2) output in South Korea,
Asia’s largest exporter, will decline in
October due to cracker turnarounds but supplies
in northeast Asia may not necessarily fall
short of demand.
INSIGHT: Oil falls to
pre-war levels, pushing down chem
prices
By Al Greenwood 09-Sep-22 00:07 HOUSTON
(ICIS)–Brent futures contract prices fell
below $90/bbl this week, reaching levels not
seen since before Russia’s invasion of Ukraine
and adding more downward pressure on chemical
markets that are already contending with weaker
demand.
Further interest rate
hikes ahead for eurozone –
Lagarde
By Tom Brown 08-Sep-22 23:53 LONDON (ICIS)–The
75 basis point increase to the European Central
Bank’s (ECB’s) key interest rate is expected to
be followed by several more hikes over the next
few months, on persistent high inflation
expectations, President Christine Lagarde said
on Thursday.
ICIS
VIEW: Why are British NBP gas prices so
high?
By Rob Dalton 08-Sep-22 23:33 LONDON
(ICIS)–Despite Britain’s diverse range of gas
supplies and its reduced dependence on Russian
gas, British NBP prices continue to soar as
Russian deliveries to Europe drop further.
Rising interest rates,
low inventories weigh on US auto sales, slight
uptick in Q4 expected
By Adam Yanelli 08-Sep-22 23:31 HOUSTON
(ICIS)–The US auto industry continues to face
headwinds from tight dealer inventories and
rising interest rates, but sales could improve
in the fourth quarter amid strong employment
and persistent consumer demand.
Energy costs to push
Germany into recession next year –
institutes
By Stefan Baumgarten 08-Sep-22 23:02 LONDON
(ICIS)–High energy costs will push Germany
into recession next year, two economic research
institutes said in forecasts on Thursday.
VTP
front-quarter premium to PSV widens on Russian
pipeline supply risk
By Ed Martin 08-Sep-22 20:29 LONDON
(ICIS)-The Austrian gas VTP front-quarter
contract looks likely to remain at a premium to
its Italian PSV counterpart into delivery on
the back of Russian pipeline supply fears.
Germany proposes to cap
electricity revenues for inframarginal
technologies
By Stefan Konstantinov 08-Sep-22 16:59 LONDON
(ICIS)–The German government announced on
Sunday 4 September that it would impose a
windfall tax on some electricity producers. It
would use the resulting proceeds to finance a
new €65bn energy relief package designed to
support consumers and mitigate the impact of
high inflation and energy bills. This new
package brings the total cost of the aid
measures Germany has enacted this year to
€95bn.
Asia
naphtha market in limbo on thin demand, ample
supply
By Melanie Wee 08-Sep-22 13:39 SINGAPORE
(ICIS)–Asia’s naphtha prices are being weighed
down by thin demand and ample supply, with its
forward market structure languishing at parity.
Japan
upgrades Q2 GDP growth to 3.5% on stronger
consumer spending
By Nurluqman Suratman 08-Sep-22 12:17
SINGAPORE (ICIS)–Japan’s economy in the second
quarter grew at an annualized rate of 3.5%, up
from the initial estimate of 2.2% as domestic
spending improved more than expected, official
data showed on Thursday.
Supply concerns galvanise
UK power bulls, but delivery
uncertain
By Jack Grant 07-Sep-22 21:48 LONDON
(ICIS)–As Europe braces for this winter’s
perfect storm, market opinion is split on the
delivery of UK power prices through September
and into the fourth quarter.
Demand still robust for
Europe’s chemical
distributors
By Will Beacham 07-Sep-22 19:34 BARCELONA
(ICIS)–Europe’s chemical distributors have not
yet suffered the downturn in demand and torrid
market conditions suffered by chemical
producers across the region, according to
delegates at the European Association of
Chemical Distributors (Fecc) annual congress in
Sitges near Barcelona.
Saudi
Arabia Q2 economic growth revised up to 12.2%
year on year
By Pearl Bantillo 07-Sep-22 19:27
SINGAPORE (ICIS)–Saudi Arabia’s economy posted
a revised second-quarter annualized growth rate
of 12.2%, the highest in nearly 11 years, on
the back of oil price spikes, official data
showed on Wednesday.
Russian oil faces fresh
G7 sanctions
By Eloise Radley 07-Sep-22 18:17 LONDON
(ICIS)–G7 financial ministers met on Friday
last week when a decision was made to impose a
price cap on Russian oil. Although details have
yet to be announced, it could be set at a level
of around half the current Brent oil price. The
move is aimed at hacking away at Russia’s war
fund and curbing rising energy prices.
PODCAST: Sliding
fundamentals could reshape global chemicals
production
By Morgan Condon 07-Sep-22 02:00 LONDON
(ICIS)–Although summer in the northern
hemisphere draws to a close, the typical swing
in seasonal demand has not returned for
September, and the global chemicals industry
faces a challenging close of 2022.
INSIGHT: Strong oil
boosts Saudi Arabia coffers for future
growth
By Pearl Bantillo 06-Sep-22 17:55
SINGAPORE (ICIS)–Saudi Arabia looks set to
stand among the strongest-growing economies in
the world in 2022, reaping strong benefits from
elevated energy prices – an unwelcome offshoot
of the Russia-Ukraine war.
European farmers ditch
nitrate fertilizers as prices
soar
By Manuja Pandey 06-Sep-22 17:27 LONDON
(ICIS)–The price of nitrate fertilizers has
soared on the back of reduced supply after a
fresh round of production outages was announced
by European chemical and fertilizer producers.
LNG
charter rates soar in the Pacific
basin
By Roman Kazmin 06-Sep-22 16:20 SINGAPORE
(ICIS)–The charter rates in the Pacific basin
have seen a drastic hike on the back of extreme
shortage of tonnage, Singapore-based
shipbrokers said.
INSIGHT: Lengthy supply,
weak demand reflect extremely difficult
September in Europe
By Nigel Davis 05-Sep-22 23:41 LONDON
(ICIS)–Market players in Europe usually expect
to return from summer breaks with something of
a spring in their step. The quietest days of
August give way to a busier September and often
a relatively strong fourth quarter.
OPEC+
drop production levels for
October
By Eloise Radley 05-Sep-22 23:23 LONDON
(ICIS)–OPEC+ members met on Monday and agreed
to cut production quotas by 0.1m bbl/day in
October.
UK
power exports fall during August, net flows to
France set to persist
By Jack Grant 05-Sep-22 21:45 LONDON
(ICIS)–Discounts on UK baseload power prompt
products compared with equivalent contracts on
European markets suggests the UK will maintain
its net export position to Europe through
delivery in September.
Global weekly spot IPEX
down on declines in NW Europe, US
Gulf
By Yashas Mudumbai 05-Sep-22 17:00 LONDON
(ICIS)–The weekly ICIS Petrochemical Index
(IPEX) dropped by 1% as declines in northwest
Europe and the US Gulf offset the slight uptick
seen in northeast Asia.
Singapore industries face
demand headwinds; Aug PMI slips to
50
By Nurluqman Suratman 05-Sep-22 13:14
SINGAPORE (ICIS)–Singapore’s manufacturing
sector is expected to face further demand
headwinds following a marginal drop in its key
purchasing managers’ index (PMI) in August as
new export orders slow down.
Oil rises $1/bbl
on possible OPEC supply cuts; China lockdowns
cap gains
By Nurluqman Suratman 05-Sep-22 11:19
SINGAPORE (ICIS)–Oil prices rose by more than
$1/bbl on Monday morning as investors fret over
a possible production cut by OPEC and its
allies later in the day to support the market.
SE
Asia palm biodiesel market stays afloat in
strong demand
By Keven Zhang 02-Sep-22 10:29
SINGAPORE (ICIS)–Southeast Asian palm methyl
ester (PME) biodiesel was supported by buying
activities from EU, betting against the
consensus of a weakening demand as winter
approached.
NE
Asia C2 surges on limited Sept supply; outlook
for Oct mixed
By Yeow Pei Lin 02-Sep-22 11:16 SINGAPORE
(ICIS)–Northeast Asia’s spot import prices for
September ethylene (C2) rose at an accelerated
pace on limited supply but the near-term
outlook was clouded by the ailing downstream
sectors.
Europe chems stocks dip
on growing economic fears
By Tom Brown 02-Sep-22 00:21 LONDON
(ICIS)–European chemicals company stocks
slumped on Thursday in line with wider markets
as fresh negative manufacturing sector data
drove increasingly bearish economic growth
expectations.
INSIGHT: Global chemicals
must ‘prepare for pain’ as central banks press
ahead to quash inflation
By Joseph Chang 01-Sep-22 23:45 NEW YORK
(ICIS)–‘Pain and sacrifice’ – those are the
words coming from the head of the world’s
largest central bank – the US Federal Reserve –
and the European Central Bank (ECB) on what
looms on the horizon. Stamping out inflation is
job number one, and they will do whatever it
takes, even if it means recession and higher
unemployment.
INSIGHT: New Ecovyst CEO
eyes growth in petroleum and renewable
energy
By Al Greenwood 01-Sep-22 23:35 HOUSTON
(ICIS)–Ecovyst’s new CEO expects demand to
remain resilient for its sulphuric acid and
catalysts, which are used to make petroleum
based-fuels and polyethylene (PE) as well as
renewable fuels and mining metals needed to
make lithium-ion batteries and copper wiring.
Gas
uncertainty could cause German power spot
prices to rise in Q4
delivery
By Karishma Sadanandan 01-Sep-22 23:18
LONDON (ICIS)–German Q4 spot prices are likely
to rise above the current forward contract,
should cold spells, low winds, and rising gas
prices combine to support prices in delivery.
European LNG sendout to
remain elevated early
September
By Christopher Rene 01-Sep-22 23:10 LONDON
(ICIS)–Above-average European LNG sendout will
persist in the first half of September,
continuing the trend observed throughout 2022
amid ongoing supply tightness and elevated
regional hub prices.
India
economy posts 13.5% fiscal Q1 growth; outlook
dims
By Pearl Bantillo 01-Sep-22 17:21
SINGAPORE (ICIS)–India posted a 13.5%
annualized GDP growth in April-June 2022, the
first quarter of its current fiscal year,
marking the strongest pace of increase recorded
in a year on a combination of low base effects
and strong growth in private consumption.
NE
Asia August factory activities weaken amid
slowing global economy
By Nurluqman Suratman 01-Sep-22 13:07
SINGAPORE (ICIS)–Factory activities across
northeast Asia weakened in August on poor
overseas demand amid slowing global economic
growth.
US PE
offers in China stoke fears of extended
oversupply in SE Asia
By Izham Ahmad 01-Sep-22 09:43 SINGAPORE
(ICIS)–The appearance of offers for US
polyethylene imports in China earlier in August
has driven fears of worsening oversupply
conditions in southeast Asia amid an ongoing
slump in downstream demand.
Demand returns to
European refinery solvents markets but costs a
concern
By Jane Gibson 01-Sep-22 01:33 LONDON
(ICIS)–European refinery solvents markets
pricing is likely to remain volatile in
September as feedstocks and energy prices
impact price targets amid some regional
tightness and cautious September demand.
EU
considering “emergency intervention” into power
markets: Proposals and likely
outcomes
By Matthew Jones 31-Aug-22 19:38 European
Commission President Ursula von der Leyen
stated this week that the electricity market
requires “emergency intervention” in order to
reduce the skyrocketing prices of power across
the bloc.
China’s PVC exports could
be capped but rising deep-sea supply may affect
Asia
By Jonathan Chou 31-Aug-22 16:59 SINGAPORE
(ICIS)–Despite exports from China having
fallen in recent weeks, producers in Asia are
likely to continue seeing competition in the
form of deep-sea cargo at competitive prices.
China
industries contract in August amid power cuts,
COVID-19 curbs
By Nurluqman Suratman 31-Aug-22 14:07
SINGAPORE (ICIS)–China’s manufacturing
activity continued to contract as the country
grapples with power outages caused by record
heatwave and drought in August, with fresh
COVID-19 curbs hampering overall industrial
output and consumption.
Asia
fatty acids likely to remain flat near term on
slowing global demand
By Helen Yan 31-Aug-22 10:46 SINGAPORE
(ICIS)–Asia’s fatty acids market is likely to
remain flat in the near term, as a strong US
dollar versus local currencies curbs spot
interest amid softening upstream crude palm oil
(CPO) prices.
European PMMA to remain
gripped by high costs and weak
demand
By Mathew Jolin-Beech 31-Aug-22 00:06
LONDON (ICIS)–The European polymethyl
methacrylate (PMMA) market is expected to
remain gripped by a combination of high energy
costs and soft demand.
Global weekly spot IPEX
down on falls in northwest Europe, US
Gulf
By Miguel Rodriguez Fernandez 30-Aug-22
23:16 LONDON (ICIS)–The spot chemicals index
dropped by 0.2% as falls across northwest
Europe and the US Gulf outweighed the slight
increase in prices seen in northeast Asia,
according to the latest figures from the weekly
ICIS Petrochemical Index (IPEX).
PODCAST: Chemicals must
stay on low carbon track despite current
crises
By Will Beacham 30-Aug-22 22:41 BARCELONA
(ICIS)–The global chemical industry must
remain committed to the net zero agenda, and
not be distracted by current macroeconomic and
geopolitical crises.
INSIGHT: Impact of power
restrictions on China petrochemicals likely to
be limited amid weak demand
By Jenny Yi 30-Aug-22 21:20 SINGAPORE
(ICIS)–Power supply restrictions in many parts
of China have been exacerbated this year by
prolonged heatwaves in Sichuan, Chongqing,
Anhui, Zhejiang, Jiangsu and Hubei. Record high
temperatures have prompted petrochemical plant
operating rate cuts and shut downs.
Global oil outlook: Five
factors to watch in Week 35
By Eloise Radley 30-Aug-22 19:43 LONDON
(ICIS)–Crude rebounded last week, with Brent
climbing to over $100/bbl. Supply concerns
intensified as OPEC+ threatened to cut
production quotas and the US Strategic
Petroleum Reserve was at its lowest level in
decades.
Asia
refiners cut Group II base oils output on
negative margins
By Whitney Shi 30-Aug-22 17:08 SINGAPORE
(ICIS)–While Asian refiners had cut export
prices for Group II base oils in July-August
due to weak demand, they have also recently
reduced output.
PP
demand to slow down in East Med as region
enters low-demand season
By Nadim Salamoun 30-Aug-22 05:32 DUBAI
(ICIS)–Despite the summer season being
traditionally a high-demand season in the
region, the economic crisis coupled with the
high unemployment rates and soaring inflation
Jordan and Lebanon are facing have taken a toll
on the purchasing power of the population.
Demand has been low during the season.
China’s Sinopec H1 net
profit up 10.5%; chemical earnings slump
94%
By Fanny Zhang 29-Aug-22 14:07 SINGAPORE
(ICIS)–Chinese petrochemical giant Sinopec
reported a 10.5% year-on-year increase in
first-half 2022 net profit on the back of
strong crude, even as its chemical earnings
shrunk 94% as demand collapsed amid COVID-19
curbs.
China’s PE market may
remain under pressure from rising supply, weak
demand
By Sijia Li 29-Aug-22 10:25 SINGAPORE
(ICIS)–China’s polyethylene (PE) market may
face further pressure from rising supply and
weak demand amid high global inflation and
tepid recovery in end-use consumption, curbed
by power rationing policies on rising
temperatures.
Asia
naphtha crack sinks in negative zone, poor
margins dent demand
By Melanie Wee 26-Aug-22 13:13 SINGAPORE
(ICIS)–Asia naphtha markets are under pressure
from feeble demand as a result of poor
downstream margins, sending the product’s crack
spread into deeper negative terrain.
Asia
MEG market falls into a narrow band; outlook
mixed
By Judith Wang 26-Aug-22 13:00 SINGAPORE
(ICIS)–Asia’s monoethylene glycol (MEG) market
discussions have fallen into a narrow band
during the week as market participants were
weighing higher upstream cost against rising
supply and slowing demand, while the outlook is
mixed in the absence of clear market
indicators.
Asia
SM eyes downstream recovery potential in Sep as
suppliers limit rates
By Trixie Yap 26-Aug-22 12:41 SINGAPORE
(ICIS)–Asia’s styrene monomer (SM) discussion
levels will hinge on downstream market activity
and recovery entering September as supply
fundamentals continue to tighten with makers
remaining adamant on production cuts amid
volatile SM margins.
Indonesia’s extended
waiver on palm oil export levy to have limited
impact on oleo market
By Helen Yan 26-Aug-22 11:59 SINGAPORE
(ICIS)–Indonesia’s extension of its waiver on
its export levy on palm oil till the end of
October is unlikely to have any significant
impact on the oleochemicals market in southeast
Asia.
NE
Asia C2 spot demand for September rises as
output cuts bite
By Yeow Pei Lin 26-Aug-22 10:34 SINGAPORE
(ICIS)–Buying enquiries for September spot
ethylene (C2) imports increased in northeast
Asia due to reduced domestic supply caused by
output cuts, which were largely in response to
poor margins and high propylene inventory.
INSIGHT: Dow PE operating
rate cut highlights global weakness,
overcapacity and logistics
constraints
By Joseph Chang 26-Aug-22 04:37 NEW YORK
(ICIS)–Dow’s announcement on slashing
polyethylene (PE) operating rates is a clear
sign of weakening global demand and oversupply
of the polymer, along with persistent logistics
constraints.
European local melamine
production heavily reduced on soaring gas
prices; affordability concerns
grow
By Melissa Hurley 26-Aug-22 01:03 LONDON
(ICIS)–European melamine market players are
faced with record level gas prices, leading to
more shutdowns and reduced run rates. Concerns
over affordability are mounting as costs drift
further away from market dynamics.
US
LNG to Europe to remain at elevated
level
By Christopher Rene 25-Aug-22 22:49 LONDON
(ICIS)–US LNG exports to Europe are set to be
twice as large as 2021 volumes by the end of
September, with demand driven by the current
energy crisis, ICIS data shows.
INSIGHT: Downside
uncertainty hits Europe refined products market
but tightness remains
By Tom Brown 25-Aug-22 22:19 LONDON
(ICIS)–Pricing for some refined products has
started to ease from the highs during the
summer as the peak demand season comes to a
close and macroeconomic pressure intensifies,
but structural tightness in the sector
continues to buffer pricing and galvanise
future demand upticks.
CDI
Economic Summary: US macro challenges build
amid labour resilience
By Joseph Chang 25-Aug-22 05:00 NEW YORK
(ICIS)–US GDP is expected to slow further but
labour and manufacturing are showing resilience
while inflation may have peaked.
Mideast TDI market sees
cautious optimism after FM announcement in
Europe
By Damini Dabholkar 25-Aug-22 17:49
SINGAPORE (ICIS)–The Middle East market saw
more activity and producers heard more
enquiries from customers this week on
expectations of lower supply.
Asia
OX supply to tighten further; wide buy-sell gap
persists
By Samuel Wong 25-Aug-22 14:45 SINGAPORE
(ICIS)–Asian supply of orthoxylene (OX) is
expected to stay tight, especially in China, on
the back of several planned maintenance
shutdowns.
South
Korea hikes key interest rate to 2.5% amid
soaring inflation
By Nurluqman Suratman 25-Aug-22 10:36
SINGAPORE (ICIS)–South Korea’s central bank on
Thursday raised its key interest rate by 25
basis points to 2.5% in a move to contain
soaring inflation, which it expects to remain
at a high level for a considerable period of
time.
INSIGHT: Falling demand
expectations cut into crude
outlook
By Tom Brown 24-Aug-22 23:17 LONDON
(ICIS)–Crude demand and pricing has remained
firm through the summer, but the imminent end
of the peak driving season and
rapidly-deteriorating macroeconomic picture are
driving down price and demand expectations for
the rest of 2022.
Europe PE/PP players
agree to exit 2022 contracts to cut
costs
By Ben Lake 24-Aug-22 17:00 LONDON
(ICIS)–European polyethylene (PE) and
polypropylene (PP) players, desperately looking
for ways to trim costs, have resorted to
agreeing to mutually abandon parts or the
entirety of their 2022 contract agreements –
and the relationship between buyers and sellers
is likely to remain in flux for the rest of the
year.
French power spot on
track to deliver above UK in Q4 if nuclear woes
persist
By Jack Grant and Karishma Sadanandan LONDON
(ICIS)–A widening French power premium over UK
equivalents on quarterly contracts this winter
suggests French spot prices are likely to
deliver higher than the UK during the
high-demand season for the first time in recent
history, if nuclear uncertainty continues to
cause concerns for winter supply.
Soaring European gas
prices force 13.5m tonnes of fertilizers,
chemicals offline or cut
By Deepika Thapliyal 23-Aug-22 23:23
LONDON, BARCELONA (ICIS)–Soaring natural gas
prices in Europe have led to at least
13.5m tonnes of fertilizer and chemical
capacity being shut down or run at reduced
rates, representing up to 63% of regional
capacity for the worst-affected products.
Russia’s Sakhalin-2 faces
difficulties on spot LNG
sales
By Roman Kazmin 23-Aug-22 15:15 SINGAPORE
(ICIS)–Russia’s Sakhalin-2 project is
experiencing difficulties to find participants
for spot tenders, a source close to Russia’s
incumbent Gazprom told ICIS.
Europe caustic soda
tightens on production issues, lower
utilisation rates
By Chris Barker 22-Aug-22 22:04 LONDON
(ICIS)–European caustic soda players expect
the market to tighten in the fourth quarter of
2022, as production of chlorine and caustic
soda has decreased and force majeures and
maintenance have rocked the market.
Malaysia’s PCG Q2 net
profit rises 0.5%; warns of waning
demand
By Nurluqman Suratman 22-Aug-22 14:53
SINGAPORE (ICIS)–PETRONAS Chemicals Group
(PCG) on Monday reported a marginal
year-on-year increase in its second-quarter net
profit thanks to higher product prices, but the
Malaysian producer warned of weaker demand in
the second half of 2022.
Supply chain, freight
transportation problems plague chem
manufacturers – ACC survey
By Adam Yanelli 19-Aug-22 02:31 HOUSTON
(ICIS)–Chemical manufacturers in the US have
continued to be plagued by major supply chain
and transportation issues that have led to 97%
of respondents modifying operations, according
to the results of an American Chemistry Council
member survey.
New
Sakhalin-2 operator says contracts stay in
place
By Ed Lane 19-Aug-22 07:53 SINGAPORE
(ICIS)–The new operator of the Sakhalin-2
project, LLC Sakhalin Energy, was announced in
a press
statement on 19 August as several
offtakers from the project confirmed it has
offered the same purchasing terms for clients,
but with payment
to Gazprombank JSC.
Germany’s chem R&D
stalls on impacts from Ukraine war,
pandemic
By Stefan Baumgarten 18-Aug-22 23:54
LONDON (ICIS)–Investment on research and
development (R&D) in Germany’s chemicals
and pharmaceuticals industry has stalled,
according to chemical producers’ trade group
VCI.
Europe chemicals buyers
shift from contractual volumes to spot market
on crest of falling demand
By Morgan Condon 18-Aug-22 19:19 LONDON
(ICIS)–As economic indicators continue to warn
of a downturn towards the end of 2022, Europe’s
chemicals markets are adjusting buying habits
in a bid to shelter from the crash.
Eurozone construction
output slips in June on widespread fall in
demand
By Tom Brown 18-Aug-22 18:53 LONDON
(ICIS)–Construction output in the eurozone
fell 1.3% month on month in June on the back of
substantial declines in civil engineering and
building productivity in the region, according
to data from Eurostat on Thursday.
Philippine central bank
hikes key interest rates anew to tame
inflation
By Pearl Bantillo 18-Aug-22 18:25
SINGAPORE (ICIS)–The Bangko Sentral ng
Pilipinas (BSP) announced on Thursday a 50
basis point (bps) hike in its key interest
rates, with further monetary tightening
possible as average inflation this year is
expected to exceed its 2.0-4.0% target.
INSIGHT: Asia
petrochemical margins shrink amid price slump,
poor demand
By Nurluqman Suratman 18-Aug-22 13:48
SINGAPORE (ICIS)–Asia’s petrochemical margins
are being eroded by sharp price declines, high
feedstock costs and tepid downstream demand,
with market sentiment weighed down by economic
uncertainties in China and fears of a global
recession.
Challenges to mount in
Europe ECH market in autumn on imports vs
energy
By Heidi Finch 18-Aug-22 01:35 LONDON
(ICIS)–The Europe epichlorohydrin (ECH) market
could face various challenges in the autumn,
amid a flurry of competitive imports, gathering
macro-economic clouds and a slow derivative
epoxy market on the one hand, and heightened
energy cost/supply concerns on the other.
Germany’s order backlog
hits new high, chem backlog
eases
By Stefan Baumgarten 18-Aug-22 01:00
LONDON (ICIS)–The backlog of unfilled
manufacturing orders in Germany reached yet
another record high in June amid the ongoing
supply chain issues and raw material shortages,
according to the latest statistical data on
Wednesday.
Asia
petrochemicals bottoming out; concerns on
demand recovery, margins
remain
By Joey Zhou 17-Aug-22 16:25 SINGAPORE
(ICIS)–Asian petrochemical market is expected
to bottom out and start rebounding in August,
while most products still see lower average
prices than July.
India’s GAIL runs Pata
complex at reduced rates on LNG supply issue –
sources
By Priya Jestin 17-Aug-22 14:33 MUMBAI
(ICIS)–State-owned Gas Authority of India Ltd
(GAIL) will continue operating petrochemical
plants at its Pata complex in Uttar Pradesh at
reduced capacity to ensure adequate gas supply
to its customers, a company official said on
Tuesday.
INSIGHT: High inflation,
global economic uncertainty weigh on China PE
market
By Amy Yu 17-Aug-22 11:02 SINGAPORE
(ICIS)–Rising inflation and concerns over the
global economic outlook are likely to weigh on
China’s polyethylene (PE) demand growth in the
second half of the year.
INSIGHT: IPEX downturn
points to difficult time to
come
By Nigel Davis 15-Aug-22 23:39 LONDON
(ICIS)–Petrochemical price falls across the
board in northeast Asia and a sharp price
downturn in northwest Europe point either to a
feedstock correction from earlier highs or
building pressure on demand.
Saudi
Aramco posts record Q2 net profit on higher oil
prices
By Nurluqman Suratman 15-Aug-22 11:04
SINGAPORE (ICIS)–Saudi Aramco’s second-quarter
net profit surged to a record riyal (SR)
181.6bn ($48bn), on the back of higher crude
oil prices and sales volumes.
Malaysia’s Q2 GDP expands
8.9%, growth to moderate on global
uncertainties
By Nurluqman Suratman 12-Aug-22 15:20
SINGAPORE (ICIS)–Malaysia’s economy grew by
8.9% year on year in the second quarter of this
year on improving domestic demand, but
heightened global uncertainties are expected to
weigh on its growth outlook, the central bank
said on Friday.
High
production costs erode Asian R-HDPE
margins
By Arianne Perez 12-Aug-22 13:48 SINGAPORE
(ICIS)–As production costs of recycled
high-density polyethylene (R-HDPE) blow
moulding pellets remain high in Asia while
demand stays lacklustre, sellers’ margins will
continue to narrow in the weeks ahead.
PODCAST: Asian olefins
producers challenged to preserve margins in H2
– ICIS analysts
By Morgan Condon 12-Aug-22 05:00 LONDON
(ICIS)–Asian olefins capacity is set to
increase in the coming months, but against the
prospect of a global recession and challenging
demand it is unclear how this will develop for
producers.
Trade
data show US base oil export availability has
not returned to pre-pandemic
levels
By Amanda Hay 12-Aug-22 03:04 HOUSTON
(ICIS)–ICIS trade data reveal that the US has
not yet returned to pre-pandemic export levels
of base oils as supply constraints, shifting
trade flows and high prices have curbed export
activity.
Gas-fired generation
drives German power Cal ’23
By Anne Petersen 12-Aug-22 00:45 LONDON
(ICIS)–The price of gas remains the main
driver for the German power Cal ’23, despite
the German government’s focus on limiting the
use of gas for power production.
OPEC
revises crude demand forecast down on slowing
global economy
By Jonathan Lopez 11-Aug-22 22:40 MADRID
(ICIS)–While crude oil demand continued its
“strong recovery” to pre-pandemic levels,
economic growth showed signs of a slowdown in
July and, with it, crude demand also took a
hit, producing cartel OPEC said on Thursday.
UK to
face increased competition for LNG in fourth
quarter
By Hector Falconer 11-Aug-22 19:20 LONDON
(ICIS)–Britain is likely to face increased
competition for LNG supply in the fourth
quarter of 2022 amid uncertainty over Russian
piped supply to mainland Europe, supporting NBP
winter contracts especially in the case of cold
weather.
Oil
prices exposed to opposing fundamentals,
extreme volatility
By Cecilia Barreiro 11-Aug-22 18:58 LONDON
(ICIS)–The August outlook for oil prices is
subject to increased uncertainty resulting from
a number of bullish and bearish factors.
Russia’s invasion of Ukraine will continue to
be a central driving force and keep oil markets
volatile while rising global inflation is
expected to keep a lid on demand.
Singapore trims 2022 GDP
growth forecast to 3-4% on global
headwinds
By Nurluqman Suratman 11-Aug-22 11:43
SINGAPORE (ICIS)–Singapore on Thursday trimmed
its 2022 GDP growth forecast to 3-4%, from the
previous estimate of 3-5%, due to the
deteriorating global economic environment.
SE
Asia palm biodiesel to see record export
volumes, healthy demand
By Keven Zhang 11-Aug-22 11:15 SINGAPORE
(ICIS)–Southeast Asia’s palm methyl ester
(PME) export volumes are likely to climb to
record highs in July and August, as several
bullish factors boost buying interest.
PODCAST: Global chemical
prices collapse, Europe prepares for dry
summer, tough winter
By Will Beacham 10-Aug-22 22:43 BARCELONA
(ICIS)–Global chemical prices are falling just
as Europe braces itself for more summer
heatwaves, drought and a winter of gas
rationing.
Thai
PTTGC Q2 net profit falls sharply amid lower
chem margins
By Nurluqman Suratman 10-Aug-22 15:30
SINGAPORE (ICIS)–PTT Global Chemical’s (PTTGC)
net profit fell by 83.9% year on year in the
second quarter, weighed partly by lower margins
across all of its chemicals businesses, the
Thailand-based producer said on Wednesday.
Saudi
SABIC Q2 net profit up 3.8%; H2 margins to stay
under pressure
By Nurluqman Suratman 10-Aug-22 12:42
SINGAPORE (ICIS)–Saudi petrochemicals major
SABIC posted a 3.8% year-on-year increase in
second-quarter net profit, while it expects
margins to remain under pressure in the second
half of 2022.
INSIGHT: Indonesia
economy surprises in Q2; prospects dim in
H2
By Pearl Bantillo 10-Aug-22 21:03
SINGAPORE (ICIS)–Indonesia’s growth momentum
is expected to weaken for the rest of the year
and into 2023, as high inflation hits overall
domestic consumption. External demand is being
threatened by a possible global recession.
Saudi
SABIC Q2 net profit up 3.8%; H2 margins to stay
under pressure
By Nurluqman Suratman 10-Aug-22 12:42
SINGAPORE (ICIS)–Saudi petrochemicals major
SABIC posted a 3.8% year-on-year increase in
second-quarter net profit, while it expects
margins to remain under pressure in the second
half of 2022.
China
July petrochemical markets slump; outlook stays
bearish
By Yvonne Shi 09-Aug-22 08:00 SINGAPORE
(ICIS)–China’s petrochemical markets fell
across the board in July on weak demand, which
persists into August while supply is projected
to grow for the rest of the year.
Asia
BDO extends losses as demand at a low
ebb
By Clive Ong 04-Aug-22 16:47 SINGAPORE
(ICIS)–The Asian butanediol (BDO) market
extended losses with the downtrend still firmly
entrenched. Market participants expect further
downside potential in the near term as the
decline that started in April does not appear
to have run its course.
PODCAST: LPG substitution
of higher-priced LNG limited in
China
By Yan Wang 04-Aug-22 15:37 GUANGZHOU
(ICIS)–ICIS analysts Wang Yan and Xu Fei
discuss with Asia deputy news editor Pearl
Bantillo why China is not aggressively using
liquefied petroleum gas (LPG) as substitute for
liquefied natural gas (LNG) in fuel
applications in industries despite global
supply concerns and soaring LNG prices.
Asian
import offers for NBR fall with weak demand,
outlook bleak
By Ai Teng Lim 04-Aug-22 10:34 SINGAPORE
(ICIS)–Asian spot import offers for
acrylonitrile butadiene rubber (NBR) have
slipped lower as sellers widened discounts to
chase deals in a low-demand market.
India
July exports slip; trade deficit widens to
record $31bn
By Priya Jestin 03-Aug-22 14:43 MUMBAI
(ICIS)–India’s merchandise exports in July
dipped for the first time in over a year, while
increased imports of crude oil and coal bloated
the country’s trade deficit to a record $31bn.
Asia
butac, etac slump; demand tepid on weak
regional currencies
By Melanie Wee 02-Aug-22 17:41 SINGAPORE
(ICIS)–Asia’s butyl acetate (butac) markets
are being weighed down by tepid demand as
continued weakness of currencies in the region
continues to undermine imports.
Asia
July industries – a mixed bag as battle with
inflation continues
By Nurluqman Suratman 02-Aug-22 13:59
SINGAPORE (ICIS)–Asia’s manufacturing sector
in July presented a mixed performance, with
major economies in the northeast showing a
marked slowdown in activity, as the region
continues to contend with high input costs and
weak demand.
OUTLOOK: Asia epoxy
resins to stay sluggish; price competition may
intensify
By Luffy Wu 02-Aug-22 13:46 SINGAPORE
(ICIS)–Uncertain end-demand outlook and
recession fears continue to haunt Asia’s epoxy
resins market, with aggressive exports from
China forcing some regional suppliers to lower
offer.
South
Korea July inflation nears 24-year high at
6.3%
By Nurluqman Suratman 02-Aug-22 12:26
SINGAPORE (ICIS)–South Korea’s consumer price
index (CPI) rose by 6.3% year on year in July,
accelerating from 6.0% in the previous month
and the fastest rate recorded in nearly 24
years.
Will Beacham contributed to this topic page.
Topic Page by Aura Sabadus and Will Beacham. Additional reporting by Richard Ewing and Sophie Udubasceanu. Maps and graphs by Yashas Mudumbai.
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