The US saw an increase in the number of oil and gas drilling rigs in operation this week, rising for the ninth week in a row, despite rising concerns about how an outbreak of the coronavirus in China will impact crude oil demand.
A total of 378 rigs were in operation, five more than last week, according to drilling services provider Baker Hughes.
There were 289 oil rigs in operation, up by two from the previous week. Gas rigs were up once again, gaining three to bring the total to 88 rigs.
On this topic page we analyse the impact of coronavirus and the oil price collapse on chemical markets and bring together the latest news reported by ICIS. To visit the ICIS energy markets topic page, click here.
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LATEST HEADLINES
US
adds oil, gas drilling rigs as count rises for
ninth week
By Adam Yanelli 2021/01/22 HOUSTON (ICIS)--The
US saw an increase in the number of oil and gas
drilling rigs in operation this week, rising
for the ninth week in a row, despite rising
concerns about how an outbreak of
the coronavirus in China will impact crude oil
demand
Japan’s au Jibun Bank flash
manufacturing PMI slips to 49.7 in
Jan
By Nurluqman Suratman 2021/01/22 SINGAPORE
(ICIS)--au Jibun Bank’s flash manufacturing
purchasing managers’ index (PMI) for Japan
slipped to 49.7 in January from the final
reading of 50.0 in December 2020 as output fell
amid rising costs, the Japanese bank said on
Friday.
A PMI reading below 50 indicates a contraction in the manufacturing economy.
"Despite a return to growth in new orders for the first time since December 2018, falling output and employment levels and rising cost pressures dampened operating conditions," au Jibun Bank said.
Washington state in US denies permit
for methanol plant
By Al Greenwood 2021/01/21 HOUSTON (ICIS)--The
Washington Department of Ecology denied a
permit for a proposed methanol plant in that
state's town of Kalama.
The department denied issuing the shoreline-conditional-use permit because of concerns about greenhouse-gas emissions, it said. As a result, Washington state could fail to meet its greenhouse-gas targets that were set by its legislature.
The plant is being developed by Northwest Innovation Works (NWIW). The methanol would be used in China’s methanol-to-olefins (MTO) plants.
Mideast chemical supply tight on
container shortages, Asian plant
shutdowns
By Felicia Loo 2021/01/21 SINGAPORE
(ICIS)--Middle East's petrochemical markets are
facing tight supply, mainly due to shortage of
containers, with shipment difficulties to last
until March. Plant shutdowns in Asia
exacerbated the tight supply conditions,
overshadowing demand from strong to stable in
certain sectors in the Middle East.
Japan's chemical exports rise by 10% in
Dec, overall shipments up 2%
By Nurluqman Suratman 2021/01/21 SINGAPORE
(ICIS)--Japan's chemical exports rose by 10.0%
year on year in December 2020 to yen (Y)
833.9bn as overall shipments abroad rose for
the first time in two years, official data
showed on Thursday.
USA’s INVISTA licenses technology to
Sinopec Yizheng for new PTA
line
By Nurluqman Suratman 2021/01/21 SINGAPORE
(ICIS)--INVISTA and China’s Sinopec Yizheng
have reached a technology licensing agreement
for a new purified terephthalic acid (PTA) line
in Jiangsu province, the US producer said on
Thursday.
Indian chemicals industry bats for
increasing duties on imports
By Priya Jestin 2021/01/21 MUMBAI (ICIS)--The
Indian chemicals and petrochemicals industry,
which is now seeing a slow recovery in demand,
expects the government to support its growth
trend by introducing measures to reduce
unnecessary imports.
PODCAST: Global ACN supply restrictions
continue to dominate talk in
Q1
By Jane Massingham 2021/01/20 LONDON
(ICIS)--The global acrylonitrile (ACN) market
is expected to remain tight through Q1,
although uncertainty looms in the shape of
Chinese New Year and how it may impact on
regional demand. ICIS pricing editors Jane
Massingham (Europe), Li Li Chng (Asia) and
Lucas Hall (US) discuss the latest developments
in the ACN market and what lies in store.
PODCAST: Jet and bio fuels in 2021 –
what are the trends?
By Andrew Putwain 2021/01/20 LONDON (ICIS)--
Jet fuel has been one of the oil products hit
hardest by the pandemic. With vaccines now
being rolled out will there be more support in
2021 - even as the market faces pressures to
turn to more sustainable biofuels? Market
analyst Man Yiu Tse and crude oil reporter
Andrew Putwain look at the big trends for 2021
in jet fuel and biojet alternatives.
Malaysia central bank keeps accommodative
monetary stance amid new
lockdown
By Pearl Bantillo 2021/01/20 SINGAPORE
(ICIS)--Malaysia’s central bank decided on
Wednesday to maintain an accommodative monetary
policy as it acknowledges that new
coronavirus-related restrictions will hit
near-term economic performance. Its overnight
policy interest rate was kept at 1.75%.
Singapore’s 2020 chemical fixed asset
investments fall; overall FAI
grows
By Nurluqman Suratman 2021/01/20 SINGAPORE
(ICIS)--Singapore’s chemical fixed asset
investments (FAI) fell by 18.9% year on year to
Singapore dollar (S$) 4.11bn in 2020, but
overall FAI rose despite the challenges arising
from the coronavirus pandemic, official data
showed on Wednesday.
India’s GNAL delays commissioning of new
caustic soda line to August
By Priya Jestin 2021/01/20 MUMBAI
(ICIS)--India’s GACL-NALCO Alkalies &
Chemicals Ltd (GNAL) has pushed back the
scheduled commissioning of its greenfield
266,667 tonne/year caustic soda plant in Dahej
to August 2021, a company source said on
Wednesday.
VIDEO: China non-carbide VAM supply to tighten
further on EVA start-ups
By Anna Xiang 2021/01/19 SINGAPORE
(ICIS)--Watch industry analyst Anna share her
views on China's domestic vinyl acetate monomer
(VAM) market for 2021.
Chip shortage threatens global auto
sector, demand for chemicals and
polymers
By: Will Beacham 2021/01/18 BARCELONA
(ICIS)--A global shortage of computer chips is
threatening the nascent recovery of automotive
production, as well as demand for automotive
chemicals around the world.
Semiconductor chip manufacturers have struggled to meet demand growth in the fourth quarter of 2020 and into 2021 as the automotive sector rebounded from Coronavirus lockdowns, especially in China. Increased sales of computers and electronic devices through the pandemic have also boosted demand.
Auto production is already disrupted by the shortage of chips. Germany’s Audi has slowed production and has furloughed 10,000 employees, according to an interview quoting company CEO Markus Duesmann in the UK Financial Times on 17 January.
INSIGHT: UK chemicals face continued
disruption from post-Brexit paperwork,
container shortages
By: Will Beacham 2021/01/18 BARCELONA
(ICIS)--UK chemical companies and their 27 EU
trading partners are still struggling with new
paperwork requirements and disrupted logistics,
two weeks after the country left the Single
Market and Customs Union.
- Tariffs are 0% from the UK-EU
- Tariffs average 4.5%, maximum 6.5% for other
countries not covered by free trade
agreements
- Rules of origin and customs declarations
required from exporters and customers before
products can cross borders
- Incomplete paperwork holding up trade at
border
- DB Schenker pauses UK-EU operations
- Asia-Europe container rates at $4,000-6,000
as global pandemic-related shortage persists
Despite the post-Brexit free trade deal struck by UK Prime Minister, Boris Johnson, cross-border trade is still subject to a raft of new customs checks and procedures plus a global shortage of containers which continues to delay shipments and inflate costs.
Although tariffs have been maintained at 0%, all goods are now subject to rules of origin and other customs declarations.
Singapore petrochemical
exports snap 27-month decline; up 11.5% in
Dec
By Nurluqman Suratman
2021/01/18 SINGAPORE (ICIS)--Singapore's
petrochemical exports in December 2020
increased by 11.5% year on year to Singapore
dollar (S$) 1.25bn, ending more than two years
of decline, official data showed on Monday.
The year-on-year expansion was the first recorded since August 2018, according to Enterprise Singapore.
China's 2020 GDP rises by
2.3% after 6.5% expansion in
Q4
By Nurluqman Suratman
2021/01/18 SINGAPORE (ICIS)--China's GDP grew
by 2.3% year on year in 2020, its slowest pace
in more than four decades, after it reported a
6.5% expansion in its economy in the fourth
quarter, official data showed on Monday.
France’s Total to invest
$2.5bn in India’s Adani Green
Energy
By Pearl Bantillo
2021/01/18 SINGAPORE (ICIS)--France’s Total
will acquire a 20% interest in Adani
Green Energy Ltd (AGEL), along with a 50% stake
in a 2.35 GWac (gigawatt alternating current)
portfolio of the Indian solar developer’s
operating solar assets, for a total of $2.5bn.
US WR
Grace is willing to discuss sale to 40
North
By: Jane Miranda 2021/01/15 HOUSTON (ICIS)--WR
Grace is willing to discuss a sale to 40 North,
after the private investment firm raised its
bid to $65 per share earlier this week, the
US-based catalyst producer.
German chemicals reject calls to shut
plants as pandemic hits hard
By: Stefan
Baumgarten 2021/01/15 LONDON
(ICIS)--Germany’s top chemical industry trade
groups are rejecting calls to shut down plants
as part of the country’s “hard lockdown” to
contain the second wave of the coronavirus
pandemic.
“A shutdown would
be counter-productive, in all respects”,
chemical producers group VCI and employers
group BAVC said in a joint statement on Friday.
The chemical-pharmaceutical industry makes “key contributions” to containing the pandemic, the trade groups said, in vaccine production, the manufacture of essential medicines or as the most important upstream supplier for diagnostics, medical, and laboratory equipment manufacturers.
US to
face heavy economic losses if trade war with
China continues
By Pearl
Bantillo 2021/01/15 SINGAPORE (ICIS)--The US
economy is hurting itself if its trade war with
China continues in the medium term, possibly
shaving a large chunk of its GDP output with
attendant massive job losses.
US'
CME to launch ICIS-linked China specific
origins methanol futures contract in
Feb
By Nurluqman Suratman
2021/01/15 SINGAPORE (ICIS)--The CME Group aims
to launch an ICIS-linked China methanol futures
contract on the New York Mercantile Exchange on
22 February.
US
infrastructure plan to be unveiled in February
in 2nd step of massive
stimulus
By Joseph Chang
2021/01/15 NEW YORK (ICIS)--US President-elect
Joe Biden plans to unveil details of a major US
infrastructure stimulus plan in February in his
first appearance before a joint session of
Congress after announcing his first step of
massive fiscal stimulus.
China
December exports grow 18.1% year on year;
imports up 6.5%
By Yvonne Shi 2021/01/14 SINGAPORE
(ICIS)--China’s total exports in December rose
by 18.1% year on year to $281.9bn, according to
preliminary data from the government.
Northern China LPG
logistics hit by lockdowns, travel
restrictions
By Lillian Ren
2021/01/14 SINGAPORE (ICIS)--LPG logistics have
become challenging in northern China after a
rising number of corona virus cases in Hebei,
Liaoning and Heilongjiang forced a few cities
into lockdowns, and led several cities to
impose travel restrictions.
Fed notes healthy US demand for
PVC
By Al Greenwood 13-Jan-21 15:05 HOUSTON
(ICIS)--US demand for polyvinyl chloride (PVC)
was healthy during the past several weeks, the
Federal Reserve said on Wednesday in its
periodic survey of business conditions.
Virus-related restrictions in north
China hit petrochemical
transport
By Yvonne Shi 2021/01/13 SINGAPORE
(ICIS)--Coronavirus-related restrictions in
parts of northern China - including Hebei
province, where cases of infections recently
spiked - are hitting transport of
petrochemicals in the region.
PODCAST: China lockdowns could hurt
chemical imports, industrial
production
By Will Beacham 2021/01/12 BARCELONA
(ICIS)--Major new coronavirus lockdowns in
China could threaten demand for chemical
imports, and hurt industrial production of
products for local consumption and export.
PODCAST: Asia PE sets to see support
from strong feedstock, high shipping
costs
By Jasmine Khoo 2021/01/13 SINGAPORE
(ICIS)--Southeast Asia’s polyethylene (PE)
market ended a turbulent year in 2020 with
major price increases but early 2021
fundamentals suggest shipping costs and
feedstock prices are still likely to drive
prices in the first quarter.
Asia petrochemical shares mostly lower
amid new virus-linked
lockdowns
By Nurluqman Suratman 2021/01/12 SINGAPORE
(ICIS)--Asia’s petrochemical shares were mostly
lower on Tuesday on new lockdowns in parts of
the region amid the unabated surge in
coronavirus cases, which topped 90m globally.
Malaysia to impose two-week limited
lockdown from 13 January
By Pearl Bantillo 2021/01/11 SINGAPORE
(ICIS)--Malaysia's Prime Minister Muhyiddin
Yassin said on Monday that a limited lockdown
will be in place for two weeks from 13 January
to contain the spread of coronavirus infections
in the country.
Taiwan's FPCC 2020 net income slumps
80% on lower margins
By Nurluqman Suratman 2021/01/11 SINGAPORE
(ICIS)--Formosa Petrochemical Corp (FPCC) has
reported an 80% decline in its 2020 net profit
as margins weakened amid the coronavirus
pandemic.
GPCA cancels Dubai meeting in February
on worsening health
situation
By: Jonathan Lopez 2021/01/11 LONDON
(ICIS)--The Gulf Petrochemical Association
(GPCA) annual meeting planned for February has
been cancelled as the coronavirus pandemic
worsens globally, the industry group said on
Monday.
In the past week, coronavirus cases in the UAE have risen sharply, although the country has for the most part kept the pandemic at bay.
The GPCA meeting was due to be held in Dubai, one of the UAE’s seven emirates.
Europe butac prices surge on very tight supply,
BASF force majeures continue
By Nick Cleeve 11-Jan-21 14:43 LONDON
(ICIS)--European butyl acetate (butac) spot
prices have risen sharply, with the ICIS
midpoint reaching its highest level since March
2017.
Butac prices were assessed at €1,400-1,500/tonne FD (free delivered) NWE (northwest Europe) - an increase of €150-200/tonne.
Sources referred to prices far above the assessed range, but significant business at these levels could not be confirmed.
Supply is very tight due to major producer BASF’s active force majeures and limited availability of feedstock n-butanol (NBA).
PODCAST: Europe chemicals’ challenges
for the 2020s
By: Jonathan Lopez 2021/01/11 LONDON
(ICIS)--After the health crisis recedes, the
European chemicals industry’s challenges will
remain unchanged - sustainability, recycling
and how it can achieve carbon neutrality by
2050.
The ICIS European news desk analyses what is in store in this podcast with News Editor Jonathan Lopez, Deputy News Editor Tom Brown, News Reporter Morgan Condon, and Insight editor Nigel Davis.
Click on the headline to hear the podcast.
Taiwan's FPCC 2020 net
income slumps 80% on lower
margins
By Nurluqman Suratman
2021/01/11 SINGAPORE (ICIS)--Formosa
Petrochemical Corp (FPCC) has reported an 80%
decline in its 2020 net profit as margins
weakened amid the coronavirus pandemic.
India
to impose antidumping duty on PA imports from
Russia
By Priya Jestin
2021/01/11 MUMBAI (ICIS)--India will impose a
five-year antidumping duty (ADD) of
$159.43/tonne on phthalic anhydride (PA)
imports from Russia.
India
defers import certification requirements for
some chemicals
By Priya
Jestin 2021/01/11 MUMBAI (ICIS)--India has
deferred the implementation of mandatory Bureau
of Indian Standards (BIS)
certification requirement on imports
of ethylene glycol, toluene, butyl acrylate,
terepthalic acid and phthalic anhydride to
mid-2021.
PODCAST: Europe MTBE demand to recover
in Q2, methanol price pressure
continues
By: Eashani Chavda 2021/01/07 LONDON
(ICIS)--ICIS editors Eashani Chavda and Nazif
Nazmul discuss market fundamentals and
expectations for European methyl tertiary butyl
ether (MTBE) and methanol.
- Winter driving season drives demand for MTBE lower in January
- Demand expected to improve by Q2 at the earliest
- Methanol market bullish on supply shortages, healthy demand
Click on the headline to hear the podcast
Qatar re-opens
chemical trades within GCC after diplomatic
breakthrough
By Felicia Loo 2021/01/08 SINGAPORE
(ICIS)--With Saudi-led Gulf Cooperation Council
(GCC) members restoring relations with Qatar,
polyethylene (PE) and polypropylene (PP)
processors in Saudi Arabia can now supply
products to the Qatari market.
PODCAST: Faltering China chemicals
signal caution for 2021
By: Will Beacham 2021/01/05 BARCELONA
(ICIS)--Softening chemicals demand and prices
in China may be an early sign of trouble ahead
for the global industry in 2021.
- High inventories, weaker demand for China chemicals
- Falling China prices may signal trouble ahead for recovery
- Strong economic, chemicals recovery in H2 2020
- Paradigm shifts apparent in 2020 will accelerate through 2021
- Includes new demand patterns, supply chains, energy balances, circular economy, advanced manufacturing
Click on the headline to hear the podcast.
Asia manufacturing continues recovery
in December
By Nurluqman Suratman 2021/01/07 SINGAPORE
(ICIS)--Asia's manufacturing activities mostly
improved in December, affirming the region's
economic recovery despite a recent pick-up in
coronavirus infection rates.
INSIGHT: Outlook dimming on downside
risks, possible China price
inflection
By Nigel Davis 2021/01/06 LONDON
(ICIS)--Petrochemicals companies' fortunes have
improved over the past three months as demand
has strengthened and prices increased.
December IPEX up 6.5% on rising prices
in Europe and the US
By Miguel Rodriguez Fernandez 2021/01/06 LONDON
(ICIS)--The ICIS Petrochemical Index (IPEX)
continued to climb in December, increasing by
6.54% for the month, tracking price increases
for most of the major petrochemical and
plastics commodities.
VIDEO: Key drivers for Asia
petrochemical markets in
2021
By Soo Hwee Peh 2021/01/06 SINGAPORE
(ICIS)--Watch Asia managing editor Soo Hwee Peh
as she shares some of the key drivers that will
shape Asia's petrochemical markets this year.
East Asia and Pacific economy to expand
7.4% in 2021 - World Bank
By Nurluqman Suratman 06-Jan-21 11:55 SINGAPORE
(ICIS)--Economic growth in east Asia and the
Pacific is projected at 7.4% in 2021, reversing
an estimated contraction of 0.9% in 2020, led
by a strong rebound in China, the World Bank
said late on Tuesday.
INSIGHT: ESG to drive
chemicals growth and investment in 2021 and
beyond
By Joseph Chang 2020/12/18 NEW YORK (ICIS)--As
we say goodbye, or good riddance to 2020, one
key positive development for the chemicals
industry is the sharpening focus on ESG
(Environmental, Social, Governance) - a trend
that will only accelerate in the years to come
and offer great opportunity to develop new
business models.
INSIGHT: Sustainability and recycling
set to dominate 2021 agenda
By: Helen McGeough 2020/12/18 LONDON
(ICIS)--The events of this year may have been
unpredictable but 2021 offers no improved
certainty given the continuing effects of the
coronavirus pandemic and onset of a global
economic downturn.
Sustainability may have slipped in the focus, if not agenda, of consumers to corporates alike due to other priorities, but it is set to return with fervour next year.
There had been an expectation that demand from the packaging sector would grow sharply in 2020 from recycled high density polyethylene (R-HDPE) and recycled polypropylene (R-PP) amid the growing focus on sustainability, but much of this growth was curtailed by the impact of coronavirus.
Backlogs at testing facilities, concerns about entering new supply chains amid the pandemic, and workforce and financial pressures led firms to concentrate on core products.
Japan
raises fiscal year ‘21 GDP growth forecast to
4% on stimulus
By Nurluqman
Suratman 2020/12/18 SINGAPORE (ICIS)--Japan's
government on Friday raised its economic growth
forecast for the next fiscal year - starting
April 2021 - on a price-adjusted real terms to
4.0% from 3.4% previously, supported by its
latest coronavirus stimulus package.
Singapore Nov petchem
exports down 18.5%, NODX slips
4.9%
By Nurluqman Suratman 2020/12/17 SINGAPORE
(ICIS)--Singapore's petrochemical exports fell
by 18.5% year on year to Singapore dollar (S$)
955.8m in November, weighing on overall non-oil
domestic exports (NODX), official data showed
on Thursday.
US
blacklists China, UAE companies over sale of
Iran petrochemicals
By Pearl Bantillo 2020/12/17 SINGAPORE
(ICIS)--The US has blacklisted on Wednesday
four companies based in China and the UAE for
facilitating exports of Iranian petrochemicals.
Sanctions were imposed on UAE’s Alpha Tech Trading FZE and Petroliance Trading Fze; and China’s Donghai International Ship Management Ltd and Petrochem South East Ltd for facilitating sales of Iranian petrochemicals by Hong Kong-based Triliance Petrochemical, which was blacklisted in January 2020.
VIDEO: China’s
petrochemical industry expected to see stronger
growth in 2021
By Tahir Ikram 2020/12/17 SINGAPORE
(ICIS)--Watch Asia News Editor Tahir Ikram
discuss the outlook for China's petrochemical
industry next year.
PODCAST: China xylene
prices rise on upbeat market
sentiment
By Veronica Zhang 2020/12/17 SINGAPORE
(ICIS)--China’s xylenes prices posted notable
gains from end-November after a sustained
narrow fluctuations, despite weaker demand. In
this episode of the ICIS Asia podcast, Jady Ma
speaks with Veronica Zhang, analyst for the
ICIS China Xylenes market, on the recent market
trend and outlook.
Fed votes to hold US interest rates near zero,
raises 2020 GDP outlook
By: Adam Yanelli 2020/12/16 HOUSTON (ICIS)--The
US Federal Reserve voted on Wednesday to hold
interest rates at 0-0.25% and committed to
keeping rates at current levels until the
economy recovers.
Japan’s au Jibun Bank
flash manufacturing PMI rises to 49.7 in
Dec
By Nurluqman Suratman 2020/12/16 SINGAPORE
(ICIS)--au Jibun Bank’s flash manufacturing
purchasing managers’ index (PMI) for Japan rose
from 49.0 in November to 49.7 in December as
production and new orders weakened at a slower
rate, the Japanese bank said on Wednesday.
Sipchem, Linde sign JV
deal for industrial gases projects in Saudi
Arabia
By Nurluqman Suratman2020/12/16 SINGAPORE
(ICIS)--Sahara International Petrochemical Co
(Sipchem) and industrial gas firm Linde have
signed an exclusive agreement to set up a joint
venture for developing industrial gas projects
and networks in Saudi Arabia, the Saudi
producer said.
China Jan-Nov property development
investments rise 6.8% on
year
By Fanny Zhang 15-Dec-20 14:21 SINGAPORE
(ICIS)--China’s property development
investments in January-November 2020 increased
by 6.8% year on year, industry data showed on
Tuesday. Investments in housing
development during the period rose to 7.4%,
according to data from the National Bureau of
Statistics (NBS).
China November industry output grows
7.0% year on year
By Fanny Zhang 15-Dec-20 14:08 SINGAPORE
(ICIS)--China’s industry output in November
expanded by 7.0% year on year, up from
October’s growth of 6.9%, official data showed
on Tuesday. In the first 11 months of 2020,
industry output was up 2.3% year on year, up
from 1.8% posted in January-October, data from
China’s National Bureau of Statistics (NBS)
showed on Tuesday.
Hafnia oil tanker hit by “external source” in
Saudi Arabia
By Pearl Bantillo 2020/12/14 SINGAPORE
(ICIS)--Shipping company Hafnia said on Monday
that one of its oil tankers in Saudi Arabia was
hit by an “an external source”, “causing an
explosion and subsequent fire onboard” the
vessel.
Corrected: India November vehicle sales grow
9.8% on year; production up
1.7%
By Pearl Bantillo 2020/12/11 Correction: In the
ICIS story headlined "India November vehicle
sales grow 11.0% on year; production up 2.7%",
dated 11 December 2020, please read in the
headline ... sales grow 9.8% on year;
production up 1.7% … instead of ... vehicle
sales grow 11.0% on year; production up 2.7%
.... The Society of India Automobile
Manufacturers (SIAM) officially revised its
entire November vehicle data. A corrected story
follows.
SINGAPORE (ICIS)--India’s total vehicle sales in November increased by 9.8% year on year to 1.89m units, while production grew a more moderate 1.7% to about 2.3m units, industry data showed.
Rates
for shipping containers continue to skyrocket
amid shortage in Asia
By Adam Yanelli 2020/12/11 HOUSTON (ICIS)--A
continued shortage of shipping containers in
Asia is putting upward pressure on freight
costs – where some importers are paying three
times more than normal – and delaying delivery
times as securing space to ship goods has
become more difficult.
November IPEX up 11% on soaring prices
in Asia
By Miguel Rodriguez Fernandez 2020/12/10 LONDON
(ICIS)--The ICIS Petrochemical Index (IPEX)
continued to climb in November, increasing by
11.18% for the month, tracking price increases
for most of the major petrochemical and
plastics commodities.
Oil
prices higher on vaccine optimism, attack on
Iraqi oilfield
By Pearl
Bantillo 2020/12/10 SINGAPORE (ICIS)--Oil
prices were trading higher on Thursday on hopes
that demand will improve once the coronavirus
vaccines are rolled out, with further support
from supply disruption worries following an
attack on Iraqi oilfields.
Gains were tempered by an unexpected increase in US crude stocks last week.
Japan’s Showa Denko sets up third
high-purity gas base in
China
By Fanny Zhang 2020/12/09 SINGAPORE
(ICIS)--Japan’s Showa Denko (SDK) said on
Wednesday that its Chinese subsidiary Shanghai
Showa Chemicals has set up a new high-purity
gas branch in Shaanxi province.
China auto industry recovery faces
challenges from Europe chip
shortage
By Fanny Zhang 2020/12/09 SINGAPORE
(ICIS)--China’s automotive production will have
to hurdle through a shortage of electronic
chips from Europe well into 2021, which could
derail the industry’s fragile recovery amid the
pandemic.
VIDEO: China acetic acid prices hit
two-year high on tight
supply
By Jady Ma 2020/12/09 SINGAPORE (ICIS)--Watch
industry analyst Jady Ma share some insights on
China's acetic acid which is surging to a
two-year high in December.
PODCAST: Economists more optimistic on
vaccines but logistics, Brexit risks
remain
By: Will Beacham 2020/12/08 BARCELONA
(ICIS)--New economic forecasts have upgraded
prospects for 2021 globally as the vaccination
programme kicks in, but logistics problems and
the UK's withdrawal from the EU could threaten
any recovery.
- Economists upgrade expectations for
2021
- But recovery may be held back by logistics
challenges
- Spare industrial capacity, higher capital
spending may benefit chemicals, economy
- But a return to business as usual unlikely
Click on the headline to see the podcast.
Evonik coronavirus vaccine capabilities
could net big payday - bank
By: Tom Brown 2020/12/08 LONDON
(ICIS)--Evonik’s dominance in a technology
space necessary for the administration of the
newer class of vaccines against Covid-19 could
significantly buoy the German producer’s
earnings over the next five years, according to
Baader Bank.
The Germany-based firm has a strong market position in lipid nanoparticles necessary for the transportation of messenger RNA (mRNA) vaccines such as those developed to fight the coronavirus pandemic by Pfizer/BioNTech and Moderna.
A new form of treatment, mRNA-based vaccines train the body’s cells to produce a protein triggering an immune response, rather than using an inert or weakened form of a bacteria to drive the immunisation process.
Japan
revises up Q3 GDP growth to 22.9%; Y73.6tr
stimulus announced
By Pearl Bantillo 2020/12/08 SINGAPORE
(ICIS)--Japan’s third-quarter economic growth
was revised up to 22.9% year on year from
the initial
estimate of 21.4%, staging a strong rebound
from a
deep slump in the previous three
months, official data showed on Tuesday.
Saudi
Arabia's Advanced Petrochemical to build new
PDH, PP units
By Pearl Bantillo 2020/12/07 SINGAPORE
(ICIS)--Saudi Arabia’s Advanced Petrochemical
plan to build a new propane dehydrogenation
(PDH) unit and a polypropylene (PP) plant in Al
Jubail.
Its 85%-owned subsidiary Advanced Polyolefins Company (APOC) has secured a Saudi riyal (SR) 3bn ($800m) eight-year loan from the Saudi International Development Fund (SIDF) to partly fund the project.
China
November exports grow 21.1% year on year;
imports up 4.5%
By Yvonne Shi
2020/12/07 SINGAPORE (ICIS)--China’s total
exports in November surged by 21.1% year on
year to $268.1bn, according to preliminary data
from the government.
Rating agency lowers
expectations for 2021 global GDP growth as new
coronavirus cases surge
By: Adam Yanelli 2020/12/04 HOUSTON (ICIS)--A
new surge of coronavirus (Covid-19) cases in
the US and Europe - and the possible lockdown
measures that could follow - drove S&P
Global Ratings to lower its full year global
GDP growth projection for 2021.
Germany's manufacturing orders exceed
pre-pandemic levels, chem-pharma remains
lower
By: Stefan Baumgarten 2020/12/04 LONDON
(ICIS)--Germany’s October manufacturing orders
exceeded pre-pandemic levels from February for
the first time this year, driven by auto
industry orders, according to official data on
Friday.
Orders were up 0.8% compared with February 2020, before the pandemic hit Europe in earnest in March causing a sharp fall in economic activity.
Month on month, orders rose 2.9% in October, from September; year on year, they were up 1.8% from October 2019.
CHEM-PHARMA NOT THERE YET
In the chemical-pharmaceutical industry,
however, orders rose month on month but are yet
to reach pre-pandemic levels.
PODCAST: China ACN prices hit
year-to-date high in November on tight
supply
By Dan Lu 2020/12/04 SINGAPORE (ICIS)--China’s
acrylonitrile (ACN) prices surged to the
year-to-date high in November amid growing
speculations, bolstered by tight supply.
INTERVIEW: Aramco
seeks to expand global
footprint in chemicals
with focus on India,
China -
CEO
By Joseph Chang
2020/12/03 NEW YORK
(ICIS)--Saudi Aramco is
targeting chemicals
investments in India and
China as part of its
global integrated
oil-to-downstream
chemicals strategy, its
CEO said on Thursday.
By Clare Pennington 2020/12/03 LONDON (ICIS)--LNG analyst Alex Froley and senior reporter Clare Pennington share their views on the growing trend of carbon neutral cargoes, how companies are each taking their own approach, and what growth in the carbon market might look like in future years.
Pandemic slows down
energy efficiency progress to decade low –
IEA
By Pearl Bantillo 2020/12/03 SINGAPORE
(ICIS)--The coronavirus pandemic has slowed
down global progress in energy efficiency to a
decade low, posing a threat to meeting
international climate goals. This makes the
next three years critical to reverse the
“worrying trend”, the Paris-based International
Energy Agency (IEA) said.
“Global primary energy intensity - a key indicator of how efficiently the world’s economic activity uses energy - is expected to improve by less than 1% this year, the weakest rate since 2010,” according to IEA’s Energy Efficiency 2020 report released on Thursday.
“This is well below the level of progress needed to achieve the world’s shared goals for addressing climate change, reducing air pollution and increasing access to energy,” it said.
Investment in energy efficiency worldwide is on course to fall by 9% in 2020 amid the economic recession triggered by the pandemic, the IEA said.
China
underpins Asia Nov manufacturing recovery;
virus worries remain
By Nurluqman Suratman 2020/12/03 SINGAPORE
(ICIS)--Asia's manufacturing recovery continued
in November led by a strong performance in
China, but business confidence is sputtering
across the region as more
restrictions are imposed in key
external markets amid the unabated spike in
coronavirus infections.
Eurozone’s chems producer prices
recover in October but remain 4.5% lower year
on year
By: Jonathan Lopez LONDON (ICIS)--Chemicals
producer prices in the eurozone rose slightly
in October month on month but remain well below
their October 2019 levels, statistical office
Eurostat said on Wednesday.
Chemicals producer prices in the 19-country currency union were in October 4.5% lower than a year prior, while in the wider 27-country EU, prices stood 4.4% lower.
The year-on-year decreases, however, have been narrowing since the falls they posted in May in the midst of European lockdowns to contain the spread of the pandemic.
The year-on-year falls stood in May at 9.4% in the eurozone, and at 9.0% in the EU.
Thailand's Global Green Chemicals
starts up new glycerine unit
By Nurluqman Suratman 2020/12/02 SINGAPORE
(ICIS)--Thailand's oleochemicals producer
Global Green Chemicals (GGC) started commercial
operations at its new 20,000 tonne/year refined
glycerine unit on 1 December.
BLOG: Sustainability, the pandemic,
demographics and geopolitics – how petchem
companies will define their
success
By ICIS Editorial 2020/12/02 LONDON
(ICIS)--Click here to see the latest blog post
on Asian Chemical Connections.
The four megatrends - sustainability, the pandemic, demographics and geopolitics - are reshaping how petrochemicals and other companies must operate.
On sustainability, petrochemicals producers face the twin pressures of refinery closures threatening feedstock supply as brand owners demand packaging made from plastic waste.
VIDEO: China crude stocks in Shandong,
Tianjin ports hit 2.5-month
low
By Angie Chen 2020/12/01 SINGAPORE
(ICIS)--Angie Chen, analyst at ICIS, discusses
falling crude stocks at China’s Shandong and
Tianjin ports.
- Crude stocks at lowest since mid-September
- Inflows down nearly 19% on inclement weather
- Offtake strong as Shandong teapot refiners run at high rates
AFPM moves US IPC to mid-May from
March
By Al Greenwood 2020/12/01 The American Fuel
& Petrochemical Manufacturers (AFPM) is
moving the date for its annual International
Petrochemical Conference (IPC) to 23-25 May, it
said on Tuesday.
China
to launch ICIS-linked PX swap contracts in Q1
2021
By Anna Xiang 2020/12/01
SINGAPORE (ICIS)--China will launch in the
first quarter of 2021 a central counterparty
clearing in Shanghai for paraxylene (PX) swaps
contracts, which will adopt ICIS’ quotes as
benchmark for monthly settlement.
The Shanghai Clearing House (SHCH) will use ICIS’ daily PX CFR (cost & freight) CMP (China Main Ports) assessment as basis to generate the monthly average price, after multiplying the central parity rate of Chinese yuan against the US dollar published by the People's Bank of China (PBoC) on the same day.
ExxonMobil to write off
as much as $20bn in assets; cuts
capex
By Nurluqman Suratman 2020/12/01 SINGAPORE
(ICIS)--US energy major ExxonMobil plans to
write down as much as $20bn in assets and cut
its 2021 capital expenditures (capex) to
$16bn-$19bn as it prioritizes investments in
chemical performance products in the near term.
Annual capex thereafter until 2025 will be $20bn-25bn, down from the company’s original budget of $30bn-$35bn, the company announced late on Monday.
Caixin's China Nov
manufacturing PMI rises to 54.9 as order
volumes rise
By Nurluqman Suratman 2020/12/01 SINGAPORE
(ICIS)--Caixin's China general manufacturing
purchasing managers' index (PMI) rose to 54.9
in November from 53.6 in October as order
volumes surged following a strong recovery from
the coronavirus outbreak earlier in the year,
the Chinese media firm said on Tuesday.
"Chinese manufacturers signalled the strongest improvement in operating conditions for a decade in November, as growth of both output and new orders accelerated to 10-year highs," it said.
India
plastic processors seek ban/restrictions on raw
material exports
By Pearl
Bantillo 2020/12/01 SINGAPORE (ICIS)--The All
India Plastics Manufacturers’ Association
(AIPM) is seeking an immediate ban or
restrictions on exports of raw materials as
domestic plastic processors are reeling from
the double whammy of surging feedstock prices
and demand weakness amid the pandemic.
In a letter to India Prime Minister Narendra Modi dated 26 November 2020, AIPM put forth urgent requests to help save the plastics processing industry following what is considers as a “dramatic and unnatural increase in price of raw material (resin)” by domestic manufacturers.
The group is asking Modi’s government to further consider immediate suspension of any imposition of non-tariff barriers to imports of raw materials; a creation of a petrochemical regulatory body; and a launch of a probe into the price spike in resin prices by local manufacturers.
VIDEO: Asia EVA
faces challenges as new capacities come on
stream
By Helen Lee 2020/12/01 SINGAPORE
(ICIS)--Senior Editor Helen Lee discusses the
challenges ahead for the ethylene vinyl acetate
(EVA) market in Asia as capacity additions
loom.
VIDEO: China crude stocks
in Shandong, Tianjin ports hit 2.5-month
low
By Angie Chen 2020/12/01
SINGAPORE (ICIS)--Angie Chen, analyst at ICIS,
discusses falling crude stocks at China’s
Shandong and Tianjin ports.
ANALYSIS AND RESOURCES
ICIS chemicals coronavirus Impact Demand Model November 2020 by willbeacham on Scribd