
News library
Subscribe to our full range of breaking news and analysis
Commodity group
Region
Date
Viewing 57811-57820 results of 58632
Power18-Jul-2025
Market experts told ICIS that BESS
operators are more likely to opt for a hybrid
bidding strategy at the first Italian MACSE
auction
This would involve a diversified BESS
portfolio partly safeguarded by the low-risk
MACSE premium, and partly benefiting from
merchant market upside
Italian power spot spreads are likely to
increase, rendering the merchant market more
remunerative, a source from KYOS told ICIS
LONDON (ICIS)– Multiple market experts,
including a source from KYOS Energy
Consulting, have told ICIS that BESS
operators are likely to opt for a hybrid
bidding strategy at the first MACSE
(Electricity Storage Capacity Procurement)
auction on 30 September, covering some of
their fixed costs with MACSE incentives and
leaving the rest of their battery storage
portfolio free to take part in the merchant
market.
The source from KYOS told ICIS that “a
‘full-MACSE strategy’ is probably not the way
to go for operators, as it would involve
missing too much of an opportunity from
wholesale trading. Instead, a hybrid MACSE
strategy is likely what most operators will
want to go for.”
The same source suggested that “as long as
solar buildout outpaces BESS deployment, we
are likely to see day-ahead spreads
increasing, together with the arbitrage
potential from buying low at midday and
selling high in the evening.”
“Consequently, I don’t think an operator
would want to lock themselves into a
‘full-MACSE’ scheme which leaves them unable
to take advantage of these increasing
spreads,” the same source concluded.
An Italian power market analyst agreed with
this assessment, suggesting that “it is
likely that operators will opt for a hybrid
strategy as different studies indicate this
as the most remunerative; it allows a portion
of the earnings of a BESS portfolio to be
safeguarded by the MACSE scheme while leaving
the other part to benefit from arbitrage on
the merchant market.”
“FULL MACSE”
The
MACSE mechanism offers newly constructed
storage facilities long-term contracts that
ensure a premium in €/MWh/year, received on a
monthly basis for 15 years.
In exchange, operators must use their storage
capacity to provide time-shifting services as
well as participate in the Ancillary Services
Market (MSD). Operators will be able to
retain 20% of the revenue earned on the MSD.
According to an Italian BESS expert, this
makes a ‘full-MACSE’ strategy the most likely
choice for “totally risk-averse operators; it
provides regular and certain revenue, less
profitability with less risk.”
MERCHANT MARKET
On the other hand, the same BESS expert told
ICIS that “operators more prone to risk are
likely to expose some of their BESS portfolio
on the merchant market and/or the capacity
market.”
The same BESS expert noted that, as the first
MACSE auction does not offer incentives for
northern zones, “BESS portfolios could be
diversified with MACSE projects in the south
and capacity market projects in the north.”
HYBRID STRATEGY
On the other hand, a head of power
origination told ICIS that “at the level of
potential merchant market revenue, Italy is
one of the least enticing countries in
Europe, given that negative prices do not
form on its power market.”
The MACSE approach likely to be the most
popular, an Italian market regulatory
specialist told ICIS, could be “a hybrid
strategy with a diversified BESS portfolio.”
This would balance the higher upside offered
by the merchant market with the low-risk,
regular MACSE monthly premium.
OUTLOOK
The post-2028 horizon poses the threat of
“battery cannibalization” – the new BESS
capacity contracted by MACSE could reduce
price spreads, thus cannibalizing battery
arbitrage margins.
However, the source from KYOS told ICIS that
“in the near future there will be more
liquidity on the intraday market, and the
wholesale market will hold a more significant
share of revenue stream for BESS operators.”
“As more BESS capacity comes online, we
expect profits on ancillary markets to
decrease as these markets become more
saturated (because of their relatively
smaller depth), causing operators to shift
their focus to merchant markets,” the source
concluded.
Paraffin Wax17-Jul-2025
LONDON (ICIS)–Chinese wax producers may look
at reviewing their selling strategies as the
US-China have yet to announce a long-term deal
ahead of the 12 August deadline. The Chinese
CIF (cost, insurance and freight) paraffin wax
spot prices have increased for four consecutive
weeks as volume availability dropped.
With no clear view on the negotiations between
US and China, the upwards movements on Chinese
wax prices may prove temporary. The shipping
time for Chinese wax to reach the US is about a
month, and considering the current agreement
expires mid-August, any shipments starting
their journey to the US late July face risks
related to any political changes.
A 90-day reduction in tariffs between the US
and China encouraged sellers to shift their
strategy. Immediately after the escalation of
trade tariffs back in April, wax producers
directed supplies into Europe to avoid the US
import duties and lowered their prices to
entice buyers. Since the US and China announced
the trade truce as they negotiate a new trade
deal, Chinese sellers have opted to shift
volumes once again and send them to the US.
This has so far led to a steady recovery in
Chinese spot volumes offered in Europe given
less availability in China. A flurry of Chinese
wax volumes started to reach Europe in June,
and the additional competition added some
pressure on domestic spot prices for paraffin
wax in recent weeks. But this was below
expectations, because of refinery maintenance
works in June and July in Poland and Hungary.
Chinese CIF-origin wax volumes posted gains for
the fourth consecutive week, rising $30/tonne
to $1,270-1,340/tonne,
Sources expected a quiet demand period in
August given the holiday season, with further
price developments in September. Uncertainty
may also drive some Chinese sellers to focus on
Europe as a destination for their volumes.
A stronger US dollar was also having an impact
with buying appetite under pressure as the
purchasing power of the euro was reducing. The
currency has been highly volatile since the
beginning of the year.
Focus article by Sophie
Udubasceanu
Isocyanates17-Jul-2025
HOUSTON (ICIS)–US builder confidence in the
market for newly built single-family homes
improved slightly in July following the passage
of US President Donald Trump’s fiscal bill, the
National Association of Home Builders (NAHB)
reported on Thursday.
Trump’s “One
Big Beautiful Bill Act” provided a number
of important wins for households, home builders
and small businesses, and therefore should spur
housing momentum after a disappointing spring,
said NAHB chairman Buddy Hughes.
However, confidence remained low for a 15th
consecutive month as elevated interest rates
and economic and policy uncertainty continued
to act as headwinds for the housing sector.
Confidence, as measured by the NAHB/Wells Fargo
Housing Market Index (HMI), rose from 32 points
in June to 33 in July. Readings below the
50-point neutral mark indicate builder
pessimism, and above 50 they indicate optimism.
The housing sector has weakened in 2025 due to
poor affordability conditions, particularly
from elevated interest rates, Hughes said.
NAHB expects single-family housing starts to
decline in 2025 due to the ongoing housing
affordability challenges.
JULY HMI SURVEY:
The HMI index gauging current sales
conditions rose one point in July to a level of
36.
The gauge for sales expectations in the
next six months increased three points to 43.
The gauge charting traffic of prospective
buyers posted a one-point decline to 20, the
lowest reading since end of 2022.
REGIONAL HMI SCORES:
The Northeast increased two points to 45.
The Midwest held steady at 41.
The South dropped three points to 30.
The West fell three points to 25.
The housing market is a key consumer of
chemicals, driving demand for a wide variety of
chemicals, resins and derivative products, such
as plastic pipe, insulation, paints and
coatings, adhesives and synthetic fibers, among
many other materials.
Please also visit the ICIS topic page:
Macroeconomics: Impact on
Chemicals.
Frontpage thumbnail by Shutterstock

Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Speciality Chemicals17-Jul-2025
LONDON (ICIS)–Chemicals production in German
contracted 3% in the first half of 2025
offsetting an expansion in pharmaceuticals
output to drive the industry as a whole to a 1%
contraction, trade body VCI said on Thursday.
Industry productivity remains 15% below the
pre-crisis levels seen in 2018, with no sign of
a turnaround this year, according to VCI
president and Covestro chief Markus Steilemann.
“We are also seeing double-digit declines in
other important sectors of the economy,” he
said.
Covestro, along with other Germany-based peers
BASF and FUCHS Group, downgraded
full-year earnings expectations for 2025 in the
last week on prolonged weak demand and the
depressed macroeconomic environment.
Uncertainty remains a key headwind for the
sector, with 40% of VCI member companies
lamenting the disorganised global trade
environment, as industry balances continue to
weaken.
Chemicals exports weakened year on year during
the period, while imports increased 2%, VCI
said.
Total sector sales dropped 0.5% year on year
during the period as prices stagnated, and
capacity utilisation stood below 80% into a
third consecutive year, below the profitability
threshold for many products.
The decline in productivity was more pronounced
for the polymer and basic chemicals sectors,
where production fell 3.5%, while
petrochemicals and derivatives output fell
2.5%.
Fine and specialty chemicals production fell 3%
in the first half of the year, while detergents
and personal care products output dropped 1%
over the same period.
“In the medium term, there is no improvement in
sight. Germany is struggling with the third
recession in a row,” VCI said. “Neither the
economic institutes nor the majority of VCI
member companies expect an economic upturn in
the second half of 2025.”
Moves by Germany’s new federal government to
increase public investment and reduce
bureaucratic roadblocks is a welcome one,
according to Steilemann, who called for further
cuts to red tape and an easing of the country’s
debt brake, a focus on affordability in energy
policy. Diversifying trade and stronger
integration of the EU as a market.
Thumbnail image: Shutterstock
Crude Oil17-Jul-2025
SINGAPORE (ICIS)–Japan’s chemical exports in
June declined by 5.2% year on year to yen (Y)
978.5 billion ($6.6 billion), amid a second
consecutive month of overall exports declining,
preliminary data from the Ministry of Finance
(MOF) showed.
Exports of organic chemicals fell by 15.8% year
on year to Y145.3 billion in June, while
shipments of plastic products slipped by 3.7%
to Y283.6 billion, the MOF said on Thursday.
By volume, June exports of plastic
materials fell by 9.4% year on year to 416,008
tonnes.
Japan’s total exports for the month fell by
0.5% year on year to Y9.16 trillion, continuing
a decline beginning in May as US President
Donald Trump’s 25% tariffs on all automobiles
weighed on Asia’s third-largest economy.
Overall imports rose by 0.2% year on year to Y9
trillion in June, resulting in a trade surplus
of Y153 billion.
Overall shipments to the US – its largest
export destination – fell by 11.4% year on year
to Y1.71 trillion in June.
Japan’s trade surplus with the US shrank by
22.9% year on year to Y669.3 billion in June.
Exports of cars to the US slumped by 25.3% year
on year to Y415 billion in June,
while shipments of motor vehicle parts fell by
15.5% to Y90.6 billion.
Overall chemicals shipments to the US fell by
10.3% year on year to Y133.5 billion in June.
Japan has thus far failed to strike a trade
deal with the US, nor has it managed to stave
off an additional 25% tariff on automobiles.
The US has slapped a 25% rate on all goods from
Japan to take effect on 1 August if a deal
cannot be reached.
More trade talks are set to take place amid an
upcoming upper house election in Japan on 20
July, which could threaten the Japanese Prime
Minister Shigeru Ishiba’s party’s position in
Parliament.
($1 = Y148.5)
Crude Oil17-Jul-2025
SINGAPORE (ICIS)–Singapore’s petrochemical
exports fell by 10.2% year on year to (S$) 1.09
billion in June, but overall non-oil domestic
exports (NODX) rose ahead of US tariffs which
are expected to weigh on the trade-reliant
economy in the latter half of this year.
NODX to US down 4.8% year on year in June;
exports to most key markets decline
Payback from export front-loading to dampen
H2 GDP growth
Singapore still awaiting official US tariff
notification
Singapore’s NODX rose by 13% year on year to
S$15.4 billion last month, reversing the 3.9%
contraction in May and marking the strongest
expansion since July 2024,
Enterprise Singapore data showed on
Thursday.
For the first six months of 2025, overall NODX
rose by 5.2% year on year.
Shipments of non-electronic NODX, which
includes pharmaceuticals and chemicals, rose by
14.5% year on year to S$12 billion in June,
reversing the 5.8% decline in the preceding
month.
NODX to the US fell by 4.8% year on year in
June, extending the 20.6% decline in May, while
exports to Japan, Indonesia, Malaysia, Thailand
and the EU also decreased.
Singapore is a leading petrochemical
manufacturer and exporter in southeast Asia,
with more than 100 international chemical
companies, including ExxonMobil and Aster
Chemicals & Energy, based at its Jurong
Island hub.
Singapore’s economy grew by 4.3% in the second
quarter from a year earlier, but significant
global economic uncertainty persists in the
second half, driven by unclear US tariff
policies.
For the first half of 2025, the annual average
GDP growth was 4.2%, supported by front-loading
of exports and to a smaller extent production
in anticipation of further US tariffs.
Singapore posted GDP growth of 4.4% in 2024.
“The payback from earlier front-loading is
likely to dampen growth in H2 2025, further
weighed down by the potential drag from the US
reciprocal tariffs,” said Jester Koh, an
economist at Singapore’s UOB Global Economics
& Markets Research.
US President Donald Trump has informed several
nations that tariffs ranging from 20% to 50%
will take effect on 1 August, and cautioned
that any retaliatory measures would be met with
a like-for-like response.
Singapore has not yet received official
notification of these new tariffs from the
Trump administration.
Its exports continue to be subject to the 10%
baseline tariff previously announced in April.
Meanwhile, southeast Asian neighbors Vietnam
and Indonesia have successfully negotiated
agreements with Washington for tariffs below
the levels initially threatened by President
Trump.
“For Singapore, the priority appears to be
negotiating concessions on future
pharmaceutical tariffs which Trump has
threatened could reach as high as 200%,” Koh
said.
A tariff-induced slowdown in Singapore’s key
trading partners could further intensify
downside risks to growth, he noted.
“Singapore is likely the most exposed to
external growth shocks in major economies (US,
EU, China) given its high share of domestic
value added in final demand originating from
these markets,” Koh said.
Singapore’s Deputy Prime Minister Gan Kim Yong
is expected to head to the US later this month
for trade talks and intends to continue
discussions on the country’s pharmaceutical
exports.
The country’s central bank now expects tariffs
to hit production and exports “with a lag,
especially when the boost from frontloading
dissipates”, Monetary Authority of Singapore
(MAS) managing director Chia Der Jiun said on
16 July.
“At this juncture, the impact of tariffs and
uncertainty have yet to assert in a major
way… For now, economic activity and output
have been resilient, but front-loading will not
continue indefinitely and will have to be paid
back,” Chia said.
“Consumption and investment will likely soften
in the months ahead. Consistent with this,
forward looking survey-based indicators of
consumer and business confidence are slipping,”
he added.
Focus article and interactives by
Nurluqman Suratman
Visit the US tariffs, policy – impact on
chemicals and energy topic page
Ethylene16-Jul-2025
HOUSTON (ICIS)–The US has started an
investigation into Brazilian policies under
Section 301, the same provision it used to
impose tariffs on numerous Chinese imports in
2018.
Any tariffs that the US imposes after it
completes the Section 301 tariff could prove
more durable than
the 50% duties it proposed on Brazilian
imports under the International Emergency
Economic Powers Act (IEEPA). Such tariffs are
unprecedented, and they are being challenged in
US court.
The US will schedule a hearing about the
Section 301 investigation on 3 September.
MORE US TARIFFS EXPOSES CHEM EXPORTS TO
RETALIATIONBrazil
is among the countries that export benzene
to the US, although not to the magnitude of
South Korea or the EU.
By contrast, Brazil is a large importer of
caustic soda, polyethylene (PE) and base oils
from the US, leaving these products vulnerable
to retaliatory tariffs. The US is a minor
supplier of fertilizer to Brazil’s large
agricultural sector.
The Brazilian president has not published a
response to the US investigation.
However, Brazil has threatened to invoke its
economic reciprocity law, which establishes
criteria to suspend trade concessions,
investments and obligations to intellectual
property rights in response to unilateral
actions passed by countries that diminish
Brazilian competitiveness in global markets.
It has created a government committee that will
consider both countermeasures and negotiations
to address the unilateral actions.
ALLEGATIONS FROM THE
USThe US made the following
allegations in regards to Brazilian trade
practices.
The US accused Brazil of retaliating
against companies that allegedly fail to abide
to Brazilian policies on political speech.
These allegations concern digital trade and
electronic payment services, and the US made
similar allegations when it proposed 50%
tariffs on Brazilian imports.
The US accused Brazil of imposing what it
described as lower preferential tariffs on
imports from “certain globally competitive
trade partners”. The US did not identify the
countries, but China is Brazil’s largest
trading partner.
The US accused Brazil of failing to enforce
anti-corruption and transparency measures.
The US accused Brazil of weak enforcement
of intellectual property rights.
The US criticized Brazil for imposing
tariffs on its exports of ethanol instead of
allowing it to enter duty free.
The US accused Brazil of illegal
deforestation, which it alleged undermines the
competitiveness of its exports of timber and
agricultural products.
Thumbnail shows the Brazilian flag. Image
by Fernando Bizerra
Jr/EPA/REX/Shutterstock
Gas16-Jul-2025
EU energy commissioner confirms legal basis
for Russia phaseout untested
Commmission legal services confident force
majeure would apply
MEPs to next meet on topic in October
LONDON (ICIS)—The EU’s energy chief
acknowledged on 15 July that the European
Commission could not guarantee the legal basis
underpinning the bloc’s proposal to end Russian
gas imports by 2028 and the plan was subject to
challenges.
“In a potential court case, it will be the
individual contract that will be held up
against the measures – this goes without
saying,” EU energy commissioner Dan Jorgensen
told MEPs.
“So therefore there’s no 100% guarantee ever,
it depends what’s on the paper,” he said.
However, Jorgensen said the but said he was
confident that proposal’s wording prohibiting
imports of Russian pipeline gas and LNG meant
force majeure applied and would negate any
risk.
Lawmakers in a joint session of the European
Parliament’s trade and energy committees
pressed Jorgensen repeatedly on whether the
proposals were legally sound and how to
strengthen this.
While the lead MEPs for both committees urged
the Commission to be more ambitious by phasing
out Russia supply sooner and removing emergency
clauses which would allow supply to resume,
Jorgensen said countries’ concerns were valid.
While he disagreed politically with Hungary and
Slovakia’s criticisms, he said he hoped the
inclusion of the emergency measures would calm
those concerns.
“The populations of those countries … have a
legitimate right to know that whatever we do
will not interfere with the prices or security
of supply,” Jorgensen said, citing his
experience working on emergency plans as
Denmark’s energy minister after Russia cut
supply to Europe in 2022.
While there is broad support for the
legislation in the Parliament, Jorgensen noted
some national governments may prefer a more
cautious approach.
While two countries were vocally opposed to the
plan, Jorgensen said “to be quite honest” that
other countries also had found aspects of the
plan worrying and this sentiment likely
remained.
While this was fair, he said he was confident
the proposal would guarantee security of
supply, amid declining gas consumption, rising
LNG supply and development of domestic supplies
and biomethane.
Jorgensen’s home country of Denmark holds the
rotating presidency of member states until the
end of December and aims to finalise the
legislation by then.
The process will not require unanimity, unlike
sanctions, but a speedy resolution may be
challenging with Hungary and Slovakia opposed.
Slovak prime minister Robert Fico said in a
press release on 15 July that the Commission
should allow his country a derogation, allowing
it to fulfil its contract with Russia’s Gazprom
until it ends in 2034.
He said Slovakian diplomats were instructed to delay a
vote on the EU’s 18th sanctions package against
Russia in response, which include targeting
transactions with the Nord Stream pipelines,
Russian oil revenues and the shadow fleet.
EU delegations were also scheduled to discuss
the proposal at technical level on 15 July.
MEPs will next meet about the proposals in
October.
Crude Oil16-Jul-2025
SINGAPORE (ICIS)–Bank Indonesia (BI) lowered
its key interest rate – the seven-day reverse
repurchase rate – by 25 basis points (bps) to
5.25% on Wednesday amid a trade deal struck by
Indonesia with the US.
Interest rate cut comes amid US trade deal
Need for more household spending, but
exports “quite good”
Global economic growth to remain at around
3.0% – BI
The central bank also lowered overnight deposit
rates by 25 bps to 4.50%, and the lending
rate by 25 bps to 6.00% amid “the need to
continue to stimulate economic growth” as well
as a lowered inflation forecast for 2025 and
2026.
“Going forward, BI will continue to monitor the
scope for interest rate reductions to stimulate
economic growth while maintaining rupiah (Rp)
exchange rate stability and achieving inflation
targets in line with the dynamics of the global
and domestic economies,” the central bank said.
Indonesia is southeast Asia’s biggest economy
and is a major importer of petrochemicals amid
strong demand and limited local production.
UNCERTAINTY OVER TARIFFS LOWERS
OUTLOOKBI flagged global
economic uncertainty rising again based on the
US government’s latest ‘reciprocal’ tariffs
that are planned to take effect on 1 August.
As a result of slower economic growth brought
about by the US’ tariffs, the central bank
projects global economic growth in 2025 to
remain weak, at around 3.0%.
BI also emphasized the importance of
stimulating Indonesia’s economic growth amid
the weaking global economic outlook.
The performance of Indonesia’s exports in the
second quarter was “quite good”, supported by
natural resource-based exports and manufactured
products.
Meanwhile, household consumption still needs to
be increased, reflected in slowing retail
sales.
“Looking ahead, economic growth in the second
half of 2025 is projected to improve, and
overall for 2025 is projected to be in the
range of 4.6-5.4%,” BI said.
Indonesia’s latest GDP growth rate reading –
for the first quarter of 2025 – was at 4.87%
year on year.
CPI inflation for Indonesia in June 2025 was
recorded at 1.87% year on year, while core
inflation fell to 2.37% year on year, said BI.
TRADE DEALGoods from
Indonesia to the US will receive a 19% levy,
while US imports to Indonesia will not be
subject to any duties, US President Donald
Trump announced on his social media platform
Truth Social.
The new rate is significantly lower than the
previously announced rate of 32%.
Transshipments from countries subject to higher
rates will be subjected to the higher rate on
top of the Indonesia rate.
In addition, Indonesia apparently committed to
$15 billion in US energy purchases, $4.5
billion of American farm products and 50 Boeing
jets, according to Trump.
The US did not specify when the agreement will
take effect.
Hasan Nasbi, who is Indonesia President Prabowo
Subianto’s spokesperson, called the deal “an
extraordinary struggle” on Wednesday.
Indonesia had a trade surplus of $17.9 billion
with the US in 2024, according to the US trade
representative.
While the levy on Indonesian goods is lower
than Vietnam’s 20%, Indonesia’s oleochemicals
producers, which form the bulk of Indonesia’s
exports to the US, are
awaiting the announcement of other rates,
notably Malaysia’s.
Malaysia is also a large oleochemicals exporter
and currently has 25% tariffs levied on its
goods by the US, to take effect from 1 August
unless a trade deal can be reached.
Focus article by Jonathan
Yee
Infogram graphs by Nurluqman
Suratman
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.
READ MORE
