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Polystyrene05-Feb-2025
HOUSTON (ICIS)–Senate Bill 543 was passed in
2023, but it was not until 1 January 2025 that
the ban on polystyrene foam was implemented.
According to The Oregon Department of
Environmental Quality (DEQ), “[The] 2023 Senate
Bill 543 (ORS 459.465 to 459.477) prohibits
food vendors from using polystyrene foam
containers for prepared food, prohibits the
sale of polystyrene foam containers or
polystyrene foam packing peanuts, and prohibits
the sale of foodware containers with added
perfluoroalkyl or polyfluoroalkyl substances
(PFAS).”
“PFAS are a group of chemicals that are
considered “emerging environmental
contaminants” because public knowledge about
their harmful effects and how they are
regulated are relatively new or undeveloped.
PFAS are water soluble and highly mobile, and
can accumulate in living organisms. Many newer
PFAS transform into highly persistent
perfluorinated chemicals in the environment,
and can last for hundreds to thousands of
years, depending on the PFAS compound,”
according to The Oregon DEQ.
What does this mean for polystyrene in Oregon?
Well, the bill states that food vendors must
not use polystyrene foam containers when
selling, offering for sale, serving or
dispensing prepared food to a consumer.
Examples of this include to-go containers that
many use to take home leftovers or to pick up
food-orders. This also applies to polystyrene
foam plates and cups.
Although food vendors must not use polystyrene
foam, the bill also states that a person may
not sell, offer for sale or distribute in or
into the state polystyrene foam containers or
polystyrene foam packaging peanuts. Also, a
person may not sell, offer for sale or
distribute in or into the state a foodware
container containing intentionally-added PFAS.
The Oregon DEQ noted that businesses with
existing inventory of the examples above may
not use or sell the material after 1 January
2025.
Polyethylene Terephthalate05-Feb-2025
LONDON (ICIS)–Senior editor, recycling
Matt Tudball talks
to Helen McGeough, global
recycling analytics team lead about some of the
key topics that will be discussed at the
upcoming ICIS
PET Value Chain Conference on 6-7
March in Amsterdam.
Topics include:
Improving the supply chain for recycled PET
Getting access to good-quality feedstocks
Deposit return schemes (DRS) growing in
Europe
Impact of high feedstocks on R-PET prices
Spreads between virgin PET and R-PET
Ethylene05-Feb-2025
SAO PAULO (ICIS)–Brazil’s chemical industry
posted a $48.7 billion trade deficit in 2024 as
imports surged to $63.9 billion, driven by
“predatory pricing” from US and Asian
suppliers, the country’s chemicals trade group
Abiquim said.
Asian suppliers, moreover, benefited from
discounted Russian raw materials and, in
China’s case, from heavy subsidies from the
state, the trade group added.
The overall deficit, while substantial,
remained below the 2022 record of $63 billion,
though Abiquim noted this was primarily due
what it described as “predatory import pricing”
which cushioned the “real imbalance” in the
trade balance.”
Import volumes rose 11.5% to 65.3 million
tonnes of chemicals, with fertilizer
intermediates accounting for 41.1 million
tonnes, up 7.4% from 2023.
This marked the highest import volume since
records began in 1989, as Asian suppliers
leveraged cheaper Russian materials amid the
war in Ukraine.
Abiquim’s CEO said 2024 had been challenging
for Brazil’s chemicals producers, although the
year was also marked by the higher import tariffs
approved for 30 chemical products, which gave
the sector a boost in November and December,
said Andre Passos.
Following October’s tariff implementation,
domestic production rose 6.35% in the final two
months, he added.
The trade group’s CEO said higher tariffs were
a welcome step but much more needed to be done
to protect Brazil’s chemicals producers’
operations and their transition to the green
economy.
“We know that this [higher tariffs] is just the
first step and it is essential to keep facing
up to the extremely adverse international
scenario, with excess production capacity for
chemical products in the world and heavy
subsidy programs in the world’s main chemical
producers,” said Passos.
“We are crossing the gateway to the low-carbon
economy and the chemical industry is ready to
lead this transition. Low-carbon chemistry is
related to the use of technologies that reduce
or neutralize greenhouse gas emissions.
“Renewable chemistry, carbon capture and
storage, and chemical recycling are some
examples of this leadership that can be
exercised by the Brazilian chemical industry,”
he concluded.
ASIA DOMINATES
Asian suppliers, excluding the Middle East,
dominated imports with a 31% share worth $19.6
billion, creating an $18 billion regional trade
gap.
The deficit with Asia has steadily worsened
from $10bn in 2020 to $16.2bn in 2023, said
Abiquim, reflecting China’s overcapacities and
the country’s switch from net importer to next
exporter for most chemicals.
Domestic manufacturers faced increased
competition across all segments, with imports
of resins and elastomers jumping 32.4%, organic
chemicals 14.3%, inorganics 9.1%, and other
industrial chemicals 9.3%.
Import prices averaged 6.3% lower than 2023,
leading to domestic plant closures, said
Abiquim.
Brazilian chemical exports rose 4.3% to $15.2
billion, though volumes dipped 0.2%.
The sector maintained its position as the
country’s third-largest manufacturing exporter,
behind food products at $66.5 billion and base
metals at $23.2 billion, said Abiquim.

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Petrochemicals05-Feb-2025
MUMBAI (ICIS)–India’s Supreme Petrochem Ltd
(SPL) expects to commission the first phase of
its 70,000 tonne/year acrylonitrile butadiene
styrene (ABS) plant in Nagothane in April-June,
a company source said on Wednesday.
Another 70,000 tonne/year ABS unit will be
added at the site in the western Maharashtra
state, in the second phase of the project, the
source said.
SPL expects the two phases to cost Indian
rupees (Rs) 8.5 billion ($98 million), when the
project was announced in 2023.
“Mechanical completion of the first phase of
our mass ABS project is expected by end of
March 2025 and commissioning is scheduled for
the first quarter of financial year 2025-26,”
the source said.
The company’s fiscal year begins in April.
“There is an available market for domestically
manufactured product,” the source said, citing
that “nearly over 50% of the country’s ABS
requirement or around 140,000 tonnes, is
currently being imported”.
Separately, the company plans to invest Rs8
billion to build a greenfield petrochemical
complex at Karnal in the northern Haryana
state.
It plans to build a 100,000 tonne/year
polystyrene (PS) unit and a 50,000 tonne/year
expandable PS (EPS) unit, along with downstream
products such as including 3D panels, PS
sheeting, extruded PS, among others.
“Pre-project activities for that site are going
on right now,” the source said.
“The new projects will meet increased demand
for PS and EPS in domestic and export markets
in the years ahead,” he added.
SPL can produce more than 300,000 tonnes/year
of PS; 118,000 tonnes/year of EPS and other
downstream products at its two facilities at
Nagothane in Maharashtra; and Manali in the
southern Tamil Nadu state, according to the
company’s website.
($1 = Rs87.13)
Acrylonitrile05-Feb-2025
SINGAPORE (ICIS)–Asahi Kasei’s net income
surged by 68.1% year on year in the nine months
to December 2024, supported by improved
petrochemical prices and lower fixed costs, the
Japanese chemicals major said on Wednesday.
in Japanese yen (Y)
billions
Apr-Dec 2024
Apr-Dec 2023
% Change
Sales
2,259.3
2,064.1
9.5
Operating income
164.4
98.5
66.9
EBITDA
299.8
233.4
28.4
Net income
98.5
58.6
68.1
Basic Materials (Core Petrochemicals)
Business
in Japanese yen (Y)
billions
Apr-Dec 2024
Apr-Dec 2023
% Change
Sales
241.7
219.2
10.3
Operating income
12
-8.4
–
The company’s basic materials unit swung to an
operating profit of Y12 billion ($78.2 millon)
in April-December 2024 on the back of higher
sales revenues, the company said in a
statement.
Asahi Kasei has revised its year to March 2025
forecasts for sales and operating income
reflect an seasonal dip in demand and
increased fixed costs in the final quarter of
the fiscal year.
Overall sales are now expected to reach Y3.04
trillion, a 9.3% increase from the previous
fiscal year.
However, this new projection represents a 0.9%
decrease from the company’s November estimate.
Full-year operating income is now projected to
reach Y200 billion, up 42.1% from actual 2023
figures, and up by 2.6% from the company’s
previous forecast.
Asahi Kasei expects its net income for the full
year to surge to ¥110 billion, more than double
the ¥43.8 billion recorded in the previous
fiscal year.
The company aims continue to “advance its
business portfolio transformation; accelerating
studies on structural transformation of
petrochemical chain-related businesses centered
on basic materials while advancing investment
in growth businesses”, it added.
In January this year, Asahi Kasei
ceased operations at its Thailand-based
joint venture PTT Asahi Chemical.
($1 = Y153.43)
Thumbnail image: At a port in Tokyo, Japan
9 December 2024. (FRANCK
ROBICHON/EPA-EFE/Shutterstock)
Gas04-Feb-2025
LONDON (ICIS)–The ICIS Dutch TTF near-curve
market fell on Tuesday morning, which traders
in part attributed to China’s intention to
introduce a 15% tariff on US LNG from 10
February.
While any reduction in US LNG to China due to
the tariffs could in theory mean more LNG to
Europe, traders recognized the overall market
impact may be limited.
“China’s LNG imports from the US are already
quite low – but as long as tariffs are in place
China won’t import from the US, especially with
the TTF already so high,” said one trader.
A second trader said that the development was
bearish for European gas markets in the short
term, while other traders also noted minimal
impact due to the current intake of US LNG into
China.
Large Chinese LNG buyers have over 20mtpa in
new long-term contracts from the US due to
start in the next few years.
But right now, much US LNG to China is sold on
a spot basis – with China only accounting for
5% of total US LNG exports in 2024, according
to ICIS data.
Two or three US cargoes have been delivered to
China each month between November-December
2024, according to ICIS data.
Europe and the UK – excluding Turkey – took in
49% of US LNG in 2024 in comparison, due to
more favorable market pricing.
LEARNING FROM HISTORY
In 2018 and 2019 China imposed tariffs on US
LNG: 10% to start, before rising to 25%.
It came as US LNG was ramping up quickly, with
production doubling over 2019.
ICIS data shows some reduction in US LNG to
China on a 10% tariff and then a complete stop
under a 25% tariff.
This time the proposed tariff is put at 15%.
A range of sellers supply US cargoes into
Chinese terminals.
While adding 15% to the cost of buying a US
contractual cargo of LNG for delivery into
China may still allow for a reasonable seller
margin – especially if sold on a spot basis –
the destination-free nature of US LNG offtake
means cargoes can relatively easily be shipped
instead to other markets.
Chinese LNG buyers themselves are increasingly
developing positions in Europe and trading the
TTF, for example.
Large sellers may be able to optimize and draw
on other supply source to cover positions into
China to avoid the tariff.
Australia and Qatar are much larger LNG
suppliers than the US to China currently, with
large volumes sold under term contracts, but
perhaps limited flexibility to ramp up
additional sales if needed.
The tariffs come with Chinese LNG demand down
by 25% year on year in January and no immediate
urgency to pull in additional spot volumes.
However, ICIS forecasts a 6% rise in China’s
2025 LNG imports from 2024, supported by the
government’s stimulus plan which already took
the potential impact of US tariffs into
account.
Summer demand could be strong on higher
temperatures lifting gas demand for power
generation.
A desire not to import from the US would cause
a headache for Chinese LNG importers if they
need to ramp up demand at short notice.
Global LNG production is expected to rise by
16.3 million tonnes in 2025 due to the addition
of new US and Canadian LNG.
The market will closely follow the expected
dialogue between Trump and Chinese President Xi
Jinping later this week.
Sulphuric Acid04-Feb-2025
SAO PAULO (ICIS)–Brazilian chemicals producer
Unigel has concluded its debt restructuring
process worth Brazilian reais (R) 5.1 billion
($885 million) after a Sao Paulo business court
greenlit the plans drawn up by creditors.
Unigel said it would be able to deleverage its
debts by around 50% with the restructuring
process’ conversion of R5.1 billion of existing
debt into new financial instruments.
The restructuring puts an end to the
decades-long private ownership of
Unigel in the hands of its founder, 88-year-old
Henri Armand Szlezynger.
“The execution of the RE [restructuring] Plan
marks a pivotal transition in Unigel’s
governance framework, with Option A [main]
Creditors now holding a 50% stake in the
company’s equity structure,” said Unigel.
The new majority owners headhunted for the CEO
position the Brazilian executive Dario Gaeta,
with decades of experience at industrial and
agricultural companies.
Up to 2024, he was chief operating officer at
ethanol producer Atvos and, prior to that, he
was the CEO at Tiete Agroindustrial, another
company in the sugar and ethanol sector,
according to Gaeta’s LinkedIn profile.
Former CEO Roberto Noronha has been demoted to
board member, and the vice president who has
overseen the restructuring, Daniel Zilberknop,
an old name in Unigel, has been appointed
chairman of the board.
Unigel’s new board composition
Position
Name
Representative
Chairman of the Board
Daniel Zilberknop
Independent
CEO
Dario Gaeta
Not provided
Board Member
Marc Buckingham Szlezynger
Cigel
Board Member
Roberto Noronha Santos
Cigel
Board Member
Pedro Wongtschowski
Cigel
Board Member
Fabio de Barros Pinheiro
Creditors
Board Member
Kofi William Bentsi-Enchill
Creditors
Board Member
Gregorio Mario Charnas
Creditors
The restructuring plan also signals an exit
from the fertilizers sector, as already
outlined at the
beginning of the restructuring process by
creditors.
High prices for natural gas – fertilizers’ main
feedstock – was the main cause for that part of
the business to start faltering, dragging the
rest behind it in the end.
Some plants which were leased to Unigel by
Brazil’s state-owned energy major Petrobras are
reportedly on course to return under Petrobras’
umbrella, even if Unigel may continue
operating them.
Unigel, then, is to remain mostly what it was
before it ventured into fertilizers and was
caught up in a major sector downturn. The
company mostly produces styrenics and acrylics.
For products and capacities, see bottom table.
SULPHURIC ACID
PLANTEarlier in January, Unigel
presented plans to finish construction of its
sulphuric acid plant in the state of Bahia,
which had been paused as the company’s financial woes
increased.
Unigel said it would invest $36.8 million to
finish up the plant in Camacari, aiming to
start it up by September. Production capacities
were not disclosed.
When fully functioning, the plant will allow
Unigel to reduce its acid purchases in the open
market. Acid is a key chemical used in many
other chemical and industrial processes.
Jonathan Szwarc, head of Latin America credit
research at data firm specializing in leveraged
capital markets Debtwire, who covered Unigel in
the past, said by reducing its dependency on
imports the sulphuric acid plant was a sound
project from which Unigel’s could start
building up its recovery.
“The numbers for that project are sound. From
my time covering Unigel, I remember the return
on investment was expected to be very healthy:
in up to four years, the company expects to
have paid off the investment, such are the
large amounts of acid it has to purchase in the
open market,” said Szwarc.
Earlier this month, Unigel also presented, for
the first time in several quarters, a financial
forecast for earnings before interest, taxes,
depreciation, and amortization (EBITDA) up to
2030.
The company has not published any financial
results since 2023, a provision contemplated
under Brazilian corporate law for companies in
financial distress.
For 2025, Unigel said it expected upsides
coming from a 5% increase in Brazil’s styrene
import tariff ($4 million positive
contribution) and a higher rate in the REIQ tax
benefit system for chemicals companies ($14
million).
According to Unigel, its EBITDA could rise to
$182 million by 2030.
Unigel forecasts
2025
2026
2027
2028
2029
2030
EBITDA (in $ million)
49
142
164
176
173
182
Whether Unigel’s medium-term forecasts are
realized remains to the seen, as it ultimately
is a company in very deep financial distress
for the past year and a half, operating in a
market – petrochemicals – which is going
through one of the longest sector’s downturns.
“2030 is indeed quite a long forecast on this
occasion. But, of course, for a judge to
approve your restructuring plan you must
present some sort of credible plan: detailed
forecasts on financials, on spreads, on
production…” said Szwarc.
“Whether those forecasts end up realized,
that’s another matter. But as we say in this
world – an Excel [spreadsheet] can withstand
almost anything,” he concluded, ironically.
($1 = R5.76)
Additional information by Yashas
Mudumbai
Focus article by Jonathan
Lopez
Speciality Chemicals04-Feb-2025
BARCELONA (ICIS)–As US president Donald Trump
revives his trade war, business leaders may
seek certainty by switching to local and
regional supply chains.
Businesses need stability, certainty to
make investment decisions
Trade war could drive more
national/regional industrial and chemical
supply chains
But reshoring can be very expensive and
time-consuming
New technologies such as 3-D printing and
AI support local production
Export-dependent US chemicals have a lot to
lose from a trade war
US exported more than 10 million tonnes of
polyethylene (PE) to Europe in 2023
In this Think Tank podcast, Will
Beacham interviews Nigel
Davis from the ICIS market
development team and Paul
Hodges, chairman of New Normal
Consulting.
Editor’s note: This podcast is an opinion
piece. The views expressed are those of the
presenter and interviewees, and do not
necessarily represent those of ICIS.
ICIS is organising regular updates to help
the industry understand current market trends.
Register here .
Read the latest issue of ICIS
Chemical Business.
Read Paul Hodges and John Richardson’s
ICIS
blogs.
Gas04-Feb-2025
UPDATE: China retaliates with 15% tariff on US LNG
SINGAPORE (ICIS)–China has announced a 15% tariff to be
imposed on coal and LNG imports from the United States as a
retaliation to US trade tariffs, the country’s Ministry of
Commerce said in a statement.
“In accordance with the Tariff Law of the People’s Republic
of China, the Customs Law of the People’s Republic of China,
the Foreign Trade Law of the People’s Republic of China and
other laws and regulations and the basic principles of
international law, and with the approval of the State
Council, additional tariffs will be imposed on some imported
goods originating from the United States starting from 10
February 2025.”
A 10% tariff will also be imposed on crude oil, agricultural
machinery, and a score of other products. US president Donald
Trump and Chinese President Xi Jinping are expected to talk
this week on trade and other issues.
The US has imposed 10% tariffs on Chinese goods starting 4
February.
“This will drive even more US volumes into Europe, and leave
portfolio players with suboptimal logistical flows,” said
Saul Kavonic, oil and gas analyst with research firm MST
Marquee.
“Chinese buyers will pay the tariffs, so will be trying to
minimize the US volumes they take contractually, and swap
that out for non-US volumes. This benefits other regional
producers such as Australia, who will be seen as relatively
more reliable after this.
“The negative impact on US LNG from these tariffs will only
partly offset the strong appetite from other buyers to
procure more US LNG under pressure from Trump to rebalance
trade deficits. The tariffs will create material market
inefficiencies, which will benefit some LNG traders in the
regions. It may push prices higher everywhere on the margin,
as flows become suboptimal.”
CHINA IMPORTS
China imported 4.4 million tonnes of LNG from the United
States in 2024, ICIS data shows, out of a total of 79.24
million tonnes.
If the tariff is enforced and stays beyond the upcoming
negotiations expected this week between US President Donald
Trump and Chinese President Xi Jinping, importers could
optimize the US-based positions by diverting them elsewhere.
However, the imposition of tariffs on energy by the Chinese
government fundamentally means higher energy costs for the
country, which increases the cost of industrial production
and inflationary pressure.
The growing tensions in the commercial relationship between
the countries could also equate to reluctance by Chinese
buyers to commit to new long-term positions with US-based
suppliers.
Political tensions with the US could turn Chinese buyers to
alternative sources of LNG and pipeline gas, including
Russia.
The move is the latest in a series of tariff exchanges that
so far have involved Canada and Mexico in addition to China.
The market anticipates that the next wave of tariffs could
target members of the European Union.
EU states are unlikely to impose retaliatory tariffs on
imported energy, as the cost of gas is already growing
following the halt of Russian pipeline gas supplies to the
region. Roman Kazmin
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