News library

Subscribe to our full range of breaking news and analysis

Viewing 1-10 results of 57990
UK economy shows little growth in Q4 after trending down through 2024
LONDON (ICIS)–The UK economy showed little growth in the fourth quarter of 2024 with GDP rising just 0.1% after trending down throughout the year. Services sector output grew by 0.2% in Q4, construction was up 0.5% while production fell by 0.8%, the Office for National Statistics (ONS) said on Thursday. Economic growth tailed off through 2024 with GDP growing 0.8% in Q1, 0.4% in Q2 and 0.0% in Q3. The Bank of England cut interest rates again last week as it tries to balance low growth against relatively high inflation. The eurozone’s economy also struggled in Q4 with GDP flat at 0.0% growth from the previous quarter.
INSIGHT: India may offer tariff concessions to US as PM Modi meets Trump
MUMBAI (ICIS)–India may offer the US tariff cuts on various products, including electronics and automobiles – major downstream sectors of petrochemicals – to avoid US President Donald Trump’s “reciprocal duties”, which may deal a big blow to the south Asian nation’s exports. India PM Modi in US for state visit on 12-13 February Tariff cuts incorporated in India budget for year to March 2026 India braces for impact from US’ 25% tariffs on all steel, aluminium imports Indian Prime Minister Narendra Modi is set to meet with Trump in Washington on Thursday – their first meeting since Trump assumed office for a second term. The US has not imposed any direct tariffs on India yet. However, the world’s biggest economy is expected to announce reciprocal tariffs on any countries with tariffs on US goods. India’s tariffs on agricultural, mining and manufacturing products from the US were in double-digits, while US tariffs for the same products from India were in the low single-digit levels. The south Asian country, which is a giant emerging market in Asia, is expected to offer tariff cuts on more than 30 goods, as well as increase the purchase of US defence and energy products, according to analysts at Japanese brokerage firm Nomura, in a research note on 10 February. India’s national budget for the next fiscal year starting April 2025 contained provisions reducing import duties on some goods including electronics, textiles, intermediate goods used for technology manufacturing and satellites, synthetic flavouring essences and motorcycles, which are expected to benefit US-based companies. It was largely seen as a pre-emptive move to thwart reciprocal tariffs from the US under Trump. India may consider further tariff reductions on luxury vehicles, solar cells, and chemicals, as part of its strategy to maintain smooth trade relations, according to analysts from Nomura. “We are analysing the announcements made by the US on increasing tariffs,” an official from India’s Ministry of Commerce said. “We are also asking our industry how these tariffs are going to affect them positively or negatively and are looking at the impact of the tariffs that have already been imposed,” he said. DIALING DOWN ON PROTECTIONIST STANCE India has much higher tariff rates compared with other countries in Asia. Amid threats of reciprocal tariffs from the US, India is being forced to backtrack on its protectionist policy, at least where the US is concerned, while maintaining a tough stance on rival Asian giant China. In year to March 2024, the US was India’s largest export destination and accounted for nearly 18% of the country’s total merchandise exports of $437.10 billion, official data showed. Key Indian exports to the US include industrial machinery, gems and jewellery, pharmaceuticals, fuels, iron and steel, textiles, vehicles, and chemicals. US’ exports to India, meanwhile, accounted for just 2% of total US shipments abroad in January-December 2024. A mutually beneficial tariff regime could be struck between then as India seeks to further boost exports to the world’s biggest economy. The US’ recent tariff hikes on China opens up opportunities for Indian exporters to increase their share in the US market. For instance, India’s exports of auto components to the US are currently very low, accounting for only 2% of the US market, underscoring scope for expansion. Between April and September 2024, the country’s total exports of auto parts stood at $11.1 billion, a third of which – or $3.67 billion – were shipped to the US, according to the Automotive Component Manufacturers Association of India (ACMA). Over the past few years, India has adopted trade measures like import certification under the Bureau of Indian Standards (BIS), increased antidumping duties on various products, including petrochemicals, to limit imports and boost domestic production. While some of these policies apply globally, some of them are directed at China, which is a major exporter of goods to India. While the tariffs are worrisome, certain sectors like auto components, mobiles and electronics, electronic machinery, apparel, leather and footwear, furniture, pharmaceutical and toys could see an increase in demand from US buyers, the commerce ministry official said. India is a major exporter of pharmaceutical products to the US but relies on China for 70% of raw material called active pharmaceutical ingredients (API). The US accounted for over 31% of India’s total pharmaceutical exports of $27.9 billion in year to March 2024. IMPORTS OF US LNG TO GROW; US’ TARIFFS ON STEEL, ALUMINIUM WORRY INDIA The south Asian country is expected to increase its petroleum product imports from the US, to alleviate trade imbalances. For the fiscal year 2023-24, India imported $12.96 billion worth of petroleum oil and products from the US, according to official data. India’s state-owned oil and gas companies, including Indian Oil Corporation (IOC), Gas Authority of India Ltd (GAIL) and Bharat Petroleum Corp Ltd (BPCL), are in active discussions with American suppliers to import more LNG from the US, petroleum secretary Pankaj Jain said on 10 February. The recent announcement of 25% tariffs on all steel and aluminium imports into the US could heavily impact India. While Indian steel exports to the US are relatively small, the US tariffs could cause exporting nations to redirect their goods to the Indian markets. India is both a major exporter as well as importer of steel, on which a basic customs duty of around 7-8% apply – much lower than the US’ 25% – raising fears of supply flooding the south Asian country. With the US shutting its doors to global steel, the surplus will inevitably be redirected to India, threatening our domestic industry with market distortions, price crashes, and unfair competition, Indian Steel Association (ISA) Naveen Jindal said said in an official statement on 11 February. “The US, a major steel importer, has historically imposed strict trade restrictions, with over 30 remedial actions in force against Indian steel – some for more than three decades,” Jindal said. “This latest tariff is expected to slash steel exports to the US by 85%, creating a massive surplus that will likely flood India,” he added. While only 5% of the total steel exports from India go to the US, the country accounts for nearly 12% of India’s aluminium exports. Both steel and aluminium industries use chemicals like caustic soda and soda ash during the production process. Insight article by Priya Jestin With contributions from Nurluqman Suratman and Pearl Bantillo
UPDATE: Indonesia proposes final ADDs on PP block copolymer imports
SINGAPORE (ICIS)–The Anti-Dumping Committee of Indonesia (KADI) has recommended anti-dumping duties (ADDs) ranging from 7.17% to 29.01% on polypropylene (PP) block copolymer imports, according to a document obtained by ICIS on Thursday. The final ADD recommendations on the material with HS code 3902.30.90 are still subject to approval by relevant authorities, with no timeline for implementation, as yet. Market participants expect a final decision to be announced in the next one to two months. The final ADDs suggested for imports from South Korea range from 7.17% to 19.58%, down from previously proposed rates of up to 82.83%, according to the document. For imports from Vietnam, the UAE, Malaysia and Singapore, the recommended rates are 11.40%, 21.02%, 13.45-29.01%, and 11.60-13.06%, respectively. KADI initiated the antidumping investigation on PP block copolymer resins imports in 2023, following a request from Indonesian PP producer Chandra Asri. PP block copolymer is widely used in packaging, automotive parts, electronic devices and other goods that require enhanced toughness and flexibility. (Adds details throughout) Infogram by Nurluqman Suratman Thumbnail image: At the Tanjung Priok port in Jakarta, Indonesia on 19 June 2024. (BAGUS INDAHONO/EPA-EFE/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.

Indonesia proposes antidumping duties on PP block copolymer imports
SINGAPORE (ICIS)–The Anti-Dumping Committee of Indonesia (KADI) has recommended anti-dumping duties (ADD) ranging from 7.17% to 29.01% on polypropylene (PP) block copolymer imports, according to a document obtained by ICIS on Thursday. The proposed ADDs on the material with HS code 3902.30.90 are still subject to approval by relevant authorities, with no timeline for implementation, as yet. Market participants expect a final decision to be announced in the next one to two months.
EDITOR’S VIEW: Gas price caps are not a solution to Europe’s industrial decline
Additional reporting by Ed Cox LONDON (ICIS)–The 2022 energy crisis has left the EU between a rock and a hard place. Record gas prices caused by the Russia-Ukraine war combined with costly climate policies to deal a heavy blow to industrial production, triggering widespread plant closures and an economic downturn. The ensuing need to respond to industrial decline while also stemming social and political turmoil caused by soaring energy costs prompted lawmakers to adopt a controversial wholesale gas price cap, which expired at the end of January. Although prices have fallen since the record levels seen in 2022 they remain stubbornly high by historical standards and have recorded a sustained increase so far in 2025. This has further heightened calls from large consumers to push for urgent measures to curb energy costs, fearing the imminent collapse of industrial production. And the concerns are legitimate. Europe faces geopolitical volatility and growing competition from China and the US. However, reports that the EU may now consider introducing a new gas price cap to stave off industrial decline should come under public scrutiny because of serious risks. A first risk relates to the fact that a price cap would impair the market’s ability to attract more supply if needed. Such a risk would be both short- and long-term as European buyers have secured only a fraction of the LNG volumes already contracted by Asian companies. In January 2025, LNG covered almost 37% of EU and British gas supply, according to ICIS data. However, putting a figure on the percentage of Europe’s contracted LNG relative to future demand is challenging. This is in part due to great uncertainty over Europe’s gas demand alongside the complexities of LNG contracts. But the underlying message that Europe only contracts a portion of its LNG demand – and is heavily dependent on market prices to attract remaining supply – is correct. The need for a robust, market-based TTF reference price in reflecting Europe’s LNG demand relative to other markets will only increase in line with a dependency on US LNG imports, and in the event that Russian pipeline gas does not return. Beyond 2023, the majority of LNG contracts with European companies are for supply from the US on a free-on-board basis, meaning there is no contractual commitment to deliver to Europe. Price signals from buyers in Europe, Asia, South America and the Middle East play a key role in determining the destination of these cargoes. Europe has only received sufficient LNG in recent months to cover gas demand because the TTF has pulled supplies inwards, and away from other global buyers. Large future LNG contracts are also in place with Qatar, but they typically contain diversion rights. It has not been the policy of the EU, nor of European LNG buyers, to commit to large, fixed-destination contracts given the expected long-term drop in Europe’s gas demand. In any case, few sellers would commit to such business with the prospect of a price cap and with other global buyers potentially more attractive. And there are other risks related to financial stability and the credibility of EU markets as they would no longer accurately reflect the bloc’s supply-demand balance. An artificially capped price could lead to higher margin requirements but would also put a strain on the EU’s overall budget, leading to soaring debt. This is because of the gap between regulated and free market prices, which would ultimately have to be borne by EU taxpayers. The EU might consider other options such as reducing regulations and red tape, or ensuring companies have all the flexibility they need to attract more supplies. Although the EU has a fine line to tread – preserving the bloc’s competitiveness while ensuring security of gas supply – introducing a gas price cap would have a deeply harmful impact on markets.
German chemical industry calls for fiscal discipline ahead of election
LONDON (ICIS)–German chemical producers’ trade group VCI wants the country’s new government, to be formed after early elections on 23 February, to maintain the so-called “debt brake” (Schuldenbremse). Debt brake ensures fiscal discipline Economy weak, but fiscal position strong Reform may drive investments to boost economy A dispute over government spending priorities contributed to the collapse of the coalition government under Chancellor Olaf Scholz in November. Under the constitutionally enshrined fiscal rule, structural budget deficits cannot exceed 0.35% of GDP. The rule can be suspended in times of emergency, as it was during the pandemic and the start of the Ukraine war. In the current election campaign, political parties are now debating whether to retain, ditch, or reform the fiscal rule. Critics of the Schuldenbremse say that it hinders public investments, needed to help revive the country’s economy, which has been weak since 2018. GDP shrank in both 2024 and 2023. However, VCI’s position is clear: The Schuldenbremse has proven itself as it managed to halt the trend of growing debt/GDP ratios, the group said in a position paper this week. FISCAL DISCIPLINEThe fiscal rule, anchored in the constitution, ensured that spending does not exceed means and that the current generation does not live at the expense of future ones, VCI said. As a result, Germany has a relatively low level of debt and low debt service obligations – giving it the financial capacity to react in times of crisis, whereas higher-indebted EU countries needed to rely on the solidarity of their neighbors or eurobonds, the group said. VCI acknowledged that the Schuldenbremse is being questioned in light of the current “massive economic downturn and the immense investment backlog,” and it said that the rule was “not perfect”. However, the country’s current problems reflected the “political deficits” of the past, when government neglected necessary investments in infrastructure, security, education, and research and development, it said. REFORM VCI would not rule out a “moderate reform” of the Schuldenbremse, allowing for temporarily higher deficits, as long as the debt-to-GDP ratio remains below 60%, it said. Reforming the debt brake could buy time until investments and reforms start to pay off,  said VCI chief economist Henrik Meincke. The government’s priority, however, must be “to clearly prioritize expenses and focus on investments”, he said. Meincke urged a “fundamental course correction” in industrial policy, with a focus on the government’s core tasks, a sharp reduction in bureaucracy, and “tax revenue invested in security, education and infrastructure, as a priority”. Any reform of the debt brake must not be “a quick fix” as that would not solve the country’s structural problems, the economist said. Analysts at ING said the current political debate about public finances in Germany may create the impression that the country was close to bankruptcy, which was not the case at all. German government debt had stabilized slightly above 60% of GDP and was expected to stay there until 2026, analysts said. “Germany has by far the lowest government debt ratio of the larger eurozone countries,” they added. Thumbnail photo of Friedrich Merz, head of the opposition conservative Christian Democratic Union (CDU), which leads in opinion polls. The CDU favors retaining the Schuldenbremse, but Merz has said he may be open to discussions about reforming it. Photo source: CDU
PODCAST: Exploring Europe PET and R-PET competitiveness ahead of ICIS PET Value Chain Conference
LONDON (ICIS)–Senior editor for Recycling Matt Tudball asks Carolina Perujo Holland, senior analyst for Plastics Recycling, and Travis Klein, senior analyst for PET how the markets in Europe compare with other regions in terms of competitiveness, impact of regulations and feedstock costs. Carolina and Travis also give a brief description about their presentations at the ICIS PET Value Chain Conference, which takes place 6-7 March in Amsterdam. Click here to register and see the full agenda.
PODCAST: US hydrogen subsidy halt vs China’s expansion – what’s next for the global market?
SINGAPORE (ICIS)–The Trump administration swiftly withdrew financial support for its hydrogen sector, while China is accelerating hydrogen expansion with strong policy backing. In this podcast, ICIS hydrogen analysts Patricia Tao and Anita Yang discuss how these developments could gradually shift the global hydrogen market’s center of gravity over the next three to five years. US hydrogen competitiveness in global market weakens China integrating hydrogen into its national energy strategy Global hydrogen market is likely to shift in the next three to five years.
SHIPPING: ILA committee approves deal with US ports; full membership to vote on 25 Feb
HOUSTON (ICIS)–The International Longshoremen’s Association (ILA) wage scale committee voted unanimously to approve the tentative agreement between the union and US Gulf and East Coast ports, setting up a vote by the full membership later this month. An ILA strike was averted in January when a tentative deal was reached between the two parties with both sides agreeing to work under the existing pact while awaiting the ILA’s full wage scale committee and the scheduling of a ratification vote from the full membership. The wage scale committee consists of more than 200 ILA union locals from Maine to Texas. The new agreement and all its benefits are retroactive to 1 October 2024, and, if ratified by ILA members, will be in effect until 30 September 2030. ILA rank-and-file members will receive details of the agreement approved by the wage scale committee at local meetings over the next two weeks and then participate in the ratification vote on 25 February. The specific details of the agreement will not be made public. The two sides agreed on the financial part of the deal in early October, ending a three-day strike, with commitments to continue negotiating on other issues, specifically automation and semi-automation at ports, which the union opposed because of the threat of losing jobs previously done by humans. The labor issue would have had no impact on liquid chemical tanker traffic in and out of ports as they typically serve private terminals and do not require the same labor as container ships. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks.
  • 1 of 5799

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