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LONDON (ICIS)–INEOS Inovyn has received
certification for renewable hydrogen production
from the International Sustainability &
Carbon Certification (ISCC) PLUS scheme for the
company’s site in Belgium, it was announced 2
October.
Since June 2023, hydrogen production at INEOS
Inovyn’s Antwerp site in Belgium has not been
certified under ISCC PLUS, a global voluntary
certification program that is applicable for
the bioeconomy and circular economy for food,
feed, chemicals, plastics, packaging, textiles,
and renewable feedstock derived from a process
using renewable energy sources.
The Antwerp site produces hydrogen via
Chlor-Alkali electrolysis, which is the
electrolysis of brine producing chlorine,
caustic soda/potash, sodium hypochlorite and
hydrogen.
The electricity used in the electrolysis
process was supplied directly from wind
turbines located off the north coast of
Belgium, INEOS Inovyn said in the press
release, which means that the hydrogen would
fall under renewable hydrogen under European
Union regulation if the wind turbines have been
in operation for less than three years and have
not received any previous subsidy.
INEOS Inovyn also said that they have both
existing and local power purchase agreements
(PPAs).
Market participants have been urging
policymakers to bring in regulation that allows
for a global renewable hydrogen standard.
With different regions of the globe having
different views on how hydrogen can be produced
and what constitutes renewable hydrogen,
voluntary schemes such as the ISCC PLUS have
been developed in the absence of an agreement
on the global hydrogen standard.
This will allow potential offtakers to manage
risk and have certified renewable hydrogen as a
feedstock source.
Data from ICIS showed that the breakeven cost
for front-month offshore wind electrolysis in
the Netherlands was €6.96/kg on 29 September
with the French equivalent standing at
€6.94/kg.
Both of the above electrolysis costs are higher
than their front-month baseload equivalents at
€6.30/kg and €6.09/kg respectively, however,
neither grid is able to qualify for renewable
hydrogen under the renewable energy directive
(RED) legislation which requires 90% of the
electricity to be generated by renewable assets
to qualify.
02-Oct-2023
HOUSTON (ICIS)–An index measuring US
manufacturing activity rose by 1.4 points to
49%, placing it barely in the territory
indicating contraction, the Institute for
Supply Management (ISM) said on Monday.
The following chart shows the performance of
the manufacturing PMI over several years and
during recessions.
September marked
the 11th month that the ISM’s manufacturing
purchasing managers index (PMI) was below 50,
the threshold between contraction and
expansion.
Although the September purchasing PMI still
indicated contraction, it rose more than
expected, and it may point to signs that the
downturn in manufacturing is bottoming out,
said Kevin Swift, ICIS senior economist for
global chemicals.
“Demand remains soft, but production execution
improved compared to August as panellists’
companies prepared for Q4,” Swift said.
Suppliers continue to have capacity, and
customer inventories fell deeper into the
territory considered to be too low, he said.
Such low inventories are a positive for future
output.
Meanwhile, prices fell again amid weak demand,
he said. Employment improved.
Overall, the manufacturing PMI figures provide
further evidence of a rolling recession, in
which different parts of the economy contract
at different times.
Although the September PMI report was better
than expected, one month does not make a trend,
Swift said. The services industry seems to
continue expanding, and the upcoming
nonmanufacturing PMI should provide more clues
when it is released on Wednesday.
The chemical industry registered its 13th month
of decline.
“We need to coordinate very closely with
suppliers in order to yield a more
cost-competitive offer,” according to a comment
from a participant in the chemical industry.
“More back and forth is needed to reach a
reasonable total price.”
The following table breaks down the
manufacturing PMI.
Index
Series Index Sep
Series Index Aug
Percentage Point Change
Direction
Rate of Change
Trend* (Months)
Manufacturing PMI®
49
47.6
1.4
Contracting
Slower
11
New Orders
49.2
46.8
2.4
Contracting
Slower
13
Production
52.5
50
2.5
Growing
From Unchanged
1
Employment
51.2
48.5
2.7
Growing
From Contracting
1
Supplier Deliveries
46.4
48.6
-2.2
Faster
Faster
12
Inventories
45.8
44
1.8
Contracting
Slower
7
Customers’ Inventories
47.1
48.7
-1.6
Too Low
Faster
4
Prices
43.8
48.4
-4.6
Decreasing
Faster
5
Backlog of Orders
42.4
44.1
-1.7
Contracting
Faster
12
New Export Orders
47.4
46.5
0.9
Contracting
Slower
4
Imports
48.2
48
0.2
Contracting
Slower
11
OVERALL ECONOMY
Growing
From Contracting
1
Manufacturing Sector
Contracting
Slower
11
*Number of months moving in current direction.
02-Oct-2023
HOUSTON (ICIS)–Here are the top stories from
ICIS News from the week ended 29 September:
US auto union to expand strike to additional
Ford, GM assembly plants
The United Auto Workers (UAW) union will expand
its strike to two Ford and GM assembly plants
at 16:00 GMT (noon EST) as negotiations with
the Big Three automakers continue.
Eastman sells Texas City operations to INEOS
Acetyls for $490m
Eastman has reached a definitive agreement to
sell its Texas City acetyl operations near
Houston to INEOS Acetyls for $490m, officials
said on Thursday.
BP starts building US solar plant to power
Exxon-SABIC petrochemical project
UK energy firm BP has started building a solar
project in Texas that will supply electricity
to the joint venture petrochemical project of
ExxonMobil and SABIC in the US Gulf Coast.
US firms build smaller homes to make them more
affordable – Huntsman
US builders are reducing the sizes of single-
and multifamily housing to make them more
affordable as mortgage rates reach 20-year
highs, an executive at Huntsman said.
Canadian labour union starts talks with GM,
avoids strike deadline
Canadian labour union Unifor started collective
bargaining talks with General Motors (GM) on
Tuesday, but has not set a strike deadline.
02-Oct-2023
SAO PAULO (ICIS)–Here are some of the stories
from ICIS Latin America for the fortnight ended
on 29 September.
NEWS
Brazil’s Petrobras, Vale mull joint low-carbon
projects
Brazil’s state-owned energy major Petrobras and
mining major Vale have signed a Memorandum of
Understanding (MoU) to explore low-carbon joint
projects in fuels and CO2 carbon, capture, and
storage (CCS).
Brazil’s industry on ‘moderate reacceleration’
as 2023 growth prospects near 3%
Brazil’s economy started 2023 on the backfoot
and GDP growth expectations at barely 1%, but
nine months later most economists and analysts
now expect growth to be around three times
higher.
Mexico’s central bank keeps interest rates
unchanged at 11.25%
The Bank of Mexico on Thursday kept its main
interest rate benchmark unchanged at 11.25% as
it deemed inflation remained at high levels.
Brazil’s chemicals producer prices rise 1% in
August ending year-and-a-half
downturn
Brazil’s chemicals producer prices rose by
1.02% in August, month on month, ending an
18-month long downturn, the country’s
statistical office IBGE said on Thursday.
Argentina’s output falls in July, cabinet
launches favourable dollar rate for oil, gas
exporters
Argentina’s economic output fell by 1.3% in
July, year on year, but posted an increase of
2.4% compared with June, the country’s
statistics office Indec said this week.
Argentina’s Q2 GDP falls nearly 5% on severe
drought
Argentina’s second-quarter GDP fell by 4.9%,
year on year, on the back of the severe drought
affecting its key agricultural sector, which
contracted by 40.2% during the quarter, the
country’s statistics office Indec said this
week.
Brazil central bank cuts rate by half point for
second time
Brazil’s central bank cut on Wednesday its
benchmark Selic interest rate by a half point
for the second consecutive time to 12.75% as
inflation remains below its target.
PRICING
LatAm PE domestic, international prices steady,
focus on October prices
Domestic and international polyethylene (PE)
prices were assessed unchanged this week across
Latin American countries.
LatAm PP prices increase in Colombia on higher
feedstock costs
Domestic polypropylene (PP) prices increased in
Colombia, tracking higher feedstock costs. In
other Latin American (LatAm) countries prices
were steady, although upward pressures remain.
Latin America PET prices unaltered at the end
of September
Polyethylene terephthalate (PET) prices in
Mexico are steady this week, based on sustained
demand in September and growing spot supply
availability with a focus on local and
international buyers.
Unipar approves phase out of diaphragm and
mercury technologies at Sao Paulo
plant
Unipar has given the green light to its Phase
Out Project (PO25) for diaphragm and mercury
technologies at its plant in Cubatão in Sao
Paulo, which should be accomplished by 2025.
LatAm PP domestic prices increase in Mexico due
to higher US spot propylene
Domestic polypropylene (PP) prices increased in
Mexico on the back of higher US propylene spot
prices. Several outages in the US this month
tightened a market that was already facing low
inventories.
02-Oct-2023
LONDON (ICIS)–The fertilizer market continues
to see a mixed trend with urea once again
getting inactive ahead of a fresh tender from
India, while phosphates and ammonia are firm
backed by demand in India and the US,
respectively.
The fertilizer team discusses the trend in
urea, ammonia and phosphates ahead of The
Fertilizer Institute (TFI) conference in
Washington (2-3 October).
02-Oct-2023
LONDON (ICIS)–Click here to see the
latest blog post on Chemicals & The Economy
by Paul Hodges, which looks at the paradigm
shifts changing the chemicals world.
Editor’s note: This blog post is an opinion
piece. The views expressed are those of the
author and do not necessarily represent those
of ICIS. Paul Hodges is the chairman of
consultants New
Normal Consulting.
02-Oct-2023
LONDON (ICIS)–Here are some of the top stories
from ICIS Europe for the week ended 29
September.
EPCA
’23: Recovery based on hope, not facts, for
Europe’s phenol and acetone, but the worst
should be over
When will the upturn come? That was the
dominating question at this year’s EPCA
meeting, with forecasts for phenol and acetone
varying from Q2 next year to the start of 2025.
EU
economic confidence drops in September on
gloomy consumer outlook despite industry
gains
Wilting consumer confidence weighed on economic
sentiment in Europe in September, according to
the latest data from the EU Commission on
Thursday.
EPCA
’23: Europe petchem markets in trough, no
upturn expected for 2024
The European petrochemical markets are in a
trough, with no demand upturn expected for
2024.
EPCA
’23: Chems industry faces higher carbon prices,
heavier CO2 targets – Cefic
The EU chemicals industry is likely to be hit
by substantially higher carbon prices and a
more ambitious wave of CO2-reduction reduction
targets from the European Commission in the
years ahead, the director general of industry
body Cefic said on Tuesday.
EPCA
’23: Europe PX/OX markets to see further
pressure in Q4
Europe’s paraxylene (PX) and orthoxylene (OX)
markets look set for a gloomy run until the end
of the year, and there is no sign of a demand
recovery until Q2 2024 as the feedstock cost
trend is unclear after several weeks of bullish
upstream sentiment driven by firmer crude
costs.
02-Oct-2023
Updated on 2 October.
On this topic page, we gather the latest news,
analysis and resources, to help you to keep
track of developments in the area of
sustainability in the fertilizers industry.
LATEST NEWS HEADLINES
US ADM and
Syngenta sign MoU to collaborate on low carbon
oilseeds to meet biofuel demand By
Mark Milam 28-Sep-23 HOUSTON (ICIS)–US
Archer Daniels Midland (ADM) and Syngenta Group
announced they have signed a memorandum of
understanding (MoU) to collaborate in scaling
research and commercialization of low carbon
oilseeds to help meet rising demand for
biofuels and other sustainably sourced
products.
Tecnicas
Reunidas, Allied Green Ammonia to build green
hydrogen and green ammonia plant in
Australia
By Sylvia Traganida 22-Sep-23 LONDON
(ICIS)–Tecnicas Reunidas and Allied Green
Ammonia have signed an agreement to start the
first phases of green hydrogen and green
ammonia production facilities in the Northern
Territory, Australia.
Australian
fertilizer producer Orica accelerates climate
change targets
By Sylvia Traganida 19-Sep-23 LONDON
(ICIS)–Australian fertilizers and explosive
manufacturer Orica has stepped up its climate
change targets amid a strong business
performance.
Nestle, Cargill
and CCm Technologies launch joint UK trial on
sustainable fertilizer
By Chris Vlachopoulos 12-Sep-23 LONDON
(ICIS)–Nestle and Cargill have launched a UK,
two-year trial to assess whether cocoa shells
from a local confectionery could be used to
create low-carbon fertilizer. The volumes of
cocoa shells are provided by Cargill, as well
as CCm Technologies.
EnBW
acquires stake in planned Norwegian ammonia
plant
By Amun Lie 29-Aug-23 LONDON (ICIS)–German
utility EnBW announced on 29 August it has
acquired a 10% equity stake and offtake right
for a renewable ammonia production plant
developed by Norwegian company Skipavika Green
Ammonia (SkiGA).
The production facility is set to completed in
2026, to be powered by renewable electricity
and with a planned production capacity of
100,000 tonnes/year.
Yara Germany
signs agreement for decarbonisation of cereal
cultivation using green
fertilizers
By Sylvia Traganida 10-Aug-23 LONDON
(ICIS)–Yara Germany has signed a co-operation
agreement with the Bindewald & Gutting
Milling Group and Harry-Brot for the
decarbonisation of cereal cultivation in
Germany through the use of green fertilizers.
Hyphen, ITOCHU
ink MoU to explore potential Namibia hydrogen
collaboration By Gary Hornby
09-Aug-23 LONDON (ICIS)–Hyphen Hydrogen Energy
and the ITOCHU Corporation announced 8 August
that the two companies have signed a memorandum
of understanding (MoU) surrounding hydrogen in
Namibia.
INSIGHT: BASF grapples
with demand trough, slow road
back
By Tom Brown 02-Aug-23 14:12 LONDON
(ICIS)–BASF and the wider chemicals sector is
dealing with an environment more singular even
than the conditions seen in the pandemic and
2008 financial crash according to BASF chief
Martin Brudermuller, with little sign of a
V-shaped recovery from the current demand
trough.
EU CARBON BORDER ADJUSTMENT MECHANISM
(CBAM) EXPLAINED
What is it?
The risk of carbon leakage frustrates the EU’s
efforts to meet climate objectives. It occurs
when companies transfer production to countries
that are less strict on emissions, or when EU
products are replaced by more carbon-intensive
imports.
This new mechanism would counteract this risk
by putting a carbon price on imports of certain
goods from outside of the EU.
How will it work?
EU importers will buy carbon certificates
corresponding to the carbon price that would
have been paid, had the goods been produced
under the EU’s carbon pricing rules.
Conversely, once a non-EU producer can show
that they have already paid a price for the
carbon used in the production of the imported
goods, the corresponding cost can be fully
deducted for the EU importer.
This will help reduce the risk of carbon
leakage by encouraging producers in non-EU
countries to make their production processes
greener.
A reporting system will apply from 2023 with
the objective of facilitating a smooth roll out
and to facilitate dialogue with non-EU
countries. Importers will start paying a
financial adjustment in 2026.
How is the fertilizer industry
affected?
The fertilizer industry is one of the sectors
to fall under the CBAM.
The more energy-intensive nitrogen fertilizers
will be affected most in the sector by the
mechanism.
DEFRA CONSULTATIONS
EXPLAINED
The UK’s Department for
Environment, Food & Rural
Affairs (DEFRA) launched a
consultation at the beginning of
November 2020 on reducing ammonia
emissions from urea fertilizers.
The consultation ran until 26
January 2021.
It set out three options for
tackling ammonia emissions:
A total ban on solid urea
fertilizers
A requirement to stabilise
solid urea fertilizers with the
addition of a urease inhibitor.
A requirement to restrict the
spreading of solid urea fertilizers
to between 15 January and 31 March
of a given year.
Liquid urea is excluded from any
new rules or restrictions.
DEFRA is currently analysing the
feedback received.
In March 2022, DEFRA announced that
it had delayed introducing
restrictions on the use of urea by
at least a year to support farmers
with fertilizer availability and
keep their costs down
Should DEFRA decide to restrict the
use of urea in the future, growers
would be left with just ammonium
nitrate-based fertilizers.
PREVIOUS NEWS HEADLINES
SABIC
AN ships low-carbon urea to New Zealand
US
Cargill and John Deere collaborate to enable
revenue for farmers adopting sustainability
Canada’s Lucent Bio
announces approval of biodegradable nutrient
delivery patent
Aker,
Statkraft’s 10-year PPA to spur European
renewable ammonia push further
BASF,
Yara Clean Ammonia to evaluate low-carbon blue
ammonia production facility in US Gulf
Coast
Yara
Clean Ammonia, Cepsa to launch clean hydrogen
maritime corridor
EU
details CBAM reporting obligations
Saudi
Arabia’s Ma’aden exports its first low-carbon
blue ammonia shipments to China
US
Bunge and Nutrien Ag announce alliance to
support sustainable farming practices
Maire
subsidiary Stamicarbon wins US green ammonia
engineering contract
India’s IFFCO launches
liquid nano-DAP fertilizer
EU
Parliament backs CBAM, emissions trading
measures
OCP
granted €100m green loan to build solar plants
at Morocco facilities
EU unveils plans to tackle greenwashing
India’s IFFCO and CIL to
manufacture nano DAP for three years
USDA awards Ostara funds to boost sustainable
phosphate fertilizer output
Canadian prime minister confirms fertilizer
emission goal is voluntary
US fertilizers industry increases carbon
capture in 2021 – TFI
Indian president calls for reduction in
chemical fertilizer use
IFFCO plans to export nano urea to 25
countries
Amman selects Elessent Clean Technologies for
Indonesia sulphuric acid plant
Lotte
Chemical forms clean ammonia consultative body
with RWE and Mitsubishi Corporation
Global 2020-2021
specialty fertilizer demand growth led by north
America, Asia
BASF
and Cargill extend enzymes business and
distribution to US
Saudi Aramco awards sulphur facilities overhaul
contract to Technip
India
sets green hydrogen targets for shipping, oil
& gas, fertilizer sectors
Germany misses climate target despite lower
energy consumption
TFI reacts to US Congress passing the Water
Resources Development ActHelm
becomes a shareholder in UK bio-fertilizer
company Unium Bioscience
Yara
inks deal to deliver fossil-free green
fertilizers to Argentina
Canadian firms plan fuel
cell generator pilot using green ammonia
Deepak Fertilizers awards contract to reduce
emissions, increase productivity
Saudi Aramco launches $1.5bn sustainability
fund to support net zero ambition
CF
Industries and ExxonMobil plan CCS project in
Louisiana
Canada’s plan to cut
fertilizer emissions is voluntary –
minister
Canada’s fertilizer emission goal raises food
production concerns
Uniper, Vesta to cooperate on renewable ammonia
site in the Netherlands
German Uniper to work with Japan’s JERA on US
clean ammonia projects
ADNOC ships first cargo of low-carbon ammonia
to Germany
US
Mosaic and BioConsortia expand collaboration to
microbial biostimulant
IMO deems Mediterranean Sea area for sulphur
oxides emissions control
Canada’s Soilgenic launches new enhanced
efficiency fertilizers technology for
retail
Austria’s Borealis aims to produce 1.8m
tonnes/year of circular products by 2030
European Parliament rejects proposed carbon
market reform
IFA
’22: southern Africa looks to bio-fertilizer as
cheaper, sustainable option
IFA ’22: Indian farmers will struggle to
embrace specialty fertilizers – producer
Canadian Nutrien plans to build world’s largest
clean ammonia facility in Louisiana
Japan’s JGC Holdings awards green ammonia plant
contract to KBR
Bayer to partner with Ginkgo to produce
sustainable fertilizers
Australia Orica and H2U Group partner on
Gladstone green ammonia project
Canada sets tax credit of up to 60% for carbon
capture projects
UK delays urea restrictions to support farmers
as fertilizer costs at record high
EU states agree to back carbon border tax
Yara to develop novel green fertilizer from
recycled nutrients
USDA
announces plans for $250m grant programme to
support American-made fertilizer
Canada seeks guidance to
achieve fertilizer emissions target
Fertilizer titan Pupuk Indonesia develops
hydrogen/blue ammonia business
India
launches green hydrogen/ammonia policy, targets
exports
Canada AmmPower to develop green hydrogen and
ammonia facility in Louisiana
US DOE awards grant to project to recover rare
earth elements from phosphate production
Fertiglobe, Masdar, Engie to develop green
hydrogen for ammonia production
Czech Republic’s Spolana enhances granular AS
production
India’s Reliance to invest $80bn in green
energy projects
Yara, Sweden’s Lantmannen aim to commercialise
green ammonia by 2023
Novatek and Uniper target Russia to Germany
blue-ammonia supply chain
Fertz giant Yara goes green with
electrification of Norwegian
factoryCanada
Arianne Phosphate exploring use of phosphate
for hydrogen technology
FAO and IFA renew MoU to promote sustainable
fertilizer use
Sumitomo Chemical, Yara to explore clean
ammonia collaboration
Sri
Lanka revokes ban on imports
Tokyo scientists convert bioplastic into
nitrogen fertilizer
Aramco plans Saudi green hydrogen, ammonia
project
China
announces action plan for carbon peaking &
neutrality
Saudi Aramco targets net zero emissions from
operations by 2050
Fertiglobe goes green with Red Sea zero-carbon
ammonia pro
Australian fertilizer major Incitec Pivot teams
up for green ammonia study
INTERVIEW: BASF to scale
up new decarbonisation tech in second half of
decade – CEO
India asks fertilizer companies to speed up
production of nano DAP
Japan’s Itochu set to receive first cargo of
blue ammonia for fertilizer use
Norway’s Yara acquires recycled fertilizers
maker Ecolan
Bayer Funds US start-up aims to cut nitrogen
fertilizer use by 30%
BP: Green ammonia production in Australia
feasible, but needs huge investment
Origin and MOL explore shipping green ammonia
from Australia
India’s IFFCO seeks to
export nano urea fertilizer
Sri Lanka reinstates ban on import of chemical
fertilizers
Nutrien to cut greenhouse gas emissions 30% by
2030
RESOURCES
IFA – Fertilizers and climate change
TFI –
Sustainability report
02-Oct-2023
SINGAPORE (ICIS)–China’s manufacturing sector
returned to expansion mode in September, based
on official data, pointing to signs of
stabilization in the world’s second-biggest
economy following a raft of stimulus measures
introduced in recent months.
Official Sept PMI above 50 for first time
in five months
Strong oil prices push up production cost
Property slump to continue
Its official manufacturing purchasing managers’
index (PMI) in September rose to 50.2 from 49.7
in August, according to the National Bureau of
Statistics (NBS).
A PMI reading above 50 indicates expansion
while a lower number denotes contraction.
“The latest PMI reports and data releases
earlier suggest that China’s economy continued
to stabilise with stronger monetary and fiscal
policy support measures,” Singapore-based UOB
Global Economics & Markets Research said in
a note on Monday.
“However, the recovery outlook remains
challenging with private sector and smaller
firms staying under pressure,” it said.
The official PMI’s production sub-index rose to
52.7 in September from 51.9 in August, while
the new orders sub-index ticked up to 50.5 in
September from 50.2.
The new export orders sub-index last month
improved to 47.8 from 46.7 in August but
remained in contractionary territory,
indicating continued weakness in external
demand.
CAIXIN CHINA SEPT PMI EASES BUT REMAINS
ABOVE 50A joint private-sector
survey conducted by Chinese media group Caixin
and S&P Global of Chinese manufacturers
also posted an expansionary reading of 50.6 in
September, but the number slipped from August’s
51.0.
“Output and total new orders both expanded for
the second straight month [in September]. But
overseas demand remained weak, with the gauge
for new export orders remaining below 50,”
Caixin Insight Group senior economist Wang Zhe
said.
The Caixin PMI surveys small and medium-sized
enterprises (SMEs) and export-oriented
enterprises located in eastern coastal regions,
while the official PMI covers larger
state-owned enterprises.
Rising prices of chemicals, crude oil,
industrial metals and other raw materials last
month pushed up input costs to the highest
since January, Wang noted.
Oil prices have risen about 30% in the third
quarter, driven up by production cuts by OPEC
and its allies.
At 05:05 GMT, Brent crude was trading higher by
13 cents at $92.33/bbl.
“We expect the manufacturing PMI [of China] to
stabilize at near 50.0 for a couple of months,
due partially to restocking demand for raw
materials amid rising energy and commodity
prices,” Japan’s Nomura Global Markets Research
said in a note.
“However, rising prices in upstream sectors may
exert some pressure on downstream sectors amid
still-sluggish final demand,” it said.
Meanwhile, China’s official services PMI rose
to 50.9 in September from 50.5 in August, led
by industries such as telecommunications, IT
(information technology) and financial
services.
However, the transportation, accommodation and
catering sectors, which led the service sector
recovery earlier this year, all fell into the
contractionary territory, pointing to fading
pent-up travel demand after the summer.
PROPERTY SLUMP CONTINUES
Construction expanded at a faster rate with an
official September PMI reading of 56.2, up from
53.8 in August, as China pushes for completion
of pre-sold homes as it seeks to defuse the
risks associated with the hidden debts of local
governments.
China has been introducing measures to rev up
its flagging economy amid a severe property
sector downturn and weak household consumption.
On 1 September, the People’s Bank of China
(PBoC) announced for the first time this
year a
reduction of the amount of foreign
currency deposits banks are required to hold as
reserves, freeing up yuan (CNY) 500bn, in its
bid to boost consumption.
In late August, the government introduced
support measures for the
property sector and expanded tax breaks for
child and parental care and education for this
year.
The fresh policy measures may be beginning to
bear fruit, with China’s new home prices in
September rising inching up by an average of
0.05% from August, reversing a four-month
decline, according to a survey by Chinese
research firm China Index Academy.
New home sales among China’s 100 biggest real
estate companies continued to contract, but the
pace of year-on-year decline eased in September
to 29.2% compared with August’s 33.9%, based on
preliminary data from the China Real Estate
Information Corp (CRIC) on 30 September.
Their contract sales volumes in September
declined by 34.1%, narrower than the 42.4% fall
in August, the data showed.
“The sequential improvement was led by top-tier
cities, especially in Beijing and Shanghai,
which could further squeeze low-tier cities,
where many private developers have been
trapped,” Nomura noted.
“While the recent property stimulus regarding
mortgage rates, down payment ratios and
purchase restrictions could boost demand in
top-tier cities on the margin, the positive
impact could be offset by the negative
spillover effects in lower-tier cities,” it
added.
Focus article by Nurluqman
Suratman
Thumbnail image: A general view of
residential buildings in Beijing, China, 11
September 2023. (By WU
HAO/EPA-EFE/Shutterstock)
02-Oct-2023
SINGAPORE (ICIS)–South Korea’s chemical
exports in September fell by 6.1% year on year
to $3.82bn, weighing on overall shipments
abroad which fell for the 12th straight month,
official data showed.
The country’s overall exports for the month
fell by 4.4% year on year to $54.8bn, compared
with a steeper contraction of 8.3% in August,
the Ministry of Trade, Industry and Energy
(MOTIE) said on 1 October.
By sector, semiconductor exports fell by 13.6%
year on year to $9.94bn, while shipments of
petroleum products were 6.8% lower at $4.9bn.
September car exports rose by 9.5% year on year
to $5.23bn, while global shipments of machinery
were up by 9.8% at $4.39bn.
South Korea’s overall imports fell 16.5% year
on year to $51bn in September, resulting in a
trade surplus of $3.7bn.
02-Oct-2023
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