BARCELONA (ICIS)–Europe’s beleaguered petrochemical industry could see its fortunes improve dramatically if Mario Draghi’s industrial policy proposals are adopted, along with a fair regulatory framework. New industrial strategy can rescue region from structurally higher costs, low levels of investment Historic moment with momentum building for new approach to Europe industry transformation Green Deal objectives need to work alongside measures to improve competitiveness New requirements for environmental, social and governance (ESG) reporting and extended producer responsibility (EPR) will have big impact on chemicals Compliance teams face a “nasty cocktail” because of lack of regulatory clarity Shift from risk to hazard-based approach Regulations create opportunities for innovative chemical companies In this Think Tank podcast, Will Beacham interviews Georgie Messent and Thomas Delille from law firm Squire Patton Boggs, 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.

SINGAPORE (ICIS)–Indonesia has initiated an investigation as to whether “safeguard measures” would be needed in response to a sharp increase in imports of linear low density polyethylene (LLDPE), its trade ministry said. The Trade Security Committee (KPPI) under the Ministry of Trade started the probe on 9 September following a complaint from The Indonesia Olefin, Aromatics and Plastics Industry Association (INAPLAS), acting on behalf of Chandra Asri Pacific and Lotte Chemical Titan Nusantara Indonesia. The committee noted initial findings suggested there were possible losses to the domestic industry over the years 2021-2023 arising from the sharp increase in imports of LLDPE. It also noted that the biggest sources of these imports were Malaysia and Thailand, which accounted for over 70% of LLDPE imports into Indonesia. Government data showed that in 2023, Indonesia’s LLDPE imports increased by 33.3% to 280,385 tonnes, compared with a 3.3% decline registered in 2022, the ministry said. Some market participants ICIS spoke with said they were not yet ready to respond to the announcement as await more details from the government. (adds paragraphs 5-6)

LONDON (ICIS)–On 11 July, H2Global Holding and Hintco announced it had accepted Fertiglobe’s bid of €1000/tonne of renewable ammonia into the Port of Rotterdam as the sole winner of the H2Global pilot auction programme. In this episode of the ICIS Hydrogen Insights podcast, ICIS hydrogen editor Jake Stones sits with the co-founder of the H2Global mechanism and H2Global Holding and Hincto CEO Timo Bollerhey to discuss the results of the auction, the status of the contract between Fertiglobe and H2Global and the role that the H2Global mechanism plays in the evolution of the hydrogen market. Finally, the pair discuss in detail the conditions around the E-SAF lot for the pilot auction, which received no bidders.

SINGAPORE (ICIS)–Indonesia has initiated an investigation as to whether “safeguard measures” would be needed in response to a sharp increase in imports of linear low density polyethylene (LLDPE), its trade ministry said. The Trade Security Committee (KPPI) under the Ministry of Trade started the probe on 9 September following a complaint from The Indonesia Olefin, Aromatics and Plastics Industry Association (INAPLAS), acting on behalf of Chandra Asri Pacific and Lotte Chemical Titan Nusantara Indonesia. The committee noted initial findings suggested there were possible losses to the domestic industry over the years 2021-2023 arising from the sharp increase in imports of LLDPE. It also noted that the biggest sources of these imports were Malaysia and Thailand, which accounted for over 70% of LLDPE imports into Indonesia.

HOUSTON (ICIS)–The US corn crop is now 5% harvested, according to the latest US Department of Agriculture (USDA) weekly crop progress report. In the first update on the corn acreage being harvested, the weekly update showed 5% of the crop is now completed which is above the 4% rate from last year and the five-year average of 3%. There is currently 95% of the corn crop in the dough stage, which trails the 96% level from 2023 but is slightly higher than the five-year average of 94%. Corn at the dented stage is now 74% of the reported acreage, which is behind the 78% achieved last year but is ahead of the five-year average of 73%. 29% of the crop is listed as mature, which is equal to the 29% mark from last year and above the five-year average of 24%. For corn conditions, there is still 4% rated very poor, with 8% as poor and 24% now as fair. There is 48% listed as good and 16% as excellent. Soybeans setting pods has climbed to 97%, which is equal to the 97% mark from last year and is just above the five-year average of 96%. The amount of soybeans dropping leaves is now at 25%, which trails the 2023 level of 27% but is higher than the five-year average of 21%. Soybean conditions were unchanged with there still being 3% listed as very poor, with 7% as poor and 25% as fair. 52% is good with 13% as excellent. In other harvesting updates, there is 8% of the cotton acreage completed with sorghum harvest at 21%.

HOUSTON (ICIS)–After a quiet few weeks for hurricane activity and with crop harvesting and movement of nutrients for autumn applications advancing, the US Gulf Coast and its agricultural and fertilizer interests are again facing a tropical weather threat. Tropical Storm Francine has developed in the Gulf of Mexico with the system moving rapidly at 60 miles/h with the edge closing in near Brownsville, Texas, along the US-Mexico border late on Monday. It is now being forecasted to bring heavy rain which could result in flooding and there is the possibility of storm surge. There are expectations that tropical storm force winds may extend up to 160 miles from the center. As Francine begins the trek northward, US farmers and fertilizer industry participants are watching the developments as the conditions will certainly deliver impacts to growers, with wind and rainfall possibly resulting in crop damage and delayed post-harvest fertilizing. Parts of south Texas are already beginning to experience these conditions with the rest of the Texas coast in the path as well, but the forecast has it eventually turning towards Louisiana. Given the duration until it strikes, it is likely the storm will intensify and gain enough in the coming days to become a moderate hurricane with impacts stretching far from the initial site of landfall. This will halt field work as well as stop harvesting progress across many states and in the aftermath will leave acreage soaked across many areas. For the fertilizer segment, there is awareness of the threat as the potential path takes it near the key location of New Orleans and across the locations of production facilities within the state, including those of CF Industries. The producer did not respond to an enquiry on its upcoming storm preparation, but no activity so far has been heard from any manufacturers in the region. As an industry source said “nobody is talking about this yet”, but that likely changes in the next 48 hours especially if the tropical system ends up displaying potential to be larger than currently anticipated.

HOUSTON (ICIS)–Industrial gas firm Messer announced it has entered into a long-term renewal of a carbon dioxide (CO2) purchase and sale agreement with US fertilizer producer LSB Industries. As part of the agreement, Messer said it will subsequently commit more than $9 million into the liquid CO2 plant at LSB’s Cherokee, Alabama, facility with a focus of this investment on the continued safe and reliable operations at the site. The plant manufactures fertilizers including ammonia, urea and urea ammonium nitrate (UAN) and it also makes industrial and mining offerings including ammonium nitrate (AN) solutions and diesel exhaust fluid (DEF). Messer said this deal will help increase security of its CO2 supply and provide continuity to customers for decades to come. “The efficiency upgrades for the plant modernization effort will add more molecules to our network and reduce CO2 emissions at the site in-line with our sustainability goals,” said Chris Ebeling, Messer executive vice president, sales & marketing, North America.

HOUSTON (ICIS)–Canadian potash developer Sage Potash Corporation announced it has entered into an agreement with a subsidiary of International Process Plants (IPP) for the purchase of processing equipment for Canadian dollars (C$) 12.6 million ($9.29 million). The company, which is advancing the Sage Plain Potash project located in Utah’s Paradox Basin, said this equipment is capable of processing up to 300,000 tonnes per year of potash. The majority of the equipment, which has not been assembled or used and is in storage in Europe, was fabricated in 2012 at a then cost of approximately €36 million. Sage Potash said the rest of the equipment will come from IPP’s inventory of second-hand machinery. Under the terms the company will satisfy the purchase price by paying C$6.3 million in cash and issuing 12,600,000 common shares to IPP at a price of C$0.20 per share. It will also issue IPP a secured convertible debenture with a principal of C$3.78 million, with the purchase and transactions subject to acceptance by the TSX Venture Exchange. Sage Potash said it is getting an exceptional opportunity considering stainless steel and titanium costs have more than doubled since 2012. In addition to the cost benefits the company estimates it is going to save between four to five years’ worth of fabrication time. “By buying this existing equipment now, Sage is mitigating project risk and cost, as well as providing added clarity to the project’s timeline, which is what project funders require. We believe this ultimately enhances shareholder value as we seek to reduce the United States’ nearly 100% reliance on imports for potash supply,” said Peter Hogendoorn, Sage Potash CEO. $1 = C$1.36

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 6 September. Brazil’s manufacturing sharply slows in August on higher costs, lower demand Brazil’s manufacturing PMI index for August sharply slowed down from July on the back of output falling for the first time in several months due to subdued sales, and elevated cost pressures, analysts at S&P Global said on Monday. INSIGHT: Brazil’s natgas overhaul to benefit chems but crude players push indispensable The Brazilian government’s decree changing natural gas regulations could potentially overhaul the market and, along the way, benefit the chemicals industry by providing it with cheaper energy and eventually with ethane-based feedstocks. INSIGHT: LatAm chemicals needs to be as plural as society to reach full sales potential For years, Latin American petrochemicals companies have been trying to increase diversity within to better represent the consumers they want to sell their products to – without much success. Canada government wobbles amid fallout from rail labor dispute Canada’s Liberal-led minority government under Prime Minister Justin Trudeau is paying a heavy price for its decision last month to end the labor dispute at freight railroads Canadian National (CN) and Canadian Pacific Kansas City (CPKC) through binding arbitration. SHIPPING: Union, USWC ports at impasse as strike deadline looms; container rates keep falling A strike by union dock workers at East Coast and US Gulf ports seems more likely after International Longshoremen’s Association (ILA) Wage Scale Delegates voted unanimously at the end of their two-day meeting to support leadership’s intentions to walk off the job if a new labor deal is not agreed to when the contract expires on 30 September.