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Pricing

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Pricing for Chemicals, Fertilizers, and

Recycled plastics


Manage volatility with ICIS’ in-depth pricing reports covering over 300 chemical, fertilizer and recycled plastic commodity markets. Settle contracts based on benchmark prices no matter where you operate, with spot, contract, import, export and domestic prices of typically traded grades, broken down by country and / or region.

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ICIS price forecast models are fully integrated, from European gas and power to carbon markets, and from crude oil and feedstocks to downstream commodities.

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Access supply and demand data to assess the price impact of planned and unplanned plant shutdowns and maintenance, as well as new capacities.

ICIS news

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SHIPPING: Asia-US container rates tick lower; shippers frontloading cargoes on tariff pause

HOUSTON (ICIS)–Rates for shipping containers from Asia to the US ticked lower this week, although they could see upward pressure from shippers pulling forward volumes ahead of the 30-day tariff freeze, while rates for liquid chemical tankers held steady. Global average rates fell by 3%, according to supply chain advisors Drewry and as shown in the following chart. Global average rates are down by almost 18% from 1 September, and down by almost 45% from the high of the year in mid-July. Rates from Shanghai to both US coasts fell by 1%, as shown in the following chart. Drewry expects spot rates to decrease slightly in the coming week due to the increase in capacity as container ship order books are at record highs. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said his company is already seeing some upward pressure on prices although some could be because of shippers frontloading volumes to beat the 30-day pause before tariffs are enacted. ‘We could expect frontloading ahead of tariffs – which has been a major factor keeping US ocean import volumes and transpacific container rates elevated since November – to intensify until the new tariffs are introduced or called off,” Levine said. Levine said it is hard to determine the impact from volumes being pulled forward since this has likely been happening for several months, and with the market in the lull surrounding the Lunar New Year (LNY) holiday. “But we could expect demand and rates to increase post-LNY,” Levine said. 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. LIQUID TANKER RATES STEADY US chemical tanker freight rates as assessed by ICIS were unchanged this week with contract of affreightment (COA) nominations steady for most trade lanes. For the cargoes in the South American trade lane, COAs remain strong leaving very little spot availability. A large parcel of ethanol fixed USG to San Luis, and several others were quoted for second half of February. Similarly, for the USG to ARA trade lane, it was another off week with only a few reported fixtures. However, there were some unusual cargoes fixed for products like caustic soda and ethanol. Some styrene was reported fixed from Lake Charles to ARA. Overall, rates seem to be maintaining current levels particularly for the 3,000- and 5,000-tonne parcels. There was no difference along the USG to Asia routes, as it was another quiet week on this trade lane. Spot rates remain steady as the H1 February space across the regular carriers is sold out. Some of the larger players should have space in the second half of February depending on COA nominations. The chemical COAs have been steady through H1 March, but still in the tentative phase. Several inquiries were seen for methanol, ethanol, vinyl acetate monomer (VAM), styrene and MEG. On the other hand, bunker prices were unchanged this week but overall remain strong. PANAMA CANAL UPDATE Panama’s president said the country will not renew its agreement with China’s Belt and Road Initiative (BRI) after a visit from US Secretary of State Marco Rubio. President Donald Trump surprised some when he said that the US should reclaim the Panama Canal, and a US congressman has since introduced a bill that would authorize the purchase of the vital waterway. The actions taken by Panama’s president, Jose Raul Molino, may slow action by the Trump administration to take back control of the canal. Additional reporting by Kevin Callahan

07-Feb-2025

US tariffs could jeopardize $800 million of Mexican plastics exports

SAO PAULO (ICIS)–Potential US tariffs of 25% on all goods coming from Mexico could hit the country’s plastics sector hard, with exports to the US worth $800million, plastics sector trade group Anipac said this week. Around 75% of Mexican-produced plastics are sold to the US Mexico cabinet, companies hold breath as tariffs threat lingers Some analysts expect GDP to fall by up to 2.5% in 2025 if tariffs remain in place The trade group’s positioning was published after Mexico and the US reached an agreement to put on hold the 25% tariffs for one month. Originally, they were expected to apply from 4 February. Anipac lauded the Mexican government for achieving a partial success but warned that the threat of tariffs remains. According to figures from the trade group, exports to the US represent 75% of all plastics produced in Mexico, but Mexco’s share of overall US plastics imports is only 2%. “The [trade] tension and the result of the imposition of tariffs by our main trading partner will have a direct impact on a decrease in production, loss of formal jobs, and increase in production costs in the vertical integration of manufacturing sectors [in North America],” said Anipac, in a note signed by its president, Marlene Fragoso. “We express our deep concern about President Trump’s strategy of imposing 25% tariffs on all imports of Mexican products as a strategy to put pressure on Mexico to resolve migration and fentanyl trafficking issues, regardless of the agreements under [North America trade deal] USMCA.” Anipac praised the “timely and positive management” of Mexico’s federal government in “this first intervention”, but did not want to claim victory for good as tariffs may be a reality in a few weeks. Moreover, corporate Mexico has been adjusting since November to the idea of a second Trump presidency in which import tariffs – as a strategy to exert pressure or as a reality – are likely to be a key part of the US-Mexico bilateral relationship for much of Trump’s second term in the White House. “We remain in close communication with our peers in the US and attentive to the evolution of this issue,” said Anipac. The trade group had not responded to a request for further comment at the time of writing. One of the polymers which could be greatly affected by a 25% US import tariff would be polyethylene terephthalate (PET), one of the most widely used plastics. The US is a net importer of PET and product coming from Canada and Mexico would be hard to replace. This, in turn, would push prices up, said market sources earlier this week, as any costs related to tariffs would be passed on to customers. IMPORT TARIFFS TO WORSEN SLOWDOWNUS imports tariffs on Mexican goods would deliver a blow to Mexico’s economy. While Mexican plastics producers send around 75% of their output to the US, the overall figure for the manufacturing sectors is 80%. A 25% import tax on four-fifths of all goods made in Mexico sold in the US could send the country’s economy into a long and deep recession, most economists agree. In fact,  Mexico’s GDP fell in the fourth quarter of 2024 by 0.6%, compared with the third quarter, while the petrochemicals-intensive manufacturing sectors started 2025 in contraction, the same way they ended 2024. In a note published this week, Spanish bank BBVA, with important operations in Mexico, said the country’s GDP could fall by up to 2.5% in 2025 if tariffs are finally implemented and extend in time. “What economic effects could these tariffs have on the US? The answer depends on various factors, among which the following stand out: the duration of the tariffs, possible tariff retaliations by Mexico and Canada, exchange rate adjustments and the spare capacity in the US to produce the goods that replace imports with the 25% tariff,” said BBVA Research. “What economic consequences the tariffs would have for Mexico? The impact on investment, exports and competitivity could be very adverse. Therefore, there would be a significant downside risk to economic growth in 2025.” MEXICO MANUFACTURING PMI INDEXLast 12 months; reading below 50.0 points shows contraction February 2024 52.3 March 52.2 April 51.0 May 51.2 June 51.1 July 49.6 August 48.5 September 47.3 October 48.4 November 49.9 December 49.8 January 2025 49.1 Source: S&P Additional reporting by Bruno Menini Focus article by Jonathan Lopez Front thumbnail: Trucks at the US-Mexico border (Source: US National Association of Manufacturers (NAM))

07-Feb-2025

VIDEO: Europe R-PET flake, food-grade pellet prices rise in February

LONDON (ICIS)–Senior editor for recycling Matt Tudball discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colourless, mixed coloured, blue flake prices rise Food-grade pellet (FGP) prices increase Question if demand will be sustained Petcore 2025 conference highlights

07-Feb-2025

Japan's Mitsubishi Chemical to sell pharma business for $3.4 billion

SINGAPORE (ICIS)–Mitsubishi Chemical on Friday said that is selling its pharmaceutical unit Mitsubishi Tanabe Pharma Corp (MTPC) to US private equity firm Bain Capital for around yen (Y) 510 billion ($3.4 billion) as it seeks to focus on its core chemical business. The sale is expected to be completed in April-September 2026, pending shareholder approval at Mitsubishi Chemical's annual meeting scheduled in late June 2025. "Changes in the industry and business structure have reduced the potential for synergies," the company said. "Large-scale investment is essential to strengthen Mitsubishi Tanabe Pharma’s R&D capacity and further growth, but such investment would not be a feasible option under our ownership." Proceeds from the sale of between Y200 billion-250 billion will be directed toward a combination of strategic priorities: new growth investments, returning value to shareholders, and reducing debt. Some Y250 billion-300 billion has been designated for capital and financial investments focused on five key business areas under the company's "KAITEKI Vision 35" initiative. KAITEKI, a Mitsubishi Chemical concept, proposes a path to sustainable development, guiding solutions to environmental and social problems. Among these priorities is the establishment of a stable supply platform for green chemicals, a goal that will be pursued through expanded collaboration with global partners. Mitsubishi Chemical is also prioritizing eco-conscious mobility, focusing on development of a high-value-added carbon fiber chain to meet increasing demand for sustainable transportation solutions. To facilitate progress in advanced data processing and telecommunications, the company plans to bolster the global expansion of its semiconductor precision cleaning technology. It is also increasing the global capacity of its engineering plastic products to support the development of groundbreaking therapies.

07-Feb-2025

India central bank cuts interest rates to rev up slowing economy

MUMBAI (ICIS)–India’s central bank on Friday reduced its benchmark interest rate for the first time in nearly five years, to address slowing economic growth amid heightened global geopolitical uncertainty and continued weakness in the Indian rupee (Rs). Benchmark interest rate cut by 25 basis points to 6.25% Monetary policy stance kept at "neutral" Year-to-March ’26 GDP growth forecast at 6.7%; inflation at 4.2% In its monetary policy decision, the Reserve Bank of India (RBI) cut its policy interest rates to 6.25% from 6.50% previously and retained its monetary policy stance at “neutral”. Meanwhile, it has maintained the repurchase (repo) rate at 6.50% since February 2023. The last time it reduced this repo rate was in May 2020. India is a giant emerging market in Asia, whose economy ranks among the fastest growing in the world in recent years. The country is also a major importer of petrochemicals. RBI’s monetary policy meeting, the first under its new governor Sanjay Malhotra, was conducted days after India’s budget for the fiscal year 2025-26 was presented to parliament, in which the government cut personal income tax in a bid to boost consumption and growth. “While inflation has declined and is expected to further moderate in the next financial year, and economic growth is expected to recover, it is still much lower than the last fiscal. This has opened up the space for easing the repo rate,” Malhotra said. Malhotra assumed the RBI governor post in December 2024. While the central bank remains optimistic about India’s growth outlook, following a good monsoon season and an anticipated revival of capital expenditure, global factors could slow down growth, he said. “The world economic landscape remains challenging with slower pace of disinflation, lingering geopolitical tensions and policy uncertainties,” the RBI said in its official statement. “The strong [US] dollar also continues to strain emerging market currencies and enhance volatility in financial markets,” it added. At 08:30 GMT, the Indian rupee was trading at Rs87.40 to the US dollar. It plunged to an all-time low of Rs87.58 against the US dollar on 6 February. RBI has projected India’s GDP growth rate for the next fiscal year ending March 2026 at 6.7% – near the high end of the finance ministry’s growth forecast of 6.3% to 6.8%. In fiscal Q2 (July-September 2024), the south Asian country’s actual GDP growth slowed to 5.4%, the weakest in almost two years due to sluggish manufacturing growth and weak consumption. It was also significantly lower than the RBI's projection of a 7% growth for the quarter. The government will release its third quarter GDP data on 28 February. RBI GDP Forecasts FY 2025-26 April-June (Q1) 6.7% July-September (Q2) 7.0% October-December (Q3) 6.5% January-March (Q4) 6.5% Meanwhile, inflation forecast for the current fiscal year has been retained at 4.8%, with fiscal Q4 (January-March 2025) inflation revised down to 4.4% from 4.5% previously on easing food inflation. The RBI has projected retail inflation to be at around 4.2% in the next fiscal year. “Headline inflation after moving above the upper tolerance band in October, has since registered a sequential moderation in November and December,” Malhotra said. While food inflation is expected to soften further over the next few quarters, core inflation is expected to rise but remain moderate, he added. However, rising uncertainties in global financial markets, coupled with continuing volatility in the global energy prices and adverse weather events could present upside risks to the RBI’s inflation projections, the RBI said. In December, consumer inflation eased to a four-month low of 5.22% on easing food prices RBI inflation forecasts FY 2025-26 April-June (Q1) 4.5% July-September (Q2) 4.0% October-December (Q3) 3.8% January-March (Q4) 4.2% Focus article by Priya Jestin

07-Feb-2025

Japan's Mitsubishi Motors to invest $121 million in the Philippines

SINGAPORE (ICIS)–Japanese carmaker Mitsubishi Motors Corp (MMC) is set to invest Peso (Ps) 7 billion ($121 million) in the Philippines over the next five years. MMC president and CEO Takao Kato announced the plan during a meeting with Philippine President Ferdinand Marcos Jr on 6 February. The plan includes adding a new production model at the Mitsubishi Motors Philippines Corp (MMPC) plant in Laguna province, according to a statement issued by the Presidential Communications Office (PCO). Kato said the Philippines is MMC’s most important investment in southeast Asia, citing its good and stable economy. MMPC operates a manufacturing plant in Santa Rosa, Laguna, with an annual production capacity of 50,000 units, which can be doubled, it stated. As of November last year, MMPC had a 19% share of the domestic market, trailing behind Toyota's 46% share. Marcos also announced that MMC will be part of the government's Revitalizing the Automotive Industry for Competitiveness Enhancement (RACE) program which aims to boost the competitiveness of the local automotive industry. “In the ASEAN, (the) Philippines is our number one market,” MMC’s Kato said. Within southeast Asia, MMC also has production facilities in Thailand, Indonesia and Vietnam. The Japanese carmaker also has manufacturing plants in China and Russia. The automotive industry is a major global consumer of petrochemicals that contributes more than one-third of the raw material costs of an average vehicle. The sector drives demand for chemicals such as polypropylene (PP), along with nylon, polystyrene (PS), styrene butadiene rubber (SBR), polyurethane (PU), methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). ($1 = Ps58)

07-Feb-2025

INSIGHT: South Korea broadens aid for struggling petrochemical industry

SINGAPORE (ICIS)–South Korea is streamlining regulations to make it easier for regions densely populated by petrochemical companies to qualify as "industrial crisis response areas", a designation that unlocks government support and financial assistance to mitigate impact of market downturns. Yeosu, Ulsan, Daesan petrochemical hubs to benefit Focus shifts to manufacturing for crisis designation Voluntary business restructuring encouraged This designation also unlocks access to tailored assistance in areas like employment stability, R&D, commercialization, market access, and consulting, according to a Ministry of Trade, Industry and Energy (MOTIE) administrative notice released on 5 February. The new regulation follows a wide-ranging support package unveiled by the government on 23 December 2024, aimed at bolstering the competitiveness of its domestic petrochemical industry, which is facing a global oversupply driven by expansions in China and the Middle East. This policy shift is expected to benefit major petrochemical hubs such as Yeosu, Ulsan, and Daesan, providing them with greater access to resources designed to mitigate economic downturns and to support continued growth within the sector. Previously, the high proportion of the services sector in cities like Yeosu hindered their ability to be designated as industrial crisis response areas. The revised regulations will now assess "regional stagnation" based solely on the manufacturing sector, excluding service industries. This change will allow regions heavily reliant on manufacturing, particularly petrochemicals, to meet the designation criteria more readily. MULTI-PRONGED STRATEGY A cornerstone of the government's latest plan is encouraging voluntary business restructuring, encompassing facility closures, sales, joint ventures, efficiency improvements, and new business acquisitions. To facilitate these changes, the government will implement legal reforms and offer a range of financial and tax incentives. These include extending the grace period for acquiring 100% of holding company shares from three to five years and streamlining merger reviews with the Korean Fair Trade Commission (FTC), the country's regulatory authority for economic competition. A dedicated consultation channel between MOTIE and the FTC will further expedite reviews and support restructuring efforts. Separately, the government plans to provide up to Korean won (W) 3 trillion ($2.1 billion) in financing packages for petrochemical companies seeking to revamp their business portfolios, including expanded access to a W1 trillion business restructuring fund managed by the Korea Development Bank. For designated Industrial Crisis Response Areas, existing loan maturities from policy financial institutions will be extended, principal repayments deferred; national tax payment deadlines extended; and seizure and sale deferred for up to one year. Beyond restructuring, the government is targeting cost reduction. The duty-free period for crude oil used in naphtha production will be extended by a year until the end of 2025 and import surcharges on liquefied natural gas (LNG) used as industrial raw materials will be refunded. A "fast-track" approval process will be implemented for ethane terminal and storage tank construction to facilitate access to cheaper raw materials. Additional cost-saving measures include expanding electricity rate options through distributed power trading and rationalizing safety regulations. The plan will also support R&D focused on shifting production from general-purpose petrochemicals to specialized, high-value-added products. An "R&D Investment Roadmap for 2025-2030" will be unveiled in the first half of this year, and preliminary feasibility studies for high-value and eco-friendly chemical material technology development will be conducted. The support ratio for regional investment subsidies in Industrial Crisis Response Areas will be increased, national strategic and new growth technologies will be identified, and a W50 billion "High-Value Specialty Fund" will be established to promote production of specialty chemicals. DOMESTIC PRODUCERS STRUGGLE South Korea's four largest petrochemical manufacturers – LG Chem, Lotte Chemical, Kumho Petrochemical and Hanwha Solutions – faced continued challenges in 2024. LG Chem reported a net loss of W899.2 billion in the fourth quarter, reversing the net profit of W128.5 billion a year ago due to decreased demand for both petrochemicals and battery materials. It also reported an operating loss of W252 billion in the same period. The company has revised down its capital expenditure plan for the year to W2 trillion-3 trillion from W4 trillion previously as it navigates the market downturn. Separately, as part of its global expansion strategy, LG Chem has secured a deal to supply cathode materials to Prime Planet Energy and Solutions (PPES) – a joint venture of Japanese carmaker Toyota and appliance maker Panasonic – starting 2026. The company will focus on developing eco-friendly materials and technologies that align with PPES' low-carbon vision. Meanwhile, major ethylene producer Lotte Chemical in Q3 2024 reported a loss of W514 billion, on "delayed demand recovery, lower product spreads due to currency depreciation, one-time costs from maintenance at overseas subsidiaries, and rising shipping costs". The company is now pursuing an asset-light strategy, which involved liquidation of its Malaysian synthetic rubber production subsidiary Lotte Ube Synthetic Rubber (LUSR) – a joint venture with Japan’s Ube Elastomer. Based in Johor, Malaysia, LUSR produces 50,000 tonnes/year of polybutadiene rubber (PBR). Lotte Chemical also plans to generate W1.4 trillion in proceeds from sale of stakes in overseas subsidiaries. Synthetic rubber major Kumho Petrochemical Co reported on 4 February a Q4 net income of W61.3 billion, down 33% year on year, due to weak market demand due to a year-end drop in raw material prices; with operating profit shrinking by about 72% to W10 billion despite a 19% increase in sales to W1.8 trillion. Insight article by Nurluqman Suratman ($1 = W1,446) Thumbnail image shows an aerial view of a container pier in South Korea's southeastern port city of Busan. (YONHAP/EPA-EFE/Shutterstock)

07-Feb-2025

Dutch regulator fires energy market manipulation warning shot

Dutch regulator 'reprimanded' company over possible market manipulation on TTF gas hub Price manipulation on major benchmark hub can cost other participants, consumers Company in question to be 'closely watched', trader committed to 'no longer engage' in such behaviour Additional reporting by Jamie Stewart LONDON (ICIS)–The Dutch energy regulator has "reprimanded” an international company for "possible market manipulation" at the TTF gas hub, according to a statement released 6 February. The statement was clearly intended to deter market participants from attempting to "mark the close", as it termed the behaviour, adding such behaviour was "an illegal trading practice". It did not reveal the company in question and did not cite any specific penalty. The Dutch Authority for Consumers and Market (ACM) added it would "continue to keep a close watch on the company" and that the trader had pledged to no longer "engage in this conduct". MARKET INFLUENCE According to ACM, the practice of "marking the close" can occur if a market participant influences the reference price on a wholesale energy market by buying or selling close to the moment that a settlement price is determined. This can involve bidding for orders with a much higher asking price or buying excessively large volumes on offer right before the market close, as a result of which the price spikes up. The reverse can also be true, with the price range pushed down by repeatedly offering volumes at a lower price or selling excessively large volumes. As a result of a closing value that does not otherwise reflect market fundamentals or the prevailing price range, other traders, as well as Dutch and other European energy consumers, foot the bill for forward contracts that later settle at this closing price. IMPLICATIONS The cases cited by ACM concerned the short-term Day-ahead contract at the Dutch TTF gas hub. The ICIS TTF Day-ahead is a benchmark price commonly used across the energy industry. The TTF is by far the most traded hub in Europe, and market moves would affect other hubs not only locally but across the continent. Rules across Europe governing energy market trade are laid out in the EU’s Regulation on Wholesale Energy Market Integrity and Transparency which covers market abuse including market manipulation and insider trading. ICIS POSITION Richard Street, international regulatory affairs head at ICIS’ parent company LexisNexis Risk Solutions, said: “We were aware of the issues referred to by ACM. We have strict data standards that allow us to remove any off-market trades. "Market participants who make trades they know are off-market can pre-empt any issues by marking these deals as ‘P&C’ or contact us confidentially to make us aware of the circumstances surrounding unusual activity." Street added it was "clearly disappointing that ACM has had to publicly reprimand certain traders for their behaviour" but he was hopeful that this "sends a clear message that regulators are watching and will take action where necessary”. The Dutch regulator added: it was "calling on market participants and other relevant stakeholders on the wholesale energy markets to share information about possible illegal trading activities. They can do so using ACER’s Notification Platform. See also ACM’s website: Reporting suspicious energy trading." Eduardo Escajadillo EDITOR'S VIEW How price reporting is done is of vital importance to maintain trust in the integrity of commodities markets, and in the price formation process itself. This is important because these markets, in some way, touch all of our lives. Price reporting agencies (PRAs) such as ICIS welcome the support of regulators in ensuring a robust price discovery environment. In this case the Dutch regulator ACM has flexed its muscles, reminding all market participants of their obligations, as well as its own as a watchdog with a duty to consumers. Best practice in the discipline of price reporting is defined by the EU Benchmarks regulation, which as a benchmark administrator ICIS aligns its practices to, as well as the long-standing IOSCO principles of best price for price reporting in commodities markets. ICIS has long been a voluntary signatory to the IOSCO principles and is audited against these principles every year. PRAs best-practice models also lay out how to deal with unusual trading patterns. Central to the approach is transparency if transactions are deleted from a price assessment process, which does happen from time to time. For example, this British NBP gas market comment published by ICIS as recently as 30 January, said: “February '25 trades recorded at the time of the close at the value of 130.500p/th were deemed to be outside of the prevailing range of verified market information reflecting the value of the contract at that time and were therefore excluded from the assessment and ICIS indices.” Our publicly available pricing methodologies, for example our gas methodology, give more details regarding ICIS price reporting practices. Jamie Stewart

06-Feb-2025

BP puts Gelsenkirchen, Germany refinery, crackers up for sale

BARCELONA (ICIS)–BP plans to sell its to sell its Ruhr Oel refinery, crackers and downstream assets at Gelsenkirchen in Germany. The company will start marketing the assets immediately, with the aim of completing the sale this year, according to a statement published on 6 February by the UK headquartered energy giant. According to the ICIS Supply & Demand Database BP operates a refinery and two crackers with combined capacity of 1.065 million tonnes/year of ethylene, as well as units with 645,000 tonnes/year propylene, 430,000 tonnes/year benzene plus cumene, cyclohexane, methanol, toluene and ammonia facilities. BP said the assets for sale include DHC Solvent Chemie in Mulheim an der Ruhr. All refinery owners in Europe are under pressure to rationalise their portfolios thanks to the shift to vehicle electrification and high cost base. There is also intense competition from new refineries starting up in Asia and the Middle East. BP said the move is in line with its strategic drive to deliver a simpler, more focused, higher value company. The company said that it has implemented numerous projects to modernize the infrastructure of the refinery in Gelsenkirchen in recent years.  This includes renewing the power grid and establishing an independent steam supply. The refinery can process crude oils from around the world, produce fuels and also has the potential to manufacture biofuels and process recycled plastics, said bp. Michael Connolly, ICIS principal refining analyst pointed out that the refinery is configured to give a moderately high yield of gasoline, meaning it is not really suited to the future of the European market, where vehicle electrification is hurting demand. He said BP already had plans to reduce the capacity of the refinery from 260,000 bbl/day to 155,000 bbl/day in 2025. “Undoubtedly it would have used Russian crude, but despite having access to seaborne crude, the loss of Russian crude through sanctions would have impacted financials,” he said. The economics of the facility will also be more challenging, as for all European refiners, because cracks or margins for gasoil production have declined to pre-Ukraine war levels, added Connolly. ICIS expects German crude refining capacity to fall from 2.1 million bbl/day in 2020 to 1.8 million bbl/day by 2026 and well off their peak refining capacity of 2.4 bd in 2007. Emma Delaney, BP executive vice president, customers & products said, “BP needs to continually manage its global portfolio as we position to grow as a simpler, more focused, higher-value company. After a thorough review, we have concluded that a new owner would be better suited for the site to take it forward. We are convinced that the refinery can unlock its full potential under new ownership.” Focus article by Will Beacham Graphics by Miguel Rodriguez-Fernandez Thumbnail photo: bp's refinery site in Gelsenkirchen, Germany (Source: BP) Clarification: recasts to explain BP has two crackers at the site.

06-Feb-2025

Eurozone, EU chem producer prices flat in December 2024 from previous month

LONDON (ICIS)–Chemicals producer prices in the eurozone and EU were flat in December from the previous month, official data showed on Thursday. Spain (-0.2%), Italy (-0.2%), the Netherlands (-0.5%) and Poland (-0.1%) all posted declines while Germany, Europe’s biggest chemicals producer, recorded zero price growth. France (+0.2%) was the only major EU country to report a rise in chemicals producer prices. General industrial producer prices in December rose by 0.4% month on month in both the eurozone and EU, statistics agency Eurostat said in a first estimate that is subject to revision. The annual industrial producer price average for the whole of 2024 fell by 4.2% in the eurozone and by 4.0% in the EU from 2023.

06-Feb-2025

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