React faster to price fluctuations and preserve margins
Understand pricing in real time and plan ahead with confidence
In today’s dynamic markets, capitalise on opportunity and limit exposure with a transparent view of pricing and the multiple factors influencing it.
Optimise your strategy setting, contract negotiations and business planning with ICIS pricing intelligence, covering historic, current and future price drivers, fundamentals, market fluctuations and trends, plus market commentary and analysis.
All key factors through the value chain are included in our forecast methodology, from spot price movements, supply, demand, trade flows and production margins to market sentiment, seasonality, inventory levels and feedstocks.
Integrate ICIS data into your pricing models with downloadable charts offering full cross-commodity and cross-regional trend analysis for your markets, accessible via our subscriber platform, ICIS ClarityTM on your desktop or on the go, or via our Data as a Service (DaaS) solutions.
Pricing for Chemicals, Fertilizers, and
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.
With our in-depth understanding of the entire chemical value chain, ICIS forecast models are fully integrated, from crude oil and feedstocks to downstream commodities. Understand the impact on global export markets of newer entrants such as China, with analysis in both English and Chinese.
Stay ahead of fast-moving markets with customised alerts when prices meet criteria; see how your market has moved, with price spreads from the previous month; and understand the relative cost competitiveness of alternative raw materials.
Specialised chemicals analytics
ICIS Supply and Demand Database
Optimise planning, production and investment with ICIS Supply and Demand Database.
Benefit from a complete picture of the chemicals supply chain showing capacity for over 100 commodities in 160 countries, up to 2050.
ICIS Cost Curves
Gain a full view of competitors’ costs with ICIS Cost Curves.
Maximise profitability, with a transparent view of the global cost landscape for 11 key chemical commodities including ethylene, PE, PP and PVC, updated weekly.
Identify new opportunities and mitigate risk with ICIS’ in-depth energy pricing intelligence covering natural gas, LNG, power and renewables, carbon, hydrogen, crude oil and refined products. Preserve operating margins and adapt faster to volatility with real-time news and expert market commentary.
Optimise trading decisions with reliable forecasts factoring in variables such as storage, import and export flows, outages, weather and temperature forecasts. Benefit from historic pricing data revealing patterns and trends, while gaining a complete understanding of what is driving your market today.
ICIS price forecast models are fully integrated, from European gas and power to carbon markets, and from crude oil and feedstocks to downstream commodities.
Why use ICIS pricing intelligence?
React faster with instant access to price assessments and forecasts covering spot, contract, import, export, international and domestic prices for feedstock and commonly traded commodities.
Strengthen your negotiating position
Safeguard against price fluctuations and lock in costs and income for the longer term, with ICIS’ industry-standard price assessments, plus arbitrage and netback calculations.
Respond to markets in real time
Benefit from global news coverage of sudden price shifts in key active trading regions alongside in-depth policy and regulation coverage.
Get an expert view
Learn about the impact of short- and long-term trends, with impact commentaries and analysis from experts embedded in key global markets.
Plan with confidence
Evaluate opportunities and risks with confidence, using cross-commodity, integrated data and cross-regional trend analysis to develop internal pricing models.
Understand market sentiment
Learn about reported and confirmed deals, bids and offers, to gain a sense of buyers’, traders and sellers’ willingness to transact.
Optimise efficiency and accuracy with ICIS data and analytics seamlessly integrated into your modelling and forecasting.
Gauge the impact of capacity on prices
Access supply and demand data to assess the price impact of planned and unplanned plant shutdowns and maintenance, as well as new capacities.
Keep up to date, with all the latest news on pricing.
LOGISTICS: Carrier CMA CGM to resume Red Sea transits on a case-by-case basis
HOUSTON (ICIS)–Global container shipping major CMA CGM Group will begin transiting the Red Sea on a case-by-case basis as it continues to closely monitor the situation, the company said in an advisory to customers. The company said it will make assessments for each vessel prior to transits, so routing choices cannot be anticipated or communicated. All other vessels will continue to be rerouted around the Cape of Good Hope. Houthi attacks on commercial vessels in the Red Sea began in November 2023, forcing carriers to begin diverting away from the Suez Canal in December. Maersk and CMA CGM Group were the last two major carriers to completely cease transits through the Suez. The longer routes put upward pressure on freight rates because of increased fuel costs and tightened capacity with fewer available ships. Rates surged but have begun to ease, although they remain elevated. 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), which are shipped in pellets. Some liquid chemicals are also shipped on container ships using isotanks. Visit the ICIS Logistics: impact on chemical and energy markets Topic Page.
US Chemours shares crash after CEO, CFO placed on leave
HOUSTON (ICIS)–Shares of pigment and fluoromaterials producer Chemours fell by more than 35% on Thursday after the company placed its two top executives and its principal accounting officer on administrative leave. Chemours also delayed the release of its full-year earnings for the second time. It did not say when it could release its results. Right now, the company's audit committee is conducting an internal review that will cover the following: The processes for reviewing reports made to the Chemours ethics hotline. The company’s practices for managing working capital, including the related impact on metrics within incentive plans, certain financial metrics made in government filings and in public announcements. Chemours did not say when it would release its full-year earnings. Meanwhile, the Rosen Law Firm is investigating whether a class action lawsuit could be filed on behalf of Chemours's shareholders. ADMINISTRATIVE LEAVE FOLLOWS BOUT OF EXECUTIVE TURNOVERThe executives placed on administrative leave are CEO Mark Newman, Chief Financial Officer Jonathan Lock and Principal Accounting Officer Camela Wisel. Denise Dignam will serve as interim CEO. Matt Abbott will serve as as interim CFO and principal financial and accounting officer. Newman has been CEO since mid-2021. Before that he was the company's chief operating officer. Lock became CFO in mid-2023. He succeeded Sameer Ralhan, who was one of several high-profile departures that took place that year. The following lists the other departures: At the end of March 2023, Ed Sparks resigned as the president of Titanium Technologies and Chemical Solutions. Also at the end of March, Sheryl Telford resigned as the company's chief sustainability officer. At the end of May 2023, Alisha Bellezza resigned as president, Thermal & Specialized Solutions (TSS), the business segment that makes fluorochemicals. Susan Kelliher, senior vice president, people, resigned at the end of September 2023. FIRST DELAY ANNOUNCED IN MID-FEBRUARYChemours disclosed that its audit committee was conducting the review in mid-February, when it announced the first delay of its earnings release. Chemours makes titanium dioxide, fluorochemicals and fluoropolymers like Teflon. Thumbnail shows Chemours CEO Mark Newman. Image by Chemours.
Korea’s S-Oil targets $2bn capex for Ulsan oil-to-chems project in '24
SINGAPORE (ICIS)–South Korean refiner S-Oil has earmarked won (W) 2.72tr ($2bn) this year for its thermal crude-to-chemical (TC2C) project called Shaheen, representing 87% of the total capital expenditure (capex) set for 2024. The full-year capex at W3.14tr was up 54% from 2023, the company said in its Q4 results presentation released in early February. Construction of Shaheen at the Onsan Industrial Complex of Ulsan City started in March 2023 and will be in full swing this year, with mechanical completion targeted by the first half of 2026. The funds that will go to the project – whose name was derived from the Arabic word for falcon – were up 86% from 2023 levels. As of end-December 2023, site preparation was 48% complete, with engineering, procurement and construction at 18.7%, according to S-Oil. “Site preparation and EPC [engineering, procurement and construction] work is under full-fledged execution with the actual progress going smoothly according to the plan,” the company said. The project will leverage on the T2C2 technology of its parent company Saudi Aramco, the world’s biggest crude exporter. Aramco owns more than 63% of S-Oil. The project is expected to yield 70% more chemicals, with a capex/operating expenditure savings pegged at 30-40% versus conventional process. Meanwhile, for upgrade and maintenance of plants in 2024, total expenses will fall by about 32% to W298bn, with just two plants due for turnaround in the year – its No 1 crude distillation unit (CDU) and its No 1 lube HDT (hydrotreatment) unit, the company said in the presentation, noting that the plan is preliminary. ICIS had reported that S-Oil will conduct maintenance at its Group I and Group II base oils units in Onsan, Ulsan for more than a month from mid-September this year. On 23 February 2024, a fire broke out at the company’s Onsan production site in Ulsan, shutting one of the three crude distillation units (CDUs) of its 669,000 bbl/day refinery, with some reduction in propylene output of the residue fluid catalytic cracker (RFCC) at the site, industry sources said. Other downstream operations at the site were not affected, but this could not be immediately confirmed with the company. Its Onsan complex can produce 910,000 tonnes/year of propylene; 187,000 tonnes/year of ethylene; 600,000 tonnes/year of benzene; and 1m tonnes/year of paraxylene (PX), according to the ICIS Supply & Demand Database. The company was planning to restart the No 3 CDU by 27 February, news agency Reuters reported, quoting unnamed sources. 2023 NET PROFIT SLUMPSS-Oil posted a 54.9% slump in net profit, with sales sliding by about 16% to as operating rates across its plants declined. in billion won (W) FY2023* FY2022 Yr-on-yr % change Revenue 35,726.7 42,446.0 -15.8 Operating income 1,354.6 3,405.2 -60.2 Net income 948.8 2,104.4 -54.9 *Revised figures from S-Oil on 26 February 2024 in billion won (W) FY2023 FY2022 Yr-on-yr % change Refining operating profit 399.1 2,344.3 -83.0 Petrochemical operating profit 203.7 -49.8 -509.0 Lube operating profit 815.7 1,110.7 -26.6 Source: S-Oil presentation, 2 February 2024 Average operating rates across the company’s plants declined and were in the range of 75.1% to 90.4% in 2023 due to weakening global demand, with paraxylene (PX) plants registering the lowest run rate. Source: S-Oil, February 2024 2024 OUTLOOK “Regional refining markets are forecast to maintain an above average level by steady demand growth coupled with low inventory levels,” S-Oil said. Refining margins in the first quarter will likely be supported by “heating demand in winter and spring maintenance season", it said. “With uncertainties on start-up timing and pace of major new refineries, market impact is estimated to be restricted in 2H [second half] or beyond,” the company said. Paraxylene (PX) and benzene markets “are projected to be supported by firm demand growth” on the back of new downstream expansions as well as demand for gasoline blending, “amid drastically reduced capacity addition”. Polypropylene (PP) and propylene oxide (PO) markets “are likely to gradually improve in tandem with pace of China’s economic recovery, while pressures from capacity addition continues”, while for lube base oils (LBO), the product spread is projected to be solid “on limited capacity additions and sustained demand growth”, according to S-Oil. Thumbnail image: S-Oil's Residue Upgrading Complex (RUC) and the Olefin Downstream Complex (ODC) in Ulsan, South Korea (Source: S-Oil) Focus article by Pearl Bantillo ($1 = W1,334)
US ONEOK to start chem feedstock projects in '25; mulls NGL terminal
HOUSTON (ICIS)–ONEOK plans to start up three major natural gas liquids (NGLs) projects in the US that will provide more feedstock to chemical companies – while its possible NGL export terminal remains in preliminary stages. NGLs such as ethane are the predominant feedstocks used by US crackers to produce ethylene. Crackers outside of the US have also been importing ethane and other NGLs to produce ethylene. ONEOK'S UPCOMING NGL PROJECTS The company plans to complete the remaining loop of the West Texas NGL pipeline to connect with its Arbuckle II pipeline. The project will allow ONEOK to ship 740,000 bbl/day of NGLs out of the Permian basin. The project should cost $520 million, and service should start in the first quarter of 2025. The following map shows the scope of the project. Source: ONEOK ONEOK plans to expand the Elk Creek Pipeline to 435,000 bbl/day of NGLs. It will allow the company to ship a total of 575,000 bbl/day of NGLs out of the Rocky Mountain region. The project should cost $355 million, and ONEOK should complete it in the first quarter of 2025. Elk Creek stretches for 900 miles (1,450 km). One end is near ONEOK's Riverview terminal in eastern Montana state, and the other end is at the company's existing Mid-Continent NGL operations in Bushton, Kansas, state. ONEOK plans to complete the MB-6 fractionator in Mont Belvieu, Texas, in the first quarter of 2025. The fractionator will have a capacity of 125,000 bbl/day. POTENTIAL NGL TERMINAL IN PRELIMINARY STAGESONEOK acknowledged on Wednesday that it filed an application with the US Army Corps of Engineers for a potential pipeline and terminal project. The project is in the preliminary stages of development, and ONEOK has yet to make a final investment decision (FID). The proposed terminal will be in Sabine Pass, Jefferson County, Texas state, according to the application. It will include four dock structures that could load very large gas carriers (VLGCs), very large ethane carriers (VLECs) and smaller vessels. The possible project will include 68 miles of two 20-inch diameter pipelines that will ship NGLs from ONEOK's NGL fractionators in Mont Belvieu to the terminal. ONEOK expects that the NGLs will be shipped to China, India and Europe, according to the application. The following map shows the site of the proposed export terminal. Source: US Army Corps of Engineers. The name of the project is the TXGC Terminal, and the applicants are TXGC Properties and TXGC Pipelines, subsidiaries of ONEOK. ONEOK did not provide more details about the proposed project. However, the terminal is a sign that companies are interested in developing more capacity to crack ethane outside of the US.
GLM FOCUS: What Qatar's latest LNG expansion plan means for market
LONDON (ICIS)–Qatar’s decision to add a further 16mtpa of LNG production by 2030 has a broad impact across the market, affecting prices, US LNG, buying activity, and shipping. Two more trains will take Qatari LNG production up to 142mtpa, representing over a quarter of global demand by late in the decade. As with past projects, Qatar appears less reliant on achieving contractual offtake, equity investments or a resulting final investment decision (FID) to move forward. The LNG giant’s ability to push ahead with an early announcement strengthens its hand securing offtake at the expense of future competitors, particularly as the market turns in buyers’ favour. Sources said that Qatar has already been negotiating with buyers in India to secure long-term offtake. Buyers in China are also aware of a strong marketing drive in Asia. However, offtakers are also showing signs of delaying any agreements where possible, as competition for offtake into the 2030s heats up, said sources. Current equity-holders did not respond to requests for comment over rights to bid for further investment. US PROJECTS Some US sources expected European buyers to continue to prefer US LNG over Qatari supply, avoiding the Suez Canal. Asian buyers, though, see less risk in Qatari supply, sources said. But the regulatory pause on new US LNG project approvals means little new contracting activity is likely. Last month, the Biden administration announced it would halt approvals for new US LNG projects until it updates how their economic and environmental impact is evaluated. That might change either after the US presidential election or when updated guidance from the US Department of Energy (DOE) is released. How LNG demand will develop is also important to understanding the impact of Qatar’s additional 16mtpa. “LNG demand is forecast to grow beyond production, capacity in operation or under construction, so new supply sources are required,” said a Shell spokesperson, calling continued investment in LNG “critical”. Before the latest Qatari expansion was announced, Shell forecast global LNG demand to overtake supply around 2027. But ICIS Analytics shows demand is unlikely to outstrip supply before 2030, given a less optimistic view on demand growth. “If we only include projects [with FIDs], there is a chance that in 2030 global oversupply might turn into undersupply,” said ICIS lead Asia gas analyst Alex Siow. “As such, Qatar’s increased capacity is only exacerbating the current oversupply from 2026 to 2030,” he said, adding there will be “many options for buyers by 2026-2030”. “Even without the additional 16mtpa from Qatar, many US projects [that have completed FIDs] are already impacted by the global oversupply from 2026.” The result could be US projects lowering output, increasing maintenance periods, or offering increasingly competitive prices by using mechanisms like financing or declaring sunk costs. ACTIVE QATARI MARKETING IN ASIA Many Chinese buyers would like to wait to see if pricing offer levels fall, sources in China said. And Chinese buyers may not be the only ones not willing to sign new deals just yet. “Those who can wait at least until after US elections will,” said one source close to South East Asia buyers. Significantly lower spot prices mean long-term contracts are less attractive for now, strengthening buyer positions. EUROPEAN GAS PRICES fall Several trading sources said they were clear that Qatar’s announcement was the key factor in pushing annual 2027 and 2028 TTF contracts down on 26 February. The TTF 2028 contract price dropped 1.4% to $8.74/MMBtu, with the 2027 contract falling 0.4%. Prices up to 2026 increased the same day. One trader in northwest Europe noted that increased supply later this decade could help Europe shift from its current role as the premium global market. “Who [in Europe] wants a 20-year contract?” said the trader. “Qatari …volumes make sense for Asian buyers …that could free up LNG for Europe from the US and [flexible] volumes.” Yet Qatar could still turn to Europe for some offtake to add to its terminal capacity rights. Negotiations for Qatari offtake with buyers in Germany, Austria, Slovakia and the Czech Republic were ongoing in 2023, sources said. No agreement to deliver LNG into Germany for onward delivery to its neighbours was reached because of perceived high exit fees. A Germany-based source said the government is also still keen to encourage a shorter long-term contract. Exit fees could also change. Routes to Austria and the region may include Italy and Greece in future, given that interconnectors from Italy to Greece are being expanded. SHIPPING Even as Qatari offtake falls from 2029 into the 2030s, spurring Qatar to secure further volumes, it appears well-supplied with shipping options. Newbuild prices remain high but have been falling since 2023, dropping from $265m to $262m by early February, according to shipowner Flex LNG. And with over 100 newbuild vessel slots between Korean and Chinese shipyards, they can afford to wait, according to ICIS analyst Robert Songer. But there are questions over whether it now needs to expand the fleet further (see box-out). Additional reporting by Yueyi Yang and Fauzeya Rahman
MOVES: Brazil’s Unipar CFO resigns
SAO PAULO (ICIS)–Unipar’s CFO Antonio Campos Rabello has handed in his resignation, effective 29 February, the Brazilian chemicals producer said late on Tuesday. Campos Rabello was also Unipar’s investor relations officer. The company’s executive industrial officer, Rodrigo Cannaval, will temporarily assume the position of Investor Relations Officer, said Unipar. “The company would like to thank Rabello for his management work, especially as to the preparation of a capital structure adequate for the company’s expansion plans, enabling access to several financing sources in terms of currency, financial institutions and markets, as well as the analysis and structuring of growth opportunities,” said Unipar. Earlier this week, Unipar said it was mulling a joint acquisition with Brazilian chemicals producer Innova, without disclosing more details. According to a report by Brazilian daily O Globo, the two companies would be looking at an acquisition in the US of around $700 million.
PODCAST: Antwerp Declaration shows chemicals CEOs mean business
BARCELONA (ICIS)–Leaders are now more willing to stand up and demand positive action by the EU to save the region’s industrial value chains. Antwerp Declaration shows chemicals leaders now willing to be visible CEOs have responsibility to help drive Europe transformation Regulators, politicians can deliver better infrastructure, permitting European Parliament elections 6-9 June may elect more business-friendly MEPs Fundamental shift in Europe demand patterns BASF expected to reinvent its Ludwigshafen Verbund site Future could see domination by “supermajors” or more protected, regional markets In this Think Tank podcast, Will Beacham interviews ICIS Insight Editor, Nigel Davis; ICIS Senior Consultant Asia, John Richardson; 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.
BLOG: How Europe can avoid 'sleepwalking' towards offshoring of petrochemicals
SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson: The European petrochemicals industry, to borrow Jim Ratcliffe’s phrase, does not have to continue “sleepwalking towards offshoring its industry, jobs, investments, and emissions”. Ratcliffe, the INEOS chairman, was on the money with the phrase, contained in a call-to-action letter to European Commission President, Ursula von der Leyen, earlier this month. This came in the same week that producers launched the Antwerp Declaration for a European Industrial Deal. This is all great news for the European industry as my two scenarios for global petrochemicals in 2030 – Supermajors or Deglobalisation – will be shaped by the actions of companies and legislators. In Europe, the threat of a further flood of competitively priced and lower-carbon imports of polymers risks lost local jobs in refining, petrochemicals and downstream (the downstream jobs being many more than upstream). And if petrochemicals plants shut plant, upstream refineries important for local fuels supply may be threatened. You can also make a case for recycling targets being hard to achieve under Supermajors. As well as lobbying legislators, what else can European producers do? Here are my suggestions: Companies need to “make their own demand” by more forcefully arguing the case for the societal and environmental value of what they produce (while, of course, also ensuring that what they produce has strong social and environmental values!). A deeper dive into the opportunities in different end-use markets and geographies is the key. Let’s take wire-and-cable grade low-density PE (LDPE) as an example. A lot more electricity transmission in Europe will have to be built to distribute renewable energy, which of course is an environmental gain and elsewhere in the world. Could European wire-and-cable LDPE producers be a leader in providing product to Africa? This is a very different approach than during the 1993-2021 Supercycle, when booming demand was guaranteed. All producers had to do as ensure there was enough supply, preferably with low feedstock costs and efficient logistics. 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.
Saudi SABIC swings to net loss in 2023 on Hadeed sale, challenging market
SINGAPORE (ICIS)–Saudi Arabia’s chemicals major SABIC swung to a net loss of Saudi riyal (SR) 2.77bn ($739m) in 2023, largely due to one-off losses related to a divestment, while earnings from continued operations shrank amid challenging global market conditions. in Saudi Riyal (SR) bn 2023 2022 % Change Revenue 141.5 183.1 -22.7 EBITDA 19.0 36.4 -47.7 Net income from continuing operations 1.3 15.8 -91.8 Net income attributable to equity holders of the parent -2.8 16.5 – The company's net loss for 2023 was "driven mainly from the fair valuation of the Saudi Iron and Steel Co (Hadeed) business", SABIC in a filing to the Saudi bourse Tadawul on 27 February. In early September 2023, SABIC announced it had agreed to sell its entire stake in the Saudi Iron and Steel Co (Hadeed) to Saudi Arabia's sovereign wealth fund for SR12.5bn. The sale resulted in non-cash losses worth SR2.93bn. From continuing operation, full-year net income declined by 91.8% on reduced profit margins for major products, as well as lower earnings of joint ventures and associated firms. SABIC also incurred charges from non-recurring items amounting to SR3.47bn in 2023,“as a result of impairment charges and write-offs of certain capital and financial assets as well as provisions for the restructuring program in Europe and constructive obligations”. Meanwhile, SABIC’s average product sales price in 2023 fell by 21%, reflecting the global downturn in petrochemical markets, it said. Overall sales volumes fell by 2% year on year in 2023 amid sluggish end-user demand, the company said. "Year 2023 presented numerous challenges for the petrochemical industry – the market environment was shaped by lackluster macroeconomic sentiment, weak end-user demand, and a wave of incremental supply for a large suite of products," it said. The company's petrochemicals business posted a 20% year-on-year decline in sales to SR131.3bn in 2023, with EBITDA down by 42% at SR14.6bn. "The petrochemical industry navigates a challenging operating environment – underwhelming demand within our target markets led to lower year end product prices and there remains considerable uncertainty heading into the first quarter of 2024," SABIC CEO Abdulrahman Al-Fageeh said. "The announced divestment of Hadeed is proceeding as planned – this optimization of internal resources will enhance our core focus on petrochemicals," he said. SABIC is also pursuing a number of initiatives to address the "competiveness of our European assets" aimed at a "maintainable and modernized footprint in the region", Al-Fageeh added. The company plans a higher capital expenditure of between $4bn and 5bn in 2024, compared with $3.5bn-3.8bn last year. SABIC has started construction of its $6.4bn manufacturing complex in China’s southern Fujian province. The project will include a mixed-feed steam cracker with up to 1.8m tonne/year ethylene (C2) capacity and various downstream units producing ethylene glycols (EG), polyethylene (PE), polypropylene (PP) and polycarbonate (PC), among other products. SABIC is 70%-owned by energy giant Saudi Aramco. ($1 = SR3.75)
AdvanSix petitions US to impose Superfund taxes on imports of nylon 6, capro
HOUSTON (ICIS)–AdvanSix has requested that the US impose Superfund taxes on imports of nylon 6 and caprolactam (capro). On Tuesday, AdvanSix did not immediately respond to a request for comment. AdvanSix proposed a tax rate of $14.77/ton. The next step is for the government to gather comments and consider requests for hearings about AdvanSix's request. The deadline to file comments or request hearings is 22 April. HOW THE SUPERFUND TAX WORKSThe US introduced the Superfund taxes in mid-2022 on taxable chemicals and imports of taxable substances. The proceeds raised by the taxes will help replenish the government's Superfund program, which pays for clean-up at waste sites. The Superfund tax regime divides materials into two groups. The first group is levied on the sale or use of 42 chemicals by producers or importers. Many of these chemicals are fundamental building blocks such as ethylene, propylene, butadiene (BD), benzene, toluene, xylene and methane. The second group is restricted to imports and covers substances that are sold or used in the US. This second batch of taxes applies to substances that contain at least 20% of the 42 taxable chemicals. In addition, the taxable rate would depend on the proportion of the 42 taxable chemicals contained in the substance. The request by AdvanSix falls under this second group. As part of its request AdvanSix filed two petitions asking the US to add nylon 6 and capro to its list of taxable substances. Thumbnail shows nylon Image by Shutterstock.
What our customers say
“ICIS price forecasts have helped us allocate resources smartly and efficiently, to anticipate price changes, and to buy PP at favourable prices. The reports have saved our internal team a lot of time and effort when analysing pricing trends.”
Hong Kong Petrochemical
“Our clients recognise ICIS prices as an independent benchmark. Using ICIS price assessments in our purchasing contracts saves us time and helps us secure an appropriate supply of feedstock for our plants at the reasonable price.”
“By providing trustworthy, comprehensive and
transparent insights into industry margins and
price points, ICIS helps us optimize selling
opportunities and be accurate in our sales
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 trusted data, insight and analytics, supporting our partners as they transact today and plan for tomorrow.