Americas top stories: weekly summary
ICIS Editorial
12-Sep-2016
HOUSTON (ICIS)–Here are some of the top stories from ICIS Americas for the week ended 11 September 2016.
(Please click on the link to read the full text.)
LyondellBasell’s new HDPE plant to
be located in Texas
US chemicals major LyondellBasell said its planned 500,000
tonne/year high density polyethylene (HDPE) plant will be
located at its complex in La Porte, Texas. The plant’s
construction will start early in 2017 and will start up in
2019, said LyondellBasell.
Dow begins cracker turnaround in
Louisiana
US-based Dow Chemical began its planned maintenance
turnaround at its Plaquemine 3 cracker in Louisiana. The
maintenance turnaround is expected to last for 60 days,
sources said. The turnaround was originally scheduled for
earlier in the year.
Spot ethylene closes week down
despite tightness
US ethylene spot prices moved down during the week ended
Friday, despite continued tight supply and higher feedstock
costs. Prices closed the week down an average of 3 cents/lb
($66/tonne) as trading activity thinned in the second half of
the week. Sources said supply remains tight, especially on
news that Dow Chemical began its planned maintenance
turnaround at its Plaquemine 3 cracker in Louisiana.
PS price increases appear to be
going through
The recently announced 3 cents/lb price increases in the US
polystyrene (PS) market appear to be going into effect, a
cross section of the domestic market said. The four largest
North American PS producers separately announced price
increases of 3 cents/lb effective 1 September for all grades
of general purpose, or crystal PS (GPPS), and high impact PS
(HIPS). With the upward movement of feedstock costs and
supply tightness, the increase had a lot of momentum, a
producer said.
Spot benzene falls on rising
supply
US spot benzene prices on Friday were lower amid improving
sentiment for domestic production. Prices were higher most of
the week, bolstered by upstream markets. However, gains were
limited by expectations of increased on-purpose benzene
production rates and benzene values dropped late in the week
as upstream markets weakened.
Global chloralkali demand to
remain subdued – consultant
The global chloralkali market has seen “enthusiastic
overbuilding” in the past three years and is likely to remain
subdued in the coming years, according to industry consultant
David Hughes, senior vice president of International Echem.
However, caustic soda and polyvinyl chloride (PVC) plant
operating rates continue to be depressed, he said at the 9th
ICIS World Chemical Purchasing Conference in Boston,
Massachusetts.
Styrene contract, spot prices firm
for August
US styrene contracts for August settled at an average
increase of 1 cent/lb, market participants said on Friday.
The August increase was on the heels of strong export volumes
in July and higher upstream benzene contract prices for
August. The styrene market settles its contracts one month in
arrears, and therefore uses the previous month’s benzene
contract settlement for direction.
HCl market sees price-increase
initiatives
The US hydrochloric (HCl) acid market showed signs of life as
producers and distributors announced proposed price
increases, the first in 19 months. Six distributors,
producers and makers of HCl as a by-product have made
separate announcements. Most are heard to range from
$20-30/wet ton for 22-degree Baume material, a solution of
2:1 water to hydrogen chloride.
September acrylates gains surface,
but talks continue
Increases in US September acrylic acid and acrylate esters
free-market contract prices surfaced on expected propylene
pressure, but negotiations were mostly still underway. A
buyer confirmed it had accepted increases of 2-3 cents/lb
($44-66/tonne) for at least two of the acrylate esters.
Election uncertainty spooks US
economists – NABE
Forecasters expect the US economy will slowly rise at best or
fall into recession at worst, as apprehension surrounds the
upcoming November US presidential election, according to the
National Association for Business Economics (NABE). Over 80%
of panellists expect the next US business cycle peak will not
occur until 2018 or after, well into the administration of
the next US president.
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