Americas top stories: weekly summary

HOUSTON (ICIS)–Here are some of the top stories from ICIS Americas for the week ended 6 November 2016.

(Please click on the link to read the full text.)

US HCl market sees higher prices coming
Tightening supply in the US hydrochloric (HCl) acid market has a number of suppliers seeking price increases of $20-25/wet ton. Producers and distributors separately informed their accounts that tighter supply prompted by a number of planned plant maintenances and unscheduled outages had prompted them to seek the increases.

Venezuela PVC remains stable despite turmoil
Polyvinyl chloride (PVC) prices remain stable in Venezuela on government controls, despite longstanding and continuing political, social and economic turmoil around the recall referendum against President Nicolas Maduro. Demand is weak, sources said on Thursday, as potential consumers of downstream PVC goods focus instead on obtaining essential products – mainly food and medicine.

INSIGHT: Chems gain focus through carve-outs
Throughout much of the recent wave of chemical mergers and acquisitions (M&A), companies have pursued deals to make their businesses more focused. Acquiring competitors and similar businesses has been one part of this strategy. Sherwin-Williams is acquiring Valspar; Dow Chemical and DuPont are merging; and Westlake Chemical is buying Axiall. Another part of this strategy has been separating businesses, and many companies are turning to carve-outs to achieve this goal.

INSIGHT: Sasol’s odd fact in the US polyethylene boom
An odd fact about Sasol’s huge cracker and petrochemical complex going up in Lake Charles, Louisiana, is that it will make the South Africa-based producer the first new player in the US polyethylene (PE) market in 25 years. That fact shines a spotlight on the North American PE boom, which is largely a US phenomenon that has developed in the past four to five years because of the development of shale gas.

US Olin to cut EDC output on weak export economics
Rising natural gas and electricity costs, more expensive ethylene feedstock and slumping prices for ethylene dichloride (EDC) in global markets are shifting production schedules and trade flows. Olin executives said that the company would reduce EDC output because of higher natural gas prices in the US Gulf region, along with higher feedstock costs for the upstream precursor chemical to production of polyvinyl chloride (PVC).

US PP follows propylene for a third month in a row
US October polypropylene (PP) contracts followed a major feedstock for the third month in a row. PP contracts dropped by 1.5 cents/lb ($33/tonne), which is the same-sized decline of the US propylene settlement for October. The propylene settlement is the first price-cut since February, when the feedstock contracts fell by 1.5 cents/lb.

Tight supplies push US MX prices to yearly high
Prices for mixed xylene (MX) in the US hit a year-to-date high in late October, according to data from ICIS. This marks a departure from the normal seasonal pricing pattern for MX, which usually sees prices falling from September through the end of the year owing to the end of the summer gasoline season.

US spot MX prices continue to retreat
US spot mixed xylenes (MX) prices were assessed lower as prices continue to retreat after hitting year-to-date highs in October. Softening upstream costs and seasonally slower demand for most major MX applications. A trading source said that market activity has been quiet and that many of the bids and offers being reported in the market are largely notional.

US ethylbenzene wider on benzene, styrene
The US ethylbenzene range was wider amid lower upstream benzene costs and higher downstream styrene prices. Ethylbenzene is produced mainly for the manufacture of styrene, and most of it is used captively.

US Gulf styrene plant down, no restart set – INEOS
INEOS Styrolution’s 450,000 tonne/year styrene plant in Texas City, Texas, is down, and there is no restart date at this time, a company spokesman confirmed. It is unclear when the plant went down, or what caused it to go down. News of mechanical issues at the plant surfaced mid-week, but there was no indication that the plant was down.