India’s Haldia Petrochemicals Ltd (HPL) has
received approval from the National Company Law
Tribunal (NCLT) to take over and revive the
defunct oil refinery project of Nagarjuna Oil
Corp Ltd (NOCL).
Japanese producer AGC, formerly known as Asahi
Glass Co, is integrating its chlor-alkali
operations in southeast Asia, while
strengthening its partnership with Thailand’s
PTT Global Chemical (PTTGC).
Meanwhile, French LNG terminals are likely to
see an increasingly high number of LNG
deliveries amid higher US feedgas and
tightening spreads between French PEG and Asian
LNG prices.
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impact of coronavirus and oil price dynamics on
chemical markets and bring together the latest
news reported by ICIS. To visit the ICIS energy
markets topic page, click
here.
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times.
LATEST HEADLINES
US existing home sales fell 6.6% in
February, after two months of
gains
By Janet Miranda 2021/03/22 HOUSTON (ICIS)–US
sales of existing homes were at an annual rate
of 6.22m in February, down 6.6% from January
after a two month gain, however, sales in total
climbed to 9.1% year on year from February
2020, according to the latest data from the
National Association of Realtors (NAR) on
Monday.
India’s HPL plans
oil-to-chemical project at site of defunct NOCL
refinery
By Priya Jestin 2021/03/22 MUMBAI
(ICIS)–India’s Haldia Petrochemicals Ltd (HPL)
has received approval from the National Company
Law Tribunal (NCLT) to take over and revive the
defunct oil refinery project of Nagarjuna Oil
Corp Ltd (NOCL).
Japan’s AGC to
integrate SE Asia chlor-alkali ops via PTTGC
tie-up
By Pearl Bantillo 2021/03/19 SINGAPORE
(ICIS)–Japanese producer AGC, formerly known
as Asahi Glass Co, is integrating its
chlor-alkali operations in southeast Asia,
while strengthening its partnership with
Thailand’s PTT Global Chemical (PTTGC).
LNG volumes to
France set to increase at start of
summer
By Andrea Battaglia 2021/03/19 LONDON
(ICIS)–French LNG terminals are likely to see
an increasingly high number of LNG deliveries
amid higher US feedgas and tightening spreads
between French PEG and Asian LNG prices.
The PEG April ‘21 contract traced up again in
recent sessions after dropping below the ICIS
East Asia Index (EAX) in the first days of week
11.
Asia
petrochemical shares tumble as oil futures
plunge 7% overnight
By Nurluqman Suratman 2021/03/19 SINGAPORE
(ICIS)–Asia petrochemical shares were trading
lower on Friday after crude oil suffered its
worst one-day plunge overnight on concerns that
stalling vaccine roll-outs globally will dampen
demand.
At 02:30 GMT, Mitsui Chemicals was down 0.94%
in Tokyo, LG Chem shed 3.14% in Seoul and
PetroChina plunged by 5.30% in Hong Kong.
Japan’s benchmark Nikkei 225 Index was down by
0.85%, South Korea’s KOSPI Composite Index
slipped by 0.88% while the Hong Kong Hang Seng
Index fell by 1.29%.
Indonesia central
bank keeps benchmark interest rate at
3.5%
Author: Pearl Bantillo 2021/03/18 SINGAPORE
(ICIS)–Indonesia’s central bank on Thursday
kept its benchmark interest rate at 3.5%, in
support of the rupiah (Rp).
“This decision is in line with the need to
maintain the stability of the Rupiah exchange
rate against increasing uncertainty on global
financial markets, amidst the forecast for
inflation that remains low,” Bank Indonesia
said.
Energy
markets align amid carbon
volatility
By Christopher Rene 2021/03/18 LONDON
(ICIS)–Heightened carbon market volatility has
increased the influence of EUAs on the wider
energy complex in March with the price
correlation between spot Asia LNG and European
gas markets also turning stronger. After a
disconnection in January and February, the ICIS
East Asia Index (EAX) and Dutch TTF have
reconnected.
US LNG to favour
Europe over Asia amid low shipping
costs
By Christopher Rene 2021/03/18 LONDON
(ICIS)–European gas and Asian LNG May ’21
contracts have vied for the position of
cheapest prices since the start of March amid
volatility in the wider energy complex and an
uncertain supply outlook.
INSIGHT: Global
policy drives approaching biofuels tipping
point
By Tom Brown 2021/03/17 LONDON (ICIS)–As
governments continue to count the cost of the
pandemic, both in terms of the price of keeping
economies afloat and the wreck lockdowns and
have made of certain industries, many lawmakers
have settled on sustainability as the key to
the reconstruction.
Toyota partially halts North American auto
production on plastics
shortage
By Adam Yanelli 18-Mar-21 14:09 HOUSTON
(ICIS)–Toyota is the latest automaker to see
North American production disrupted because of
supply-chain issues related to the
recent winter
storm and lingering effects from
the coronavirus (Covid-19) pandemic.
PODCAST: China
polyolefins supported by global recovery, tight
supply
By Joey Zhou 2021/03/18 SINGAPORE (ICIS)–ICIS
senior reporter Nurluqman Suratman speaks with
senior analyst Joey Zhou to discuss the factors
supporting China’s polyolefins market.
China eases
implementation of ethanol gasoline on tight
feedstock
By Yu Yunfeng 2021/03/18 SINGAPORE
(ICIS)–China has been easing its nationwide
implementation of vehicle-use ethanol gasoline
since 2020 due to tightening supply of
feedstock stale grains.
Ethanol gasoline in the country is currently a
combination of 90% gasoline and 10% ethanol,
also known as E10.
India eyes $87bn
worth of new major petrochemical projects –
govt official
By Nurluqman Suratman 2021/03/17 SINGAPORE
(ICIS)–The Indian petrochemical industry could
see around $87bn worth of new projects as the
country moves to bridge the gap between the
shortage of domestic supply and increasing
consumer demand, a government official said on
Tuesday.
The projects currently under consideration
include Nayara Energy’s $20bn complex at
Vadinar in Gujarat which could house a cracker
and downstream units for polypropylene (PP),
polyethylene (PE), benzene, cumene and
monoethylene glycol (MEG), said Yogendra
Tripathi, Secretary, Department of Chemicals
& Petrochemicals, Ministry of Chemicals and
Fertilizers.
February IPEX up
8%, mainly on rising prices in US and
Asia
By Miguel Rodriguez Fernandez 2021/03/17LONDON
(ICIS)–The ICIS Petrochemical Index (IPEX)
extended gains in February, rising 7.9% for the
month, tracking price increases seen across
most of the major petrochemical and plastics
commodities.
The tables show the movement in the global and
regional IPEX values as petrochemicals and
plastics demand generally improved and markets
tightened on the back of the winter storm in
the US.
Fitch raises global GDP outlook on US
stimulus
By Al Greenwood 17-Mar-21 16:50 HOUSTON
(ICIS)–Fitch Ratings raised its forecast for
global GDP growth for 2021 to 6.1% from 5.3%,
the credit-rating agency said on Wednesday.
Japan’s Feb chemical
exports rise by 5.2%; overall shipments down
4.5%
By Nurluqman Suratman 2021/03/17 SINGAPORE
(ICIS)–Japan’s chemical exports rose by 5.2%
year on year to yen (Y) 762.7bn in February but
overall shipments abroad slipped, official data
showed on Wednesday.
The country’s exports of organic chemicals fell
by 5.4% year on year to Y135.9bn in February
while shipments of plastic materials were up by
11.6% at Y217bn, the Ministry of Finance (MOF)
said in a statement.
Singapore
petrochemical exports rise 19% in Feb; NODX up
4.2%
By Nurluqman Suratman 2021/03/17 SINGAPORE
(ICIS)–Singapore’s petrochemical shipments
abroad rose by 19.3% year on year to Singapore
dollar (S$) 1.2bn in in February, supporting
the overall growth in non-oil domestic exports
(NODX), official data showed on Wednesday.
The country’s NODX rose by 4.2% year on year to
S$14.1bn in February following the 12.7%
expansion a month earlier, Enterprise Singapore
said in a statement.
India eyes
complete national ban on single-use plastics by
H2 ‘22
By Priya Jestin 2021/03/15 MUMBAI (ICIS)–India
is working on a national policy aimed at
completely phasing out single-use plastics by
the second half of 2022, taking into account
varied paces of compliance across states over
the past five years.
In a draft notification issued on 13 March
2021, the country’s Ministry of Environment,
Forests and Climate Change is looking at a
three-phased ban on the manufacture, use, sale,
import and handing of single-use plastic items.
VIDEO: China SM demand
weighed by high prices following
outages
By Tina Zhang 2021/03/17 SINGAPORE
(ICIS)–Watch industry analyst Tina Zhang
discuss China’s domestic styrene market which
have been weighed by the surge in international
prices following several production outages in
Europe and the US.
PODCAST: hydrogen
could hold the key to low carbon
chemicals
By Will Beacham 2021/03/16 BARCELONA
(ICIS)–Hydrogen could play a key role in
lowering the chemical industry’s carbon
footprint thanks to use of renewable energy and
carbon storage.
SK Global
Chemical, Zhejiang Satellite to build C2
acrylic acid plant in China
By Nurluqman Suratman 2021/03/15 SINGAPORE
(ICIS)–South Korean SK Global Chemical (SKGC)
has signed a deal with Chinese producer
Zhejiang Satellite to build a 40,000 tonne/year
ethylene (C2) acrylic acid (EAA) plant at
Lianyungang in eastern China.
Under a memorandum of understanding agreement
(MoU) signed on 11 March, the two firms will
establish a new joint venture company for the
won (W) 200bn ($176m) project for the
production and sales of EAA, the South Korean
producer said on 14 March.
Brazil’s
Braskem to open polymers logistics hub in
Singapore
By Nurluqman Suratman 2021/03/15 SINGAPORE
(ICIS)–Braskem is partnering with logistics
firm A.P. Moller – Maersk and port operator PSA
Corp to open a new logistics hub in Singapore
as it seeks to better manage its polymers
supply for the region, the Brazilian firm said
on Monday.
The new partnership comes off the back of the
company’s existing partnership with PSA, which
allows Braskem to use PSA Singapore as a
regional distribution focal point, the company
said in a statement.
Japan’s Asahi Kasei to
boost Li-ion battery separator capacity at
Miyazaki
By Nurluqman Suratman 2021/03/15 SINGAPORE
(ICIS)–Asahi Kasei is increasing the Li-ion
battery (LIB) separator production capacity at
its plant in Mizayaki amid increasing demand
for electric vehicles, the Japanese producer
said on Monday.
The yen (Y) 30bn expansion project is scheduled
to start up in the first half of fiscal year
2023, the company said in a statement.
PODCAST: Asia
petchems supported by growing global economic
recovery, tight supply
By Felicia Loo 2021/03/15 SINGAPORE
(ICIS)–ICIS Senior Reporter Nurluqman Suratman
speaks with Felicia Loo on the current
macroeconomic and tight supply conditions
supporting the overall Asian petrochemical
market.
INSIGHT: OPEC
keeps eyes on the price amid Texas storm
impact, Saudi attack
By Tom Brown 2021/03/12 LONDON (ICIS)–Little
wavering from OPEC and its partner nations on
supply curbs is expected in the near future
after the cartel and its partners agreed last
week to largely hold curbs in place for another
month.
UK-EU automotive,
chemicals trade hit hard in January as Brexit
deal kicks in
By: Jonathan Lopez 2021/03/12 LONDON
(ICIS)–Prior stockpiling and new Brexit trade
regulations caused a fall of 40.7% in UK
exports to the EU in January, month on month,
as the country ended its membership of the
27-nation bloc’s single market, the Office for
National Statistics (ONS) said on Friday.
The petrochemicals-intensive automotive sector
was hit hard, said the ONS, along with other
chemicals-based sectors.
UK GDP during January fell 2.9%, less than
analysts had expected, after the UK implemented
on 5 January lockdown measures to stop the
spread of a new coronavirus variant, shutting
most retail venues and keeping most residents
confined to their homes.
S Arabia’s
Sipchem 2020 net profit falls on lower prices,
PP output
By Nurluqman Suratman 2021/03/12 SINGAPORE
(ICIS)–Sipchem’s net profit fell by 41.3% year
on year to Saudi riyal (SR) 175.9m last year,
partly weighed by lower selling prices for most
of its products, the Saudi Arabia-based
producer said in a stock exchange filing.
Logistics crisis to persist into Q3 as
availability trumps pricing – Brenntag
CEO
By Will Beacham 2021/03/11 BARCELONA
(ICIS)–The global logistics crisis is expected
to last at least until the third quarter of
2021, and is making availability of product
more important than price, according to the CEO
of Brenntag, the world’s largest distributor.
China February petrochemical market
extends surge in February on continuous tight
supply, US outages
By Yvonne Shi 2021/03/11 SINGAPORE
(ICIS)–China’s petrochemical markets surged
again in February on continuous tight supply
and recovering post-holiday demand, further
fuelled by US outages as a result of a cold
wave.
Updated: New
companies to start lifting LNG from Equatorial
Guinea
By Daniel Stemler 2021/03/11 Updated: This
story has been updated to include details of
Chevron lifting its first cargo: MADRID
(ICIS)–The start of feedgas flows from
Equatorial Guinea’s offshore Alen gas project
into the country’s LNG plant will likely see
new companies start to lift cargoes from the
West African country.
Saudi Arabia’s
Advanced receives approval for new
complex
By Nurluqman Suratman 2021/03/10 SINGAPORE
(ICIS)–Advanced Petrochemical Co has received
approval for a new petrochemical complex at
Jubail Industrial City in Saudi Arabia, the
producer said on Wednesday.
The new complex is expected to produce 1.15m
tonnes/year of ethylene, 850,000 tonnes/year of
propylene and 400,000 tonnes/year of aromatics
and fuels, and their derivatives, the company
said in a filing to the Saudi bourse, Tadawul.
The new complex is expected to be operational
by the fourth quarter of 2025.
VIDEO: Asia liquid
caustic soda sees open arbitrage to the
West
By Jonathan Chou 2021/03/10 SINGAPORE
(ICIS)–Watch ICIS markets reporter Jonathan
Chou discuss the impact of the recent
production outages in the US on the liquid
caustic soda market in Asia.
PODCAST: Chemical
markets distorted by logistics and panic
buying, but underlying optimism seen for
2021
By Will Beacham 2021/03/09 BARCELONA
(ICIS)–The international chemical markets have
been distorted by logistics bottlenecks and
panic buying – but there is optimism for 2021
and beyond.
VIDEO: Asia PVC
supply remains tight on US/EU production
disruptions
By Zhi Xuan Ho 2021/03/09 SINGAPORE
(ICIS)–Asia’s polyvinyl chloride (PVC)
producers seek to fill in the shortfall in
global supply amid polar storm-related
production disruptions in the US.
Jonathan Chou, editor in charge of Asia-Pacific
markets, and Zhi Xuan Ho, editor in charge of
the Middle East and South Asia markets, discuss
the global PVC supply-demand conditions.
Japan
revises down Q4 annualised GDP growth to
11.7%
By Pearl Bantillo
2021/03/09 SINGAPORE (ICIS)–Japan has revised
down its annualised fourth-quarter GDP growth
to 11.7% from
12.7% previously, official data showed on
Tuesday.
VIDEO: Asia PVC supply
remains tight on US/EU production
disruptions
By Zhi Xuan Ho
2021/03/09 SINGAPORE (ICIS)–Asia’s polyvinyl
chloride (PVC) producers seek to fill in the
shortfall in global supply amid polar
storm-related production disruptions in the US.
China’s emissions
ambition to accelerate hydrogen
developments
By Yu Yunfeng
2021/03/09 SINGAPORE (ICIS)–China’s ambition
to achieve peak emissions by 2030 and carbon
neutrality by 2060 will accelerate the
development of hydrogen as a fuel for power
generation and vehicles.
Attacks on Saudi Arabia facilities send
Brent crude surging above
$70/bbl
By Pearl Bantillo 08-Mar-21 10:57 SINGAPORE
(ICIS)–Attacks on Saudi Arabian oil facilities
on Sunday sent crude surging by more than 2% on
Monday, with Brent crude now trading at above
$71/bbl.
China’s Jan-Feb crude imports rise 4.1%
year on year
By Fanny Zhang 08-Mar-21 14:08 SINGAPORE
(ICIS)–China’s crude imports reached 89.57m
tonnes in January-February 2021, up by 4.1%
year on year, official customs data showed over
the weekend.
China sets 2021 economic growth target at over
6%
By: Nurluqman Suratman 2021/03/05 SINGAPORE
(ICIS)–Chinese Premier Li Keqiang on Friday
announced that the country has set a GDP growth
target of more than 6% for 2021.
ExxonMobil to cut 300 jobs in Singapore
by end-2021 amid pandemic
By: Nurluqman Suratman 2021/03/03 SINGAPORE
(ICIS)–ExxonMobil is cutting about 300 jobs in
Singapore – or about 7% of its workforce in the
southeast Asian country – by the end of the
year, citing “unprecedented market conditions”
brought about by the pandemic.
Singapore manufacturing to continue
recovery on improving external
markets
By: Nurluqman Suratman 2021/03/03 SINGAPORE
(ICIS)–Singapore’s manufacturing sector is
poised to see further recovery this year as
overall exports continue to grow amid an
improvement in demand from its key external
markets.
Thailand petrochemical
firms eye better ’21 amid oil-led price
spikes
By Nurluqman Suratman
2021/03/02 SINGAPORE (ICIS)–Thailand’s
petrochemical firms are expected to generate
better earnings in 2021 on the back of rising
product prices, but oversupply in China and
slow growth in some end-user markets in Asia
could temper profitability.
India
reverts to growth mode in fiscal Q3, full-year
GDP to shrink 8%
By Pearl
Bantillo 2021/03/01 SINGAPORE (ICIS)–India’s
economy returned to growth mode in
October-December 2020, after two quarters of
pandemic-induced deep recession, raising hopes
of a strong recovery in the coming fiscal year.
Asia petchem markets bullishness set to
continue amid tightening supply, high oil
prices
By: Nurluqman Suratman 2021/03/01 SINGAPORE
(ICIS)–Across the board bullishness seen in
Asia’s petrochemical markets is likely to
continue in the near term on tight supply in
key China market ahead of its peak turnaround
season, along with robust downstream demand and
crude oil prices.
au Jibun Bank’s Japan manufacturing PMI rises
to 51.4 in Feb
By: Nurluqman Suratman 2021/03/01 SINGAPORE
(ICIS)–au Jibun Bank’s manufacturing
purchasing managers’ index (PMI) for Japan rose
to 51.4 in February from 49.8 in January,
indicating the strongest improvement in the
health of the sector since December 2018, the
Japanese bank said on Monday.
VIDEO:
China’s BG market propelled by strong upstream,
limited supply
By Bonnie Yin 2021/02/26 SINGAPORE (ICIS)–
Watch markets editor Bonnie Yin discuss the
recent developments in the China’s glycol ether
(BG) market which has surged after the Lunar
New Year holiday, driven by cost pressure from
upstream feedstock markets and limited offers.
VIDEO: Asia ABS
propped by US Gulf Storms, strong post-Lunar
New Year sentiment
By Julia Tan 2021/02/26 SINGAPORE
(ICIS)–Markets reporter Julia Tan discusses
the impact of recent polar storm-related
production outages in the US on the Asian
acrylonitrile-butadiene-styrene (ABS) spot
market and related upstream markets. The
production losses in the US has indirectly
supported market sentiment for Asian spot
markets amid stronger post-Lunar New Year
purchasing attitudes.
PODCAST: China
petrochemicals extend gains on tight supply, US
disruptions
By Yvonne Shi 2021/02/26 SINGAPORE
(ICIS)–China’s petrochemicals market have
strengthened after the Lunar New Year holiday.
In this episode of the ICIS Asia podcast, Jady
Ma speaks with Yvonne Shi on recent
developments and outlook for the market.
Thailand’s IVL swings to
Q4 net profit; eyes better demand in
2021
By Nurluqman Suratman 2021/02/25 SINGAPORE
(ICIS)–Thailand-listed Indorama Ventures Ltd
(Ltd) expects demand recovery for its products
to continue this year after it swung to a net
profit of Thai baht (Bt) 1.61bn ($54m) in the
fourth quarter of 2020.
Fourth-quarter earnings were driven by stronger
production volumes and contributions from its
polyethylene terephthalate (PET) business.
Mideast chemicals
supply tight amid US outages, strong China
demand
By Felicia Loo 2021/02/25 SINGAPORE
(ICIS)–Supply tightness prevails in the Middle
East chemicals markets and it remains a
challenge to scour the region for cargoes amid
winter storm-related outages in the US and
strong demand coming from China.
The ramifications are felt keenly in the
polymer markets.
For both polyethylene (PE) and polypropylene
(PP), selling sentiment is strong on
expectations that demand from the US and Latin
American buyers will surge, which would affect
the Middle East’s allocations to other regions.
BLOG: China 2021
PX imports could fall by 64%, with styrene
imports down 59% By ICIS Editorial
2021/02/24 SINGAPORE (ICIS)–Click here to see
the latest blog post on Asian Chemical
Connections by John Richardson. There is a lot
of focus on US production losses resulting from
the severe winter weather and how the losses
have tightened markets in the US, Latin America
and Europe. Even Asia has also been affected to
a lesser extent, as cargoes from the Middle
East and Asia that would have stayed within
these regions have been diverted.
US ethanol, biomass-based diesel RIN prices
near all-time highs – EIA
By
Adam Yanelli 2020/02/24 HOUSTON (ICIS)–Prices
for US renewable identification number (RIN)
credits have been rising steadily and are near
all-time highs, largely because of reduced fuel
production due to softer demand amid the
coronavirus (Covid-19) pandemic, the US Energy
Information Administration (EIA) said on
Wednesday.
Asia petrochemicals at multi-year highs on
strong crude, bullish China
markets
By: Nurluqman Suratman 2021/02/24 SINGAPORE
(ICIS)–Key petrochemical markets in Asia have
hit multi-year highs, driven up by strong crude
gains following winter storm-related US output
disruptions, and robust post-holiday activity
in China.
Japan’s Mitsui Chemicals restarts Chiba cracker
after quake-related shutdown
By: Nurluqman Suratman 2021/02/24 SINGAPORE
(ICIS)–Mitsui Chemicals restarted the cracker
at its Ichihara Works site in Chiba prefecture
on 23 February and is in the process of
restarting other downstream units, the Japanese
producer said on Wednesday.
PODCAST: US Gulf Coast storm outages
risk global chemical supply
crunch
By: Will Beacham 2021/02/22 BARCELONA
(ICIS)—The US Gulf Coast storm impact could be
worse than Hurricane Harvey, and cause a global
supply crunch for major product groups.
- Polar storm impact could be worse than
Hurricane Harvey - 100% of US capacity knocked out for major
commodities - Polar storm comes on top of
pandemic-related shipping container,
semi-conductor disruption - Supply was already tight in some value
chains
au Jibun Bank
flash manufacturing PMI rises to 50.6 in
Feb
By Nurluqman Suratman 2021/02/19 SINGAPORE
(ICIS)–au Jibun Bank’s flash manufacturing
purchasing managers’ index (PMI) for Japan rose
to 50.6 in February from the final reading of
49.8 in January on improved export orders, the
Japanese bank said on Friday.
A PMI reading above 50 indicates an expansion
in the manufacturing economy.
Forecasting
Chinese LNG demand: Why a monthly update is
superior to a static yearly estimate, in an
increasingly volatile market
By Alex Siow 2021/02/19 ICIS forecasts China to
import between 4.7 million to 5.3 million
tonnes of LNG per month during February to
April 2021. This is on average a 12%
year-on-year (yoy) increase compared to the
same months last year. On an annual basis, we
are forecasting China to import 76m tonnes this
year, an 11% yoy increase.
But this is only a valid prediction for now,
within these few weeks. By early next month,
our forecast number could have been updated and
changed, depending on events that might have
happened between now and early next month. Or
it could be maintained, also depending on
events.
US Gulf Coast
storm outages rise, send ripples round global
markets
By Will Beacham 2021/02/18 BARCELONA (ICIS)—The
US polar storm has now shut down 84% of US
polypropylene (PP) capacity, 65% of ethylene
and devastated other important products,
sending ripples around global chemical markets
prices soaring.
More chemical plants and refineries across the
Gulf Coast region have been hit by prolonged
power and feedstock outages caused by freezing
weather, snow and ice which have also halted
logistics networks. More bad weather, forecast
for later in the week, may prolong the
disruption.
Norway’s Yara,
partners to electrify, decarbonize Porsgrunn
ammonia plant
By: Pearl
Bantillo 2021/02/18 SINGAPORE
(ICIS)–Fertilizer firm Yara International has
signed a deal with two industrial firms to
electrify and decarbonize its ammonia facility
in Porsgrunn, Norway.
The Porsgrunn plant produces 500,000
tonnes/year of ammonia, according to ICIS data.
The company has signed a letter of intent with
fellow Norwegians Statkraft and Aker Horizons
on the project, also with the aim of enabling
the hydrogen economy and accelerating the green
energy transition, Yara said in a statement on
Thursday.
PODCAST: Gulf
petrochemicals special focus with GPCA
secretary general Dr. Abdulwahab
Al-Sadoun
By Will Beacham 2021/02/16 BARCELONA
(ICIS)–Arabian Gulf petrochemical companies
are committed to pursuing a low carbon future
while battling the impact of the coronavirus
pandemic and increasing self-sufficiency in
China, according to the Gulf Petrochemical
Association (GPCA).
- Transition to a low carbon future presents
opportunities for Gulf Cooperation (GCC)
chemicals - Region is committed to boost recycling plus
new, greener technologies - GCC chemicals managed to grow volumes in
2020, despite the pandemic
China
petrochemicals lead Asia gains on strong crude,
US supply disruptions
By Pearl Bantillo 2021/02/18 SINGAPORE
(ICIS)–China’s petrochemical trades were brisk
upon re-opening on Thursday after a week-long
hiatus, leading gains in key Asian markets amid
surging crude prices and US supply disruptions.
Prices in the Chinese commodities futures
markets surged on the first trading day after
the Lunar New Year holiday, with styrene
monomer (SM) logging an 11% spike as of midday,
largely on concerns over tight post-holiday
supply.
Oil prices extend
strong gains on US Gulf Coast cold
snap
By Nurluqman Suratman 2021/02/18 SINGAPORE
(ICIS)–Oil prices rose by more than $1/bbl on
Thursday, with Brent on its fifth day of gains,
as severe cold conditions in Texas and
surrounding regions in the US led to refinery
shutdowns and production cuts.
At 03:30 GMT, Brent crude was trading at
$65.18/bbl, off the intra-day high of
$65.52/bbl, while WTI crude was at $61.80/bbl.
Japan’s Showa Denko
swings to 2020 loss as petrochemical profit
slumps
By Pearl Bantillo 2021/02/17 SINGAPORE
(ICIS)–Japan’s Showa Denko has incurred a
full-year 2020 net loss of yen (Y) 76.3bn
($720m), reversing the profit in 2019, while
earnings from its petrochemical segment slumped
amid the coronavirus pandemic.
Japan January
chemical exports rise 23.6%; overall shipments
up 6.4%
By Nurluqman Suratman 2021/02/17 SINGAPORE
(ICIS)–Japan’s total chemical exports in
January rose by 23.6% year on year to yen (Y)
788.7bn ($7.4bn), while overall shipments
abroad were up by 6.4%, official data showed on
Wednesday.
Exports of organic chemicals fell by 7.2% year
on year to Y139.4bn in January while shipments
of plastic materials abroad increased by 30.4%
to Y224.8bn, Ministry of Finance data showed.
Singapore’s Jan petrochemical exports rise by
10.1%; NODX up 12.8%
By: Nurluqman Suratman 2021/02/17 SINGAPORE
(ICIS)–Singapore’s petrochemical exports rose
by 10.1% year on year to Singapore dollar (S$)
1.14bn in January, supporting the growth in
overall non-oil domestic exports (NODX),
official data showed on Wednesday.
The country’s NODX rose by 12.8% year on year
to S$15.1bn in January, accelerating from the
6.8% expansion in December 2020, Enterprise
Singapore data showed.
Japan January chemical exports rise 23.6%;
overall shipments up 6.4%
By: Nurluqman Suratman 2021/02/17 SINGAPORE
(ICIS)–Japan’s total chemical exports in
January rose by 23.6% year on year to yen (Y)
788.7bn ($7.4bn), while overall shipments
abroad were up by 6.4%, official data showed on
Wednesday.
Thailand’s PTTGC Q4 net
profit surges on strong margins as prices
spike
By Nurluqman Suratman
2021/02/16 SINGAPORE (ICIS)–PTT Global
Chemical’s (PTTGC) fourth-quarter net profit
surged to Thai baht (Bt) 6.41bn from the same
period last year on the back of higher product
prices, with sales up 3% year on year.
Its full-year 2020 results, however, reflected
a general weakness in demand caused by the
coronavirus pandemic, with a 20% decline in
sales nearly wiping out its profit.
Singapore to see strong
GDP rebound after 2020
contraction
By Nurluqman
Suratman 2021/02/16 SINGAPORE
(ICIS)–Singapore’s economy is expected to see
a strong rebound this year after contracting by
5.4% in 2020, supported by a robust
manufacturing sector as its outward-oriented
sectors continue to benefit from rising
external demand.
VIDEO: Europe R-PET colourless flake,
post-consumer bottles prices jump in
February
By Matt Tudball 2021/02/12 LONDON
(ICIS)–Senior Editor for Recycling, Matt
Tudball, looks at the outcome of the European
recycled polyethylene terephthalate (R-PET)
monthly price discussions for February.
– Large jumps in colourless flake and
post-consumer bottle (PCB) prices
– Virgin PET prices still a key driver for
R-PET demand
– Flake buyers expecting bullish March, April
Shell commits to
growing chemicals as part of low-carbon
strategy
By: Will Beacham 2021/02/11 BARCELONA
(ICIS)–Shell on Thursday committed to growing
its chemicals business, setting targets for the
division as it transitions the company towards
net carbon neutrality.
In a strategy update, the company’s CEO Ben van
Beurden laid out targets to increase cash
generation from chemicals by $1-2bn/year and
reduce exposure to commodity chemicals by
around 70% by 2030. He also reiterated a target
to process 1m tonnes/year of plastic waste for
recycling by 2025.
Van Beurden said the company’s aim – announced
in the third quarter of 2020 – of reducing its
portfolio of 14 oil refining sites globally to
six energy and chemical parks by 2030 is well
underway through the divestment and closure of
some assets.
Signs of healthy
recovery unable to prop up crude demand as
transport drags – OPEC
By: Jonathan Lopez 2021/02/11 LONDON
(ICIS)–There are early “signs of a healthy
recovery” in 2021 but the recovery in crude
demand will lag as transportation is not set to
fully recover any time soon, the producing
cartel OPEC said on Thursday.
Petrochemicals activity, however, will remain
healthy and continue to support demand from
crude oil, which has found in the industrial
sectors an ally to keep a determining role in
the global energy mix as transport electrifies
in coming decades.
Before transport electrifies, however, the
gasoline and derivatives used to fuel mobility
will still remain somewhat redundant in 2021 as
demand from those sectors is not set to recover
pre-pandemic levels this year.
India’s IGPL
plans new 80,000 tonne/year PA
line
By Priya Jestin 2021/02/11 MUMBAI
(ICIS)–India’s IG Petrochemicals Ltd (IGPL)
plans to set up a greenfield 80,000 tonnes/year
phthalic anhydride (PA) plant in western
Gujarat state, it said in a statement.
The company’s board of directors approved the
setting up of the Indian rupees (Rs) 6bn ($82m)
chemical complex at Gujarat which will contain
the PA line and other derivative plants, it
said in the filing on the Bombay Stock Exchange
(BSE) on 9 February.
The new plant will commence operations in three
years, the company said, adding that it planned
to raise funds for the new project through
internal accruals and loans.
The new PA capacity will help IG Petrochemicals
meet increasing demand in downstream products
like paints, plasticizers¸ polyvinyl chloride
(PVC), unsaturated polyester resins etc, IGPL
said in its statement.
PODCAST: MEG
global supply tightness
prevails
By Melissa Hurley 2021/02/08 LONDON
(ICIS)–Global monoethylene glycol (MEG) supply
tightness remains a key issue across Europe, US
and Asia.
Asia MEG prices rise to 16-month peak
Heavy turnaround schedule in the Middle
East
East China MEG inventories rise 4.4% to 681,000
tonnes
Quicker Lunar New Year demand recovery due to
less travel
European short-term supply eases;
spot-stable-to-soft
US diethylene glycol (DEG) spot supply remains
sold out
MEG outages could extend tight US MEG supply
into spring
S Korea’s LG Chem
starts push for renewable energy across
worksites
By Pearl Bantillo 2021/02/09 SINGAPORE
(ICIS)–South Korean producer LG Chem will
fully run its Yeosu nitrile butadiene rubber
(NBR) plant, along with its Osan Tech Centre,
on renewable energy this year.
The company is procuring an annual 120
gigawatt-hours (GWh) of renewable energy
through the Korean RE100 (Renewable Energy 100)
system called “Green Premium” Program.
PODCAST: Asia
phenol, acetone supported by tight supply,
strong derivatives
By Jasmine Khoo 2021/02/09 SINGAPORE
(ICIS)–Asia’s phenol and acetone prices have
been supported by snug supply, arising from
plant turnarounds and reduced production across
Asia, Europe and the US.
In this episode of the ICIS Asia podcast,
Senior Editor Jasmine Khoo speaks with Angeline
Soh, editor in charge of the Asia-Pacific
acetone and phenol analysis on the recent
development.
US January Port Houston chem tanker arrivals
rise by 5.6% year on year
By Adam Yanelli 2021/02/09 HOUSTON
(ICIS)–Chemical tanker arrivals at Port
Houston started the year off on a positive
note, rising by 5.6% compared with the same
month a year ago, while overall arrivals are
down by 12% as global economies continue to be
impacted by the coronavirus pandemic.
IMF raises LatAm GDP forecast to 4.1% for
2021
By Janet Miranda 2021/02/08 HOUSTON (ICIS)–The
Latin American and Caribbean 2021 growth
forecast has been revised to 4.1% from 3.6%,
based on stronger than expected performance in
2020, due to expanding vaccination efforts and
a better growth outlook for the US, the
International Monetary Fund (IMF) said on
Monday.
PODCAST: drive to lower carbon means no
new steam crackers after
2030
By Will Beacham 2021/02/08 BARCELONA
(ICIS)—The climate change agenda means that no
new steam crackers will be built beyond 2030 as
the chemical industry harnesses new
technologies and investors steer clear of high
carbon projects.
- Coronavirus makes oil refinery
rationalisation more urgent - No new steam crackers will be built from
2030 - Decarbonisation, sustainability will drive
future investment decisions - Chemical companies will harness new
technologies like green hydrogen, electric
furnaces
Borealis to focus
on chemicals, polyolefins as OMV consolidates
position
By: Tom Brown 2021/02/08 LONDON
(ICIS)–Borealis is tightening its focus on
base chemicals and polymers as it prepares to
divest the bulk of its fertilizers business
after shareholder OMV doubled down on its
position in the Austria-headquartered
petrochemicals producer.
DIVESTMENT AND REALIGNMENT
After several years of peaks and troughs for
its fertilizers operations, Borealis announced
last week that it is preparing to put the
business in play.
With no set timeline to divest, the sale of the
nitrogen and melamine operations will represent
a total break from the fertilizer sector for
the company, with the exception of a Benelux
player with two production plants it continues
to hold a stake in.
Thailand’s PTTGC pursues feedstock
flexibility with new project
By Pearl Bantillo 2021/02/08 SINGAPORE
(ICIS)–Thailand’s petrochemical major PTT
Global Chemical is looking at increasing the
share of propane in its feedstock mix under a
new project coming on stream two years from
now.
Canada’s January light
vehicle sales fall 17.4% amid pandemic
lockdowns
By Stefan
Baumgarten 2021/02/05 TORONTO (ICIS)–Canadian
sales of new light vehicles are estimated to
have fallen by 17.4% year on year in January,
to 90,890 units, according to the latest data
by DesRosiers Automotive Consultants (DAC) on
Friday.
US industrial energy consumption to return to
’19 levels faster than other sectors –
EIA
By Adam Yanelli
2021/02/03 HOUSTON (ICIS)–US consumption of
petroleum and other liquids from the industrial
sector, primarily for use as feedstocks in the
production of plastics, could return to
pre-pandemic levels by 2023 in a best-case
scenario, the Energy Information Administration
(EIA) said on Wednesday.
US will return to ’19 energy consumption levels
by ’29 – EIA
By Al Greenwood
2021/02/03 HOUSTON (ICIS)–US energy
consumption should return to 2019 levels by
2029, the nation’s Energy Information
Administration (EIA) said on Wednesday.
BLOG: The new oil
shocks: semiconductor supply shortages threaten
the global economy
By ICIS Editorial 2021/02/03 LONDON
(ICIS)–Click here to see the latest blog post
on Asian Chemical Connections. The oil supply
shocks of the 1970s are at risk of being
replaced by the semiconductor supply shocks of
the 2020s. There are just three global
suppliers of high-value semiconductors that
might soon become two, down from 25 in 2000.
Eighty percent of all types of semiconductor
production is located in northeast Asia.
Europe PVC
outlook balanced to tight in early 2021 as
prices trend upward
By: Chris Barker 2021/02/02 LONDON
(ICIS)–The outlook for European polyvinyl
chloride (PVC) remains balanced to tight in
early 2021, with contract prices rising for
January as global availability is still limited
and prices high.
For January,
increases were proposed in a wide range of
€35-100/tonne at the beginning of the month.
Final settlements were also in a relatively
wide range, with some negotiations concluded
with increases of €40-50/tonne in northwest
Europe and the Mediterranean, according to
buyers and producers.
Downstream demand is also respectable with the
European construction market expected to
rebound and return to growth in 2021 after
suffering damage from the pandemic in 2020.
PODCAST: chemical
sector must step up circular investments from
tens to hundreds of millions
By Will Beacham 01-Feb-21
15:32 BARCELONA (ICIS)–Chemical companies
need to take the circular economy more
seriously and invest hundreds rather than tens
of millions in recycling.
- Investors now seek companies active in
circular economy - Risk that brand owners may seize initiative
from chemical companies - Chemical companies need to step up circular
investments - 2021 could be the year of circular economy
ahead of COP26 meeting in November - China chemicals threatened by persistent
shortage of containers, soaring rates - Electricity shortage, resurgent pandemic,
microchip shortage also pose risks
China will move towards self-sufficiency in
paraxylene (PX), styrene (SM) and
polypropylene (PP)
Click on the headline to hear the
podcast.
VIDEO: Asia/Mideast
Groups I, II base oils find footing amid tight
global supply
By Matthew Chong 2021/02/02 SINGAPORE
(ICIS)–Senior Editors Matthew Chong
and Izham Ahmad discuss recent developments in
the Asia-Pacific and Middle East base oils
markets.
Asian chemical demand sentiment mixed
post-Lunar New Year
By Felicia Loo 2021/02/02 SINGAPORE
(ICIS)–Unlike previous years, post-Lunar New
Year chemical markets in 2021 will be uniquely
different in China – the world’s number-two
economy – as well as in other parts of Asia
where the holiday is celebrated.
At issue, the extent of plastics demand
recovery in Asia remains to be seen on
prospects of businesses resuming earlier than
past years, when factories shut for two to four
weeks during the holiday in China.
US WR Grace
reaches standstill agreement with 40
North
By Janet Miranda 2021/02/01 HOUSTON (ICIS)–WR
Grace entered into a letter agreement with 40
North on Monday, after it announced its
decision to discuss a sale to 40 North’s upped
bid of $65 per share, the US-catalyst producer
said.
Caixin’s China Jan manufacturing PMI
dips to 51.5 in January amid lower
output
By Nuuqman Suratman 2021/02/01 SINGAPORE
(ICIS)–Caixin’s China general manufacturing
purchasing managers’ index (PMI) fell to 51.5
in January from 53.0 in December as business
conditions improved at the slowest rate for
seven months, the Chinese media firm said on
Monday.
au Jibun Bank
manufacturing PMI slips to 49.8 in
Jan
By Nurluqman Suratman 2021/02/01 SINGAPORE
(ICIS)–au Jibun Bank’s manufacturing
purchasing managers’ index (PMI) for Japan fell
to 49.8 in January from 50.0 in December 2020
on a drop in output as rising coronavirus cases
had a renewed impact on the economy, the
Japanese bank said on Monday.
PODCAST: Asia
Special Report – Base oils
By Jasmine Khoo 2021/02/01 SINGAPORE
(ICIS)–2020 could be summed up as a
topsy-turvy year for the base oils industry.
The slump in Asian base oils prices in Q2 last
year due to lockdowns followed by the rapid
recovery in prices to even higher than
pre-pandemic levels in 2019 has astounded
market players.
VIDEO: Asia butyl
acetate prices rise on tight
supply
By Melanie Wee 2021/02/01 SINGAPORE
(ICIS)–Watch ICIS senior editor Melanie Wee
discuss the latest developments in the Asia
butyl acetate (butac) market and its key
drivers.
LyondellBasell plans to
run Houston refinery at 80% in
Q1
By Al Greenwood 2021/01/29 HOUSTON
(ICIS)–LyondellBasell expects to run its
refinery in Houston at 80% of its throughput
capacity during the first quarter, the same
rate as the fourth quarter, the CEO said on
Friday.
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