Methyl methacrylate (MMA) and polymethyl methacrylate (PMMA)

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 February. Egypt eyes 3.1m tonne/year capacity at proposed $7bn petrochemical complex By Nurluqman Suratman 24-Feb-25 12:58 SINGAPORE (ICIS)–Egypt’s proposed $7 billion petrochemical complex in New Alamein City is slated to produce 3.1 million tonnes/year of "eight specialized" products, according to project leader Shard Capital Partners. INSIGHT: Suez Canal shipping cautiously picks up amid Israel-Hamas ceasefire By Nurluqman Suratman 24-Feb-25 15:12 SINGAPORE (ICIS)–Forty-seven ships have re-routed to the Suez Canal in Egypt since early February, indicating a cautious pick-up of activity in the crucial trade lane – the shortest connection between Asia to Europe – amid a ceasefire between Israel and Palestine militant group Hamas in Gaza. Middle East, Pakistan PP/PE trade activity expected to be slow throughout Ramadan By Nadim Salamoun 24-Feb-25 16:24 DUBAI (ICIS)–Trade activity for polypropylene (PP) and polyethylene (PE) in the East Mediterranean (East Med), Pakistan, and GCC (Gulf Cooperation Council) markets has already slowed down by mid-February ahead of the Ramadan seasonal lull, and is expected to remain slow until the end of Eid al-Fitr during the first week of April. INSIGHT: China PE demand growth to lag capacity growth for 2025 By Amy Yu 25-Feb-25 13:00 SINGAPORE (ICIS)–Inner Mongolia Baofeng’s new 550,000 tonne/year coal-based PE facility is set to start trial runs in late February, marking the third new unit for the company following two similar facilities starting the commercial operation in November 2024 and January 2025. India’s Mar methanol supply to tighten after Qatar Fuel Additives announces FM By Damini Dabholkar 26-Feb-25 13:28 SINGAPORE (ICIS)–Qatar Fuel Additives Co (QFAC) on 25 February announced a force majeure on its methanol supply after shutting down its 1.1 million tonnes/year plant in Mesaieed due to a technical issue. INSIGHT: India petrochemical production pivots to imported ethane feed By Priya Jestin 26-Feb-25 16:00 MUMBAI (ICIS)–A growing number of petrochemical companies in India are looking at using more ethane instead of the more expensive naphtha as feedstock for production, which may help reduce the south Asian country’s trade deficit with the US in the coming years. INSIGHT: China benzene market sees narrow fluctuations on strong cost, snug supply, slow demand recovery By Yoyo Liu 26-Feb-25 19:28 SINGAPORE (ICIS)–Crude-based benzene prices fluctuated moderately at high levels after the Lunar New Year (28 January-4 February) holidays, on elevated crude, ethylbenzene (EB) futures and falling port inventories. Slow demand recovery continues to weigh on the market, with upcoming spring turnarounds and inventory depletion in focus. SE Asia, Mideast petrochemical markets slow ahead of Ramadan By Jonathan Yee 27-Feb-25 12:41 SINGAPORE (ICIS)–Trades in southeast Asian and Middle East petrochemical markets have slowed down ahead of Ramadan, when working hours would be shorter in some markets in March. Asia MMA sentiment dampened by China local price volatility By Jasmine Khoo 27-Feb-25 13:01 SINGAPORE (ICIS)–Asia's methyl methacrylate (MMA) sentiment has been impacted by price volatility observed in the Chinese domestic market in recent weeks, with most market players adopting a cautious stance towards trade. INSIGHT: Asia, Europe could bear brunt of US tariffs on Chinese MDI By Shannen Ng 27-Feb-25 16:37 SINGAPORE (ICIS)–Recent escalations in the US-China tariff war are set to create waves in the Asian and European import markets for methylene diphenyl diisocyanate (MDI). Asia petrochemical shares fall after Trump vows additional 10% tariff on China By Jonathan Yee 28-Feb-25 11:16 SINGAPORE (ICIS)–Asian petrochemical shares fell on Friday after US President Donald Trump said he would impose additional 10% tariffs on Chinese goods from 4 March. Thai SCG Chemicals signs EPC deal for Vietnam ethane storage tanks By Nurluqman Suratman 28-Feb-25 15:01 SINGAPORE (ICIS)–Thai producer Siam Cement Group Chemicals (SCGC) on 27 February said that it has signed the engineering, procurement, and construction (EPC) contract for the construction of ethane storage tanks at the Long Son Petrochemicals Complex (LSP) in Vietnam.

03-Mar-2025

HOUSTON (ICIS)–US-based Cornerstone announced on Thursday the decision to mothball its acrylonitrile (ACN) operations in Waggaman, Louisiana, effective 30 June. “Despite significant efforts to adapt to an evolving marketplace, the [ACN] business’ financial challenges, exacerbated by oversupplied global markets for [ACN] and increasing raw material costs, have led to the difficult but necessary decision to exit the business at this time,” the company said. The plant has a capacity of 240,000 tonnes/year, according to ICIS Supply & Demand Database, and makes up about 15% of US ACN capacity. Unigel had stopped ACN production in Brazil in 2024. ICIS forecasts that US ACN demand in 2025 would be 130,000-200,000 tonnes lower than in 2024. Roehm will end methyl methacrylate (MMA) production in Fortier, Louisiana – where Cornerstone is located – by June. Roehm’s new plant in Bay City, Texas is expected to start operations in Q1. This facility will not use hydrogen cyanide, which is a by-product of ACN manufacturing. Downstream of ACN, several companies downstream have announced plans to close facilities. INEOS Styrolution is closing its acrylonitrile butadiene styrene (ABS) production site in Addyston, Ohio. The plant has a capacity of 195,000 tonnes/year, according to ICIS Supply & Demand Database. Decommissioning will commence in Q2. US-based nylon 6,6 producer Ascend Performance Materials is shutting down remaining operations in Greenwood, South Carolina by early 2025. The nylon 6,6 fibers plant has a capacity of 135,000 tonnes/year, according to ICIS Supply & Demand Database. Export demand for US ACN has also weakened. US ACN exports in 2024 fell by 40% from 2023. With additional reporting by Ramesh Iyer Thumbnail Photo: Cornerstone site

20-Feb-2025

SINGAPORE (ICIS)–S-Oil plans to spend about South Korean won (W) 3.5 trillion ($2.4 billion) in its Shaheen crude-to-chemical project in Ulsan, which accounts for the bulk of the refiner’s capital expenditure (capex) set for the year. Shaheen project on track for H1 '26 completion S-Oil plants run below full capacity over past three years Full-year net loss caused by heavy refining losses, lower petrochemicals profit The project capex for the year was increased by about a third from W2.61 trillion in 2024, and accounts for 86% of the total for the current year, S-Oil stated in a slide presentation to investors dated 24 January upon announcing its Q4 results. The project, whose name was derived from the Arabic word for falcon, is now 55% complete and is on track for commercial operations in H2 2026, S-Oil said on 17 February. S-Oil is 63%-owned by Saudi Aramco, the world’s biggest exporter of crude oil. Shaheen will have a 1.8 million tonne/year mixed-feed cracking facility; an 880,000 tonne/year linear low density polyethylene (LLDPE) unit; and a 440,000 tonne/year high density PE (HDPE) plant. The site will have a thermal crude-to-chemical (TC2C) facility, which will convert crude directly into petrochemical feedstocks such as liquefied petroleum gas (LPG) and naphtha, and the cracker is expected to recycle waste heat for power generation in the refinery. “The project is progressing smoothly as planned,” S-Oil had said in the presentation, noting that completion rate as of end-December stood at 51.8%. Installation is underway for 10 cracking heaters, pipe rack modules at steam cracker and aboveground piping, it added. Construction of the multibillion US dollar project at the Onsan Industrial Complex of Ulsan City started in March 2023, with mechanical completion targeted by the first half of 2026. Over the past two years, S-Oil had poured nearly W5 trillion into the project, about half of the estimated project cost of $7 billion, based on capex. “Shaheen Project is a pivotal expansion into chemical business with industry-leading competitiveness, which will enable another leap forward in future profit generation capacity,” S-Oil said. The project is expected to yield 70% more chemicals, with a capex/operating expenditure savings pegged at 30-40% versus conventional process. At its Onsan site, S-Oil currently produces a range of petrochemicals and fuels including benzene, mixed xylenes, ethylene, methyl tertiary butyl ether (MTBE), paraxylene, polypropylene, propylene, propylene oxide, biodiesel, and potentially bio-based aviation and other bio-derived products. The second-biggest item in S-Oil’s 2025 capex list is upgrade & maintenance at W463 billion, up by more than 75% from 2024, noting that its residual fluid catalytic cracking unit (RFCC) is scheduled for turnaround this year, based on the presentation. For the past three years, the company’s plants have not been running at full capacity, with a marked reduction of run rates at its paraxylene (PX) plants. For the whole of 2024, the company incurred a net loss of W163.4 billion, reversing the profit of nearly W1 trillion in the previous year, on heavy losses from refining and a 29% profit decline in petrochemicals. in billion won (W) Q4 2024 Q4 2023 Yr-on-yr % change FY2024 FY2023 Yr-on-yr % change Revenue 8,917.0 8,830.0 1.0 36,637.0 35,727.0 2.5 Operating income 260.8 (56.4) – 460.6 1,354.6 (66.0) Net income  (102.1) 160.5 – (163.4) 948.8 – Refining operating profit  172.9 (311.3) – (245.4) 353.5 – Petrochemical operating profit  (28.1)  33.9 – 134.8 190.6 (29.3) Lube operating profit 115.9 221.0 (47.6) 571.2 810.5 (29.5) In the first quarter of 2025, S-Oil expects additional demand for PX and upstream benzene as new downstream facilities start up, “offsetting ample supply”, it said, adding that a recovery in gasoline blending demand may further support the markets. Polypropylene (PP) and propylene oxide (PO) will "continue to see capacity expansions in China while demand recovery is anticipated from China's economic stimulus measures,” it said. China, the world’s second-biggest economy is a major market for South Korean exports. Amid an economic slowdown, the Chinese government have been introducing measures to boost consumption and revive its ailing property sector. Focus article by Pearl Bantillo ($1 = W1,441)

19-Feb-2025

SINGAPORE (ICIS)–S-Oil's Shaheen crude-to-chemical project in Ulsan, South Korea is now 55% complete and is expected to start commercial operations in the second half 2026, the producer said on Monday. Construction of the $7bn project at the Onsan Industrial Complex of Ulsan City started in March 2023, with mechanical completion targeted by the first half of 2026. South Korean refiner S-Oil is 63%-owned by Saudi Aramco, the world's largest crude exporter. The Shaheen project – named after the Arabic word for “falcon” – will have a 1.8 million tonne/year mixed-feed cracking facility; an 880,000 tonne/year linear low density polyethylene (LLDPE) unit; and a 440,000 tonne/year high density PE (HDPE) plant. The site will have a thermal crude-to-chemical (TC2C) facility, which will convert crude directly into petrochemical feedstocks such as liquefied petroleum gas (LPG) and naphtha, and the cracker is expected to recycle waste heat for power generation in the refinery. The company currently produces a range of petrochemicals and fuels including benzene, mixed xylenes, ethylene, methyl tertiary butyl ether (MTBE), paraxylene, polypropylene, propylene, propylene oxide, biodiesel, and potentially bio-based aviation and other bio-derived products at its Onsan site. S-Oil plans to supply feedstock to domestic petrochemical downstream companies mainly through pipelines. "To this end, the construction of logistics-related infrastructure, such as a new pipeline network, is being carried out at the same time," it said. Long-term agreements for stable supply of raw materials are being signed between S-Oil and petrochemical companies located at the two industrial complexes in Ulsan, which would boost competitiveness of domestic value chain, the company said.

17-Feb-2025

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 7 February. BP puts Gelsenkirchen, Germany refinery, crackers up for sale BP plans to sell its to sell its Ruhr Oel refinery, crackers and downstream assets at Gelsenkirchen in Germany. Surge in natural gas prices highlights problem for chemical producers in Europe The challenges facing petrochemical producers in Europe are well documented, but higher natural gas prices this winter and an increase in liquefied natural gas (LNG) imports highlight just how tough these difficulties are – particularly in comparison with other regions. EU defiant on tariff threats but faltering growth could limit response The European Commission has pronounced itself ready to respond to any tariff measures introduced by the US, but the fragility of the region’s recovery leaves it ill-equipped to fight a trade war. Europe PMMA faces price squeeze from cheap imports, weak demand The polymethyl methacrylate (PMMA) market in Europe faces a price and margin squeeze amid ongoing weak demand and availability of cheap imports. Europe fertilizer sector considers impact of proposed EU tariffs on Russia The announcement by the EU on 28 January that it has adopted a proposal to impose tariffs on a number of agricultural products from Russia and Belarus, as well as on certain nitrogen-based fertilizers, has been welcomed by European fertilizer producers. Urea uptick surpasses expectations as demand continues to outpace supply Expectations of an import tender in India and increasing demand from the US ahead of the start of fertilizer application for the spring will continue to boost demand for urea in the first quarter.

10-Feb-2025

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

SINGAPORE (ICIS)–Japan's Sumitomo Chemical has sold a portion of its stake in specialty chemicals producer Sumitomo Bakelite as part of a broader plan to enhance its financial performance through asset sales. Sumitomo Chemical on 4 February said that it has sold around 5.25 million shares of Sumitomo Bakelite for around yen (Y) 19.1 billion ($123 million), the Japanese producer said on Tuesday. Sumitomo Bakelite produces a range of chemical products, including phenolic, epoxy and polyimide resins, as well as other specialty chemicals. The stake sale reduced Sumitomo Chemical’s stake in the specialty chemicals producer to 10.6% from 15.6% previously. Sumitomo Chemical expects a one-time gain of around Y17.7 billion from the sale in its non-consolidated financial results for the year ending 31 March 2025. "Sumitomo Chemical is implementing its short-term intensive performance improvement measures aimed at ensuring a V-shaped recovery in fiscal 2024 and strengthening its financial position to lay the groundwork for future fundamental structural reforms," the company said. On 3 February, the company announced that it will be divesting 66.6% of its share in wholly-owned subsidiary Sumitomo Chemical Engineering Co (SCEC) by 31 March to Japan's JFE Engineering Corp for an undisclosed fee. Sumitomo Chemical will retain a 33.4% stake in SCEC following the sale. "SCEC will maintain a good relationship with the Sumitomo Chemical Group as it works to maximize its synergies with the JFE Group," the company said. SCEC provides engineering, procurement, construction, operation and maintenance services for environmental facilities, energy facilities, including liquified natural gas stations and renewable energy plants, as well as chemical plants. In the nine months to 31 December 2024, Sumitomo Chemical swung into a net profit on improved selling prices at its core essential and green materials segment, the Japanese producer said on 3 February. in Japanese yen (Y) billions Apr-Dec 2024 Apr-Dec 2023 % Change Sales 1,904.8 1,806.9 5.4 Operating income 145.4 -160.6 Net income 28.6 -109.8 The company's selling prices for synthetic resins, methyl methacrylate, and industrial chemicals rose due to higher raw material costs during the period. However, aluminum shipments declined following the group's exit from the business, resulting in a ¥8.8 billion decrease in essential and green materials sales revenue to Y672.9 billion. Despite this, the segment trimmed its core operating loss by Y16.2 billion to Y44.3 billion, aided by better market conditions, although the financial performance of its 37.5%-owned Saudi chemical producer Petro Rabigh deteriorated. Saudi Aramco owns 62.5% of Petro Rabigh. MANAGEMENT CHANGES Sumitomo Chemical on 3 February announced that Nobuaki Mito, the company's senior managing executive officer, will take over as the company's new president. Mito is expected to be inaugurated as representative director and president of Sumitomo Chemical in June this year, while incumbent president, Keiichi Iwata, will become chairman. ($1 = Y155.20)

04-Feb-2025

HOUSTON (ICIS)–US President Donald Trump did not propose any new tariffs on his first day in office, but he did issue an executive order that calls for his administration to conduct the investigations needed to impose them under several sections of the law – in many cases, repeating the same playbook Trump used during his first term in office. While the investigations take place, the US can use the threat of possible tariffs to negotiate agreements. If the negotiations fail, the US would have taken the steps necessary to respond with tariffs. Trump did indicate that he is considering imposing tariffs on Canada and Mexico as early as 1 February. This could rely on using existing laws in unprecedented ways. The US chemical industry is vulnerable to tariffs because it has deficits in commodities such as benzene, melamine and methyl ethyl ketone (MEK). Its large exports of plastics make it vulnerable to retaliatory tariffs. TRUMP LAYS FOUNDATION FOR TARIFFSAmong the investigations that will be launched by Trump's executive order, those into national security could lead to Section 232 tariffs, which Trump imposed on steel during his first term. Discriminatory trade practices would open the door to Section 201 tariffs, which were imposed on washing machines and solar panels. Unfair trade practices could lead to Section 301 tariffs. The US imposed these against numerous Chinese imports. That unleashed a trade war, with China imposing retaliatory tariffs, many of which targeted US exports of plastics and chemicals. POSSIBLE NEW TARIFFSTrump's first-day order pointed to other reviews that his administration could complete faster and lead to new tariffs imposed under different sections of the law. These could fall under the International Emergency Economic Powers Act of 1977 (IEEPA), Section 338 and Section 122. Trump's first-day order did not mention these specific laws, but it did mention national security, discriminatory actions against US products and balance of payment deficits – all issues that these laws were designed to address. These laws could allow Trump to impose tariffs on a faster schedule. The IEEPA only requires consultation with Congress, and Section 1222 can apparently be imposed unilaterally, according to the American Action Forum (AAF), a think tank. THREAT OF CANADIAN, MEXICAN TARIFFS ON 1 FEBRUARYTrump would need such speed if he were to impose 25% tariffs on Canada and Mexico goods on 1 February, a possibility that he mentioned on Monday, according to CNBC and other publications. Drug trafficking and immigration could provide the national security basis needed under these laws. REVISITING THE PHASE 1 AGREEMENT WITH CHINATrump's first-day order called for a review of the Economic and Trade Agreement to determine if China is living up to its end of the deal. The agreement is more commonly known as the phase one deal, and the two countries signed it in January 2020. It included commitments by China to purchase more goods from the US; to adopt policies that will protect intellectual property; and to reduce pressure on companies to transfer technology. China has not fulfilled its import commitments under the agreement, and Trump's order said the country could impose additional tariffs in response. US CHEMS VULNERABLE TO TARIFFSUnless Trump carves out exceptions, his proposed tariffs on China and Mexico could raise costs for US chemical producers. Canada provides US refiners with heavier grades of oil that are not produced in sufficient quantities domestically for the nation's refineries. Canadian oil complements the light grades of oil that the US produces in abundance from its shale fields. Regional US markets may rely on Canadian imports because they are closer than the more distant sources along the US Gulf. Those customers will have to reroute their supply chains if they want to avoid tariffs. For the broader tariffs that Trump proposed in his campaign, they could prompt countries to impose retaliatory duties on US shipments of plastics and chemicals. The US is vulnerable to such tariffs because it has large surpluses of many plastics and chemicals, such as vinyl acetate monomer (VAM), methanol, ethylene glycols (EG), polyethylene (PE) and polyvinyl chloride (PVC). Tariffs on Chinese imports of rare earth materials would increase production costs for catalysts. Tariffs on fluorspar and hydrofluoric acid (HF) could increase costs for US producers of fluorochemicals and fluoropolymers. Insight article by Al Greenwood (Thumbnail shows cranes and containers, which make up important infrastructure used in international trade. Image by Costfoto/NurPhoto/Shutterstock)

21-Jan-2025

SINGAPORE (ICIS)–Mitsui Chemicals and Mitsubishi Chemical are studying a potential tie-up on supplying phenol-related products in response to poor domestic demand and oversupply conditions, the Japanese firms said on Friday. These products include phenol, acetone, α-methylstyrene, bisphenol A (BPA) and methyl isobutyl ketone (MIBK), they said in a joint statement. The two companies "will jointly consider approaches for maintaining product supply during regular major maintenance or facility issues, as well as for the efficient operation of both companies’ tanks". The launch of multiple new production facilities across Asia – particularly in China – since 2022 has resulted in a significant oversupply of these products. This oversupply, coupled with weak domestic demand, has caused a market slump. Mitsui Chemicals in April last year said that it will close its 190,000 tonnes/year phenol plant at the company's production site in Ichihara by fiscal year 2026 (year to March 2027) due to declining profitability. Mitsui Chemicals currently produces phenol at three locations: Ichihara in Chiba, Takaishi in Osaka and Shanghai in China. "Going forward, the company [Mitsui Chemicals] intends to maintain stable product supply by creating a highly capital-efficient, reliably profitable phenol chain centered around the 200,000-ton capacity phenol plant at its Osaka Works," the joint statement noted. Mitsubishi Chemical, which operates a 280,000 tonne/year phenol plant at its Ibaraki Plant and produces derivatives like BPA, is also taking steps to improve its competitiveness. These steps include the closure in March 2024 of its 120,000 tonne/year BPA plant in Kurosaki, Fukuoka. Mitsubishi Chemical has another 100,000 tonne/year BPA plant in Kashima that will continue operating.

17-Jan-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 10 January. Canada’s Trudeau resigns as prime minister Canada's Justin Trudeau has resigned as prime minister and Liberal Party leader, with the country now set to head to the polls and return the Conservative party back into office. Mitsubishi Chem cancels plans for US MMA project Mitsubishi Chemical Corp (MCC) said on Tuesday it has decided not to proceed with its planned 350,000 tonne/year methyl methacrylate (MMA) project at Geismar, Louisiana. INSIGHT: Wall Street kicks off new year with 2025 earnings cuts for chemicals On Wall Street, hope springs eternal at the beginning of a new year, and especially for sectors that have underperformed in the past year. But for chemicals, analysts are kicking off the year with cuts to their 2025 profit forecasts as a recovery in housing, automotive and consumer durables appears to be further off in the horizon. UPDATE: Strike averted as ILA, ports reach tentative agreement Union dockworkers and US Gulf and East Coast port operators tentatively agreed to a new six-year contract Wednesday, averting a strike that was about a week away. INSIGHT: Mitsubishi cancels ethylene-based US MMA project amid global glut A surge in new methyl methacrylate (MMA) capacity in China will keep utilization rates depressed during the next few years, even with the recent decision by Mitsubishi Chemical to cancel its proposed project in the US. SHIPPING: Asia-US container rates still rising as tariff threat replaces strike concerns The tentative agreement between US Gulf and East Coast ports and dockworkers has taken some of the pressure off rates for shipping containers from Asia to the US, but the threat of tariffs proposed by President-elect Donald Trump is likely to support higher prices moving forward.

13-Jan-2025