Oleochemicals

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 13 June. ESA ’25: Global sulphuric acid market seeking clarity on H2 supply securityOffer pricing remains stable-to-firm across the global sulphuric acid market as Q2 nears its end – although market players’ views are sharply divided on the supply outlook for the second half of 2025. Europe PS and EPS markets face long supply as demand remains stableEuropean polystyrene (PS) and expandable polystyrene (EPS) markets are navigating a landscape characterized by long supply conditions and stable demand, which is expected to continue unchanged into Q3. Verbio to start up renewable chemicals plant next yearVerbio’s ethenolysis plant under construction in Germany is expected to start up in 2026, a company official told ICIS. Europe June epoxy stable to soft; summer could weigh on pricesEurope epoxy resins price discussions have been relatively stable for June so far,  but with some softening here and there, with ongoing margin challenges counterbalanced by subdued fundamentals. European jet fuel prices extend gains as demand recovers, capping supply dragEuropean jet fuel prices extended gains in the week to 11 June in response to a pick up in buying interest as seasonal demand gets underway. Markets slump, oil soars in wake of Iran strikesEurope chemicals stocks and equities markets fell in morning trading on Friday in the wake of Israel’s missile strikes across Iran, including nuclear facilities, with the prospect of additional attacks chilling sentiment.

16-Jun-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 13 June 2025. Asia-Europe VAM trade expansion driven by outages, US tariffs By Hwee Hwee Tan 13-Jun-25 15:01 SINGAPORE (ICIS)–Vinyl acetate monomer exports from Asia to Europe are on track for expansion during the second quarter, spurred by a push among traders to take positions before a regulatory quota waiving duties for imports into Europe is exhausted. Crude climbs more than 8% after Israeli strikes against targets in Iran By James Dennis 13-Jun-25 12:33 SINGAPORE (ICIS)–Crude prices surged, with Brent peaking nearly $9/barrel higher early on Friday, after Israel attacked targets in Iran, raising fears of a major escalation in conflict in the Middle East and resultant disruptions to crude production and exports from that region. INSIGHT: India’s BIS deadline may reshape global PVC trade landscape By Aswin Kondapally 11-Jun-25 14:00 MUMBAI (ICIS)–India is at a critical juncture in determining whether to implement or extend its Quality Control Orders (QCO) for polyvinyl chloride (PVC) resin sales under the Bureau of Indian Standards (BIS) Act, with the compliance deadline set for 24 June 2025. Asia crude glycerine offers fall as downstream ECH weakens in China By Helen Yan 12-Jun-25 11:42 SINGAPORE (ICIS)–Offers for crude glycerine in Asia declined, weighed down by weakness in downstream epichlorohydrin (ECH) market and bearish sentiment. ICIS China Petrochemical Price index May average falls on weak demand By Yvonne Shi 11-Jun-25 13:48 SINGAPORE (ICIS)–China's average petrochemical prices in May eased by 0.62% month on month as easing trade war concerns was offset by continued weakness in demand. Indian refineries plan green hydrogen projects worth Rs2 trillion By Priya Jestin 11-Jun-25 12:24 MUMBAI (ICIS)–India is currently planning green hydrogen initiatives worth around Indian rupees (Rs) 2 trillion ($23 billion), which include tenders for 42,000 tonne/year green hydrogen production by domestic oil refineries. INSIGHT: India’s BIS deadline may reshape global PVC trade landscape By Aswin Kondapally 11-Jun-25 14:00 MUMBAI (ICIS)–India is at a critical juncture in determining whether to implement or extend its Quality Control Orders (QCO) for polyvinyl chloride (PVC) resin sales under the Bureau of Indian Standards (BIS) Act, with the compliance deadline set for 24 June 2025. China vessel age limit stalls prompt trades with India By Hwee Hwee Tan 11-Jun-25 13:04 SINGAPORE (ICIS)–Prompt chemical tanker supply on China’s southbound trade lanes is expected to shrink following regulatory restrictions, constraining spot trades especially with India. INSIGHT: Hydrogen unlocking China's cement decarbonization potential By Patricia Tao 10-Jun-25 17:58 As China steps up efforts to meet its dual carbon targets, hydrogen is becoming a practical and strategic tool to cut emissions from the country’s highly carbon-intensive cement industry. INSIGHT: Countdown to China benzene futures debut: how will it affect the market? By Jenny Yi 10-Jun-25 17:11 SINGAPORE (ICIS)–On 14 May, the Dalian Commodity Exchange (DCE) issued a notice to solicit public opinions on proposed futures and options contracts for benzene along with the relevant rules. The deadline for feedback was 21 May 2025, marking the countdown to the launch of benzene futures and options in China. China's US exports to rebound on front-loading before Aug By Nurluqman Suratman 10-Jun-25 13:49 SINGAPORE (ICIS)–China's exports to the US are expected to rebound in June as exporters ramp up frontloading efforts before the 90-day trade truce between the two global economic superpowers expires in August. Asia, Mideast petrochemical markets brace for tough summer By Jonathan Yee 09-Jun-25 11:16 SINGAPORE (ICIS)–Tariff concerns and ample supply continue to exert pressure on petrochemical markets in both Asia and the Middle East, with regional demand staying weak, with consumption in India unlikely to pick up until September. INSIGHT: China polyester sector sees production cuts; tight supply boosts PTA/MEG By Cindy Qiu 09-Jun-25 12:00 SINGAPORE (ICIS)–China’s polyester producers are facing mounting cost pressure, as domestic purified terephthalic acid (PTA) and monoethylene glycol (MEG) prices reaped large gains after the Labour Day holiday (1-5 May 2025) on the back of tight supply.

16-Jun-2025

LONDON (ICIS)–Verbio’s ethenolysis plant under construction in Germany is expected to start up in 2026, a company official told ICIS. The plant will produce renewable chemicals based on rapeseed oil methyl ester. “The distillation columns are in, all the big-ticket items have been installed,” Marc Siegel, Verbio’s head of sales, Specialty Chemicals and Catalysts, said in an interview. While there were some delays, the project at the Bitterfeld chemicals park in Saxony-Anhalt state remains on budget, he said. Capacities: – 32,000 tonnes/year of methyl 9-decenoate (9-DAME) – 17,000 tonnes/year of 1-decene. Project cost: €80-100 million. Startup: early 2026 “We are seeing a lot of interest in the materials,” Siegel said. 9-DAME has applications in surfactants, lubricants, solvents, polymers and others while 1-decene is a precursor for lubricants, coating agents, surfactants, polymers and others. Siegel also noted an opportunity to convert 9-DAME, which is similar to C10 fatty acid methyl ester, into a C10 fatty acid or alcohol, replacing palm kernel oil (PKO). Customers would thus avoid the complex supply chains of PKO, and its price fluctuations. More important, however, they would reduce their carbon footprint, and they could put palm-free and GMO-free labels on their shampoos and other products, he said. Nongovernment organizations have created a lot of pressure against palm oil because of the environmental impacts of palm oil plantations, he noted. A NEW CHEMICAL INDUSTRY “Customers see the value of these renewable chemicals”, he said, adding that many companies have strong decarbonization targets. While Germany’s chemical industry was currently in crisis, renewable chemicals was its opportunity, he said. “All the companies are hurting now, but once we rebound, there will be a new chemical industry, otherwise we will end up as an industrial museum,” he said. “Sustainability is the way to go, chemical companies need to reinvent themselves in the things they do,” he said. For Verbio, the ethenolysis project is part of its strategy to reduce its reliance on biofuels, Siegel said. Biofuels is a heavily regulated market that leaves producers exposed to political decisions, he said and noted the changes in policies under the current US administration. The diversification into renewable chemicals will give Verbio additional mainstays outside the transport sector, he said. While Verbio plans to focus on producing and supplying the two renewable chemicals – 9-DAME and 1-decene – it does not intend to get involved in making downstream products, he added. Interview article by Stefan Baumgarten Thumbnail photo of Verbio’s ethenolysis plant under construction at Bitterfeld, Germany. Source: Verbio

10-Jun-2025

SINGAPORE (ICIS)–As China steps up efforts to meet its dual carbon targets, hydrogen is becoming a practical and strategic tool to cut emissions from the country’s highly carbon-intensive cement industry. Cement industry under carbon pressure From hydrogen as substitute to carbon utilization for new value Five-year window open for low-carbon pilots Cement accounts for around 13-14% of China's total carbon dioxide (CO2) emissions, ranking it the third-largest industrial source after power and steel. Facing mounting pressure from both international carbon regulations and domestic policy, China can tap hydrogen as a promising route toward meaningful emissions reductions. China’s cement industry is estimated to have emitted about 1.20 billion tonnes of CO2 in 2023, down for a third straight year. Emissions stood at 1.23 billion tonnes of CO2 in 2020, when China’s cement clinker output peaked at 1.58 billion tonnes, and cement output hit 2.38 billion tonnes, according to China Building Materials Federation. Around 60% of this comes from the chemical reaction when limestone is heated to make clinker, a process that is difficult to change in the short term due to raw material constraints. Another 35% comes from fossil fuels combustion to generate heat for clinker production, which is a key substitution target. As of March 2025, China's national ETS (Emissions Trading Scheme) expanded to include cement, alongside steel and aluminum, hence, the cement sector is also now fully exposed to carbon pricing. However, despite policy urgency, due to technical and equipment retrofitting complexities, the sector has moved slowly. The next five years will represent a pivotal window to scale pilot projects and validate decarbonization pathways. TWO ROUTES: CLEANER COMBUSTION & CARBON USE Hydrogen can help reduce emissions from cement mainly in two ways: fossil fuel substitution and carbon utilization. Fuel substitution with hydrogen is the immediate decarbonization leverage. Hydrogen can directly replace coal or gas in kilns. Its high calorific value and zero-carbon combustion profile make it an ideal fuel. However, because of its weak flame radiation and explosion risk, hydrogen is usually mixed with other fuels in current tests. European players lead the change: Cemex, a leading global building materials manufacturer, completed hydrogen retrofits at all its European cement plants by 2020, targeting a 5% CO2 reduction by 2030. Heidelberg Materials, another cement giant actively exploring hydrogen applications, achieved 100% net-zero fuel operation at its UK Ribblesdale plant in 2021, using a mix of 39% hydrogen, 12% meat and bone meal, and 49% glycerin. Another option is to combine CO2 capture from kiln exhausts with renewable hydrogen to synthesize e-methanol or e-methane. E-methanol and e-methane are synthetic fuels made by combining captured CO2 with renewable hydrogen using renewable electricity. LafargeHolcim, as one of the largest cement producers in the world, has multiple hydrogen decarbonisation projects across Europe. It is leading with its HyScale100 project in Germany, which aims to install electrolyzers at its Heide refinery, and combine electrolyzed hydrogen with CO2 from its Lägerdorf plant to produce e-methanol starting 2026. This model not only reduces emissions but also builds links across industries to create a circular carbon economy. CHINA: FROM POLICY PUSH TO PILOT PROJECTS Policy support is gaining momentum in China. The 2024 Special Action Plan for Cement Energy Saving and Carbon Reduction aims to raise alternative fuel use to 10% by 2025, explicitly naming hydrogen. The Ministry of Industry and Information Technology (MIIT) sets out a 2030 goal to commercialize low-carbon kilns using hydrogen. Amid the decarbonization policy signals, China’s major cement producers are also stepping up: The Beijing Building Materials Academy of Scientific Research (BBMA) under Beijing Building Materials Group (BBMG) completed China’s first industrial trial in December 2024 using >70% hydrogen in calcination. Anhui Conch Cement Company used 5% hydrogen in pre-calciners, cutting 0.01 tonnes of CO2 per tonne of clinker, albeit with an added cost of yuan (CNY) 32.7/tonne. Tangshan Jidong Cement is building a full hydrogen supply chain in partnership with China National Chemical Engineering. Hydrogen is also being produced on-site using waste heat from clinker kilns to power electrolysis – a promising approach to localize supply and enhance energy efficiency. CHALLENGES STILL AHEAD Despite policy and pilot momentum, commercialization hydrogen use in China’s cement sector still faces barriers. Renewable hydrogen costs are too high for wide use. Studies suggest it would need to fall below $0.37/kg to be cost-effective in cement under carbon trading. Hydrogen is hard to store and transport, and its flame instability requires kiln retrofits and safety systems. China also lacks unified national technical standards for using hydrogen in cement, slowing adoption. Hydrogen may not yet be ready for mass rollout, but it is clearly part of the future of cement in China. As production costs fall, carbon markets grow, and hydrogen technologies mature, hydrogen could become a real driver of change in one of China’s hardest-to-decarbonize sectors. Insight article by Patricia Tao

10-Jun-2025

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Is the petrochemicals industry really a free market? Or have we been telling ourselves a comforting fiction? As we sift through margins, P&Ls, and operating rates to predict a recovery, we might be asking the wrong questions. Let’s rewind to 2014. While China’s state media signalled a major push toward self-sufficiency in petrochemicals, many Western analysts dismissed it — seeing China through the lens of profit maximisation. But I was told way back in 2000 that China’s strategy had just as much to do with jobs and economic value creation as with profits. Fast forward to today: polyester fibres, , polyethylene terephthalate (PET) film and bottle grade resins, purified terephthalic acid (PTA), styrene and polypropylene (PP),— China is nearly or completely self-sufficient in these markets. The drivers? National security, supply certainty, and industrial policy. And it’s not just China. Middle East investments — underpinned by cheap feedstocks, state ownership, and now oil demand substitution — follow similar, non-market logic. If key players haven’t been led by market signals alone, what happens next? Despite the deepest downturn in petrochemical history — likely to stretch into 2028 — new capacities keep rising. Not from those chasing short-term profit, but from those with long-term, state-backed agendas. Just a modest rise in China’s PP operating rates above the ICIS base case assumption could flip China into being a net exporter by 2027. The trade war may play a role here, as it has increased supply security concerns. True, there are more private petrochemical companies in China than ten years ago. But this latest wave of investment is more state-owned-enterprise-led than the previous one. And private companies can also benefit from local and central government support Saudi investments in refinery-to-petrochemicals will persist. More ethane crackers in the Middle East will be built. China’s plant-build costs are often 50%+ lower than the U.S., thanks to relentless innovation support. So… what does this mean for producers operating on pure market terms? Can they survive, let alone thrive, in a landscape shaped by strategic ambition rather than shareholder return? Your thoughts are welcome. Let’s start the conversation. 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.

04-Jun-2025

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 30 May. Thailand’s GC deepens focus on specialties amid overcapacity – CEO By Nurluqman Suratman 26-May-25 11:16 SINGAPORE (ICIS)–Thailand's PTT Global Chemical (GC) is deepening its commitments to feedstock flexibility, high-value specialty and bio-based & green chemicals, as CEO Narongsak Jivakanun urges regional coordination within ASEAN to tackle global supply chain disruptions and overcapacity. INSIGHT: Asia oxo-alcohols prices expected to face downward pressure in H2 2025 By Lina Xu 26-May-25 12:00 SINGAPORE (ICIS)–Asia’s oxo-alcohols market is forecast to face significant downward pricing pressure in the second half of 2025, driven by rapid capacity expansion in China and an uncertain recovery in downstream demand. Asia fatty alcohol mid-cuts demand to soften as feedstock PKO declines By Helen Yan 27-May-25 11:18 SINGAPORE (ICIS)–Asia fatty alcohols market may see a further softening in demand as buyers hold back their purchases, given the decline in the feedstock palm kernel oil (PKO) costs in the past month. INSIGHT: China's polyolefins demand shifts towards domestic consumption due to export uncertainty By Amy Yu 27-May-25 12:00 SINGAPORE (ICIS)–China’s polyolefins demand for 2025 is expected to reach 85 million tonnes, up by 3% year on year, driven by the domestic market in the face of the uncertain outlook of China-US trade negotiations. UPDATE: Japan's Asahi Kasei to discontinue MMA, CHMA, PMMA, SB latex businesses By Nurluqman Suratman 27-May-25 15:42 SINGAPORE (ICIS)–Japanese chemicals major Asahi Kasei on Tuesday said that it will be discontinuing its businesses for methyl methacrylate (MMA) monomer, cyclohexyl methacrylate (CHMA), polymethyl methacrylate (PMMA) resin and styrene-butadiene (SB) latex. Singapore April chemicals output down 3.2%; H2 2025 outlook firm By Jonathan Yee 27-May-25 15:26 SINGAPORE (ICIS)–Singapore's chemicals production declined 3.2% year on year in April amid tariff-led front-loading, official data showed on 26 May, while a pause in 'reciprocal' tariffs could support further growth in H2 2025. ASEAN leaders voice 'deep concerns' over US tariffs By Nurluqman Suratman 28-May-25 11:19 SINGAPORE (ICIS)–Southeast Asian leaders at the 46th ASEAN Summit in Kuala Lumpur, Malaysia have voiced "deep concern" over the US' recent move to impose unilateral sweeping tariffs. INSIGHT: India PVC imports brace for monsoon dip, but policy twists could stir the market By Aswin Kondapally 30-May-25 10:02 MUMBAI (ICIS)–India’s Polyvinyl chloride (PVC) imports are expected to moderate in the coming months due to seasonal patterns, as monsoon conditions typically dampen demand from key sectors such as construction and agriculture.

02-Jun-2025

HOUSTON (ICIS)–The US can maintain nearly all the plastic and chemical tariffs it imposed this year after an appeals court granted on Thursday the government's request to stay the judgment of a lower court. The stay will remain in place while the case is under consideration by the US Court of Appeals for the Federal Circuit. Earlier, the US lost a judgment over its tariffs in the US Court of International Trade. That lower court ruled that the president exceeded its authority when it imposed tariffs under the International Emergency Economic Powers Act (IEEPA). These IEEPA tariffs included nearly all of the duties that the US imposed in 2025 on imports of commodity plastics and chemicals. Had the appeals court rejected the government's request for a stay, then the US would have had 10 calendar days to withdraw the tariffs it imposed under IEEPA. The tariffs covered by the ruling include the following: The 10% baseline tariffs against most of the world that the US issued during its so-called Liberation Day event on 2 April. These include the reciprocal tariffs that were later paused. The US issued the tariffs under Executive Order 14257, which intended to address the nation's trade deficit. The tariffs that the US initially imposed on imports from Canada under Executive Order 14193. These were intended to address drug smuggling. The US later limited the scope of these tariffs to cover imported goods that do not comply with the nations' trade agreement, known as the US-Mexico-Canada Agreement (USMCA). The tariffs that the US initially imposed on imports from Mexico under Executive Order 14194. These were intended to address illegal immigration and drug smuggling. Like the Canadian tariffs, these were later limited to cover imported goods that did not comply with the USMCA. The 20% tariffs that the US imposed on imports from China under Executive Order 14195, which was intended to address drug smuggling. Because the appeals court granted the government's request for a stay, the US can maintain the IEEPA tariffs. The ruling did not cover sectoral tariffs imposed on specific products like steel, aluminium and auto parts, and it does not cover the duties that the US imposed on Chinese imports during the first term of US President Donald Trump. IMPLICATIONS OF THE RULINGIf the ruling is upheld by the higher courts, it could bring some imports of plastics and chemicals back to the US while lowering costs of other products. While the US has large surpluses in many plastics and chemicals, it still imports several key commodities. US states that border Canada import large amounts of polyethylene (PE) and other plastics from that country because it is closer than the nation's chemical hubs along the Gulf Coast. Other significant imports include base oils, ammonia, polyethylene terephthalate (PET), methylene diphenyl diisocyanate (MDI), methanol and aromatics such as benzene, toluene and mixed xylenes (MX). RULING COULD REDIRECT CHINESE EXPORTS OF PLASTIC PRODUCTSThe IEEPA tariffs of the US caused countries to redirect exports of plastics and chemicals to other markets, particularly to Europe. The result depressed prices for those plastics and chemicals. If the ruling holds, some of those exports could return to the US and reduce the quantity of exports arriving in Europe. The IEEPA tariffs had a similar effect on the plastic products exports by China. Those exports were redirected to other countries, especially southeast Asia. These redirected shipments flooded those countries with plastic goods, displacing local products and lowering domestic demand for the plastics used to make those products. If the ruling is restored by higher courts, then it could direct many of those shipments back to the US, although they would unlikely affect shipments of auto parts. Those shipments are covered by the sectoral tariffs, and the court ruling did not void those tariffs. RULING REMOVES BASIS FOR RETALIATORY TARIFFS AGAINST US PLASTICS, CHEMSChina had already imposed blanket tariffs in retaliation to the IEEPA tariffs the US imposed on its exports. China unofficially granted waivers for US imports of ethane and PE, but those for liquefied petroleum gas (LPG) were still covered by the duty. China relies on such imports as feedstock for its large fleet of propane dehydrogenation (PDH) units, which produce on-purpose propylene. If upheld, the ruling could restore many of those exports and improve propylene margins for those PDH units. The EU was preparing to impose retaliatory tariffs on exports of nearly every major commodity plastic from the US. Other proposals would cover EU imports of oleochemicals, tall oil, caustic soda and surfactants from the US. Canada also prepared a list of retaliatory tariffs that covered US imports of PE, polypropylene (PP) and other plastics, chemicals and fertilizers. If the ruling holds, it would remove the basis for the proposed tariffs of Canada and the EU as well as the existing ones already imposed by China. RULING WOULD NOT ELIMINATE THREAT OF FUTURE TARIFFSEven if the higher courts uphold the ruling and bars tariffs under IEEPA, the US has other means to impose duties that are outside of the bounds of the ruling. Section 122 of the Trade Act of 1974. Such tariffs would be limited to 15%, could last for 150 days and address balance of payment deficits. Tariffs imposed under the following statutes would require federal investigations, which could delay them by several months. Section 338 of the Tariff Act of 1930. The president can impose tariffs of up to 50% against countries that discriminate against US commerce. Section 301 of the Trade Act of 1974, which addresses unfair trade practices. This was the basis on the tariffs imposed on many Chinese imports during the peak of the trade war between the two countries. Section 232 of the Trade Expansion Act of 1962, which addresses imports with implications for national security. Trump used this provision to impose tariffs on steel and aluminum. The US has started Section 232 on the following imports: Pharmaceutical and active pharmaceutical ingredient (APIs) – Section 232 Semiconductors and semiconductor manufacturing equipment – Section 232 Medium and heavy-duty trucks, parts – Section 232 Critical minerals – Section 232 Copper – Section 232 Timber and lumber – Section 232 Commercial aircraft and jet engines – Section 232 Ship-to-shore cranes assembled in China or made with parts from China – Section 301 Shipbuilding – Section 301 The case number for the appeal is 2025-1812. The original lawsuit was filed in the US Court of International Trade by the plaintiffs VOS Selections, Genova Pipe, Microkits, FishUSA and Terry Precision Cycling. The case number is 25-cv-00066. Thumbnail Photo: A container ship, which transports goods overseas. (Image by Costfoto/NurPhoto/Shutterstock) Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy

29-May-2025

LONDON (ICIS)–BASF will become the sole owner of Alsachimie, taking over the shares of former joint venture partner DOMO Chemicals, the German major announced on Wednesday. Currently, BASF holds 51% of the shares and is set to buy DOMO’s 49% stake in the company which, subject to consultations with relevant social bodies of Alsachimie, will close by mid-2025. Alsachimie was founded by the two companies in February 2020 and situated on the French-German border, producing key materials for polyamides, including KA-oil, adipic acid and hexamethylenediamine adipate (AH salt). The purchase would complement BASF’s nylon 6,6 precursor production at its site in Chalampe, France, and enable further backward integration into key raw materials for the value chain in Europe. “By taking over the shares of our partner DOMO Chemicals, we are further strengthening our leading position and long-term commitment to the nylon 6,6 value chain and paving the way for future growth with our customers in industries such as automotive and textiles,” said BASF board member Stephan Kothrade. “The intended transaction aligns with our strategy to continue to focus on delivering tailored polyamide solutions in the core segments automotive, consumer goods, industrial and electrical & electronics industries,” said DOMO Chemicals CEO Yves Bonte.

28-May-2025

HOUSTON (ICIS)–The US delay of its proposed 50% tariffs on EU imports will still leave its polymers vulnerable to retaliatory tariffs. The new deadline is 9 July. For US exports, the EU has already drafted a list of targets for retaliatory tariffs, part of its second round of €95 billion in tariffs on US imports. A full list of all the proposed imports can be found here. This is on top of the first round of €21 billion in tariffs on US imports. A full list of all the proposed imports can be found here. In all, the EU could impose tariffs on nearly every major polymer from the US, including polyethylene (PE), polypropylene (PP), polystyrene (PS), polyvinyl chloride (PVC) and polyethylene terephthalate (PET). The EU is also considering tariffs on US imports of surfactants, fatty acids, fatty alcohols, and tall oil, a feedstock used to make renewable diesel, sustainable aviation fuel (SAF) and renewable naphtha. The following table lists some of the many plastics and chemicals proposed on the EU's second round of tariffs. CN CODE DESCRIPTION 28151200 sodium hydroxide "caustic soda" in aqueous solution "soda lye or liquid soda" 29053926 butane-1,4-diol or tetramethylene glycol [1,4-butanediol] having a bio-based carbon content of 100% by mass 29091910 tert-butyl ethyl ether (ethyl-tertio-butyl-ether, etbe) 29152100 acetic acid 29153200 vinyl acetate 29291000 isocyanates 32061100 pigments and preparations based on titanium dioxide of a kind used for colouring any material or produce colorant preparations, containing >= 80% by weight of titanium dioxide calculated on the dry matter (excl. preparations of heading 3207, 3208, 3209, 3210, 3212, 3213 and 3215) 32061900 pigments and preparations based on titanium dioxide of a kind used for colouring any material or produce colorant preparations, containing < 80% by weight of titanium dioxide calculated on the dry matter (excl. preparations of heading 3207, 3208, 3209, 3210, 3212, 3213 and 3215) 34023100 linear alkylbenzene sulphonic acids and their salts 34023990 anionic organic surface-active agents, whether or not put up for retail sale (excl. linear alkylbenzene sulphonic acids and their salts, and aqueous solution containing by weight 30-50% of disodium alkyl [oxydi(benzenesulphonate)]) 34024100 cationic organic surface-active agents, whether or not put up for retail sale 34024200 non-ionic organic surface-active agents, whether or not put up for retail sale (excl. soap) 34024900 organic surface-active agents, whether or not put up for retail sale (excl. soap, anionic, cationic and non-ionic) 34025010 surface-active preparations put up for retail sale (excl. organic surface-active preparations in the form of bars, cakes, moulded pieces or shapes, and organic surface-active products and preparations for washing the skin in the form of liquid or cream) 38030010 crude tall oil 38030090 tall oil, whether or not refined (excl. crude tall oil) 38170050 linear alkylbenzene 38170080 mixed alkylbenzenes and mixed alkylnaphthalenes, produced by the alkylation of benzene and naphthalene (excl. linear alkylbenzene and mixed isomers of cyclic hydrocarbons) 38231100 stearic acid, industrial 38231200 oleic acid, industrial 38231300 tall oil fatty acids, industrial 38231910 fatty acids, distilled 38231930 fatty acid distillate 38231990 fatty acids, industrial, monocarboxylic; acid oils from refining (excl. stearic acid, oleic acid and tall oil fatty acids, distilled fatty acids and fatty acid distillate) 38237000 fatty alcohols, industrial 38260010 fatty-acid mono-alkyl esters, containing by weight => 96,5 % of esters "famae" 38260090 biodiesel and mixtures thereof, not containing or containing < 70 % by weight of petroleum oils or oils obtained from bituminous minerals (excl. fatty-acid mono-alkyl esters containing by weight >= 96,5 % of esters "famae") 39013000 ethylene-vinyl acetate copolymers, in primary forms 39019080 polymers of ethylene, in primary forms (excl. polyethylene, ethylene-vinyl acetate copolymers, ethylene-alpha-olefins copolymers having a specific gravity of < 0,94, ionomer resin consisting of a salt of a terpolymer of ethylene with isobutyl acrylate and methacrylic acid and a-b-a block copolymer of ethylene of polystyrene, ethylene-butylene copolymer and polystyrene, containing by weight <= 35% of styrene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms) 39021000 polypropylene, in primary forms 39023000 propylene copolymers, in primary forms 39029010 a-b-a block copolymer of propylene or of other olefins, of polystyrene, ethylene-butylene copolymer and polystyrene, containing by weight <= 35% of styrene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms 39029020 polybut-1-ene, a copolymer of but-1-ene with ethylene containing by weight <= 10% of ethylene, or a blend of polybut-1-ene with polyethylene and/or polypropylene containing by weight <= 10% of polyethylene and/or <= 25% of polypropylene, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms 39031100 expansible polystyrene, in primary forms 39031900 polystyrene, in primary forms (excl. expansible) 39032000 styrene-acrylonitrile copolymers "san", in primary forms 39033000 acrylonitrile-butadiene-styrene copolymers "abs", in primary forms 39039090 polymers of styrene, in primary forms (excl. polystyrene, styrene-acrylonitrile copolymers "san", acrylonitrile-butadiene-styrene "abs", copolymer solely of styrene with allyl alcohol, of an acetyl value of >= 175 and brominated polystyrene, containing by weight >= 58% but <= 71% of bromine, in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms) 39041000 poly"vinyl chloride", in primary forms, not mixed with any other substances 39042100 non-plasticised poly"vinyl chloride", in primary forms, mixed with other substances 39042200 plasticised poly"vinyl chloride", in primary forms, mixed with other substances 39051200 poly"vinyl acetate", in aqueous dispersion 39051900 poly"vinyl acetate", in primary forms (excl. in aqueous dispersion) 39052100 vinyl acetate copolymers, in aqueous dispersion 39052900 vinyl acetate copolymers, in primary forms (excl. in aqueous dispersion) 39053000 poly"vinyl alcohol", in primary forms, whether or not containing unhydrolyzed acetate groups 39061000 poly"methyl methacrylate", in primary forms 39071000 polyacetals, in primary forms 39072911 polyethylene glycols, in primary forms 39072920 polyether alcohols, in primary forms (excl. bis(polyoxyethylene) methylphosphonate and polyethylene glycols) 39072999 polyethers in primary forms (excl. polyether alcohols, polyacetals and copolymer of 1- chloro-2,3-epoxypropane with ethylene oxide) 39073000 epoxide resins, in primary forms 39074000 polycarbonates, in primary forms 39075000 alkyd resins, in primary forms 39076100 poly"ethylene terephthalate", in primary forms, having a viscosity number of >= 78 ml/g 39076900 poly"ethylene terephthalate", in primary forms, having a viscosity number of < 78 ml/g 39079110 unsaturated liquid polyesters, in primary forms (excl. polycarbonates, alkyd resins, poly"ethylene terephthalate" and poly"lactic acid") 39079190 unsaturated polyesters, in primary forms (excl. liquid, and polycarbonates, alkyd resins, poly"ethylene terephthalate" and poly"lactic acid") 39079980 polyesters, saturated, in primary forms (excl. polycarbonates, alkyd resins, poly"ethylene terephthalate", poly"lactic acid", poly"ethylene naphthalene-2,6-dicarboxylate" and thermoplastic liquid crystal aromatic polyester copolymers) 39089000 polyamides, in primary forms (excl. polyamides-6, -11, -12, -6,6, -6,9, -6,10 and -6,12) 39091000 urea resins and thiourea resins, in primary forms 39092000 melamine resins, in primary forms 39093100 poly"methylene phenyl isocyanate" "crude mdi, polymeric mdi", in primary forms 39094000 phenolic resins, in primary forms 39095010 polyurethane of 2,2'-"tert-butylimino"diethanol and 4,4'-methylenedicyclohexyl diisocyanate, in the form of a solution in n,n-dimethylacetamide, containing by weight >= 50% of polymer 39095090 polyurethanes in primary forms (excl. polyurethane of 2,2'-"tert-butylimino"diethanol and 4,4'-methylenedicyclohexyl diisocyanate, in the form of a solution in n,ndimethylacetamide) Source: EU CN CODE DESCRIPTION 39011010 linear polyethylene with a specific gravity of < 0,94, in primary forms 39011090 polyethylene with a specific gravity of < 0,94, in primary forms (excl. linear polyethylene) 39012010 polyethylene in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms, of a specific gravity of >= 0,958 at 23°c, containing <= 50 mg/kg of aluminium, <= 2 mg/kg of calcium, of chromium, of iron, of nickel and of titanium each and <= 8 mg/kg of vanadium, for the manufacture of chlorosulphonated polyethylene 39012090 polyethylene with a specific gravity of >= 0,94, in primary forms (excl. polyethylene in blocks of irregular shape, lumps, powders, granules, flakes and similar bulk forms, of a specific gravity of >= 0,958 at 23°c, containing <= 50 mg/kg of aluminium, <= 2 mg/kg of calcium, of chromium, of iron, of nickel and of titanium each and <= 8 mg/kg of vanadium, for the manufacture of chlorosulphonated polyethylene) 39014000 ethylene-alpha-olefin copolymers, having a specific gravity of < 0,94 , in primary forms 39081000 polyamides-6, -11, -12, -6,6, -6,9, -6,10 or -6,12, in primary forms Source: EU

27-May-2025

SINGAPORE (ICIS)–Thailand's PTT Global Chemical (GC) is deepening its commitments to feedstock flexibility, high-value specialty and bio-based & green chemicals, as CEO Narongsak Jivakanun urges regional coordination within ASEAN to tackle global supply chain disruptions and overcapacity. Supply chain reorganization a major concern Proposes regional coordination, not just joint ventures GC targets net-zero emissions by 2050 Highlighting the unprecedented challenges facing the chemical industry currently, Jivakanun said, “We've all seen the same situations. It’s simply a period of high uncertainty, making it challenging to manage the business daily.” The CEO was speaking with ICIS on the sidelines of the two-day Asia Petrochemical Industry Conference (APIC) in Bangkok, Thailand, which ended on 16 May. Jivakanun added that “the recent tariffs will blur the picture”. He noted that supply chain issues are a dominant concern, with companies reorganizing their business operations to circumvent potential tariffs and trade barriers. “I think everyone's trying to figure out how best to reorganize their supply chain,” Jivakanun noted. He observed “a big uptick in terms of volumes” before 2 April, followed by a slowdown in some value chains and a trade flow change. CALL FOR ASEAN COLLABORATION AMID OVERSUPPLY Addressing the pervasive industry concern of oversupply, Jivakanun called for regional coordination among ASEAN member countries. “What I envision and propose to all the players is coordination,” Jivakanun said, distinguishing this approach from conventional joint ventures. “We may look at Southeast Asia as a region. If we were to build an ecosystem or supply chain for the future specialty market, we should know where we're heading in terms of market end-use and then work backward,” Jivakanun explained. He believes “now is the time for us to think about that.” He acknowledged data suggesting 2028 would be a turning point for chemicals oversupply conditions, expressing hope for “more careful, more disciplined” capacity building. In response to questions about the current downturn in demand, Jivakanun said “Everyone is trying to keep their assets going as much as they can, aligning with marginal cost.” He added that such conditions are “not sustainable,” anticipating further industry consolidation and rationalization. FOCUS ON THREE STRATEGIC AREAS GC has diversified considerably from being a purely commodity-based business primarily focused in Thailand, and is now focusing on three strategic areas: feedstock flexibility, diversification into bio-based products, and specialty chemicals. GC commands robust feedstock flexibility, allowing it to utilize a wide range of raw materials from ethane to propane and liquid naphtha, he said. “GC derives ethane from the gas fields in Thailand, and we'll continue to maximize that. Now, GC sees an opportunity to bring ethane from the US,” Jivakanun said. This strategic import project will see “400,000 tonnes of ethane from the US to Thailand,” enhancing cost savings from alternative feedstocks. The company expects to begin receiving imported ethane in 2029. This move comes as more companies, from Europe to India and China, are growing comfortable with long-distance ethane shipments, driven by the competitiveness of US shale gas. ADVANCING BIO/GREEN CIRCULARITY AND NET-ZERO ASPIRATIONSBio-based initiatives are among the key focuses for GC. The company began with oleochemicals through its joint venture Emery Oleochemicals, and developed PLA biopolymer via NatureWorks. A significant milestone is the upcoming PLA biopolymer production plant in Thailand, which will utilize sugarcane as a raw material. “The plant is due to be completed by the end of the year and start commercial operation next year,” Jivakanun said. While acknowledging increasing supply in the market, he emphasized that demand growth will stem from “new application” development, citing examples in 3D printing, tea bags, and coffee capsules, particularly driven by Asian markets. More recently, GC has expanded into the biorefinery business, launching an initiative this year using co-processing technology. The co-processing technology allows GC to integrate “non-fossil fuel-based feedstocks into our petroleum-based refinery with very minimal modification,” Jivakanun explained, enabling the production of bio-based products. GC is also Thailand’s first commercialized producer of sustainable aviation fuel (SAF), employing the mass balance approach and is certified by the ISCC CORSIA standard. These efforts align with GC’s commitment to becoming a net-zero company by 2050 through a three-pronged approach: optimizing production to reduce carbon footprint, diversifying to low-carbon and high-value businesses, and implementing CCUs. The company is collaborating with PTT Group on a major CCU infrastructure project in Thailand, and is openly inviting international cooperation in this area. “These strategies define how we aim to grow our business while simultaneously decarbonizing our footprint,” Jivakanun added As for the third pillar, Jivakanun said that one of the company’s growth platform is centered on building regional hubs. “We believe these hubs are vital solutions for the future,” Jivakanun said. GC’s wholly owned subsidiary allnex is now replicating its hub model in India after successfully establishing one in China, with its Phase 1 capacity expansion expected to finish by year-end. The company’s final investment decision for a new allnex southeast Asia hub in Thailand is expected by early next year, leveraging its fully integrated infrastructure in Map Ta Phut, Rayong. Interview article by Nurluqman Suratman Thumbnail image: A PTTGC production facility. (Source: GC company factsheet)

26-May-2025