Polyvinyl chloride (PVC)

MUMBAI (ICIS)–India’s Chemplast Sanmar plans to invest rupee (Rs) 1.6 billion ($19 million) to expand the capacity at its custom manufactured chemical division (CMCD) at Berigai in the southern Tamil Nadu state. The increase in capacity will help the company cater to growing demand in various industrial sectors, a company source said. Chemplast commissioned the first phase of the CMCD in September 2023 and expects to bring the second phase on stream by September 2025, the source added. The CMCD project which produces advanced intermediates for the agrochemical, pharmaceuticals and fine chemicals segments, will help the company expand into fine chemicals and pharmaceuticals, broaden its portfolio and access new markets and customers, he said. “We have recently signed a new letter of intent (LOI) with an agrochemical innovator for an advanced intermediate for a new active ingredient. This is the fifth LOI that we have signed over the past 20 months,” the source added. In addition to the CMCD division, Chemplast has a production capacity of 107,000 tonnes/year of specialty paste polyvinyl chloride (PVC) from its units at Cuddalore and Mettur in Tamil Nadu. Chemplast’s wholly owned subsidiary Chemplast Cuddalore Vinyls Ltd operates 331,000 tonnes/year of suspension PVC capacity in Tamil Nadu. The company also produces caustic soda, chlorochemicals, hydrogen peroxide at its three manufacturing facilities in the Tamil Nadu state and in Karaikal in the union territory of Puducherry. ($1 = Rs83.94)

22-Aug-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 16 August. US may consider VCM, EDC expansions amid global PVC oversupply – ICIS US-based polyvinyl chloride (PVC) producers may consider upstream and cost-advantaged vinyl chloride monomer (VCM) and ethylene dichloride (EDC) expansions rather than going all the way to the polymer as global competitive pressures in PVC should remain intense, an ICIS analyst said. Canada railroads may lock out workers starting 22 August Freight railroads Canadian Pacific Kansas City (CPKC) and Canadian National (CN) may start to lock out workers on 22 August. Weak demographics to prolong effects of chem overcapacity Weak growth in the world's population will slow economic growth, tighten labor markets and likely prolong the global glut in polyolefins, according to ICIS analysts. INSIGHT: US chem feedstock costs hit pandemic lows as midstream buildout continues Prices for ethane, the predominant US feedstock used to make ethylene, have fallen this month to levels not seen since the pandemic, and they will likely remain depressed until colder weather arrives later in the year. Canada rail disruption could shut economy down, harm trade relations with US US and Canadian chemical distributors and other trade groups are warning about potentially “catastrophic” impacts of a rail disruption that could start in Canada next week.

19-Aug-2024

MUMBAI (ICIS)–Indian Oil Corp (IOC) plans to beef up its petrochemical production capacity to 14m tonnes/year by 2030 which will increase the state-owned company’s petrochemical intensity index (PII) to 15%, nearly triple its current level, company chair SM Vaidya said. Total petrochemical investments to reach Rs1.2 trillion Domestic industry projected to grow at 8-10% over the next few years Local demand estimated to hit $1 trillion by 2040 Petrochemical projects worth Indian rupees (Rs) 300 billion ($3.6 billion) are under various stages of implementation, while feasibility studies are ongoing on projects worth Rs900 billion, based on IOC’s annual report for the fiscal year ending March 2024. The company’s current petrochemical production capacity stands at 4.28 million tonnes/year, based on its annual report for the fiscal year ending March 2024. IOC’s PII refers to the percentage of crude oil that is directly converted into chemicals. “We are integrating petrochemicals into our refining operations," IOC chairman SM Vaidya said at the company’s annual general meeting on 9 August. "This oil-to-chemical approach will enrich our value chain, meet rising petrochemical demand, reduce import reliance, and insulate the bottom line from the impacts of oil price fluctuations," he said. By 2026, its refining capacity will have increased by more than 25% from the current 70.3 million tonnes/year to 87.9 million tonnes/year, Vaidya said at  IOC’s annual general meeting on 9 August. By the end of the decade, IOC expects its refining capacity to be 107.4 million tonnes/year, according to the annual report released on 18 July. “In 2023-24, we successfully commissioned the first phase of naphtha cracker expansion and paraxylene-purified terephthalic acid (PX-PTA) revamp project in Panipat and an ethylene glycol plant at Paradip. These have propelled our PII to 6.1%,” Vaidya said. In November 2023, IOC increased the capacity at the naphtha cracker at its Panipat refinery complex from 857,000 tonnes/year to 947,000 tonnes/year. Following the PX-PTA revamp at its Panipat refinery, IOC has increased its PX production to 460,000 tonnes/year and PTA output to 700,000 tonnes/year, as per the company website. In March 2024, the company inaugurated its 357,000 tonne/year monoethylene glycol (MEG) project at its Paradip refinery complex. PETROCHEMICAL PROJECT PIPELINE Indian Oil plans to commission a 150,000 tonne/year butyl acrylate plant at its Gujarat refinery in the current financial year 2024-25. One of the company’s ambitious petrochemical projects include the mega complex at Paradip in eastern Odisha state, Vaidya said, noting that the Rs610 billion project is IOC’s “largest ever investment at a single location”. The petrochemical complex will include a world-scale 1.5 milion tonne/year naphtha cracker unit along with downstream process units for producing polypropylene (PP), high density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and polyvinyl chloride (PVC). The Paradip petrochemical project is currently in implementation stage and the company expects to commission it by August 2029, IOC said in its annual report released on 18 July. As part of its future expansions, IOC expects to begin operations at the 200,000 tonne/year PP plant at its Barauni refinery and 500,000 tonne/year PP line at its Gujarat refinery before end-March 2026, based on the company’s annual report. IOC has also enhanced its lube oil base stocks (LOBS) capacity at its Haldia complex and is setting up new plants at its Gujarat and Panipat refineries, Vaidya said, adding, “we aim to increase the capacity from 730,000 tonnes/year to 1.5 million tonnes/year”. The company expects to commission the 60,000 tonnes/year polybutadiene rubber (PBR) plant at its Panipat refinery by March 2025 as per the annual report. These planned expansions by IOC will help meet the rising petrochemical demand in the country, IOC stated in its latest annual report. The domestic petrochemical industry is "poised for substantial growth, driven by India’s sturdy macro fundamentals, population expansion and presently low per capita polymer consumption," it said. India's overall petrochemical demand is projected to nearly triple by 2040, with the industry's value expected to reach the $1 trillion mark, said Indian minister for petroleum and natural gas Hardeep Singh Pur in a presentation at the Asia Petrochemical Industry Conference (APIC) in May 2023. Focus article by Priya Jestin ($1 = Rs83.91) Thumbnail image: An Indian Oil petrol pump in Kolkata, 17 January 2022. (By Indranil Aditya/NurPhoto/Shutterstock)

14-Aug-2024

SINGAPORE (ICIS)–Asian shares rebounded on Tuesday, staging a relief rally after historic losses the previous day, as fresh US economic data for July alleviated recession fears. Meanwhile, oil prices surged by over $1/barrel in early Asian trade, fueled by escalating concerns about the spreading conflict in the Middle East. Japanese Nikkei 225 index jumps 9.55% in early Asian trade Asian petrochemical shares follow regional market rebound, Asahi Kasei gains China's petrochemical futures continue decline In Europe the main stock markets stabilized, opening slightly up before falling back. The UK’s FTSE 100 was down 0.08% at 11:20 London time, while Germany’s DAX and France’s CAC 40 were 0.17% and 0.46% lower respectively. The stronger-than-expected US Institute for Supply Management (ISM) Services Survey for July helped ease growth worries. The overall services purchasing managers' index (PMI) improved to 51.4 in July, swinging into expansion and beating the consensus for a rise to 51.0 from 48.8 in June. A PMI reading above 50 indicates growth in the services sector. By 02:30 GMT, Japan's benchmark Nikkei 225 was up 9.55%, South Korea's KOSPI was 3.07% higher and Hong Kong's Hang Seng Index rose by 0.06%. Singapore's Straits Times Index (STI) was down by 0.96% while China’s benchmark Shanghai Composite Index inched 0.20% higher after shedding 1.54% on Monday. Asian petrochemical shares tracked the rebound in regional bourses, with Japanese major Asahi Kasei jumping nearly 14% and South Korean producer LG Chem up by 4.59%. China’s petrochemical futures, however, continued lower in early trade on Tuesday. At 10:30 local time (02:30 GMT), futures of petrochemical commodities, including plastics, methanol and glycols, were trading lower, after losing 0.4-2.1% in the previous session. Product Yuan (CNY)/tonne Change Linear low density polyethylene (LLDPE) 8,231 -0.3% Polyvinyl chloride (PVC) 5,650 -0.5% Ethylene glycol (EG) 4,590 -0.5% Polypropylene (PP) 7,570 -0.4% Styrene monomer (SM) 9,183 -0.2% Paraxylene * 8,120 -0.9% Purified terephthalic acid (PTA)* 5,644 -0.8% Methanol* 2,468 -0.5% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange The global equity market sell-off intensified on Monday, with a wave of declines sweeping across major bourses worldwide. The rout began in Asia, where the Nikkei 225 index plummeted 12.4% day on day, marking its worst performance since 1987 while the KOSPI posted its steepest decline in its closing price to date. In Europe, the Stoxx Europe 600 index fell 2.2%, with all sectors and major indexes closing in negative territory. Utilities and oil and gas stocks suffered the steepest losses, leading the downturn in European markets. In the US, the Dow Jones Industrial Average plunged by about 1,000 points or down 2.6%, the Nasdaq dived 3.4% and the S&P 500 slid 3.0%. This marked the largest losses since September 2022 for the Dow and S&P, following a downturn late last week due to poor US jobs data and weak manufacturing PMI, which sparked recession fears. The unwinding of the yen "carry trade" after the Bank of Japan raised interest rates last week also added fuel to the retreat in global markets. For now, the US Federal Reserve has no intention of delivering an emergency rate cut before the Federal Open Market Committee (FOMC) meeting on 18 September, Singapore-based DBS Group Research said in a note on Tuesday. "The Fed wants markets to view the coming rate cuts as preserving the soft landing and supporting jobs, not as a delayed response to a weakening economy," it said. GEOPOLITICAL TENSIONS BOOSTING OILOil prices rose by more than $1/barrel in early Asian trade on Tuesday after dipping in the previous session, driven by supply concerns amid escalating tensions in the Middle East. "Markets are still waiting to see how Iran responds to Israel after it vowed retaliation for the assassination of Hamas’ political leader on Iranian soil," Dutch banking and financial information services firm ING said in a note. "Oil has been unable to escape the broader risk-off move seen across assets, as concerns grow over the potential for a US recession following some weaker macro data in recent weeks. This only adds to worries over Chinese demand." Reports that the Sharara oilfield in Libya has completely stopped production due to protests at the site also supported oil prices. This oilfield has a production capacity of 300,000 barrels/day but was producing around 270,000 barrels/day prior to the disruption. Focus article by Nurluqman Suratman Additional reporting by Fanny Zhang Thumbnail photo shows a stock market indicator board (Source: BIANCA DE MARCHI/EPA-EFE/Shutterstock) Updates, adding Europe detail in fourth paragraph

06-Aug-2024

SINGAPORE (ICIS)–Asian shares rebounded on Tuesday, staging a relief rally after historic losses the previous day, as fresh US economic data for July alleviated recession fears. Meanwhile, oil prices surged by over $1/barrel in early Asian trade, fueled by escalating concerns about the spreading conflict in the Middle East. Japanese Nikkei 225 index jumps 9.55% in early Asian trade Asian petrochemical shares follow regional market rebound, Asahi Kasei gains China's petrochemical futures continue decline The stronger-than-expected US Institute for Supply Management (ISM) Services Survey for July helped ease growth worries. The overall services purchasing managers' index (PMI) improved to 51.4 in July, swinging into expansion and beating the consensus for a rise to 51.0 from 48.8 in June. A PMI reading above 50 indicates growth in the services sector. By 02:30 GMT, Japan's benchmark Nikkei 225 was up 9.55%, South Korea's KOSPI was 3.07% higher and Hong Kong's Hang Seng Index rose by 0.06%. Singapore's Straits Times Index (STI) was down by 0.96% while China’s benchmark Shanghai Composite Index inched 0.20% higher after shedding 1.54% on Monday. Asian petrochemical shares tracked the rebound in regional bourses, with Japanese major Asahi Kasei jumping nearly 14% and South Korean producer LG Chem up by 4.59%. China’s petrochemical futures, however, continued lower in early trade on Tuesday. At 10:30 local time (02:30 GMT), futures of petrochemical commodities, including plastics, methanol and glycols, were trading lower, after losing 0.4-2.1% in the previous session. Product Yuan (CNY)/tonne Change Linear low density polyethylene (LLDPE) 8,231 -0.3% Polyvinyl chloride (PVC) 5,650 -0.5% Ethylene glycol (EG) 4,590 -0.5% Polypropylene (PP) 7,570 -0.4% Styrene monomer (SM) 9,183 -0.2% Paraxylene * 8,120 -0.9% Purified terephthalic acid (PTA)* 5,644 -0.8% Methanol* 2,468 -0.5% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange The global equity market sell-off intensified on Monday, with a wave of declines sweeping across major bourses worldwide. The rout began in Asia, where the Nikkei 225 index plummeted 12.4% day on day, marking its worst performance since 1987 while the KOSPI posted its steepest decline in its closing price to date. In Europe, the Stoxx Europe 600 index fell 2.2%, with all sectors and major indexes closing in negative territory. Utilities and oil and gas stocks suffered the steepest losses, leading the downturn in European markets. In the US, the Dow Jones Industrial Average plunged by about 1,000 points or down 2.6%, the Nasdaq dived 3.4% and the S&P 500 slid 3.0%. This marked the largest losses since September 2022 for the Dow and S&P, following a downturn late last week due to poor US jobs data and weak manufacturing PMI, which sparked recession fears. The unwinding of the yen "carry trade" after the Bank of Japan raised interest rates last week also added fuel to the retreat in global markets. For now, the US Federal Reserve has no intention of delivering an emergency rate cut before the Federal Open Market Committee (FOMC) meeting on 18 September, Singapore-based DBS Group Research said in a note on Tuesday. "The Fed wants markets to view the coming rate cuts as preserving the soft landing and supporting jobs, not as a delayed response to a weakening economy," it said. GEOPOLITICAL TENSIONS BOOSTING OILOil prices rose by more than $1/barrel in early Asian trade on Tuesday after dipping in the previous session, driven by supply concerns amid escalating tensions in the Middle East. "Markets are still waiting to see how Iran responds to Israel after it vowed retaliation for the assassination of Hamas’ political leader on Iranian soil," Dutch banking and financial information services firm ING said in a note. "Oil has been unable to escape the broader risk-off move seen across assets, as concerns grow over the potential for a US recession following some weaker macro data in recent weeks. This only adds to worries over Chinese demand." Reports that the Sharara oilfield in Libya has completely stopped production due to protests at the site also supported oil prices. This oilfield has a production capacity of 300,000 barrels/day but was producing around 270,000 barrels/day prior to the disruption. Additional reporting by Fanny Zhang Thumbnail photo shows a stock market indicator board (Source: BIANCA DE MARCHI/EPA-EFE/Shutterstock) Focus article by Nurluqman Suratman

06-Aug-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 2 August. Freight headache distracts from Europe’s PE, PP existential crisis Europe may be insulated from ballooning global supply of polyethylene (PE) and polypropylene (PP) in the second half of 2024, as spiking Asian freight costs are the latest pain point to disrupt trade flows. Balanced to tight conditions could persist for Europe BD in H2 2024 European butadiene (BD) market fundamentals are likely to remain in a balanced to tight position for much of the remainder of 2024. Europe base oils Group II/Group III expectations heavily dependent on import logistics for H2 The European Group II and Group III outlooks for the second half of 2024 center strongly on imports, with several logistical issues across the globe throwing some uncertainty onto the markets. Europe H2 ethylene, propylene won't be a repeat of H2 2023, may be better than expected The second half of 2024 is looking brighter for Europe olefins markets compared to the same periods in 2022 and 2023. No demand crashes are expected, and there are several supportive factors that could make H2 2024 better than initially anticipated. Europe PVC uncertainty continues on weak demand, new antidumping charges on imports The European polyvinyl chloride (PVC) market faces a period of uncertainty in H2 2024, compounding the difficulties in long-term outlook since the coronavirus pandemic began in 2020, and only slightly mitigated by antidumping charges for US and Egyptian imports.

05-Aug-2024

SINGAPORE (ICIS)–India will cut import duties for methylene diphenyl diisocyanate (MDI) by 2.5 percentage points to 5.0% effective 24 July, with plans to review the country's overall tariff structure in the next six months. MDI was among raw materials identified by the Indian government on which custom duties will be reduced. India's finance minister Nirmala Sitharaman announced the changes to the country's Basic Customs Duty (BCD) – a tax levied on imported goods at the time of their entry into the country – in her presentation of India’s national budget for the fiscal year ending March 2025 before parliament. HIGHER DUTIES FOR SOME PRODUCTSConversely, the minister said that the customs duty for polyvinyl chloride (PVC) flex films/flex banners will be raised to 25% from 10% currently starting 24 July, "to curb their imports". Flex banners are commonly used for outdoor advertising as billboards. "PVC flex banners are non-biodegradable and hazardous for environment and health," Sitharaman said. The customs duty on ammonium nitrate will also be raised to 10% from 7.5% from 24 July "to support existing and new capacities in the pipeline", she said. EXEMPTIONS FOR CRITICAL MINERALSSitharaman also proposed full exemption of 25 critical minerals from import duties, a cut in duty rates for two other products in the same category. "Minerals such as lithium, copper, cobalt and rare earth elements are critical for sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics,” she said. “This [cut in import duty] will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors," Sitharaman said. As for the electronics sector, the finance minister proposed to remove the BCD on oxygen-free copper for the manufacture of resistors. GOV'T TO REVIEW CUSTOMS DUTY STRUCTUREOver the next six months, the Indian government will conduct a thorough review of its customs duty rate structure, Sitharaman said. "I propose to undertake a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion and reduction of disputes," she said. "We will continue our efforts to simplify taxes, improve taxpayer services, provide tax certainty and reduce litigation while enhancing revenues for funding the development and welfare schemes of the government." It was not immediately clear how the revised BCD structure will impact implementation of import certifications of various chemicals under the Bureau of Indian Standards (BIS). BIS certification for some chemicals has been extended many times since they were introduced in 2019-20 to allow domestic end-user industries more time to adhere to the quality-control orders (QCO). Focus article by Nurluqman Suratman Thumbnail image: At the Vallarpadam Terminal in Kochi, Kerala, India. 2014 (By Olaf Kruger/imageBROKER/Shutterstock)

23-Jul-2024

SINGAPORE (ICIS)–India will cut import duties for methylene diphenyl diisocyanate (MDI) by 2.5 percentage points to 5.0% effective 24 July, the country’s finance minister Nirmala Sitharaman announced on Tuesday. MDI was among raw materials identified by the Indian government on which custom duties will be reduced. Sitharaman announced the changes to the country's Basic Customs Duty (BCD) – a tax levied on imported goods at the time of their entry into the country – in her presentation before parliament of India’s national budget for the fiscal year ending March 2025. Conversely, the minister said that the customs duty for polyvinyl chloride flex films/flex banners will be raised sharply from 10% currently to 25% from 24 July "to curb their imports". Flex banners are commonly used for outdoor advertising as billboards. "PVC flex banners are non-biodegradable and hazardous for environment and health," Sitharaman said. For ammonium nitrate, the custom duty will be raised to 10% from 7.5% from 24 July "to support existing and new capacities in the pipeline", she said. (adds paragraphs 4-7)

23-Jul-2024

HOUSTON (ICIS)–The US election could see Donald Trump return as president with majorities in both legislative chambers, which could bring a reduction in excessive red tape, weaker support for electric vehicles (EVs) and impose even more ponderous tariffs and trade restrictions. Incumbent President Joe Biden has dropped out of the race, and current polls show Trump ahead in the election The House of Representatives and the Senate are closely split between the nation's two major parties, so the Republican party could obtain majorities in both legislative chambers Regardless of who wins the presidential election on 5 November, the outlook remains pessimistic for tariff relief and trade deals in the US US TRADE POLICY WILL REMAIN RESTRICTIVERegardless of who wins the presidential election, US trade policy will remain restrictive, which could leave the nation's chemical exports vulnerable to retaliatory tariffs imposed during a trade dispute. Also, tariffs could increase the cost of imports of critical chemical intermediates. Biden's campaign website did not discuss trade policy, and he recently dropped out of the race. But he maintained many of the tariffs that Trump introduced during his presidency in 2016-2020. In addition, Biden raised tariffs on EVs from China. He signed bills passed by Congress that required local content rules for government programs. Trump's platform proposed a baseline tariff, with the candidate mentioning 10% for most imports. For China, he mentioned tariffs of more than 60% during an interview on the television program Fox News. Trump's campaign website proposes a reciprocal trade act, under which the US could match tariffs that another country imposes on its exports. Although the platform concedes that reductions are possible, the proposal focuses on the potential of higher tariffs. TRUMP TO ROLL BACK BIDEN'S EV POLICIESBiden did not mention EVs on his campaign website. But during his presidential term, the federal government used multiple laws and regulatory statutes to promote EV adoption. If Trump becomes president, he has pledged to cancel what he calls the electric vehicle mandate. He specified many of Biden's policies that encouraged the adoption of EVs. EVs typically consume more plastics on a per unit basis than automobiles powered by internal combustion engines (ICEs). EVs also pose different material challenges, which is increasing demand for different plastics and compounds. Policies that prolong the use of ICE-based vehicles could extend the operating life of the nation's refineries. Companies could be more willing to invest in maintenance and repairs if they are confident that they could recoup their investments. Refineries produce many building block chemicals, such as propylene, benzene, toluene and mixed xylenes (MX). BIDEN, TRUMP PRESENT EXTREMES ON CHEM REGULATIONSBiden and Trump lay on opposite extremes of regulations and policy. Under Biden, the federal government has adopted numerous regulations, many of which the chemical industry has said provided them with little benefit given the time and expense of compliance. The past six months has been described as the worst regulatory environment that the chemical industry has ever seen. That burdensome regulatory climate could persist if a Democrat wins the election, since personnel from the Biden administration could remain in place. The following lists some of the regulatory policies that could either persist under a Democratic administration or weaken under a Trump administration: The Environmental Protection Agency (EPA) has adopted a whole chemical approach in determining whether a substance poses an unreasonable risk under the nation's main chemical-safety program, known as the Toxic Substances Control Act (TSCA). The regulator is currently reviewing vinyl chloride monomer (VCM), acrylonitrile (ACN) and aniline, a feedstock used to make methylene diphenyl diisocyanate (MDI). Changes to the Clean Waters Act, the Risk Management Program (RMP) and the Hazard Communication Standard that were made by Biden. Biden has promoted environmental justice throughout the federal government. Environmental justice could make it harder for chemical companies to expand existing plants or build new ones. Because these are federal policies, a different president could reverse them. Trump could try to unravel some of Biden's rules to the degree possible under executive authority. However, some of the rules will persist because of entrenched bureaucracy or because they are final. The pace of new regulations would likely slow under a Trump presidency. He has pledged to restore his order that for every new regulation introduced by the federal government, two existing ones must be eliminated. OTHER POLICY DIFFERENCESSuperfund tax: If Trump wins the presidency and Republicans win the legislative branch, that could set up a repeal of the Superfund tax, which imposes taxes on several building-block chemicals and their derivatives. Republican legislators have already introduced bills to repeal the tax. Trump tax cuts: Trump has pledged that he would make his 2017 tax cuts permanent. These are set to expire at the end of 2025 from his previous term in 2016-2020. Oil production: Biden has imposed several restrictions on oil and gas production on federal land and on offshore leases, although this did not stop production from surging in the Permian Basin, much of which is outside of government control. Trump has pledged to remove those restrictions. Insight by Al Greenwood Thumbnail shows US capitol. Image by Lucky-photographer

22-Jul-2024

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 19 July. NEWS Braskem Idesa ethane supply more stable, PE prices to recover in H2 2025 – exec Supply of ethane from Pemex to polyethylene (PE) producer Braskem Idesa is now more stable after a renegotiation of the contract – but the global PE market remains in the doldrums, according to an executive at the Mexican firm. INSIGHT: Colombia’s wide single-use plastics ban kicks off amid industry reluctance Colombia’s single-use plastic ban, which affects a wide range of products, kicks off amid some industry reluctance after a hurried implementation, and with provisions to revise the legislation after a one year trial period. Brazil’s chemicals capacity utilization falls to record low in May at 58% The utilization rate at Brazil's chemical plants fell to 58% in May, the lowest level since records began in 1990, the country’s chemicals trade group Abiquim said on Wednesday. Brazil’s floods hit GDP growth in 2024 but strong recovery in 2025 – IMF The IMF has revised Brazil’s economic outlook for 2024, with GDP growth now forecast at 2.1%, down from an earlier projection of 2.2%, because of the floods in Rio Grande do Sul. Mota-Engil, PEMEX agree to build new ammonia, urea and AdBlue plant in Mexico Mota-Engil, through its subsidiary MOTA-ENGIL MEXICO, has signed an agreement with Pemex Transformación Industrial, a subsidiary of state-owned energy major Petróleos Mexicanos (“PEMEX”), to construct a fertilizer plant in Escolin in the state of Vera Cruz. Harvest Minerals undertakes rare earth elements exploration at Brazil fertilizer project Fertilizer producer Harvest Minerals announced a two-phase rare earth elements exploration program has commenced at its Arapua project in Brazil. Stolthaven Terminals chosen as potential operator for Brazil green ammonia export terminal Logistics firm Stolthaven Terminals announced that in cooperation with Global Energy Storage (GES), it has been selected as the only potential operator to design, build and operate a green ammonia terminal in Brazil to be located within the industrial export zone at Pecem in the state of Ceara. Silver Valley Metals selling Idaho project to refocus on Mexico lithium and SOP project Brownfield exploration company Silver Valley Metals announced it has signed an asset purchase agreement for the Ranger-Page project in Idaho which will allow it to refocus efforts at its lithium and potash project in central Mexico. BHP enters into further agreement with Vale over 2015 Brazil dam failure BHP announced it has entered into an agreement with Vale regarding group action proceedings in the UK in respect of the Fundao Dam failure in Brazil which occurred in 2015. PRICING Lat Am PE international prices stable to up on higher US export offers International polyethylene (PE) prices were assessed as steady to higher across Latin American countries on the back of higher US export offers. PP domestic prices fall in Argentina on sluggish demand, ample supply Domestic polypropylene (PP) prices were assessed lower in Argentina on the back of sluggish demand and ample supply. In other Latin American countries, prices were unchanged. US Gulf sees PVC price decline, Latin America stays stable Polyvinyl chloride (PVC) demand in Brazil has shown fluctuations from weak-to-stable this July, accompanied by sufficient supply. Although market prices have stabilized, local prices continue to face pressure following a recent price drop in the US Gulf market.

22-Jul-2024