Synthetic rubbers
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Discover the factors influencing synthetic rubbers markets
There are endless potential uses for synthetic rubbers which can be found in everything from vehicle tyres to footwear. Spikes in demand occur frequently due to the breadth of downstream sectors in play, as well as the changeable market dynamics of each. Synthetic rubbers market players therefore need fast and easy access to accurate, relevant and timely information. This way, the right decisions can be made quickly.
Using an established international network of market experts, we are able to provide the speed, breadth and depth of coverage needed, along with benchmark prices to use in your negotiations. We monitor frequently traded synthetic rubbers varieties: styrene butadiene rubber (SBR); polybutadiene rubber (PBR); acrylonitrile butadiene rubber (NBR); and elastomer ethylene propylene diene monomer (EPDM) – so you can be sure to discover exactly the information you need.
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Americas top stories: weekly summary
HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 25 October. Earlier unplanned outages contributing to tight US MEG, DEG supply in Q4 US monoethylene glycol (MEG) and diethylene glycol (DEG) spot availability is expected to remain snug through Q4, while concerns are growing for triethylene glycol (TEG) supply as peak season begins. US Sherwin-Williams expects choppy H1, sees signs of consumer weakness Sherwin-Williams expects demand during the first half of 2025 will remain choppy while the company waits for what it expects will be an inevitable inflexion point for demand for its products, the US-based paints and coatings producer said on Tuesday. Mexico's Orbia lowers 2024 guidance, PVC group reports flat Q3 income Orbia's vinyls business reported on Wednesday that Q3 operating income was flat year on year amid lower costs for ethylene and electricity as well lower volumes and prices. Styrolution to permanently shutter Sarnia styrene plant next year INEOS Styrolution has decided not to restart its 445,000 tonnes/year styrene production plant in Sarnia, Ontario, Canada, and will permanently shut it down by early Q4 2025, the company announced Thursday. Chlor-alkali demand benefited from hurricanes, new pulp plants – OlinDemand for chlorine derivatives and caustic soda benefited from US hurricanes and two new pulp and paper plants that opened in South America, which provided some bright spots in what has otherwise been a challenging market due to the slowdown in home building and durable goods, US-based Olin said on Friday.
28-Oct-2024
Europe top stories: weekly summary
LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 25 October. Sentiment in Europe jet fuel market dented by crude instability and soaring stocks Bearing the brunt of low demand and a supply overhang, sentiment in the European jet kerosene spot market has been further dulled by upstream Brent crude fluctuations and soaring regional stock levels hitting their highest since August 2021. Eni to close Versalis crackers, PE plant as it pivots to low carbon, specialty production with €2 billion investment Italy’s Eni plans to close its Versalis crackers at Brindisi and Priolo, plus a polyethylene (PE) site at Ragusa as it refocuses on low carbon and specialty chemical production through a €2 billion investment over the next five years. Dow to review Europe polyurethanes amid ‘increasing challenges’ of regulation Dow is set to review the competitiveness of several assets in Europe, particularly around its polyurethanes operations, amid “increasing challenges” presented by the region’s regulatory environment, CEO Jim Fitterling said in a Q3 results statement. Europe ECH prices dip for first time since January as raw material costs ease Europe epichlorohydrin (ECH) freely negotiated contract prices have softened in October for the first time since January 2024 as propylene feedstocks costs ease in a muted and well supplied ECH market. INSIGHT: ‘Bridge’ countries bring new opportunities as global trade flows fragment – Bertschi Changing trade flows driven by increasing friction between China, the US and their allies mean there will be demand for new chemical logistics routes and infrastructure, according to the executive chairman of chemical logistics group Bertschi. Europe PE/PP October contracts down on monomer and stagnant demand European polyethylene (PE) and polypropylene (PP) contracts have been agreed down slightly beyond the monomer drop for October.
28-Oct-2024
Asia top stories – weekly summary
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 25 October. Asia's naphtha market eyes demand uptick By Li Peng Seng 21-Oct-24 11:38 SINGAPORE (ICIS)–Asia's naphtha intermonth spread was near a two-month high recently and it may be able to hold firm in the near term on reduced arbitrage volumes in November and anticipated demand growth ahead. Energy transition plan reset needed with renewed focus on Asia – Aramco President By Jonathan Yee 21-Oct-24 14:22 SINGAPORE (ICIS)–Saudi Aramco chief Amin Nasser on Monday called for a new energy transition plan that considers the needs of all countries, specifically those in Asia and the broader Global South, amid growing oil demand. Asia ACN regional producers bullish on tighter supply; India’s BIS deadline nears By Corey Chew 22-Oct-24 11:07 SINGAPORE (ICIS)–Asia acrylonitrile (ACN) prices saw a recent uptrend the past two weeks, with plants of key regional producers in Taiwan and South Korea under planned maintenance. PODCAST: Macroeconomic pressure continues to weigh on Asia recycling sentiment By Damini Dabholkar 22-Oct-24 17:13 SINGAPORE (ICIS)–The short-term demand outlook for recycled polymers from Asia remains sluggish especially for low-value grades, mainly due to poor economics and brand users’ preference of cheaper virgin plastics. Emerging Asian economies’ strong growth to subside amid China slowdown – IMF By Nurluqman Suratman 23-Oct-24 12:07 SINGAPORE (ICIS)–Emerging Asian economies are expected to see strong economic growth subside, partly due to a sustained slowdown in China, the International Monetary Fund (IMF) said on Tuesday. PODCAST: Asia methanol impacted by geopolitical uncertainty, supply cuts expected in Q4 By Damini Dabholkar 24-Oct-24 23:00 SINGAPORE (ICIS)–Asian methanol markets in recent weeks were driven more by sentiment than changes in fundamentals as participants respond to an escalation of the conflict in the Middle East. However, some supply changes in coming months are expected to alter the landscape in Q1 2025. Supply glut casts shadow over Asia PC market recovery By Li Peng Seng 25-Oct-24 13:08 SINGAPORE (ICIS)–China's polycarbonates (PC) spot demand has remained sluggish as ample supplies have kept purchases on a need-to basis, and this trend will persist through yearend.
28-Oct-2024
INSIGHT: Some US chems have started layoffs, defaulting
HOUSTON (ICIS)–Higher interest rates and weaker demand have led to shutdowns, layoffs and a couple of distressed debt exchanges that were considered defaults by ratings agencies. Nylon producer Ascend Performance Materials is closing a plant and laying off workers at another site. Cornerstone and SI Group held distressed debt exchanges. Mid-2025 recovery could be delayed if US mortgage rates remain elevated due to growing government debt. ASCEND SUMS UP CHALLENGES FOR CHEMSAscend's nylon 6,6 business is contending with a troubling mix of rising supplies in polyamides and weak demand from its key end markets of consumer goods, automobiles and housing. ICIS keeps track of global capacity for nylon 6 and nylon 6,6. By 2027, capacity should be nearly 70% larger than levels in 2022. Nearly all of the new capacity is being built in northeast Asia, which includes China. Another company, US-based paints and coatings producer PPG, is planning possible shutdowns and layoffs, but these will be primarily in Europe and certain other global businesses. DISTRESSED DEBT EXCHANGES FROM SI GROUP, CORNERSTONESI Group is expected to complete what a ratings agency considers to be another distressed debt exchange, which would lead to the company's second restricted default this year. SI declined to comment when the ratings note was issued in September. SI Group is facing the same difficult business conditions as Ascend, according to Fitch Ratings. Sales fell amid new capacity in China. SI Group makes specialty chemicals used in coatings, adhesives, sealants and elastomers (CASE) as well as in lubricants, fuels, surfactants and polymers. Cornerstone, the sole melamine producer in the US, is trying to sell some of its assets to avoid a second default. The company also makes acrylonitrile (ACN). Demand fell for both products fell, leading to large operating losses in 2023. COMPANIES HOLD OUT FOR SECOND HALF RECOVERYThe chemical industry is hopeful that falling inflation and interest rates will lead to a recovery in demand in 2025. "It is only a question of when, not if," said Heidi Petz, CEO of Sherwin-Williams, a US-based paints and coatings producer. Polyurethane producers expect a recovery could start in mid-2025, coinciding with the start of the US construction season and the cumulative effects of what it expects to be subsequent declines in interest rates. Lower mortgage rates would make housing more affordable, which would increase sales of new and existing homes. That would increase demand for furniture and appliances as well as for chemicals used to make paints, coatings, sealants and insulation. Lower interest rates would also make automobiles more affordable. The industry is suffering from a temporary lull, with PPG noting that original equipment manufacturers (OEMs) started taking unscheduled and prolonged downtime in Q3. The decline in interest rates will depend, in part, on US inflation remaining on track to reach the central bank's target of 2%. The danger is that inflation remains stubborn or, if it does fall, the lower benchmark interest rate does not fully translate into declines in longer term rates like US home loans. US home loans typically rise and fall with yields on 10-year Treasury notes, and an economist has warned that yields could remain elevated because of the growing US debt. The International Monetary Fund (IMF) also warned about the consequences of growing government debt. If the link between longer term rates and government debt holds true, then that could limit or delay the recovery in demand expected by many chemical companies that sell materials used in durable goods. Insight by Al Greenwood
24-Oct-2024
Mexico's Orbia lowers 2024 guidance, PVC group reports flat Q3 income
HOUSTON (ICIS)–Orbia's vinyls business reported on Wednesday that Q3 operating income was flat year on year amid lower costs for ethylene and electricity as well lower volumes and prices. The following shows the financial performance of the company's Polymer Solutions segment, which includes the Vestolit and Alphagary businesses. Figures are in millions of dollars. Q3 24 Q3 23 % Change total sales 634 677 -6% Operating income 23 23 0 EBITDA 90 86 5% Source: Orbia Orbia attributed the rise in the segment's EBITDA to lower costs as well as the company's efforts to optimize production and fixed costs. Orbia attributed the declines in volumes to challenging business conditions. COMPANY LOWERS GUIDANCEFor Orbia as a whole, the company expects to report $1.10 billion to $1.15 billion in earnings before interest, tax, depreciation and amortization (EBITDA), down from its earlier guidance of $1.30 billion. Orbia lowered its guidance because the market had not recovered as the company had expected. The company's other segments include the following: Building & Infrastructure, which includes the Wavin business. It makes pipes and fittings. Connectivity Solutions, which includes the Dura-Line business. It makes telecommunications conduit, cable-in conduit and similar products. Precision Agriculture, which includes the Netafim business. It makes irrigation systems. Fluor & Energy, which includes the Koura business. It mines fluorspar and makes fluorine derivatives. Thumbnail shows PVC pipe. Image by Shutterstock.
23-Oct-2024
US Sherwin-Williams expects choppy H1, sees signs of consumer weakness
HOUSTON (ICIS)–Sherwin-Williams expects demand during the first half of 2025 will remain choppy while the company waits for what it expects will be an inevitable inflexion point for demand for its products, the US-based paints and coatings producer said on Tuesday. "The single largest variable heading into next year is the timing and pacing of a true inflexion in the demand environment," said Heidi Petz, CEO. She made her comments during an earnings conference call. "It is only a question of when, not if." Until that inflexion comes, Sherwin-Williams expects demand will remain choppy. During the third quarter, demand from consumers undertaking do-it-yourself (DIY) improvement projects remained soft, a trend also noted by RPM International, a company that makes coatings, adhesives and sealants. Sherwin-Williams attributed the softness for its DIY products to weaken existing home sales and inflation. For auto refinish products, insurance claims have fallen because consumers are reluctant to pay deductibles to get their vehicles repaired after accidents, Petz said. PPG also noted a decline in insurance claims. Near term, Sherwin-Williams warned about the possibility that its industrial customers could undergo extend holiday shutdowns. The company did not provide more details. However, US-based paints and coatings producer PPG did note that automobile original equipment manufacturers (OEMs) started taking unscheduled and prolonged downtime in the third quarter, and the trend should continue in the fourth quarter. DEMAND FROM HURRICANE REPAIRSHurricanes initially lower demand because they shut down paint stores and customers cannot immediately return to work. Ultimately, demand does rise after customers assess damage and pursue insurance claims. After about four weeks, demand for primers increases, Sherwin-Williams said. Sundries and paint then follow. Forecasting the effects of Hurricanes Helene and Milton are difficult because they hit weeks apart in the third and fourth quarters. TALK OF RENOVATION RESURGENCELonger term, the US could see a resurgence of home renovation projects, said Jim Jaye, senior vice president of investor relations. One of the economic indicators tracked by Sherwin-Williams is the Leading Indicator of Remodeling Activity (LIRA), which is published by the Joint Center for Housing Studies of Harvard University. According to LIRA, spending for improvements and repairs on homes should expand once again by the middle of 2025. Economic growth, expected declines in inflation and higher home equity could encourage homeowners to undertake repairs and remodeling, he said. Paints and coatings are important end markets for many petrochemicals and resins. Titanium dioxide (TiO2) is used as a white pigment and to make paints opaque. Solvents used in paints and coatings include ethyl acetate (etac), butyl acetate (butac) and methyl ethyl ketone (MEK). Polyurethane coatings are made with polyols and isocyanates such as methyl diphenyl diisocyanate (MDI). Acrylic based coatings are made with methyl methacrylate (MMA), and epoxy coatings are made with epoxy resins. Other chemicals used in paints and coatings include isopropanol (IPA) and vinyl acetate monomer (VAM). Thumbnail shows paint, one of the products made by Sherwin-Williams. Image by Oleksandr Latkun/imageBROKER/Shutterstock.
22-Oct-2024
FAKUMA ’24 PODCAST: Mixture of pessimism, cautious optimism for 2025
LONDON (ICIS)–Markets Editor Stephanie Wix is joined by Senior Editor Manager Vicky Ellis, markets reporter Meeta Ramnani, and Senior Analyst Jincy Varghese, as they discuss the key trends from the 29th Fakuma plastics processing trade fair in Friedrichshafen, Germany, in this latest ICIS podcast. They explore discussion topics heard at the event last week, from the highest concerns to the lowest expectations. They also explain the clash of pessimism and optimism between markets including acrylonitrile butadiene styrene (ABS), polycarbonate (PC), polyethylene (PE) and polypropylene (PP), and also engineering plastics polyacetal (POM) and polybutylene terephthalate (PBT).
22-Oct-2024
Asia top stories – weekly summary
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 18 October. China VAM exports may slow throughout October By Hwee Hwee Tan 14-Oct-24 16:55 SINGAPORE (ICIS)–Persistent increases in China’s vinyl acetate monomer (VAM) domestic prices have pushed up spot export offers, dampening buying interest for Chinese cargoes in Asia this month. China Sept crude imports dips 0.6 on year; down 7.4% on month By Fanny Zhang 14-Oct-24 17:51 SINGAPORE (ICIS)–China’s crude oil imports in September totaled 45.5 million tonnes, down by 0.6% year on year and lower by 7.4% from the previous month, official data showed on Monday. India Sept inflation at nine-month high; Aug industrial output shrinks By Priya Jestin 14-Oct-24 22:46 MUMBAI (ICIS)–India’s retail inflation hit a nine-month high of 5.49% in September, mainly on firmer food prices, while the country’s industrial output in August shrank for the first time in 22 months. Oil prices fall by more than $3/barrel on abating Mideast tensions By Nurluqman Suratman 15-Oct-24 14:57 SINGAPORE (ICIS)–Oil prices fell by over $3/barrel on 15 October on moderating concerns over potential supply disruptions, following news that Israel may refrain from targeting oil facilities in Iran. Asia fatty alcohols demand to remain firm near term despite proposed EUDR delay By Helen Yan 15-Oct-24 16:41 SINGAPORE (ICIS)–Asia’s fatty alcohol mid-cuts demand is expected to remain firm in the near term despite the proposed one-year delay in the implementation of the EU Deforestation Regulation (EUDR). Asian synthetic rubber discussions in limbo as buy-sell differences deepen By Ai Teng Lim 16-Oct-24 13:28 SINGAPORE (ICIS)–Spot trade liquidity for Asian spot imports of various synthetic rubbers, from styrene-butadiene-rubber (SBR), polybutadiene rubber (PBR) and acrylonitrile-butadiene-rubber (NBR), are tapering amid widening differences in near-term pricing outlook between buyers and sellers. Asia BG demand expected to stay weak in Q4 By Joy Foo 17-Oct-24 13:22 SINGAPORE (ICIS)–The gap between China and southeast Asia butyl glycol (BG) import markets narrowed in October as lackluster demand has weighed down southeast Asia's import discussions. India petrochemicals demand subdued pre-Diwali; weak rupee effects unclear By Jonathan Yee 18-Oct-24 13:00 SINGAPORE (ICIS)–India's petrochemicals demand is losing momentum, hindered by the prolonged monsoon season, economic uncertainty, and volatile crude prices.
21-Oct-2024
US Ascend to close South Carolina plant, move polymer production to Florida
HOUSTON (ICIS)–Ascend Performance Materials plans to shut down its remaining operations Greenwood, South Carolina, and move the site's polymer production to its complex in Pensacola, Florida, US-based nylon producer said on Friday. The Greenwood site produces nylon 6,6 products based on monomers made from its other locations. The site makes nylon 6,6 polymer chips for textiles, bulk continuous filament (BCF) fiber for carpets, as well as industrial fibres for high-tenacity and technical fiber applications such as tire yarn and airbags. In January 2024, Ascend said it would end industrial fiber spinning operations in Greenwood. By early 2025, it will end all other operations in Greenwood. Earlier on Friday, Ascend confirmed that was laying off workers at its Pensacola complex in the face of lower demand for automobiles, housing and consumer goods, a global trend that has persisted for the past two years. It did not specify the number of people who were laid off. The layoffs were completed in late September, Ascend said. Thumbnail Photo: Nylon. (By Shutterstock) (adds paragraph 5)
18-Oct-2024
Germany residential construction declines, rate cuts have yet to help
LONDON (ICIS)–Despite a housing crisis in many of its cities, Germany’s new residential housing continues to decline. Permits fall Building decline hurts economy Benefits from interest rate cuts have not yet kicked in Residential construction permits continued to fall in August, according to the latest data by the country’s federal statistics agency on Friday: Permits fell 6.8% year on year to just 18,300 in August. For the first eight months, permits were 141,900 – down 19.3% year on year from 175,800 in the year-earlier period. Permits already fell sharply last year. Before 2023, they averaged 240,000/year, but even that was low compared with a government target, announced in 2022, of 400,000 new dwellings each year, construction industry officials said. TRADE GROUPS Construction industry trade group BFW Bundesverband Freier Immobilien- und Wohnungsunternehmen said that the situation in building and construction was “precarious”, not only for builders but for the overall economy. About 6.6 million jobs were linked to building and construction, a sector that was as important as the auto industry for the country's overall economy, the group said. Residential construction “is the key to economic growth in many other industries,” BFW said, adding that the government needed to act decisively to stop the sector’s “crash”. Another group, Zentralverband Deutsches Baugewerbe (ZDB), said that despite government measures, residential housing was not improving The construction industry hopes that the government will take additional measures after a “residential construction summit” (Wohnungsgipfel) scheduled to be held in Hamburg in December, ZDB added. A third trade group, Hauptverband der Deutschen Bauindustrie (HDB), was also pessimistic. Permits have now been falling for 28 months and pretty much everything that needed to be said about the decline has been said, HDB noted. The industry had made many suggestions to government to turn things around, with no effect, it added. INTEREST RATES Munich-based economic research group ifo said that the interest rate cuts by the European Central Bank (ECB) have not yet had any impact on Germany’s residential housing. Instead, interest rates on loans for households for residential construction remain high, the group said. In ifo’s September survey of residential construction, 52.9% of building and construction companies reported that order shortages worsened, compared with August. In a positive development, however, fewer orders were canceled than in August. The overall business climate in residential construction ticked up month on month, but “it would be going too far to speak of a glimmer of hope,” ifo said, adding, “The situation in residential construction remains serious.” According to German chemical producers’ trade group VCI, domestic chemical sales into the construction sector fell 3.9% year on year in the January-August period. The housing market is a key consumer of chemicals, driving demand for a wide variety of chemicals, resins and derivative products, such as plastic pipe, insulation, paints and coatings, adhesives and synthetic fibers, among many others. Please also visit the ICIS construction topic page and also visit Macroeconomics: Impact on Chemicals. Thumbnail photo source: ZDB
18-Oct-2024
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