Titanium dioxide (TiO2)

SINGAPORE (ICIS)–Avantium has signed a multi-year collaboration agreement to pilot the production of polylactic-co-glycolic acid (PLGA) from carbon dioxide (CO2), with Thai producer SCG Chemicals (SCGC), the Netherlands-based circular polymer materials firm said on Wednesday. PLGA is a biodegradable, recyclable polyester which is an alternative for conventional fossil-based polyesters. "Under this agreement, SCGC will provide support for all stages of technology development," Avantium said in a statement. Financial details of the deal were not disclosed. "Additionally, SCGC will work with Avantium on developing various PLGA applications, aiming to bring these sustainable solutions to market." Avantium and SCGC have spent the past year exploring the properties of PLGA to perfect its formulation for large-scale polymer applications, with a focus on barrier properties, recyclability, and environmental impact. As part of the collaboration, Avantium grants SCGC an option to negotiate license deal to utilize its Volta technology, including PLGA production, within southeast Asia. Avantium’s Volta technology uses electrochemistry to convert CO2 to high-value products and chemical building blocks including glycolic acid. Glycolic acid, combined with lactic acid, can be used to produce PLGA polyester in existing manufacturing assets.

20-Nov-2024

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 8 November. Weak EU TIO2 market unaffected by China export drop; effects to come later The steep provisional EU antidumping duties (ADDs) on Chinese titanium dioxide (TiO2) have led to a staggering fall of 63% in Chinese exports of the product to Europe late in the third quarter of 2024 from the highs earlier this year, but the effects on supply are yet to be felt, illustrating just how weak demand is. Europe PET gathers momentum amid higher freight rates, weaker euro Polyethylene terephthalate (PET) in Europe is still a bed of uncertainty when it comes to actual end demand, but PET resin buyers are seeking to secure volumes nevertheless. Europe markets up, China down as Trump wins second term as US President European stock markets rallied in early trading while China bourses closed down as Donald Trump secured a second term in office as US President. UK's Viridor to close Avonmouth mechanical recycling plant UK-headquartered recycler Viridor intends to close its Avonmouth mechanical recycling facility following a strategic review, the company announced on Tuesday. Eurozone manufacturing slump enters record-breaking 28th month, latest PMIs show The eurozone manufacturing economy is still contracting, albeit at a slightly slower pace, according to new purchasing manager indices (PMIs) which mark the longest downturn since data collection began in 1997.

11-Nov-2024

HOUSTON (ICIS)–Oil and gas production, the main source of the feedstock and energy used by the petrochemical industry, should benefit from policies proposed by President-Elect Donald Trump, while hydrogen and renewable fuels could lose some of the support they receive from the federal government. Trump expressed enthusiastic and consistent support for oil and gas production during his campaign. He pledged to remove what he called the electric vehicle (EV) mandate of his predecessor, President Joe Biden. Trump may attempt to eliminate green energy subsidies in Biden's Inflation Reduction Act (IRA) BRIGHTER SENTIMENT ON ENERGYRegardless of who holds the presidency, US oil and gas production has grown because much of it has taken place on the private lands of the Permian basin. Private land is free from federal restrictions and moratoria on leases. That said, the federal government could indirectly restrict energy production, and statements from the president could sour the sentiment in the industry. During his term, US President Joe Biden antagonized the industry by accusing it of price gouging, halting new permits for LNG permits and revoking the permit for the Keystone XL oil pipeline on his first day in office. By contrast, Trump has pledged to remove federal impediments to the industry, such as permits, taxes, leases and restrictions on drilling. WHY ENERGY POLICY MATTERSPrices for plastics and chemicals tend to rise and fall with those for oil. For US producers, feedstock costs for ethylene tend to rise and fall with those for natural gas. Also, most of the feedstock used by chemical producers comes from oil and gas production. Policies that encourage energy production should lower costs for chemical plants. RETREAT FROM RENEWABLES, EVsTrump has pledged to reverse many of the sustainability policies made by Biden. Just as Trump did in his first term, he would withdraw from the Paris Agreement. For electric vehicles (EVs), Trump said he would "cancel the electric vehicle mandate and cut costly and burdensome regulations". He said he would end the following policies: The Environmental Protection Agency's (EPA) recent tailpipe rule, which gradually restricts emissions of carbon dioxide (CO2) from light vehicles. The Department of Transportation's (DoT) Corporate Average Fuel Economy (CAFE) program, which mandates fuel-efficiency standards. These became stricter in 2024. The EPA was expected to decide if California can adopt its Advanced Clean Car II (ACC II) program, which would phase out the sale of combustion-based vehicles by 2035. If the EPA grants California's request, that would trigger similar programs in several other states. Given Trump's opposition to government restrictions on combustion-based automobiles, the EPA would likely reject California's proposal under his presidency or attempt to reverse it if approved before Biden leaves office. According to the Tax Foundation, Trump would try to eliminate the green energy subsidies in the Inflation Reduction Act (IRA). These included tax credits for renewable diesel, sustainable aviation fuel (SAF), blue hydrogen, green hydrogen and carbon capture and storage. In regards to the UN plastic treaty, it is unclear if the US would ratify it, regardless of Trump's position. The treaty could include a cap on plastic production, and such a provision would sink the treaty's chances of passing the US Senate. For renewable plastics, much of the support from the government involves research and development (R&D), so it did little to foster industrial scale production. WHY EVs AND RENEWABLES MATTERPolicies that promote the adoption of EVs would increase demand for materials used to build the vehicles and their batteries. Companies are developing polymers that can meet the heat and electrical challenges of EVs while reducing their weight. Heat management fluids made from base oils could help control the temperature of EV batteries and other components. If such EV policies reduce demand for combustion-based vehicles, then that could threaten margins for refineries. These produce benzene, toluene and xylenes (BTX) in catalytic reformers and propylene in fluid catalytic crackers (FCCs). Lower demand for combustion-based vehicles would also reduce the need for lubricating oil for engines, which would decrease demand for some groups of base oils. Polices that promote renewable power could help companies meet internal sustainability goals and increase demand for epoxy resins used in wind turbines and materials used in solar panels, such as ethylene vinyl acetate (EVA) and polyvinyl butyral (PVB). Insight article by Al Greenwood Thumbnail shows the White House. Image by Lucky-photographer.

07-Nov-2024

Correction: In the ICIS news story headlined "Chlor-alkali demand benefited from hurricanes, new pulp plants – Olin" dated 25 October 2024, please read in paragraph 13 …  $135 million … instead of … billion. A corrected story follows. HOUSTON (ICIS)–Demand 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. Bleach and hydrochloric acid are used in water treatment and cleaning. For caustic soda, demand continued to be strong because of demand from alumina and from the pulp and paper industry, said Ken Lane, CEO. He made his comments during an earnings conference call. Demand from South America has been the most robust, with two recent pulp and paper plant startups, he said. Lane did not specify the plants. However, Brazilian producer Suzano started up the largest single pulp production line in the world in Ribas do Rio Pardo, Mato Grosso do Sul state, Brazil. CHLORINE REMAINS IN TROUGHDespite the temporary boost from hurricanes, demand for chlorine remains in a trough, with demand below pre-COVID levels, according to Olin. Looking ahead, the uncertainty that the chemical industry experienced in the second half of 2024 should continue into 2025, Lane said. Such uncertainty will persist until interest rates fall further. Higher interest rates have weakened demand for PVC in several key end markets such as housing, automobiles and durables. In addition, chlorine is used to make titanium dioxide (TiO2), a white pigment that is used to make paints opaque. Demand will not spring back until lower interest rates lead to a recovery in activity in housing and other markets that are sensitive to rates, Lane said. BLOW FROM HURRICANE BERYLOlin expects to take a $135 million hit from damage that Hurricane Beryl caused to its operations in Freeport, Texas. During the third quarter, $77 million was connected to chlor-alkalis and $33 million was related to epoxy resins, the company said. During the fourth quarter, $25 million was related to chlor-alkalis. Olin had conducted an emergency shutdown, the company said. The shutdown caused problems that were not apparent until the company began to restart its operations. Olin completed those repairs about a week ago, it said. The company also built some temporary infrastructure, which it will continue to operate until the middle of next year. Thumbnail shows wood, which is used with caustic soda to make pulp. Photo by Global Warming 

25-Oct-2024

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

EU energy policy must be less ideological in next five years, GIE conference hears Lowering high energy prices, which harm industry, a key goal for incoming Commission Commissioner confirmation hearings to take place 4-12 November MUNICH (ICIS)–The incoming European Commission must move away from ideological energy policy if it hopes to stabilize prices and keep industry competitive, delegates heard at the Gas Infrastructure Europe (GIE) conference in Munich on 17-18 October. However, despite an announced focus on a ‘clean industrial deal’, doubts remain that Europe can apply the lessons learned from the energy crisis. Speaking to ICIS on the sidelines, Tsvetelina Penkova, vice-chair of the European Parliament’s energy and industry committee said the thought the upcoming commissioner hearings would be “dynamic”, though she hoped the meetings would be constructive rather than unpleasant. Nominated commissioners must be confirmed by the European Parliament before they can take up their roles. Hearings are scheduled for 4-12 November. “The problem is quite a lot of topics are overlapping [in commissioners’ portfolios], so it’s very difficult to distinguish exactly the area of expertise,” she said, citing concerns over who would ultimately be responsible for decisions and the time involved if multiple people sign off policies. Penkova told delegates that fluctuations in energy prices between different regions harmed competitiveness and energy security. The discrepancy “really depends on the energy source that’s being used at the moment,” she said, as a lack of proper grid interconnections created bottlenecks, and without fixing this Europe’s energy landscape would remain dominated by local, regional or national solutions. The topic of surging heatwave-driven power prices experienced in central and southeastern Europe also dominated a meeting of EU energy ministers in Luxembourg on 15 October. Penkova called for energy resilience as well as a diversity of sources, including renewables, hydrogen, ammonia and other carriers, alongside storage and flexibility solutions. “We must understand that dependency only on one single sector or energy source is naive. That’s definitely not going to work,” she said. GIE president-elect Arno Bux stressed to delegates that gas infrastructure would remain vital for decades to come, citing nascent hydrogen, biomethane and carbon dioxide markets. “We all know pipelines … are by far the most efficient way to transport and store energy,” he said. But the industry was hindered by 1990s-era regulation, Bux said, which failed to foresee the need to maintain and expand infrastructure under uncertain conditions or the costs involved. NUCLEAR SCEPTICISM? Penkova dismissed concerns over nuclear skepticism previously voiced by the nominees for energy commissioner, Denmark’s Dan Jorgensen, and executive vice-president Teresa Ribera from Spain, tasked with delivering the ‘clean, just and competitive transition’. Noting that the parliament considered nuclear generation as strategic and sustainable technology, Penkova told ICIS she didn’t foresee any change in Europe’s policy, but instead hoped for better integration. “When we’re speaking of nuclear waste, we shouldn’t be looking only [at] the countries that are producing nuclear energy, but also at countries that are consuming [it], because we are all part of the waste creation,” she said. CLEAN AND INDUSTRIAL Ilaria Conti, gas expert and coordinator for strategy and development at the Florence School of Regulation, told delegates it was important the EU had not watered down its commitment to decarbonize, instead aiming to use industry as the “engine” of the transition. The shift followed the results of European parliamentary elections in June, which saw a perceived backlash against green policies. "The election results forced people to realise that achieving climate neutrality targets on time but losing the economy and the electorate along the way was unhelpful, " said Niko Bosnjak, head of policy and communication at the German grid operator OGE. Bosnjak said he worried that there was less urgency for policymakers to act since the pressure had eased, despite net-zero goals rapidly approaching. “I’m afraid we’re getting into the regular slump that we’ve been in before. I’m not saying I’m all for crises, ok? I think no one wants that, but we need to do better a better job in translating the learnings,” he said. For example, Bosnjak wondered why there was not middle ground between the 9-month construction of an LNG-import pipeline during the crisis and the return to an average of 6-8 years to build infrastructure. Conti said she thought plans to make the Commission more interdependent was “actually in my opinion a very smart move by Ursula von der Leyen.” The overlapping briefs would hopefully force incoming commissioners to cooperate, Conti said, breaking down past silos where each commissioner focused only on their own portfolio.

22-Oct-2024

HOUSTON (ICIS)–Nearly 3.4 million outages have been reported in Florida in the aftermath of Hurricane Milton, which made landfall as a powerful Category 3 hurricane near Sarasota, Florida, south of the important fertilizer hub of Tampa. Milton may have caused more damage had it passed over Tampa, according to CoreLogic, an insurance data company. RAIL UPDATERailroad company CSX said it has relocated all of its locomotives and cars from low-lying areas in Tampa and rerouted them. CSX operations will continue in and out of Waycross from the north, east and west directions. It will continue operating into and out of the intermodal ramps at Jacksonville, Florida. On 8 October, CSX said it had taken the following steps. Closed the Central Florida ILC intermodal gate. Closed the Tampa, FL intermodal gate. Closed the TRANSFLO terminals at Tampa, Tampa Port and Sanford. Another railroad company, Norfolk Southern, has not updated its notice from 7 October, when it said it was monitoring and preparing for Hurricane Milton. FLORIDA PORTS REMAIN CLOSEDMany ports in Florida have maintained their Zulu port conditions, which means they are closed to inbound and outbound vessels. The following table summarizes the conditions among the major ports in Florida. Port Status Condition Port of Pensacola Open Normal Port Panama City Open Draft restrictions Port St Joe Open Normal Port Tampa Bay Closed Zulu SeaPort Manatee Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Closed Zulu Fort Pierce Closed Zulu Port Canaveral Closed Zulu Jaxport Closed Zulu Port of Fernandina Closed Zulu Source: US Coast Guard. IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin (UPR) production in Lakeland and Kathleen, Florida. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida’s Big Bend region. On 30 September, Mosaic said its Riverview operations were off line following water intrusion from a storm surge caused by Hurricane Helene. POSSIBLE DAMAGEHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau CoreLogic, the insurance data company, said Milton’s shift to the south of Tampa could limit the magnitude of insured losses. CHEMS AND RECONSTRUCTIONFor hurricanes in general, reconstruction can translate into increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. PUs are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High-density polyethylene (HDPE) is used in pipes. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPRs) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives.

10-Oct-2024

HOUSTON (ICIS)–Railroad company CSX is suspending operations at several of its intermodal and TRANSFLO terminals in Florida ahead of Milton, which has shifted its path away from Tampa, a major fertilizer hub. If Milton maintains its latest forecasted path, it could spare Tampa of the worst damage, according to CoreLogic, an insurance data company. Milton's maximum sustained winds are nearly 145 miles/h (230 km/h), making it a Category 4 hurricane, according to the National Hurricane Center (NHC). Milton is expected to weaken to a Category 3 hurricane and make landfall later on Wednesday south of Tampa near Sarasota, Florida, CoreLogic said. Milton will then pass over central Florida. RAIL DISRUPTIONSRail shipments through the Tampa area will likely face delays until Milton passes, CSX said. It expects multiple downed trees and power outages in the Wildwood, Lakeland and surrounding Tampa subdivisions. Lakeland and nearby Kathleen are near Tampa and are home to some thermoset resin plants. CSX has taken the following actions: Closed the Central Florida ILC intermodal gate. Closed the Tampa, FL intermodal gate. Closed the TRANSFLO terminals at Tampa and Tampa Port. Will close the Sanford TRANSFLO terminal midday on Wednesday. Another railroad company, Norfolk Southern, has not updated its notice from 7 October, when it said that it is monitoring and preparing for Hurricane Milton. MORE PORTS CLOSESome of Florida's ports on the Atlantic coast have set conditions to Zulu, meaning that they are closed to inbound and outbound vessels. The following table summarizes the port conditions along the eastern and western coasts of Florida. Port Status Condition Port of Pensacola Open Port Panama City Open X-Ray Port St Joe Open X-Ray Port Tampa Bay Closed Zulu SeaPort Manatee Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Closed Zulu Fort Pierce Closed Zulu Port Canaveral Closed Zulu Jaxport Closed Zulu Port of Fernandina Closed Zulu Source: ports, US Coast Guard IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin (UPR) production in Lakeland and Kathleen, Florida. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida's Big Bend region. On 30 September, Mosaic said its Riverview operations were offline following water intrusion from a storm surge caused by Hurricane Helene. POSSIBLE DAMAGEHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau The following map shows the expected path of Milton. Source: National Hurricane Center CoreLogic, the insurance data company, said Milton's shift to the south of Tampa could limit the magnitude of insured losses. The following map compares three insured loss scenarios based on Milton's path. Source: CoreLogic The following map shows Milton's expected storm surges. Source: National Hurricane Center. The following map shows three-day rain totals. Source: CoreLogic CHEMS AND RECONSTRUCTIONFor hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows an image of Hurricane Milton. Image by the National Hurricane Center. 

09-Oct-2024

HOUSTON (ICIS)–Ports along Florida's Gulf Coast are closed to vessel traffic as Milton approaches the state's fertilizer hub in Tampa as a Category 4 hurricane. Port Tampa Bay and the nearby SeaPort Manatee have set Port Condition Zulu, which means that they are shut down to inbound and outbound vessel traffic. The following table shows the conditions of some of the ports in Florida. Port Status Condition SeaPort Manatee Closed Zulu Port Tampa Bay Closed Zulu PortMiami Open Yankee Port Everglades Open Yankee Port of Palm Beach Open Yankee Fort Pierce Open Yankee Port Canaveral Open Yankee Jaxport Open Yankee Port of Fernandina Open Yankee Source: Ports, US Coast Guard LANDFALL ON WEDNESDAYMilton is expected to make landfall on Wednesday near Tampa, Florida, after weakening to a Category 3 hurricane, according to the meteorological firm AccuWeather. Milton will remain a major hurricane when it makes landfall, with maximum sustained wind speeds of 111-129 miles/hour (178-208 km/hour). The following map shows the expected path of Milton Source: National Hurricane Center IMPACT ON FERTILIZERS, PHOSPHATES, CHEMSFor chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin production in Lakeland and Kathleen, Florida. Both are near Tampa. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. Tampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Fertilizer producer Mosaic has its headquarters in Tampa. The company has not issued any statements regarding its corporate operations. A source at the fertilizer company Yara said it was shutting down its Tampa offices to comply with the evacuation orders. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. Canadian fertilizer producer Nutrien has yet to restart its White Springs phosphate operations following Helene, an earlier hurricane that made landfall farther north in Florida's Big Bend region. On 30 September, Mosaic said its Riverview operations were offline following water intrusion from a storm surge caused by Hurricane Helene. RAIL CONTINUES RUNNINGOn 7 October, CSX said it is maintaining normal operations at its yards and terminals. Meanwhile, the railroad company is putting its safety protocols in place. Also on 7 October, Norfolk Southern warned customers to prepare for delays if they have shipments moving through the southeastern US. RECONSTRUCTION FOLLOWING MILTONHurricane Milton could be extremely destructive because of its winds, rainfall and storm surge. It will pass over the following metropolitan statistical areas. Region Population Tampa 3,342,963 Orlando 2,817,933 Jacksonville 1,713,240 Sarasota 910,108 Source: US Census Bureau Tampa and Sarasota could suffer storm surges of 10-15 feet (3.0-4.6 meters), according to the National Hurricane Center. Storm surges of 3-5 feet could hit the areas from Port Canaveral northwards, including Jacksonville, Florida. AccuWeather warned that the hardest hit areas could have storm surges of 23 feet. "We are very concerned that Hurricane Milton could become one of the most damaging and costliest storms that Florida has ever seen," said Jon Porter, AccuWeather chief meteorologist. “Our forecast for 120 miles per hour to 140 miles per hour wind gusts will result in significant destruction. We expect roofs to fail, as well as long-lasting and widespread power outages. These damaging winds will push inland right along the Interstate 4 corridor,” For hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. POTENTIAL FOR DISRUPTION TO GULF OILHurricane Helene disrupted US oil and gas production in the Gulf of Mexico even though it passed through the eastern portion of the body of water. Hurricane Milton could have the same potential as it approaches the US. Additional reporting by Mark Milam Thumbnail shows Hurricane Milton. Image by National Hurricane Center.

08-Oct-2024

HOUSTON (ICIS)–Milton strengthened on Monday into a powerful Category 4 hurricane, and it is expected to continue strengthening before making landfall by midweek near Tampa, Florida, a major fertilizer hub that was drenched by an earlier major hurricane. That earlier hurricane, Helene, made landfall on September 26 far to the north of Tampa. However, Tampa still saw storm surges of 6-10 feet (1.8-3.0 meters), according to AccuWeather, a meteorology firm. Tampa and other ports along Florida's Gulf Coast had shut down because of Helene. AccuWeather estimates that Hurricane Helene caused $225 billion to $250 billion of damage and economic loss in Florida and the southeastern US. As of September 30, fertilizer companies were assessing the damage caused by Hurricane Helene. A week later, they will now prepare for another major hurricane that will pose a greater risk. AccuWeather is warning that, due to Milton, the Tampa Bay region could be hit by a storm surge of 10-15 feet, wind gusts of 120-140 miles/hour (193-225 miles/hour) and more than 2 feet (60 cm) of rain. "Milton may be a historic, once-in-a-lifetime storm for Floridians," said Jon Porter, AccuWeather chief meteorologist. "Milton has the potential to become one of Florida's most damaging and costly hurricanes." For Tampa, the magnitude of Milton's storm surge will depend on its path, according to AccuWeather. If it makes landfall south of Tampa, it will cause dangerous, but not extreme, storm surges. If landfall is north of Tampa, parts of the Bay could suffer from storm surges of 20 feet, AccuWeather said. FERTILIZER HUB, PHOSPHATES AT RISKTampa is an important hub for the US fertilizer industry, hosting corporate offices, trading, product storage, shipping and other logistical operations. Near Tampa is Florida's phosphate mining operations in Bone Valley, which covers parts of Hardee, Hillsborough, Manatee and Polk counties. In all, Florida has 27 phosphate mines, of which nine are active, according to the Florida Department of Environmental Protection. For chemicals, there is some epoxy resin, phenolic resin and unsaturated polyester resin production in Lakeland and Kathleen, Florida. Both are near Tampa. Milton will make landfall far from Pensacola, Florida, which has plants that make nylon and thermoset resins. PORT TAMPA BAY REMAINS OPENPort Tampa Bay remains open to inbound and outbound vessel traffic, but it has set Port Condition X-RAY. That means gale force winds that could disrupt maritime operations could occur in the next 48 hours. SeaPort Manatee, a deepwater port on Tampa Bay, also set Port Condition X-Ray. It handled bulk, breakbulk and container traffic. RAIL STILL RECOVERING FROM HELENEOn October 4, railroad company CSX warned customers to expect delays despite progress in restoring power and clearing trees. Disruptions to operations are concentrated in the Carolinas. Railroad company Norfolk Southern said it has already started monitoring Hurricane Milton, although its lines are operating as scheduled. POTENTIAL FOR DISRUPTION TO GULF OILHurricane Helene disrupted US oil and gas production in the Gulf of Mexico even though it passed through the eastern portion of the body of water. Hurricane Milton could have the same potential as it approaches the US. RECONSTRUCTION DEMAND FOR CHEMSFor hurricanes in general, reconstruction can translate to increased demand for many chemicals and polymers. The white pigment titanium dioxide (TiO2) is used in paints. Solvents used in paints and coatings include butyl acetate (butac), butyl acrylate (butyl-A), ethyl acetate (etac), glycol ethers, methyl ethyl ketone (MEK) and isopropanol (IPA). Blends of aliphatic and aromatic solvents are also used to make paints and coatings. For polymers, expandable polystyrene (EPS) and polyurethane (PU) foam are used in insulation. Polyurethanes are made of methylene diphenyl diisocyanate (MDI), toluene diisocyanate (TDI) and polyols. High density polyethylene (HDPE) is used in pipe. Polyvinyl chloride (PVC) is used to make cladding, window frames, wires and cables, flooring and roofing membranes. Unsaturated polyester resins (UPR) are used to make coatings and composites. Vinyl acetate monomer (VAM) is used to make paints and adhesives. Thumbnail shows the forecasts path of Hurricane Milton. Image by the National Hurricane Center.

07-Oct-2024