News library
Subscribe to our full range of breaking news and analysis
Viewing 1-10 results of 57462
Crude Oil09-Oct-2024
SINGAPORE (ICIS)–Japanese producers Idemitsu
Kosan and Mitsui Chemicals on Wednesday said
that they are moving to the front-end
engineering and design (FEED) stage of a plan
to consolidate their ethylene facilities in
Chiba into a single unit.
The two companies have completed the
feasibility study for the project announced in
late March, they said in a statement.
Under the plan, Idemitsu’s 413,000 tonne/year
ethylene facility in Chiba will be closed, with
operations to be combined with Mitsui’s plant.
Mitsui Chemicals has a bigger cracker with an
ethylene capacity of 612,000 tonnes/year at the
site.
The two companies plan to complete the
consolidation project by fiscal year 2027,
which ends on 31 March 2028.
The two plants are operated by their 50:50
joint venture company Chiba Chemicals, which
was established in 2010.
“The feasibility study examined the impact of
consolidating the ethylene facilities on
feedstock procurement, as well as on the
production and supply setup for the products
involved,” they said.
“As the two companies reached the conclusion
that consolidation will be feasible, they have
agreed to move on to the FEED phase.”
The FEED phase typically involves scrutinizing
a project’s challenges, risks, costs and the
like in greater detail, and determining the
basic specifications of the plant.
Crude Oil09-Oct-2024
SINGAPORE (ICIS)–China’s petrochemical futures
tumbled on Wednesday morning as a lack of
further economic stimulus measures from the
government left investors worrying about
demand.
At the end of the morning session, polyvinyl
chloride (PVC), purified terephthalic acid
(PTA) and paraxylene (PX) futures led the
slump, with losses ranging from 2.4-3.5%.
Market sentiment was also weighed down by crude
oil’s plunge overnight, in which both Brent and
WTI benchmarks shed
more than $3/bbl.
In physical markets, spot transactions were
sluggish at most petrochemicals, including
acetone, butadiene, acrylonitrile, propylene
oxide, upon resumption of trade due to weak
demand.
China had a week-long National Day holiday on
1-7 October.
Futures market
gains in the previous session lost steam as
market hopes for additional economic measures
did not materialize.
In a briefing on 8 October, the National
Development and Reform Commission (NDRC) –
China’s top economic planner – provided no
details on how to execute the aggressive measures
announced in late September.
Market players were initially expecting the
government to adopt further fiscal
measures to arrest the slowdown of the
world’s second-biggest economy.
($1 = CNY7.07)
Polyethylene Terephthalate08-Oct-2024
HOUSTON (ICIS)–The proposed spinoff of Mexican
polyester producer Alpek has reached a key
milestone, with corporate parent Alfa saying on
Tuesday that it has solicited consents from
more than 90% of the holders of a batch of
senior notes.
Alfa needed consents to amend some covenants
and provisions that would allow it to spin off
Alpek, it said.
Alfa did not provide a timeline for the
spinoff.
Alfa has been discussing
the possible spinoff for months.
Alfa was once a large conglomerate that owned
Alpek, Nemak (aluminum and auto parts), Sigma
(refrigerated foods), Alestra (IT and
communications) and Newpek (natural gas and
hydrocarbons).
If Alfa completes the spinoff, it would be left
with Sigma.
Alpek produces polyethylene terephthalate (PET)
and recycled PET (rPET) as well as
polypropylene (PP) through its Indelpro joint
venture with LyondellBasell and expandable
polystyrene (EPS) through Styropek.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Speciality Chemicals08-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.
Speciality Chemicals08-Oct-2024
LONDON (ICIS)–Covestro will have invested
around €100 million in its research and
development (R&D) infrastructure and assets
over the three years to 2025, the
high-performance materials producer said on
Tuesday.
The investments include ‘direct coating’
technology for the automotive sector, and
high-performance computers which can simulate
chemical processes to develop recycling
capability.
Covestro has also enhanced its infrastructure
and global sites in Leverkusen, Germany,
Pittsburgh in the US and Shanghai in China.
“Our investments in R&D are integral to our
strategy of creating value for our customers.
They are enabling us to expand and maintain our
innovation pipeline at a high level,” said
Sucheta Govil, Covestro chief commercial
officer.
Last week, Abu Dhabi state oil and
petrochemicals player ADNOC launched a public
takeover offer for Covestro, representing
an equity value of €11.7 billion.
Ammonia07-Oct-2024
HOUSTON (ICIS)–Corn harvest has reached 30%
while soybeans are at 47% completed, according
to the latest US Department of Agriculture
(USDA) weekly crop progress report.
The current rate of the corn harvest is just
behind the 31% level achieved in 2023 but is
ahead of the five-year average of 27%.
Texas continues to be the leading state with
95% of it corn crop harvested, followed by
North Carolina and Tennessee at 80%.
There is 87% of the crop rated mature, which is
equal to the 87% from last season and above the
five-year average of 81%.
For corn conditions there is 5% viewed as very
poor, 8% still as poor and 23% as fair. There
is 49% listed as good with 15% as excellent.
Soybeans dropping leaves is now at 90% but this
slightly behind the 91% from last season but is
above the five-year average of 85%.
Harvesting of the soybean crop has climbed to
47%, which is ahead of 37% mark from 2023 as
well as the five-year average of 34%.
Louisiana remains the top state for harvesting
progress with 77% now completed with
Mississippi right behind that level with 76% of
their crop finished.
For soybean conditions there is still 3% very
poor and 8% as poor. There is now 26% fair with
51% good and 12% remaining rated as excellent.
In other harvesting updates, there is 26% of
the cotton crop finished with sorghum acreage
now at 43% completed.
Ammonia07-Oct-2024
HOUSTON (ICIS)–As Hurricane Milton continued
to crank up into a potentially record setting
storm heading for central Florida, the US
fertilizer industry within the key hub of Tampa
began quickly preparing for its arrival.
As of late 7 October Milton had reached
Category 5 status with winds at 180 miles per
hour (mph) and moving east at 10mph.
It is expected to make landfall late on
Wednesday with a general track consensus having
the center of the storm crossing over Tampa,
with the storm surge locally forecasted to be
as high as a life threatening 10-15 feet.
Having just experienced Hurricane Helene, which
brought considerable rainfall and surge but
left the city and much of the fertilizer
infrastructure undamaged, the community and
market participants are now again trying to get
ready and settle in for what will certainly be
a much more intense event.
As a source said all around the community
everything was progressing rapidly to being
shut down over Monday afternoon or into early
Tuesday.
Officials have announced that the Tampa
International Airport is suspending all
commercial and cargo operations on 8 October at
9:00 eastern standard time.
Port of Tampa officials had not issued an
update since 6 October advising of the
possibility of gale force winds impact our
maritime operations within 48 hours.
At the time it said inbound and outbound vessel
traffic was continuing as were landside
operation as long as safely possible.
A source at producer Yara said the company was
shutting down their Tampa offices Monday
afternoon to comply with the evacuation orders
but there was no update on stoppage of other
operations.
With their headquarters within the city and
substantial assets in the Tampa vicinity
fertilizer producer Mosaic is in the path of
this storm’s threat but had not yet commented
on their current preparation for Milton.
Canadian fertilizer major Nutrien said
following the last hurricane it was still
assessing the timeline for restarting their
White Springs phosphate facility, but they were
now getting prepared for another round of
impacts.
“We are working with our customers on any
potential impacts to supply. We are actively
monitoring the path of Hurricane Milton and
have comprehensive emergency response plans in
place to ensure the safety of our people and
operational integrity of our facilities,” said
Nutrien spokesperson.
There is some optimism that for those assets
and population that is further away from the
coast that the biggest threat seen from the
recent tropical activity, the storm surge, will
not be a factor.
There is also the possibility it could drift
further south or edge up more northerly and
also potentially weaken ahead of making
landfall.
As an industry participant said, “We are inland
so we are staying for now, will continue to
watch.”
Officials were saying that residents and
business need to be ready for the storm or need
to have left the area by at least late 8
October.
Already there are reports of slow moving
northbound traffic out of Tampa along the
interstate, with many heeding the evacuation
orders as Milton was being listed as the
strongest Gulf of Mexico hurricane since 2005,
with extremely low centralized pressure being
recorded.
Speciality Chemicals07-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.
Ethylene07-Oct-2024
HOUSTON (ICIS)–Here are the top stories from
ICIS News from the week ended 4 October.
US Tampa port reopens after Helene’s
hit; US-wide losses could top $160
billion
The port at Tampa in the US state of Florida
reopened over the weekend, the port’s
authorities said on Sunday, after Hurricane
Helene’s destructive path put the US state of
Florida against the ropes.
SHIPPING: ILA ports strike to weigh on
US PE, PVC exports; carriers set congestion
surcharges
Participants in the US chemical industry worry
that a prolonged strike by US Gulf and East
Coast dock workers will hurt exporters and lead
to supply surpluses, and some carriers are
already initiating port congestion surcharges
that will add increased costs on top of delays
to both imports and exports.
SHIPPING: Union, US ports remain at
impasse as strike enters second
day
Negotiations have yet to resume between union
dock workers and the US Gulf and East Coast
ports as a costly strike enters its second day.
US demand for ACN, other chems could
take a hit as Boeing strike enters fourth
week
US acrylonitrile (ACN) demand could soften as
33,000 Boeing employees remain on strike in a
work stoppage that is entering its fourth week.
SHIPPING: Trucks, container ships
backing up as US ports strike marks third
day
In only its third day, a strike by
dock workers at US Gulf and East Coast ports is
leading to idled trucks and growing numbers of
container ships queuing outside of the ports.
SHIPPING: Union, US ports reach
tentative agreement, dock workers to return to
work on Friday
The three-day strike by US Gulf and
East Coast dock workers has been suspended
until 15 January to allow negotiations to
resume, according to a joint statement from the
union and ports.
INSIGHT: No signs of petchems demand
recovery from car sector on the horizon, H2
2025 may be a moment of
truth
After a strong rebound in car sales last year,
the European automotive industry is facing a
more challenging environment in the second half
of 2024, leading to a drop in petrochemical
requirements from car manufacturers. Consumer
appetite for new vehicles has become more
sluggish following a post-Covid catch-up phase
in 2023, mainly due to a mixed economic
environment and persistently high interest
rates, along with uncertainty on both policy
and political developments across the
continent.
SHIPPING: With strike over, some US
ports extending gate hours; container rates
fall further
With the suspension of the strike at
US Gulf and East Coast ports until 15 January,
carriers are urging customers to use extended
gate times being offered by some ports to
collect or deliver any urgent containers to
terminals.
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.