HOUSTON (ICIS)–The US government has slowed down the introduction of new regulations and provided the chemical industry with some significant policy wins, although fostering rail competition had some setbacks. CHEMS GET BREAK FROM NEW REGULATIONSThe administration of President Donald Trump has introduced a policy that is requiring federal agencies to purge 10 regulations if they want to adopt a new one. The new policy is discouraging federal agencies from introducing new regulations, said Eric Byer, president and CEO of the Alliance for Chemical Distribution (ACD). “They know if they issue regulations, they have to find 10 they have to whack.” The federal government is also focused on purging regulations that are duplicative or unnecessary, Byer said. Many agencies that are key for chemical regulations are pursuing this, including the Department of Transportation (DoT), the Occupational Safety and Health Administration (OSHA), the Department of Homeland Security (DHS) and the Environmental Protection Agency (EPA). Notably, the EPA embarked on a widespread review of regulations that directly affect the chemical industry. Plants that rely on ethylene oxide (EO) to sterilize medical equipment no longer need to comply with the EO provision in the National Emission Standards for Hazardous Air Pollutants (NESHAP). The EPA also allowed several chemical plants to be excluded from the Hazardous Organic NESHAP (HON) rule. Many of them produce commodity plastics and petrochemicals, as shown here. Recently, the House Appropriations Committee of the House of Representatives have included language in an appropriations bill that will prohibit funding the Integrated Risk Information System (IRIS) of the EPA, according to the ACC. The IRIS program has led to what the ACC describes as overly restrictive regulations governing formaldehyde, EO, hexavalent chromium and inorganic arsenic. A bill introduced in Congress would permanently prohibit the use of IRIS assessments in federal rulemaking. ACC GOALS FOR TSCAThe ACC is targeting provisions in nation’s safety program that are causing the EPA to miss deadlines to approve new chemicals for commercial use and that is making reviews for existing chemicals more cumbersome. The program is known as the Toxic Substances Control Act (TSCA). For new chemicals, the ACC wants the New Chemical Framework Rule to be rescinded because it fixes none of the problems that is causing the EPA to consistently miss its 90-day deadline to complete reviews for new chemicals. For existing chemicals, the ACC flagged the Risk Evaluation Framework Rule, which, among other things, assumed that employees were not properly using personal protective equipment (PPE) when handling chemicals. SETBACK FOR US RAIL COMPETITIONAn appeals court had recently suspended the nation’s reciprocal switching program and sent it back for review to the Surface Transportation Board (STB), the nation’s main railroad regulator. The chemical industry has supported reciprocal switching and argued that it would open rail carriers to more competition and improve service. Under reciprocal switching, one railroad carrier handles a customer’s cargo on behalf of another railroad carrier. The STB finalized a rule in mid-2024 that was intended to make reciprocal switching easier to request when rail service was proven to be inadequate. The new rule was challenged by railroad companies, and the metrics used to measure inadequate service failed to pass muster before the US Court of Appeals for the Seventh Circuit. A better approach could be focusing on competition instead of service, said Jeff Sloan, senior director of regulatory affairs for the ACC. The STB can make service or competition the rationale for granting reciprocal switching. Competition may not face the same restrictions that left the current rule vulnerable to lawsuits. Moreover, the administration of US President Donald Trump has placed a priority on fostering competition, Sloan said. REPORTED RAIL MERGERS WOULD ERODE COMPETITIONCompetition could erode further if the rail industry further consolidates as reported by the media. The Wall Street Journal reported that Union Pacific is in preliminary talks to acquire Norfolk Southern. Reuters reported on 22 July that BNSF Railway hired Goldman Sachs as a banker while CSX is seeking a banker. Warren Buffet, chairman of Berkshire Hathaway, which owns BNSF, later denied BNSF is working with Goldman to acquire a competitor, in an interview with CNBC. Those companies make up four of the six Class I freight railroads in North America. If those mergers took place, they would reduce the number to four. “These mergers end up costing time and money for our businesses on the shipper side,” Byer said. The recent merger between Canada Pacific (CP) and Kansas City Southern has already compromised service, according to a 17 June letter from the chairman of the STB. Customers are suffering from delays, missed switches and congestion as part of the merger’s technology changeover, according to the letter. CHEMS MAY GET ANOTHER CHANCE TO REPEAL SUPERFUND TAXThe chemical industry with another opportunity to repeal the Superfund tax if the House of Representatives considers another tax bill in the autumn, Byer said. The tax imposed duties on several building-block chemicals and their derivatives. The chemical industry has advocated for the removal of the tax, and the tax bill offered it one of its best chances to get it repealed. The chemical industry’s last opportunity to repeal the tax was in the tax bill passed earlier in 2025. It made many favorable provisions of 2017’s Tax Cuts and Jobs Act (TCJA) permanent. However, it did not repeal the Superfund tax, since legislators did not want to overburden the bill with too many provisions. Other opportunities could be an omnibus bill in the autumn or another tax bill in the spring, Byer said. US HAS OPENING TO REVISIT CHEMS ANTITERRORISM PROGRAMThere are tentative signs that the US could have a chance to revive its national chemical-site antiterrorism program, known as the Chemical Facility Anti-Terrorism Standards (CFATS). The program lapsed two years ago, leaving the chemical industry without a national anti-terrorism program at a time of heightened geopolitical risk. A new representative, Andrew Garbarino (Republican-New York) was chosen as the next chairman of the House Committee on Homeland Security. The new chairman could create an opening to reconsider reviving the CFATS program. Additional reporting by Joseph Chang Insight article by Al Greenwood Thumbnail shows US Congress. Image by Lucky-photographer

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 15 August. Oil falls ahead of US-Russia talks as China tariffs deadline looms Oil prices on Monday extended the steep losses seen last week, as upcoming talks between the US and Russia on 15 August raised the prospect of a ceasefire pact with Ukraine and an increase in global supply. Brazil’s Unipar cushioned from US tariffs but end markets feeling the heat – CEO Unipar faces minimal direct exposure to US tariffs but is suffering indirect effects as global supply chains are hit by trade tensions creating high levels of uncertainty, the CEO at the Brazilian chloralkali and vinyls producer said. China, US agree to suspend reciprocal tariffs until 10 Nov China and the US have agreed to suspend tariffs on each other’s goods for an additional 90 days to 10 November, following US President Donald Trump’s executive order signed on 11 August. US Celanese expects continued soft demand from most end markets Celanese will continue to focus on self-help measures in the second half of the year amid continued soft demand across most end markets, the US-based acetyls and engineered materials producer said on Tuesday. Higher OPEC+ supply to fuel global crude market imbalance – IEA The supply-demand imbalance in global crude markets is set to increase sharply as producing cartel OPEC+ unwinds output cuts from September while new sanctions on the third and fifth-largest producers hit those countries’ supply, the International Energy Agency (IEA) said on Wednesday. Brazil launches R30 billion ‘Sovereign Brazil Plan’ to counter US tariffs Brazil’s President Luiz Inacio Lula da Silva signed late on Wednesday a provisional measure with support measures for Brazilian exporters facing US tariffs totaling Brazilian reais (R) 30 billion ($5.5 billion). INSIGHT: US tariff policy, uncertainty to continue hitting chemical distributors US tariff policy will continue to negatively impact US chemical distributors, adding costs and complexity that will especially hit smaller and medium-size businesses, said the head of the Alliance for Chemical Distribution (ACD) and panelists at the 2025 ChemEdge conference in Louisville, Kentucky. ACD to fight ‘like crazy’ against Union Pacific/Norfolk Southern mega rail merger – CEO The Alliance for Chemical Distribution (ACD) will fight “like crazy” against the proposed mega merger between US rail giants Union Pacific and Norfolk Southern in what could become the first US transcontinental railroad, said the CEO of the ACD.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 15 August. INSIGHT: M&A, AI may drive transformation in high-cost regions With Europe and other high-cost regions suffering from a prolonged period of low profitability, poor demand and intense competition from new mainly China-based capacities, the industry has entered a painful period of readjustment. OUTLOOK: Europe acetic acid, VAM to face ongoing weak demand, lengthy supply despite low domestic rates The European acetic acid and vinyl acetate monomer (VAM) markets are likely to face continued muted demand through the second half of the year, with lengthy supply unless there are significant unplanned outages. Higher OPEC+ supply to fuel global crude market imbalance – IEA The supply-demand imbalance in global crude markets is set to increase sharply as producing cartel OPEC+ unwinds output cuts from September while new sanctions on the third and fifth-largest producers hit those countries’ supply, the International Energy Agency (IEA) said. OUTLOOK: Europe BD demand stable-to-low, cracker closures will crimp CC4 supply longer term The European butadiene (BD) market started 2025 off with a fairly positive outlook but the second quarter was clouded by an uncertain US trade policy, impacting demand and pressuring prices globally. OUTLOOK: Weak demand, long supply to weigh on Europe nylon market in H2 2025 Europe nylon 6 and nylon 6,6 markets face persistent low demand in the second half of 2025, on top of the seasonal dip in the immediate short term.

SINGAPORE (ICIS)–Singapore’s petrochemical exports fell by 23.4% year on year to Singapore dollar (S$) 1.05 billion in July, while overall non-oil domestic exports (NODX) contracted more than expected as US tariffs weighed on sentiment ahead of their implementation in August. Singapore’s NODX fell by 4.6% year on year in July, swinging from the revised 12.9% rise in June, according to Enterprise Singapore data on Monday. Exports of non-electronic products such as pharmaceuticals and petrochemicals declined 6.6% year on year as volatility in pharmaceuticals weighed, which on its own, fell 18.9% year on year. NODX to the US contracted 42.7% year on year in July primarily due to a 93.5% decrease in pharmaceutical shipping. Singapore’s non-oil exports to China and Indonesia also fell in July, although NODX to the EU, Taiwan, South Korea and Hong Kong grew. Singapore is a leading petrochemical manufacturer and exporter in southeast Asia, with more than 100 international chemical companies, including ExxonMobil and Aster Chemicals & Energy, based at its Jurong Island hub. Amid US tariffs on most of its trading partners taking effect on 7 August and stronger than expected economic performances, Singapore upgraded its 2025 GDP growth forecast to 1.5-2.5% from 0-2% previously on 12 August. At the same time, the government expects significant uncertainty in the second half of 2025 as front-loading of exports moderates and geopolitical tensions remain. US President Donald Trump is meeting Ukraine President Volodymyr Zelensky on Monday, following talks with Russian President Vladimir Putin last Friday, to discuss a peace deal for the Ukraine-Russia war, but much remains up in the air as to how this will be achieved. US trade talks with China and India, two of the world’s largest economies, are also ongoing, and whether there will be a deal will determine much on how the economy will shape up in the coming years. Meanwhile, trading partners are still awaiting US executive orders to lower agreed tariffs on commodities such as automotives and steel, which remain at a hefty 25% and 50%, respectively, despite deals being struck to reduce them in July. Singapore, too, is looking out for exemption or concessions given for the potential higher tariffs on semiconductors and pharmaceuticals, according to OCBC Global Markets Research in a note on 12 August. “We tip full-year 2025 NODX growth should stage a recovery towards the 2% year on year handle this year given the healthy 1H25 performance, up from the tepid 0.2% year on year growth last year,” OCBC said. Focus article by Jonathan Yee

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 15 August 2025. Philippines’ JG Summit continues strategic review of mothballed plant By Nurluqman Suratman4-Aug-25 15:18 SINGAPORE (ICIS)–Philippines-based producer JG Summit has transitioned to the second phase of a strategic review which will determine the future of its mothballed petrochemical plant. S Korea’s YNCC receives funding from DL Holdings amid bankruptcy threat By Jonathan Yee 13-Aug-25 17:36 SINGAPORE (ICIS)–DL Holdings, a 50% co-owner of South Korea-based producer Yeochun NCC (YNCC), will raise about won (W) 200 billion ($145 million) to fund the struggling subsidiary by selling its shares, it said in regulatory filings on 11 August. China petchem market down in July on demand; near-term support absent By Yvonne Shi 13-Aug-25 14:28 SINGAPORE (ICIS)–China’s petrochemicals market declined overall in July, which is traditionally a low season for bulk chemical products demand, against relatively long supply due to limited turnarounds. Asia C3 outlook clouded by poor downstream margins despite recent supply disruption By Julia Tan 12-Aug-25 20:22 SINGAPORE (ICIS)–The Asian propylene market faces a delicate balance in the months ahead. While supply disruptions in China and South Korea are lending short-term support to prices, weak downstream margins and growing competition in southeast Asia may temper gains. Singapore updates 2025 GDP growth forecast as US tariffs take effect By Jonathan Yee 12-Aug-25 15:53 SINGAPORE (ICIS)–Singapore has upgraded its 2025 GDP growth forecast to 1.5-2.5% from 0-2% previously, amid better-than-expected economic performance in Q2 2025, the Ministry of Trade and Industry (MTI) said on Tuesday. INSIGHT: China marks global milestone with world’s largest green ammonia plant, more capacities to follow despite challenges By Bee Lin Chow 12-Aug-25 09:34 SINGAPORE (ICIS)–China marked a key milestone in July when the world’s largest carbon-free ammonia plant came on stream in the Inner Mongolia autonomous region, and more low carbon ammonia plants are expected to start up in the region despite challenging processes. Oil falls ahead of US-Russia talks as China tariffs deadline looms By Nurluqman Suratman 11-Aug-25 12:53 SINGAPORE (ICIS)–Oil prices on Monday extended the steep losses seen last week, as upcoming talks between the US and Russia on 15 August raised the prospect of a ceasefire pact with Ukraine and an increase in global supply.

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US continued to slide this week on ample capacity as deployment remains healthy, and on soft demand as the typical peak season is non-existent after most goods have been pulled forward. Kyle Beaulieu, senior director, head of ocean at freight forwarder Flexport, said during a webinar this week that August deployment was around 80%, on par with July levels. “There are some blanks out there, but overall, they are just not having much of an impact on space needs,” Beaulieu said. “So, space is healthy and available across the gateway.” Rates from supply chain advisors Drewry fell by low-to-mid single digits from the previous week, as shown in the following chart. Drewry expects rates to be less volatile in the coming weeks now that the big rush to ship cargo before tariffs are imposed has passed, seemingly agreeing with Flexport that there is unlikely to be the typical pre-holiday peak season for imports. Online freight shipping marketplace and platform provider Freightos saw rates fall by 10% to both US coasts. Judah Levine, head of research at Freightos, said tariff-driven frontloading by shippers in the lead up to the April and July/August deadlines is likely to mean muted ocean volumes through the end of the year, with the next significant demand bump only coming ahead of Lunar New Year in 2026. While US container imports typically increase in the second half of the year, projections from the National Retail Federation (NRF) have H2 volumes down 8% compared to the first half of the year, and 14% lower than the second half of last year, with anticipation that totals for September through December will be 20% lower than in 2024. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES MIXED US chemical tanker freight rates assessed by ICIS were mixed this week with slight increases on the transpacific trade lane as this route has recently been experiencing an uptick in inquiries, pushing rates slightly higher. Several ethanol parcels are seen quoted to the region, as well as vinyl acetate monomer (VAM) and monoethylene glycol (MEG). COA (contract) nominations have continued to gain some momentum, and regular space has been limited. No outsiders have come on berth. On the USG to ARA route, market commentary was limited this week, which is likely due to many market participants on summer holiday. As it is the summer holiday season already, the spot trade into northwest Europe is also maintaining relatively softer activity. Demand from the region has been mostly for blending components of ethanol from the US, and styrene and glycols also continue to be quoted.  However, regular owners have been completing their COA requirements, leaving only small pockets of space remaining. On the other hand, the clean petroleum products (CPP) market rose considerably, keeping those vessels from entering the chemical sector. Freight rates are holding steady but are expected to face downward pressure in the next few weeks unless there is an influx of additional inquiries seen in the market. From the USG to Brazil, the market is stable and has enough cargoes to keep the rates around the levels seen in previous weeks. A large slug of ethanol and styrene were seen fixed this week with cargoes of ethylene dichloride (EDC) and urea ammonium nitrate (UAN) also being quoted in the market. If the market continues like this, we expect rates to stay unchanged for the near future. For the USG to India trade lane, most market participants remain cautious because of the impending tariffs. However, most of the interest has been for ethanol, vegoil and acetic acid as traders rush to beat any potential reciprocal tariffs. Overall, this trade lane remains very weak and given the environment expected to face downward pressure. Additional reporting by Kevin Callahan Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Logistics: Impact on chemicals and energy topic page

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colourless, blue bales drop in eastern Europe on low demand, increased supply Southern Europe colourless flake stable-to-soft as Italian flake sees small drop Bearish sentiment persists through August

MADRID (ICIS)–The Brazilian government’s contingency plan for companies affected by US import tariffs is a welcome step, but bilateral talks should result in an expanded list of exemptions which includes more chemicals, the Brazilian chemicals producers’ trade group Abiquim said. The group’s director general, Andre Passos, is demanding that US-Brazil talks focus on “technical and economic” criteria so Brazil can convince the US that its trade surplus with Brazil does not justify the 50% import tariffs imposed earlier in August. This week, the Brazilian government unveiled a contingency plan worth Brazilian reais (R) 30 billion ($5.5 billion) that allocates funds from the Export Guarantee Fund (FGE) for affordable credit, alongside measures such as export credit insurance changes, tax suspension extensions and public procurement support for tariff-affected products. “Abiquim considers the package positive for preserving competitiveness and employment and reinforces the urgency of negotiations with the US for more sectoral exclusions from the tariff hike. The chemical industry exports approximately $2.5 billion annually in chemical inputs for industrial use directly to the US,” said Abiquim. “In addition to direct losses, Abiquim is deeply concerned about the indirect impacts on sectors that demand chemicals – such as plastics, footwear, food and apparel – which will now also be able to access the support package.” Previously, Abiquim said 82% of the $2.5 billion in exports to the US was concentrated in 50 NCM codes covering basic petrochemicals, organic intermediates and thermoplastic resins. Of the 50 main items, only five are unaffected by the new tariff: For inorganic chemicals, silicon (NCM 2804.69.00 – S), calcined alumina (NCM 2818.20.10 – C) and oxides, hydroxides and peroxides of other metals will be exempt. For organic chemicals, mixtures of aromatic hydrocarbons (NCM 2707.50.90) and saturated chlorinated derivatives of acyclic hydrocarbons (NCM 2903.19.90) will also be exempt. The five products accounted for $697 million of Brazilian exports to the US in 2024, said Abiquim, but the remainder – approximately $1.7 billion – would be hit by the extra 40% rate, raising the total burden to 50%. “Expanding this list [of exemptions] depends on rapid progress in direct negotiations between the Brazilian and US governments,” said the trade group. “Abiquim, together with [US chemicals trade group] the American Chemistry Council (ACC), emphasizes that the economic relationship between Brazil and the US is historically complementary, with integrated production chains and more than 20 US-owned chemical companies operating in Brazil.” Abiquim said if the tariffs are maintained, Brazilian chemicals exporters will be forced to seek new markets to “avoid greater losses.” It added that while the hit to employment may be contained in the short term thanks to the government’s plan, the impact in the long run could be considerable. “The sector tends to see impacts on employment more slowly, but the situation requires constant monitoring. The unprecedented scale of the package requires monitoring to assess whether it will be sufficient or whether a second phase will be necessary,” it said. Brazilian chemicals majors such as Braskem and Unipar say the US tariffs will not greatly impact them directly, but the management at Unipar said some key end markets have already been affected and this could ultimately impact demand for some of its products. Earlier this month, US credit rating agency Moody’s said US tariffs on Brazil will impose a modest economic setback over the next year due to extensive exemptions for key exports and because the redirection of trade flows will be gradual. Front page picture: Brazil’s port of Santos in the state of Sao Paulo Picture source: Port of Santos Authority 

SINGAPORE (ICIS)–Saudi Aramco has signed an $11 billion lease and leaseback deal involving its Jafurah gas processing facilities with a consortium of international investors, the energy giant said on 15 August. The consortium is led by Global Infrastructure Partners (GIP), a part of US private investment firm BlackRock, it said in a statement. As part of the transaction a newly-formed subsidiary, Jafurah Midstream Gas Company (JMGC), will lease development and usage rights for the Jafurah field gas plant and the Riyas natural gas liquids (NGL) fractionation facility, and lease them back to Aramco for 20 years. Aramco will hold a 51% majority stake in JMGC, with the remaining 49% held by investors led by GIP. Jafurah is the largest non-associated gas development in Saudi Arabia, estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion stock tank barrels of condensate. It is a key component in Aramco’s plans to increase gas production capacity by 60% between 2021 and 2030, compared with 2021 levels, to meet rising demand. “Jafurah is a cornerstone of our ambitious gas expansion program,” said Amin Nasser, Aramco’s President and CEO. “We look forward to Jafurah playing a major role as a feedstock provider to the petrochemicals sector, and supplying energy required to power new growth sectors, such as AI data centers, in the Kingdom.” Phase one of the Jafurah development program, which commenced in November 2021, is progressing on schedule with initial start-up anticipated in the third quarter of 2025, Aramco said in an earlier statement. Aramco expects total overall lifecycle investment at Jafurah to exceed $100 billion and production to reach a sustainable sales gas rate of two billion standard cubic feet per day by 2030, in addition to significant volumes of ethane, NGL and condensate. Thumbnail photo shows the Saudi Aramco company logo (Source: Yassine Mahjoub/SIPA/Shutterstock)