HOUSTON (ICIS)–Dow cut its dividend by 50% on Thursday because the downturn in the chemical industry is entering its third year and it will last longer than expected. Shares of Dow fell by more than 16% in midday trading. Earlier on Thursday, Dow reported a Q2 net loss of $801 million. DOW Q3 SALES TO FALL YEAR ON YEARLooking ahead at Q3, Dow expects sales to rise slightly from Q2 levels, but they will remain below year-ago levels, as shown in the following table. Figures are in dollars. Q3 25 Q2 25 Q3 24 Net sales 10.2 billion 10.1 billion 10.9 billion Operating EBITDA 800 million 703 million 1,382 million Source: Dow Dow expects a quarter-on-quarter bump in sales in part because of proposed price increases for polyethylene (PE). Exports have started to resume, and Dow is confident that the proposed hikes will go through because it maintains that integrated margins are low and unsustainable. Dow should get another boost in Q3 earnings from the startup of its new Poly 7 PE line in Freeport, Texas. The train is fully sold out, and Dow is selling the output to higher-margin markets such as food and specialty packaging as well as health and hygiene, said Karen Carter, chief operating officer. The train should provide another boost to earnings by absorbing Dow’s last remnant of merchant ethylene in the Gulf Coast market. The new line and the possible price increase would follow what Dow described as the evaporation of PE exports in the wake of the 2 April tariff announcements. The disappearance of exports led to a 3 cents/lb drop in PE prices. The fallout from the tariff announcements showed up in Dow’s earnings for its Packaging & Specialty Plastics segment, which reported a 90% year-on-year decline in operating earnings before interest and tax (EBIT). Overall, Dow’s end markets are mixed at best, as shown in the following heat map from the company. Source: Dow Dow has maintained its forecast for mid-cycle earnings, but the company delayed when it would achieve those levels. That could take place near 2030, which was the latter part of an earlier forecast made by Dow. That said, the company warned that the timing of any recovery is difficult because of the uncertainty surrounding tariffs and trade negotiations and what CEO Jim Fitterling described as “a new world order” and trade rebalancing. Concluding trade negotiations would be a first step towards a recovery, and it appears the US is getting close to wrapping up talks, he said during the company’s earnings conference call. TRADE, OVERSUPPLY AND GEOPOLITICSOne of the reasons why earnings will remain depressed for longer is because tensions and tariffs are re-arranging trade routes. Derivatives, more so than chemicals, are being redirected from the US to other markets, Fitterling said. ICIS has reported on the effects of these redirected derivative shipments on chemical markets in southeast Asia, and they have depressed demand for upstream plastics and chemicals. Dow’s international trade operations are managing tariff negotiations through their connections with governments around the world, Fitterling said. Also, there is work going on through the World Trade Organization (WTO) involving how goods are moved around and how to defend fair trade, Fitterling said. Trade organizations and individual companies are pursuing this option. Countries are starting to take action as well. Brazil is considering anti-dumping duties on PE imports from the US and Canada. The EU has started investigations on imports of butanediol (BDO), polyethylene terephthalate (PET) and adipic acid (ADA). Downstream, countries have imposed duties on electric vehicles (EVs). WORLD WORKS THROUGH EXCESS CAPACITYDow expects the world will work through excess PE capacity because demand should continue growing faster than GDP, Fitterling said. “I don’t think you are looking at an environment where it’s the end of investing in plastics.” The polyurethanes chain has a lot of overcapacity, and demand is low for several of its key markets, such as construction and durable goods. Isocyanates are in relatively decent shape, Fitterling said. Propylene oxide (PO) will take longer to rebalance. Silicones continue to grow well, but siloxanes will take longer. OTHER CHEM FIRMS SEE NO HELP FROM ECONOMYEarlier in the week, paints and coatings producer Sherwin-Williams lowered its guidance and warned that any growth would come from taking market share away from its competitors. The company expected no help from the economy. Adhesives producer HB Fuller raised its guidance, but its rationale confirmed the pessimistic outlook of Sherwin-Williams and Dow. HB Fuller raised its guidance because of the success of its self-help measures and not because of a stronger economy. Focus article by Al Greenwood Thumbnail image: PE, a product made by Dow (Image source: ICIS)

TORONTO (ICIS)–Canada is heading into a “trade war-induced recession” – unless it can reach a quick deal with the US, with low tariffs and a “significant de-escalation”, economists at Oxford Economics said in a webinar. 1 August deal could avoid recession US tariffs hit Canadian exports, investments, housing, jobs USMCA compliance to provide relief Increased defense spending offers limited domestic stimulus Canada’s government is targeting a deal by 1 August but does not provide updates on the trade talks and does not disclose what concessions it may make, insisting it will not negotiate in public. If there is a quick deal, it would result in improved prospects for Canadian GDP growth, said Tony Stillo, director for Canada, and economist Michael Davenport. However, if a deal is not reached by 1 August, Canada could face the 35% tariffs US President Trump threatened for all Canadian exports that are not compliant with the rules of origin and other conditions of the existing US-Mexico-Canada (USMCA) trade agreement, the economists said. The 35% tariffs, coming on top of the US sectoral tariffs on autos, aluminum, steel, pharmaceuticals and potentially also copper, would imply a deeper and longer downturn of Canada’s economy, they said. As it stands, the global forecasting firm believes that Canada likely already slipped into a recession that could last through the end of 2025. It is currently forecasting a 0.8% peak-to-trough decline in GDP from Q2 to Q4 2025. Oxford’s baseline forecast for Canada’s GDP is for 0.9% growth in 2025, slowing to 0.4% in 2026 but rebounding 3.0% in 2027. Industrial production, widely seen as a proxy for chemical and plastics demand, is expected to decline by 0.5% in 2025 and 2.1% in 2026 before rising by 3.3% in 2027, according to its estimates. EXPORTS DROP Lower exports are the primary negative factor hitting Canadian GDP, but the tariff uncertainties also affect investment plans, households, housing and employment, the Oxford economists said. The US is by far the most important market for Canadian exports, including chemicals and plastics. In chemicals, 77% of Canada’s exports of industrial chemicals headed to the US last year, according to trade group Chemistry Industry Association of Canada (CIAC). While Canadian exports to the US rose early this year during a period of “front-loading” when companies tried to get ahead of the tariffs, they have started to decline noticeably more recently. In May, Canadian goods exports to the US were off 27% from a peak in January, and down 16% year on year, the Oxford economists said. The US share of total Canadian goods exports has fallen to about 68%, from a 75% average in 2024, they said. In addition to the direct impact of declining exports, the tariff uncertainties have also affected firms and households. Companies’ investment plans, in particular for machinery and equipment, have largely stalled and expectations for future employment have declined, the economists said. “Persistent under-investment has been a challenge for the Canadian economy for the last decade or so, and that will be exacerbated by the trade war,” noted Davenport. Oxford expects the US tariffs to lead to about 140,000 job losses in Canada by the end of this year, especially in manufacturing, which is mostly concentrated in Ontario and Quebec. The unemployment rate is expected to rise to 7.6%, Davenport said. The rate was at 6.9% in June. In housing, which is an important end market for chemicals and plastics, re-sales have slumped, and unless there is an immediate trade deal with the US, the slump will accelerate in the second half of this year and extend into 2026, Davenport pointed out. While housing starts have been holding up so far, they are expected to slow in the second half of the year, partly due to rising building costs on the back of tariffs, as well as high interest rates, he said. INTEREST RATES With the “stagflationary tariff shock” Canada’s central bank, the Bank of Canada (BoC), would need to balance concerns over higher prices with a downturn in the economy, the Oxford economists said. Oxford expects Canada’s consumer price inflation to rise to 3.0% by the middle of 2026, from 1.9% in June. Inflation has been relatively mild in recent months, but this was largely due to the removal of the federal consumer carbon tax in April, the economists noted. Uncertainty about tariffs and their impact led the BoC to keep the policy rate at 2.75% in June and Oxford expects it will stay there. The BoC’s next rate decision is expected to be announced on 30 July. DEFENSE SPENDING Canada’s commitment to raise defense spending to 2% of GDP this fiscal year will not prevent a recession, the economists said. The defense spending hike would go largely on salaries, with “a little bit” going to equipment, Stillo said. Longer-term, Canada has committed to spend 5% of GDP on defense by 2035. However, much of the defense equipment would likely continue to be imported from the US, Stillo noted. Imports are a subtraction in the calculation of GDP. Also, the higher defense spending will likely be debt-financed, thus raising the government debt-to-GDP ratio and leading to higher long-term bond yields, which flow through to mortgage rates, thus squeezing housing affordability, he said. Prime Minister Mark Carney said he is aiming for a comprehensive trade and security deal with the US, but did not say if he will use Canadian spending on US military equipment as a bargaining chip in the trade talks. TARIFF RATES, USMCA COMPLIANCE, RETALIATION Oxford currently estimates that the effective average tariff rate Canada faces on all goods exported to the US is 14.1%. However, with a 35% tariff on non-USMCA-compliant goods, the effective rate would rise to an estimated 18.3% on 1 August, if no deal is reached by then, according to Oxford. The following chart shows Oxford Economics’ estimates since March for effective rates of US and Canadian tariffs. It remains unclear what retaliatory measures Canada will take if no deal is reached by 1 August and the US 35% tariff on non-USMCA-compliant goods comes into effect. The economists said Canada, along with Mexico, are highly reliant on trade with the US, but both are less affected than other countries by the trade tensions because of the exemption for USMCA-compliant imports. USMCA compliance of Canadian goods exports has increased in recent months and was at 56% as of May, up from 38% in 2024, according to Oxford’s estimates. For plastics products and autos and parts the compliance rates are especially high, as the following chart by Oxford Economics shows: Most of the increase in compliance was in Canadian fuels exports, which are subject to a lower tariff of 10%. Meanwhile, temporary government relief from Canada’s retaliatory tariffs should help Canadian companies. About C$96 billion (US$71 billion) of goods imported from the US face Canadian retaliatory tariffs, but the government has granted tariff relief (remissions) for goods imports worth between C$56-64 billion, the economists said. The tariff relief is for a wide range of imported products in manufacturing, processing, food and beverage packaging, healthcare, public health and safety, national security, and cases “with severe adverse impacts” and a lack of non-US suppliers, Stillo said. Which products qualify for relief “is still subject to interpretation”, Stillo pointed out before adding, “There is a lot there that firms could use to get tariff relief.” Stillo said although the retaliatory tariffs were a tax on Canadians, the government had to act against the US tariffs, saying, “You can’t just cave in to President Trump.” Canada’s retaliatory tariffs try to target US goods that can be substituted and where the counter-tariffs affect the US economy more than the Canadian economy, he said. On the other hand, the government is providing tariff relief for imported intermediate goods that are deeply integrated into the North American manufacturing process, he said. “So, they are trying to give companies an opportunity to find alternative suppliers, suppliers that are not US-based, not an easy thing to do,” he added. Oxford Economics assumes that most US tariffs will be removed by Q3 2026 as the USMCA is renegotiated. However, targeted tariffs of 10% will remain in place for metal and select agricultural products. Likewise, Oxford expects Canada to remove most of its retaliatory measures by Q3 2026. (US$1=C$1.36) Please also visit US tariffs, policy – impact on chemicals and energy Thumbnail photo source: Government of Canada

WASHINGTON, DC (ICIS)–The European chemical industry has hit bottom and there are positive developments for structural reforms that could lead to a brighter future, said the CEO of Germany-based Covestro. “First, we see clear signs that the negative growth trajectory for the European chemical industry has come to an end. It has significantly slowed down, and from my perspective, now has come to an end, so we’ve hit the bottom,” said Markus Steilemann, CEO of Covestro, in an interview with ICIS. Steilemann spoke to ICIS at the headquarters of the American Chemistry Council (ACC) in Washington, D.C. “The key question is now, what type of structural reforms will come? I’ve seen significant movements in terms of the willingness to look at overall regulation, but also the energy price situation in Europe, because that is the starting point to reinstall consumer confidence,” he added. ‘IT’S THE ECONOMY, STUPID’A renewed focus on the economy and its key drivers by the EU and Germany could provide support for the chemical industry in the form of deregulation, energy initiatives and tax benefits, he noted, recalling the defining theme of former US President Bill Clinton’s first election campaign in 1992 – “It’s the economy, stupid”. “That fundamental principle – that the economy at the end of the day is the provider of wealth, of societal coherence, of the ability to defend, and so on and so forth – is sinking in,” said Steilemann. “Energy, regulations, taxes and innovation as the four key drivers in that context, has from my perspective been finally understood, and we can see first small steps in the right direction,” he added. The CEO now sees a “strong willingness” by the EU and Germany to address the high cost of energy and dampen some of the effects from the halt in importing Russian gas following the Russia-Ukraine war. As part of its €46 billion tax reduction package passed in July, Germany reduced energy taxes for large manufacturers and certain other groups from 1.54 cents/kilowatt hour (kWh) to the EU minimum of €0.05/kWh. SMALL STEPS IN DEREGULATIONOn the regulatory front, the industry is seeing “first small steps towards not executing some… reporting requirements, and at the same time, also prolonging exemptions for small and mid-sized entities, which have been hit very hard by those additional reporting needs,” said Steilemann. Excessive bureaucracy costs Germany up to €146 billion/year in lost economic output, according to a study by the ifo Institute released in November 2024. “If you just deduct this, you can imagine how big the size of the prize is, if the German and EU governments do something about regulation specifically,” said Steilemann. “It’s not only rolling back but really withdrawing some of those regulations. There have been small steps, but these could also be the first steps of a long journey,” he added. FUTURE IN SPECIALTIESHighly energy intensive and large raw material dependent chemical investments are difficult to justify in Europe, but specialty chemicals are the future, the CEO pointed out. “We must not forget that for Germany alone, of the more than 2,000 companies we have as members of the German Chemical Industry Association (VCI), more than 90% are small to mid-sized entities (SMEs),” said Steilemann, who is also president of VCI. “It’s not the big corporations that make the biggest part of the chemical industry. [It’s the SMEs that] make specialties. They are highly innovative and their investment is going into Germany because they have no internationalization strategy,” he added. The EU and Germany governments are starting to understand and address the situation for energy costs, labor productivity and regulations. “That’s why I see with structural changes in the Europe and Germany, a very bright future, given the fact that Germany has always been strong in innovation, and that there’s a broad base of small and mid-sized entities that can carry that growth,” said Steilemann. Energy-intensive chemicals represent around 10% of the entire chemical sector in Germany, with the majority already taken out or in prolonged shutdowns, he added. Covestro and LyondellBasell in March 2025 announced the permanent shutdown of their joint venture propylene oxide/styrene monomer (POSM) plant in Maasvlakte, Netherlands by the end of 2026. “We are reviewing constantly our asset footprint, but we currently don’t have any active plans [for further shutdowns],” said Steilemann. Insight by Joseph Chang Thumbnail image credit: Shutterstock

SINGAPORE (ICIS)–Repsol’s industrial segment posted a 65.6% year-on-year drop in its second quarter adjusted income amid weaker results in Refining and Chemical, which were negatively impacted by trade and a nationwide outage in Spain on 28 April. The losses were partially offset by higher results in Repsol Peru and Wholesale and Gas Trading, as well as lower taxes mainly due to lower operating income, the company said in a statement. in € million Q2 2025 Q2 2024 % Change H1 2025 H1 2024 % Change Adjusted Income 99 288 -65.6 230 1,019 -77.4 Current cost of supplies (CCS) operating income 119 375 -68.3 294 1,325 -77.8 EBITDA 69 465 -85.2 210 1,342 -84.4 EBITDA CCS 329 568 -42.1 732 1,439 -49.1 “In Chemicals, operating income was €33 million lower year-on-year mainly due to lower cogeneration results as well as lower volumes mainly impacted by the negative effects of the Spanish outage that happened on 28 April 2025,” Repsol said. These were partially redressed by higher margins, the company added. Repsol’s chemical margin indicator rose 22.3% year on year to €329/tonne in the second quarter. Meanwhile, petrochemical product sales fell by 7.4% year on year to 441,000 tonnes in the second quarter. The industrial segment consists of activities involving oil refining, petrochemicals and the trading, transport and sale of crude oil, natural gas and fuels, including the development of new growth platforms. Repsol’s group net income fell to €237 million in the second quarter from €657 million in the same period of last year, which was a 63.9% decline.

SINGAPORE (ICIS)–South Korea’s economy grew by 0.5% year on year in the second quarter, avoiding a technical recession, the central bank’s data showed on Thursday. Exports, imports grow as South Korea’s economy recovers slightly Race to negotiate lower tariffs hit snag with cancelled US talks GDP growth forecast could be 0.7% if tariffs remain – AMRO On a seasonally adjusted quarter-on-quarter basis, GDP rose by 0.6% between April-June 2025, the Bank of Korea (BOK) said in a statement. Exports improved by 4.2% year on year on increased semiconductors, petroleum products and chemical product shipments, while imports were up 3.8% on an increase in energy items, such as crude oil and natural gas. South Korea is a major importer of raw materials like crude oil and naphtha, which it uses to produce a variety of petrochemicals, which are then exported. The country is a major exporter of aromatics such as benzene, toluene and styrene. Private consumption, accounting for roughly half of the country’s GDP, increased by 0.5% year over year in the second quarter. Manufacturing expanded by 2.7% year on year in the second quarter, up from the 0.4% growth in the first three months of 2025. PRESSURE TO MEET TARIFF DEADLINE MOUNTS South Korea faces a race to negotiate lower tariffs on the country imposed by the US, currently set at 25% and will take effect on 1 August if a deal is not reached. However, scheduled talks between the two countries on 25 July were cancelled as US Treasury Secretary Scott Bessent had a scheduling conflict, according to South Korea’s Finance Ministry on Thursday. The meeting will be rescheduled, the ministry added. Depending on the trade talk outcome, South Korea’s economy might grow by just 0.7% this year, according to Singapore-based ASEAN+3 Macroeconomic Research Office (AMRO) in an outlook on 23 July. Another key focus for South Korea is reducing automotive tariffs, with auto majors such as Hyundai and Kia dependent on exports to the US. A precedent has been set via a US-Japan trade deal, which reduces Japanese automotive export tariffs to the US to 15% from 25% previously. TRADE MINISTER EYES PETROCHEMICAL INDUSTRY REFORMS Plans to revitalize the petrochemical industry have also stalled amid political instability wrought by former President Yoon Suk Yeol’s declaration of martial law back in December. New Minister of Trade, Industry and Energy, Kim Jung-kwan, who took office in June, has expressed his willingness to restructure South Korea’s petrochemical industry, starting with the consolidation of naphtha cracking centers (NCC), located in the cities of Ulsan, Yeosu and Daesan. The NCC is a facility that produces general-purpose products such as ethylene, propylene and benzene, which are building blocks for the petrochemical industry. Laws preventing monopolies under the Fair Trade Act are a current stumbling block for such consolidation plans, and an exemption from the clause will have to be sought for plans to proceed. The hope is that a new government and greater political stability will pave the way for the restructuring of the struggling sector, even in the face of US tariffs threatening to slow the global economy down. Focus article by Jonathan Yee

SINGAPORE (ICIS)–China has proposed new industry standards for low-carbon, clean and renewable hydrogen, introducing stricter carbon thresholds that align renewable hydrogen with international benchmarks, particularly those of the EU. China tightens hydrogen carbon limits and introduces a formal life cycle accounting method to guide industry compliance and emissions tracking New rules align with international standards, paving way for future long-term export compatibility Standard supports a multi-pathway model to back both fossil and renewable hydrogen The draft 2025 “Clean and Low-Carbon Hydrogen Evaluation Standard” also preserves a multi-pathway development model that supports diverse hydrogen production routes, and hence could accelerate domestic hydrogen industry growth, reflect the nation’s “establish-before-break” approach to energy transition, as well as enhance future export readiness. The standard, overseen by the China Electricity Council and led by Guoneng HydrogenTech, aims to be finalized by August 2025. It marks a shift from the 2020 group-led T/CAB0078—2020 to a government-backed industrial standard under the National Energy Administration (NEA). The upgrade strengthens China’s regulatory foundation to prepare for future international certification and trade. The 2025 revision introduces stricter carbon intensity caps: The 2025 standard also defines, for the first time, a clear methodology for calculating carbon intensity thresholds. The baseline carbon intensity of hydrogen production in 2020, the year when China first proposed its “dual carbon” goal, was calculated at 17.704 kgCO2e/kgH2, (kilograms of carbon dioxide equivalent per kilogram of hydrogen) weighted across coal-based, natural gas-based, and industrial by-product hydrogen. Coal-based hydrogen: Set at 24 kgCO2e/kgH2, based on International Energy Agency (IEA) estimates and empirical data from six major domestic projects including those from China Energy and Sinopec, averaging 23.4 kgCO2e/kgH2. The figure reflects the dominant method in China and is considered broadly representative. Natural gas hydrogen: Benchmarked at 11.45 kgCO2e/kgH2, in line with IEA’s Opportunities for Hydrogen Production with carbon capture, utilization and storage (CCUS) in China report. A domestic survey of 21 projects showed a broader range (7–17 kg kgCO2e/kgH2, hence averaging 12 kgCO2e/kgH2), but the IEA average was adopted for consistency and stability. Industrial by-product hydrogen: Established at 2.88 kgCO2e/kgH2, based on data from 37 projects across the five key hydrogen fuel cell vehicle demonstration clusters in China: Beijing-Tianjin-Hebei, Shanghai, Guangdong, Zhengzhou, and Hebei. Sources include coke oven gas, chlor-alkali, steam cracking, propane dehydrogenation, coal tar upgrading, styrene production, and others. Weighted averages were calculated by production volume. Using the emission reduction forecasts by China Energy Investment Corp in its “China Energy Outlook 2060”, the standard sets carbon targets for clean and low-carbon hydrogen reflecting projected improvements by 2040 and 2060. Renewable hydrogen’s threshold is derived from measured emissions during electrolysis and compression, plus grid electricity-related emissions. China has established detailed methodologies for calculating hydrogen’s carbon footprint using a full life cycle assessment (LCA) approach, or a cradle-to-gate scope, which aligns with global practices in carbon accounting. The 2025 draft hydrogen standard defines the carbon footprint of hydrogen (CFPH2) as the sum of greenhouse gas emissions from four stages—raw material extraction, transportation, production, and on-site storage—minus any carbon dioxide captured and permanently stored via carbon capture and storage (CCS). The calculation is expressed as: CFPₕ₂ = (E_raw + E_trans + E_prod + E_sto – R_CCS) × A_H2 / Q_H2 Where: CFPH2 is the carbon footprint of hydrogen (kg CO2e per kg H2) E_raw = emissions from raw material acquisition (t CO2e) E_trans = emissions from material transport (t CO2e) E_prod = emissions during hydrogen production (t CO2e) E_sto = emissions from on-site storage and handling (t CO2e) R_CCS = CO₂ captured and permanently stored (t CO2) A_H2 = allocation factor for hydrogen relative to co-products (%) Q_H2 = quantity of hydrogen produced (t) THREE-TIER SYSTEM SUPPORTS INDUSTRIAL SCALING This 2025 standard codifies a three-tier system – low-carbon, clean, and renewable hydrogen – designed to accommodate diverse production methods, including fossil fuels-based production with CCUS. This approach supports industrial scaling while avoiding early bottlenecks, consistent with the government’s build-before-phase out strategy for new energy like hydrogen. The EU’s latest regulatory move underscores the relevance of China’s strategy. In July 2025, the European Commission published the methodology for defining low-carbon hydrogen, requiring a 70% reduction in greenhouse gases compared with unabated fossil fuels. The regulated act complements existing RFNBO (Renewable Fuels of Non-Biological Origin) protocols and applies to both domestic production and importsand recognizes CCUS-based fossil fuels as eligible production pathways of low-carbon hydrogen. EXPORT READINESS LIMITED DESPITE ALIGNMENT IN STANDARD China’s new draft renewable hydrogen threshold (≤2.00 kgCO2e/kgH2) is among the world’s most stringent. Combined with estimated emissions from domestic transportation and for deliveries to Europe, the total carbon footprint remains under the EU’s RFNBO limit. For renewable hydrogen, inputs must come exclusively from non-fossil sources powered by renewable electricity, echoing EU requirements for RFNBOs. Clean and low-carbon hydrogen have no such restrictions on feedstock type or energy source. China’s stricter hydrogen rules bring it closer to global standards, but the country’s export readiness remains limited in the immediate years. Renewable hydrogen makes up merely 2% of national output at present, with coal continuing to dominate.. In addition to scaling up hydrogen production, large-scale exports will require robust export logistics and infrastructure, technical validation, trusted certification systems, mutual recognition of certification mechanisms such as Guarantees of Origin and third-party voluntary schemes, and stronger emissions tracking across the supply chain — all of which remain underdeveloped. The new standard in China lays the groundwork for future alignment with EU rules and long-term access to the global markets. Insight article by Patricia Tao Visit the Hydrogen Topic Page for more update on hydrogen

HOUSTON (ICIS)–US-based Blue Polymers has registered a company at the site of Evergreen Recycling’s plant in Riverside, California, according to a state filing, amid talk that Blue Polymers plans to buy the site. Blue Polymers is the joint venture between waste magnate Republic Services and distribution giant Ravago. The company did not immediately respond to a request for comment. The new company, Blue Polymers Riverside, LLC initially filed a statement of information with the California Secretary of State on 8 July 2025. The mailing address of the new company is the site of Evergreen’s facility in Riverside. The fate of the Evergreen Riverside facility has been the center of market speculation for over a year. Evergreen had recently announced the partial closure of the Riverside facility in January, laying off over 50 workers and shutting down bale and flake processing equipment at the end of March. Market conditions in California have been particularly difficult for domestic recyclers in recent years. Recycler margins are being squeezed between elevated bale feedstock costs due to export demand from Mexico, and low sales prices due to competition with imported resin. Several recyclers in the region have been known to cut production during various downcycles – sometimes by as much as 40%. The purchase of the Riverside facility complements existing assets of Republic Services, who have been producing recycled polyethylene terephthalate (R-PET) flake out of their Las Vegas, Nevada, polymer center since late 2023. Now, flake has a guaranteed end market in the region, though overall R-PET demand conditions in the West Coast remain shaky. Republic Services Polymer Centers sort mixed plastic waste and produce R-PET flake, while sending sorted waste polyolefin material to Blue Polymers facilities for further processing. Blue Polymers facilities will then flake and pelletize the recycled polypropylene (R-PP) and recycled polyethylene (R-PE) material, to be distributed by Ravago. With this potential acquisition, Blue Polymers would also enter the R-PET pellet market. The first Blue Polymers facility is now running in Indianapolis, Indiana, and the second in Buckeye, Arizona, is slated to be operational by end of year. The third Republic Services Polymer Center is likely to be Allentown, Pennsylvania, according to a February property sale record to owner Republic Polymers III, though it is unknown if there will be a co-located Blue Polymers facility.

LONDON (ICIS)–Europe’s oxo-alcohols and derivatives markets remain structurally weak, with some players beginning to feel the onset of the summer slowdown. Ongoing economic weakness and geopolitical uncertainty continue to dampen sentiment, with activity expected to slow further from late July into August as summer holidays begin. Oxo-alcohols and their derivative markets are not expected to experience significant demand changes in H2 2025. Oxo-alcohols and butyl acetate reporter, Marion Boakye,  joins acrylate esters editor, Mathew Jolin-Beech, and glycol ethers editor, Cameron Birch, to discuss current conditions along the oxo-alcohols value chain.  

HOUSTON (ICIS)–The US and the Philippines reached a trade deal, under which the US will impose 19% tariffs on imports from the island nation, while its shipments will enter the country duty free, President Donald Trump said on Tuesday. “In addition, we will work together Militarily,” Trump said on social media. No reports of any trade deal were found on websites of the Philippine Information Agency or the Philippine News Agency. The rate disclosed by the US is 1 point below the 20% rate that Trump proposed in a letter he sent to the Philippines. Chemical trade between the two countries is relatively small. The Philippines exports mostly polyethylene terephthalate (PET) to the US and imports polyethylene (PE), base oils and acrylate esters, according to the ICIS Supply and Demand Database. The Philippines is the largest source of US imports of coconut oil, a feedstock used to make oleochemicals. The following table shows 2024 US imports from the Philippines and exports to the Philippines. Figures are in US dollars. Imports for Consumption ($) Domestic Exports ($) US Deficit ($) 13,930,354,398 8,293,021,350 5,637,333,048 Source: US International Trade Commission The Philippines is the fourth country with which the US said it reached a trade deal, following agreements struck with the UK, Vietnam and Indonesia. The US said its imports will enter Vietnam and Indonesia tariff free. It will impose tariffs of 19% on Indonesian imports and 20% tariffs on Vietnamese imports. For UK imports, the US will impose 10% tariffs. The UK made concessions on US imports of ethanol and beef. NEGOTIATIONS ONGOING FOR NUMEROUS COUNTRIESIn July, the US proposed tariffs on imports from the EU and 24 countries. The proposed rates will take effect on 1 August if the countries cannot reach a trade agreement or if the US does not postpone the duties. The following table shows the proposed rates and the actual rates for any countries with which the US said it reached trade agreements. Country Proposed rate Trade Deal Algeria 30% NA Bangladesh 35% NA Bosnia and Herzegovina 30% NA Brazil 50% NA Brunei 25% NA Cambodia 36% NA Canada 35% NA EU 30% NA Indonesia 32% 19% Iraq 30% NA Japan 25% NA Kazakhstan 25% NA Laos 40% NA Libya 30% NA Malaysia 25% NA Mexico 30% NA Moldova 25% NA Myanmar 40% NA Philippines 20% 19% Serbia 35% NA South Africa 30% NA South Korea 25% NA Sri Lanka 30% NA Thailand 36% NA Tunisia 25% NA