HOUSTON (ICIS)–US corn and soybean acreage is steadily maturing with 18% of the corn crop now silking and 32% of soybeans blooming, according to the latest crop progress report from the US Department of Agriculture (USDA). The amount of corn at the silking stage continues to rise but is behind the 22% achieved during the 2024 season, yet it is ahead of the five-year average of 15%. In the first update on corn reaching the dough stage, the USDA has 3% of the crop at this development point, which equals the 3% from 2024 and is slightly above the five-year average of 2%. For corn conditions, there remains 1% listed as very poor and 4% still poor, with the amount rated as fair down to 21%. The crop ranked as good has decreased to 57% with the level of excellent up to 17%. Soybean emergence has reached 96% and blooming is at 32%, which matches the 32% from 2024 and is above the five-year average of 31%. The crop that is setting pods is at 8%, at pace with the 8% rate from 2024 but a bit higher than the five-year average of 6%. For soybean conditions, there is still listed 2% very poor, 5% poor and 27% rated as fair. The amount that is ranked as good has decreased to 54% with excellent lifted to 12%. Cotton plantings are concluded with sorghum sowings at 96%. Winter wheat harvest has reached a 53% completion rate.

HOUSTON (ICIS)–The US has proposed on Monday tariffs of 25% on imports from Japan as well as from South Korea, which was the top source of US imports of aromatics and base oils in 2024. The tariffs will take effect on 1 August, US President Donald Trump said on social media. The tariffs would not apply to imports subject to the sectoral tariffs that the US has adopted on goods such as aluminium, steel and automobiles. The US will also start imposing an unspecified higher tariff on transhipped goods from Japan and South Korea. The US is already adopting such a tariff on transhipped goods from Vietnam, which it set at 40%. S KOREA IS TOP US SOURCE OF IMPORTED AROMATICSSouth Korea is the largest source of US imports of benzene, toluene and mixed xylenes (MX), according to ICIS. In addition, it is the second largest source of paraxylene (PX), trailing only Mexico. These are building block chemicals produced as byproducts from refineries or from cracking naphtha, an oil-based feedstock. Companies will not purposely expand refineries or naphtha crackers to produce these byproducts. As a result, US importers will have to find lower-cost sources, pay the tariffs or lower production. Benzene is used to make many intermediates such as cumene and styrene. Cumene is used to make phenol and acetone, which, in turn, are feedstock for polycarbonate (PC) and methyl methacrylate (MMA) respectively. Styrene is used to make polystyrene (PS), acrylonitrile butadiene styrene (ABS) and styrene butadiene rubber (SBR) among many others. Toluene and MX can be used as solvents or octane boosters for gasoline. MX can be further refined to produce orthoxylene (OX) and PX. PX is one of the two main feedstocks used to make polyethylene terephthalate (PET), a polyester used to make fabric and beverage bottles. Thumbnail shows a cup made out of PS, a derivative of benzene, a chemical for which South Korea is the top source of US imports. Image by ICIS.

By Tobey Barnett European energy company MET Group said on Monday 7 July it had acquired 100% of gas storage operator KGE, based in Gronau, Germany. KGE operates a H-gas storage facility in Gronau-Epe capable of holding 179 million cubic metres of natural gas, injecting 150,000 Nm3/h of gas and withdrawing 400,000 Nm3/h at maximum capacity. This represents around 0.7% of Germany’s total combined gas storage capacity. The facility is connected to the German THE hub. According to MET CEO Benjamin Lakatos, the acquisition will “strengthen our position in the German market” while furthering natural gas infrastructure in Germany. According to ICIS price assessments on Friday 4 July, German gas for the coming winter season was assessed at €36.725/MWh, a rough €3.00/MWh premium to the Summer ’26. While not a significant premium in historical terms, the €3.00/MWh figure does show a widening of the seasonal spread in Germany in recent months. As recently as March for example, the Summer ’25 was priced marginally higher than the Winter ’26 largely due to uncertainty over summer injection demand. In Germany, MET Group has been active since 2020 operating two natural gas storage facilities at the Etzel and Reckrod sites. MET is present in 32 national gas markets and in 44 international trading hubs, trading 140 billion cubic meters of natural gas in 2024.

SAO PAULO (ICIS)–Braskem’s controlling stakeholder Novonor and the potential buyer for its stake at the Brazilian petrochemicals major have notified competition authority CADE about the transaction seeking approval. In May, Brazilian entrepreneur Nelson Tanure’s investment fund Petroquimica Verde launched a non-binding acquisition offer for Novonor’s 38.3% stake in Braskem, which gives it however 50.1% of voting rights. Monday’s move represents the furthest an acquisition offer for Novonor’s stake has gotten, after several potential buyers ultimately ended up backing off. Braskem’s second-largest shareholder is the country’s state-owned energy major Petrobras, with a 36.1% stake and 47.0% of voting rights. Novonor, formerly Odebrecht, has for years tried to divest the stake as it aims to deleverage after the company got embroiled in the Latin America-wide Lava Jato corruption scandal in the mid-2010s. Names such as Abu Dhabi’s oil company Adnoc, US chemicals major LyondellBasell, or Brazilian players such as Unipar and J&F made offers for Novonor’s stake but ultimately backed off. Most of the potential buyers ended up desisting because of Braskem’s heavy-weight legacy related to the environmental disaster caused by one of its salt mines in the state of Alagoas in 2018, which left many homeless and/or displaced. “NSP Investimentos [Novonor’s parent company], in Judicial Reorganization, and Petroquimica Verde Fundo de Investimento em Participaçes – Multiestrategia notified the Administrative Council for Economic Defense (CADE) requesting the authorization of the competition authority for a potential transaction involving the shares issued by NSP Investimentos,” said Braskem. “Novonor also informed that until this date, no definitive binding agreements have been executed in relation to the eventual transaction, which remains subject to the usual assessments and confirmations in similar transactions.” Braskem’s stock in the Sao Paulo exchange rose by nearly 1.5% in the early morning following the announcement, although by midday local time the gains had moderated and was up nearly 0.50%. In a written response to ICIS, a spokesperson for Novonor said the company would not comment further. Petroquimica Verde had not responded to a request for further comment at the time of writing. Front page picture: Braskem’s Duque de Caxias site in Rio de Janeiro; it shares the complex with Petrobras’ Reduc facilities Picture source: Petrobras

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the fortnight ended on 4 July. Brazil’s Petrobras mulls acetic acid, MEG plants in Rio as part of $6 billion capex planPetrobras is mulling production plants for acetic acid and monoethylene glycol (MEG) at its site in Rio de Janeiro as part of its 2025-2029 capital expenditure plans of Brazilian reais (R) 33 billion ($6.08 billion), the Brazilian state-owned energy major said this week. US Woodside, Mexico’s Pemex joint oil venture 25% complete, remains on budget and timeWoodside’s Trion crude oil joint venture with Mexico’s state-owned Pemex is 25% complete and construction is running on budget and on time with expected start-up date for 2028, the US energy producer said to ICIS. Brazil’s protectionism benefits few but ‘suffocates’ plastics transformers, manufacturing – AbiplastBrazil’s highly protectionist model to cushion domestic producers from overseas competition is suffocating other parts of the production chain in a country obliged to import around half of its chemicals demand, the trade group representing plastics transformers Abiplast said this week. Petrobras eyes 2029 for Group II production, mulls RRBO projectPetrobras is targeting 2029 for first production from its Group II base oils project at the Boaventura Energy Complex in Itaborai, Rio de Janeiro state, Brazil, said Ulysses Donadel, Petrobras special products commercial manager, at this week’s 15th Meet the Market International Conference by Lubes em Foco. US Transition Industries signs EPC contract for Mexico’s methanol project Pacifico MexinolUS Transition Industries and its consortium partners signed this week an Engineering, Procurement and Construction (EPC) contract for its Mexican green methanol project Pacifico Mexinol, in Sinaloa state, although the company is yet to take a final investment decision (FID). Dutch chemicals distributor IMCD acquires Chile’s Apus QuimicaIMCD is to acquire Chilean distributor Apus Quimica as it seeks to strengthen its presence in the Latin American country, the Netherlands-headquartered global chemicals distributor said this week. Brazil’s move to raise biodiesel blending mandate to 15% unlikely to boost short-term glycerine suppliesBrazilian regulators’ decision to boost the country’s biodiesel blending mandate to 15% (B15) in August is unlikely to boost short-term glycerine availability, as existing production continues to lag behind the current B14 mandate. Mexico’s Braskem Idesa to remain under financial pressure as new terminal relief takes time – S&PBraskem Idesa is grappling with deteriorating financial metrics as the Mexican polyethylene (PE) producer struggles to recover from the broader petrochemical industry downturn, credit rating agency S&P Global said this week. Brazil’s chemicals operating rates keep falling despite protectionist measuresBrazil’s chemicals production posted its worst performance in over three decades during Q1 2025, with operating rates at 62% – down from 65% in the same quarter of 2024 – and production falling by nearly 4%, chemicals producers’ trade group Abiquim said on Wednesday. Solvay’s Peroxidos do Brasil to expand Chilean hydrogen peroxide facilityPeroxidos do Brasil is to invest $12 million in an expansion of its Chilean hydrogen peroxide (H2O2) production facility, the subsidiary of Belgium-headquartered chemicals major Solvay said on Monday.

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 4 July. US chem firm warns of unprecedented destocking in comments to Fed An unnamed chemical company warned of unprecedented destocking in comments to one of the Federal Reserve’s regional banks, according to a survey published on Monday. INSIGHT: US chemical stocks catch a bid along with cyclicals. Could manufacturing finally be bottoming? US chemical stocks have finally caught a bid to kick off H2 2025, rallying strongly even with the S&P 500 benchmark index slightly in the red. US announces Vietnam trade deal, will impose 20% tariffs The US will impose 20% tariffs on imports from Vietnam and 40% tariffs on transshipments – while Vietnam will charge no tariffs on US imports, according to a trade agreement that the US president announced on Wednesday. INSIGHT: Transshipment tariffs of 40% unclear in US-Vietnam trade deal The finer points of US President Donald Trump’s trade deal with Vietnam were notably vague, particularly concerning a 40% tariff targeting “any transshipping”. INSIGHT: US-Vietnam trade deal a template for SE Asia; US PE exports could benefit The US-Vietnam trade deal, which includes US tariffs on imports from Vietnam but exempts US exports from tariffs, should serve as a template for potential agreements with other southeast Asia countries where the US has a large trade deficit. Brazil’s Petrobras mulls acetic acid, MEG plants in Rio as part of $6 billion capex plan Petrobras is mulling production plants for acetic acid and monoethylene glycol (MEG) at its site in Rio de Janeiro as part of its 2025-2029 capital expenditure plans of Brazilian reais (R) 33 billion ($6.08 billion), the Brazilian state-owned energy major said this week.

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at the growing risks in the US housing market. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author and do not necessarily represent those of ICIS. Paul Hodges is the chairman of consultants New Normal Consulting.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 4 July. Europe chemicals producer prices in May fell at faster rate than previous months European chemicals producer prices continued to fall in May at a more significant rate than previous months, according to the latest data from Eurostat. Europe heatwave ignites demand for domestic PET Soaring temperatures across much of Europe are creating demand for European polyethylene terephthalate (PET), but any optimism remains cautious. INSIGHT: EU regulatory certainty needed to boost bio-naphtha, pyrolysis oil growth Continued regulatory uncertainty over the status of bio-based plastics and pyrolysis oil within the EU is hampering demand from the petrochemicals sector, stalling investment, and fragmenting prices by end-use for both bio-naphtha and pyrolysis oil. INSIGHT: Crude prices return to earth as Iran fears cool Crude pricing has shifted back to its former footing after surging costs in a week of Middle East political unrest led some analysts to predict the return of triple-digit dollar barrels, with pricing set to slip further in the mid-term. INSIGHT: Europe toluene and TDI value chains demand washed out Demand for toluene and downstream toluene diisocyanate (TDI) has been moving with slow momentum with no expectations for a substantial recovery in the near term.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 4 July. PODCAST: Steel, aluminum, cement – China-EU dialogue on hydrogen and carbon markets By Patricia Tao 30-Jun-25 11:52 SINGAPORE (ICIS)–China’s expansion of its carbon market and the EU’s implementation of Carbon Border Adjustment Mechanism (CBAM) are reshaping the landscape for high-emission industries. Steel, aluminum, and cement are under increasing pressure to decarbonize, and hydrogen is emerging as a strategic solution. India, China BPA import prices slump; ample supplies to persist By Li Peng Seng 30-Jun-25 13:10 SINGAPORE (ICIS)–Import prices of bisphenol A (BPA) in India and China have sunk to their 4.5-year lows amid oversupply and economic headwinds. Feedstock shortage, supply imbalance reignite Asia C2 arbitrage trades By Josh Quah 30-Jun-25 16:19 SINGAPORE (ICIS)–A coincidental meeting of geopolitical and trade headwinds has re-opened deep-sea arbitrage window for ethylene (C2) into northeast Asia, a circumstance not seen in Asia ethylene markets since 2024. Indonesia to relax import rules on some goods, including chemicals, textiles By Jonathan Yee 01-Jul-25 14:12 SINGAPORE (ICIS)–Indonesia announced plans to relax import regulations on some goods, including chemicals, electronics and textiles, about a week before the US’ suspended “reciprocal” tariffs take effect. China manufacturing PMI returns to growth despite US tariffs – Caixin By Nurluqman Suratman 01-Jul-25 12:37 SINGAPORE (ICIS)–China’s factory activity returned to expansion in June, as higher new order inflows supported a renewed rise in output, a private-sector survey by Chinese media firm Caixin showed on Tuesday. BLOG: After the bombs: Israel-Iran and three long-term scenarios By John Richardson 01-Jul-25 14:38 SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson: The recent “12-day-war” between Israel and Iran has irrevocably altered the dynamics of the Middle East. What comes next? INSIGHT: Weakness at Asia factories persists as US tariffs loom By Nurluqman Suratman 02-Jul-25 13:12 SINGAPORE (ICIS)–Asia’s manufacturing sector exhibited signs of further weakness in June, with most economies in the region registering purchasing managers’ index (PMI) readings of below 50, indicating a deepening slump in factory activity. INSIGHT: Transshipment tariffs of 40% unclear in US-Vietnam trade deal By Nurluqman Suratman 03-Jul-25 14:21 SINGAPORE (ICIS)–The finer points of US President Donald Trump’s trade deal with Vietnam were notably vague, particularly concerning a 40% tariff targeting “any transshipping”. INSIGHT: Vietnam-US trade deal points to higher tariff rates for SE Asia By Nurluqman Suratman 04-Jul-25 13:44 SINGAPORE (ICIS)–The trade deal between Vietnam and the US, particularly its focus on transshipment, suggests other economies in southeast Asia may also face significantly higher tariff rates than the current universal 10% tariff.