LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 2 May. Europe PE, PP spot pricing stable to soft as softer May anticipatedEuropean polyethylene (PE) and polypropylene (PP) spot pricing is stable to soft following the unpredictable trade wars at the beginning of the month. Players are universally expecting a softer month in May. Spanish refineries, chemicals restart after nationwide power outageRefineries and chemical sites in Spain have taken their first steps towards restarting operations following Monday’s nationwide power outage which forced widespread shutdowns. European phenol/acetone market reacts with surprise to Orlen closure newsThe European phenol and acetone market has reacted with surprise to the news that Orlen is to decommission its phenol and acetone plant in Plock, Poland, by the end of this year. Europe acrylic acid contract prices fall in April as feedstock costs subsideThe Europe acrylic acid (AA) market has seen the freely negotiated contract prices for April settle at a slight decrease. INSIGHT: CEOs face new problem as economy weakens, overcapacity worsensAs the trade war puts a squeeze on already tepid economic growth, and deepens chromic global overcapacity in chemicals, CEOs may struggle to find fresh markets as they shift product flows to avoid the burden and uncertainty of tariffs.

SINGAPORE (ICIS)–The ASEAN+3 region, comprising the 10 ASEAN (Association of Southeast Asian Nations) ASEAN nations plus China, Japan, and South Korea, is projected to achieve a stable economic growth rate of 4.3% in 2025, from a 4.4% expansion in 2024, according to a joint statement on Monday. The 28th ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting co-chaired by Malaysia and China and held in Milan, Italy on 4 May, focused on strategies to bolster regional financial stability and cooperation amid economic headwinds. ASEAN comprises 10 countries from southeast Asia, namely, Thailand, Vietnam, Indonesia, Malaysia, Singapore, Philippines, Laos, Cambodia, Brunei and Myanmar. “Over the medium term, ASEAN+3 is expected to remain a key driver of the global economy, contributing to more than 40% of global growth,” they said. Inflation, meanwhile, is expected to remain below 2.0% this year. The region will look at carefully recalibrating monetary policy based on domestic conditions, as well as maintain exchange rate flexibility as a buffer against external shocks. It also added that the regions reaffirms its “full commitment to multilateralism, and a rules-based, non-discriminatory, free, fair, open, inclusive, equitable, and transparent multilateral trading system, with the World Trade Organization (WTO) at its core”. The US and China are locked in a trade war, with both nations slapping tariffs in excess of 100% on each other.

SINGAPORE (ICIS)–SABIC swung to a net loss of Saudi riyal (SR) 1.21 billion ($323 million) in the first quarter on the back of higher feedstock prices and operating costs, the Saudi Arabian chemicals giant said on 4 May. in Saudi Riyal (SR) billion Q1 2025 Q1 2024 % Change Sales 34.59 32.69 5.8 EBITDA 2.5 4.51 -44.6 Net income -1.21 0.25 The company reported a Q1 revenue increase driven by higher sales volumes, though this gain was partially tempered by lower average selling prices, it said in a filing on the Saudi bourse, Tadawul. Despite this revenue growth, Q1 net profit faced pressure from a rise in other operating expenses, primarily due to a one-time SR 1.07 billion cost associated with a strategic restructuring expected to yield future cost reductions. QUARTER ON QUARTER PERFORMANCESABIC’s sales volume and average selling prices were relatively stable quarter over quarter, supported by higher production volumes in the chemicals and polymers units, although this was offset by lower overall sales volumes. In the first quarter, revenue of the petrochemicals segment was at SR31.5 billion, representing a quarter-over-quarter decrease of 1%, primarily driven by continued oversupply and weaker demand. While methanol prices improved, monoethylene glycol (MEG) prices were flat amid higher supply and weak demand, along with polypropylene (PP). Meanwhile, polyethylene (PE) prices were supported by global demand, but offset by additional supply. Polycarbonate (PC) prices were lower in the first quarter, mainly due to weak demand across major markets and oversupply. OUTLOOK Manufacturing Purchasing Managers Index (PMI) growth remained slow over the quarter, indicating business pessimism, SABIC CEO Abdulrahman Al-Fageeh said. “Our growth projects are progressing according to plan, including the Petrokemya MTBE plant and SABIC Fujian complex,” Al-Fageeh said. “We are focused on driving operational excellence, advancing transformation, and pursuing selective growth, while maintaining financial discipline and delivering long-term value,” added Al-Fageeh. SABIC projects an expenditure range of $3.5-4.0 billion for the year. SABIC is 70%-owned by energy giant Saudi Aramco. Thumbnail shows a SABIC production facility (Source: SABIC) ($1 = SR3.75)

SINGAPORE (ICIS)–The People’s Action Party (PAP) won a supermajority in Singapore’s parliament in what was Prime Minister Lawrence Wong’s first election as leader. The PAP captured 87 of 97 seats in a general election held on 3 May, including five uncontested seats, official final results showed early Sunday. The Workers’ Party, the leading opposition, held its ground with 10 seats across three constituencies but failed to expand its parliamentary foothold. Wong, who assumed the premiership last year in Singapore’s first leadership shift in two decades, now holds a “strong mandate” to lead the nation for the next five years, he said on 4 May. Singapore is a leading petrochemical manufacturer and exporter in southeast Asia, with more than 100 international chemical companies, including ExxonMobil, based at its Jurong Island hub.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 2 May. India RIL oil-to-chemicals fiscal Q4 earnings fall on poorer margins By Nurluqman Suratman 28-Apr-25 11:57 SINGAPORE (ICIS)–India’s Reliance Industries Limited (RIL) late on 25 April reported a 10% year-on-year drop in its oil-to-chemicals (O2C) earnings before interest, tax, depreciation and amortization (EBITDA) on poorer transportation fuel cracks and subdued downstream chemical deltas. Asia naphtha market strengthens but uncertainties linger By Li Peng Seng 28-Apr-25 15:01 SINGAPORE (ICIS)–Asia’s naphtha intermonth spread hit a three-week high recently as market sentiment recovered following stronger demand from China, but the market ahead could be choppy on the back of volatile crude oil and trade war uncertainties. PODCAST: MMA market turmoil in China and Asia amid rising supply, weak demand By Yi Liang 28-Apr-25 15:19 SINGAPORE (ICIS)–In this podcast, ICIS analysts Jasmine Khoo and Mason Liang will talk about the current situation and outlook for the methyl methacrylate (MMA) market. INSIGHT: China new energy vehicle industry to continue driving polymer industry development By Chris Qi 28-Apr-25 18:31 SINGAPORE (ICIS)–China’s automotive industry has maintained rapid growth over the last few years, with the expansion of the country’s new energy vehicle (NEV) sector particularly notable, now accounting for 70% of global production. China’s Sinopec enters $4bn JV with Saudi Aramco unit for Fujian project By Jonathan Yee 29-Apr-25 12:19 SINGAPORE (ICIS)–China’s state-owned Sinopec has entered a joint venture (JV) with an Asian unit of Saudi Aramco to manage the second phase of a refining and petrochemical complex at Gulei in Fujian province, it said on 28 April. Asia glycerine may see restocking after Labour Day holiday By Helen Yan 29-Apr-25 14:34 SINGAPORE (ICIS)–Asia’s glycerine market may see a pick-up in restocking activities after the May Day or Labour Day holiday as Chinese buyers hold back their purchases, given the sluggish downstream epichlorohydrin (ECH) market and uncertainties over the US-China trade war. China Apr manufacturing activity shrinks on US tariffs pressure By Jonathan Yee 30-Apr-25 12:09 SINGAPORE (ICIS)–China’s manufacturing activity shrank in April as export orders weakened amid the intensifying trade war with the US, official data showed on Wednesday. INSIGHT: Rising costs to curtail China PDH runs, mixed impact on C3 derivatives By Seymour Chenxia 30-Apr-25 13:00 SINGAPORE (ICIS)–Chinese PDH producers are likely to lower operating rates as US-China trade tensions drive up propane import costs, which is expected to tighten propylene supply. However, the impact on downstream markets will be mixed due to varying feedstock sources. Asia VAM market to slow as China solar drive eases By Hwee Hwee Tan 02-May-25 11:35 SINGAPORE (ICIS)–Asia’s vinyl acetate monomer (VAM) supply is lengthening as spot demand tied to a major downstream sector is softening into May.

HOUSTON (ICIS)–The shock of US tariffs has caused customers to halt chemical purchases due to the uncertain trade policy, and that pause is reverberating throughout chemical chains in ways that resemble the COVID-19 pandemic in 2020, the CEO of US-based polyurethanes producer Huntsman said on Friday. Suppliers are panicking and lowering inventories, preserving working capital, strengthening balance sheets and pursuing other emergency measures, said Peter Huntsman, CEO. He made his comments during an earnings conference call. For example, the company is seeing automobile build rates drop low-single digit percentages, Huntsman said. By the time order patterns trickle through original equipment manufacturers (OEMs) and through to chemical companies, Huntsman is seeing double-digit drops in some order patterns. “It is not unlike what happens when someone tapped the brake on a fast-moving freeway and the car behind them applies greater pressure. Three or four cars further back, cars are literally skidding to a halt,” he said. Huntsman does not expect the shock will last. “I would say this scenario is not unlike 2020, where supply chains and inventories froze and the world stood in a state of paralysis as consumers, manufacturers and suppliers tried to make sense of the short term,” he said. If that’s the case, then the disruptions should resolve themselves in the next few months as the US signs trade deals, companies establish alternate supply chains, and the initial shock of the tariff announcements recedes. Huntsman also noted what he described as a large disconnect between what is being ordered and what is being produced. “How do you match today’s drop off in demand with the reality of what is being consumed in the broader market?” Huntsman asked. “The only parallel I’ve seen in the last 15-20 plus years is really 2020, when we saw a very, very rapid and sudden drop off in COVID and subsequently the bullwhip effect that came back in the later part of 2020 and went all the way to 2021.” US MDI MARKET FACES LONG-TERM CHANGESNorth and South America have a trade deficit in methylene diphenyl diisocyanate (MDI), and imports account for 20-25% of total demand, Huntsman said. Most of those imports come from China. Trade tensions could have a longer effect on US MDI markets because of the nature of the tariffs and future duties that the US is considering. Since the first administration of US President Donald Trump, the US has imposed tariffs of more than 30% on Chinese shipments of MDI. During Trump’s second term, the US has imposed additional tariffs of 145%. The effect of the tariffs is already choking off Chinese shipments, Huntsman said. More could come. The US International Trade Commission (ITC) is considering antidumping duties on Chinese imports of MDI. A preliminary investigation could be completed by the middle of September, Huntsman said. A final investigation to determine the size of antidumping duties could finish in February. A final ruling could be issued in March 2026. If approved, these duties could be 300-500%, and they could last for five years, Huntsman said. The cumulative effect of tariffs and antidumping duties would erect a formidable trade barrier on Chinese MDI imports. Huntsman does not expect European producers could fill in the gap. Higher manufacturing costs, tariffs and transportation account for an additional $400-500/tonne price difference for European MDI. “I do not see Europe backfilling Asian material that would otherwise be coming into the US. It has not been competitive to do that at least in the last three or four years,” he said. HUNTSMAN EXPECTS NO CHANGES ON FOOTPRINTHuntsman does not expect that it will need to make any changes on its manufacturing footprint, he said. Most of the company’s sales are derived from locally produced product. Huntsman produces all of its MDI in North America. “We’re in an ideal location to benefit from this.” In China, all of its MDI supply is produced domestically. Huntsman also makes polyols. (Thumbnail shows polyurethane foam, which is made with MDI, a chemical that could face longer term consequences from US tariffs. Image by Shutterstock.)

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Higher offers for colorless bales, colorless and mixed colored flake in NWE High bale prices still a major concern for recyclers across Europe Flake demand looking good for May, food-grade pellet has room to improve

LONDON (ICIS)–Demand in the EU and US epoxy markets remains muted and sentiment has become even more cautious, as players navigate the changing and complex tariff landscape. In this podcast, Heidi Finch – who covers the Europe epoxy market – and fellow senior editor Tarun Raizada – who covers the US epoxy market – share insights on key topics including tariffs, effects on sentiment, demand and profitability struggles. Europe epoxy sentiment diluted in April; as US President Donald Trump’s tariffs add to demand caution; competition from South Korea and within Europe US epoxy price momentum slowed in April as players scrambled to assess impact on supply chain of duty/tariff fallout Profitability still a challenge; but benzene drop in Europe provides some relief Sentiment cautious in US moving forward as demand outlook far less favorable amid extended tariff uncertainty Trump tariffs cast a cloud over the downstream outlook, EU players hope trade deals will be reached Podcast editing by Nick Cleeve

SINGAPORE (ICIS)–Asia’s petrochemical markets are poised for a resurgence in activity following the May Day holidays, with discussions subdued as buyers await signs of recovery and producers restart plants over the coming months. Producers to restart plants, refill inventories after holidays Delayed purchases until after holidays US has contacted China for trade talks – Chinese state media The May Day or Labor Day holiday is celebrated in China from 1-5 May, and in most other Asian countries on 1 May. Japan and South Korea also observe several days of holiday in May. Feedstock propane supply-demand fundamentals are being weighed on by the ongoing US-China trade war, which is affecting the cost of propane imports and could lead to reduced operating rates for propane dehydrogenation (PDH) units. This may tighten propylene supply in the longer term, potentially supporting prices if demand picks up. Demand has been sluggish in the propylene market, weighing prices down as producers maintain low inventories ahead of 1 May. However, after the Labor Day holiday, there is an expectation of increased supply, which may lead to a more balanced supply-demand scenario as they resume normal operations. Separately, the glycerine market in Asia is expected to see a notable pick-up in restocking activities after the holidays. Chinese buyers, who have been holding back purchases due to a sluggish downstream epichlorohydrin (ECH) market and uncertainties surrounding the US-China trade war, are likely to return to the market. “We will wait until after the Labor Day holidays before we commit to any purchases as we expect the downstream ECH market to slow down after the holidays,” a Chinese buyer said. The ECH market, a key downstream sector for glycerine, is anticipated to experience a price drop after the holidays due to demand remaining weak amid the US-China trade war. Asia’s butyl glycol (BG) import prices were assessed as lower this week amid a bearish market sentiment amid unimproved demand conditions. In southeast Asia, the glycol ethers market is undergoing price adjustments as producers lower offers in anticipation of the Labor Day holidays. China’s export prices for propylene glycol ether (PGE) also softened as sellers looked to increase sales before the holiday. Meanwhile, propylene glycol prices are expected to remain stable as market participants await the outcomes of the holiday period. In China, domestic prices have held steady, but the overall sentiment remains cautious due to the impact of the holiday on production and logistics. The stability in pricing reflects balanced supply-demand fundamentals, though any unexpected disruptions post-holiday could lead to short-term volatility. PRODUCERS ADJUSTING OUTPUT The acetic acid market is experiencing softening spot prices due to lengthening supply as plants restart operations following maintenance turnarounds. However, the holiday period is likely to further influence supply dynamics, with some producers adjusting output to manage inventory levels. In China, a new plant tied to a downstream ethylene vinyl acetate (EVA) unit has come online. It is among other plants in Asia with a combined capacity of nearly 1.8 million tonnes/year which have either already restarted or are restarting in May, EVA-linked vinyl acetate monomer (VAM) demand is generally expected to slow as June approaches, when a pricing policy in China – which has spurred a rush in solar panel installations across the country – comes into effect. Concerns of slowing demand were kept on the boil in Asia ethyl acetate (etac) markets amid fluid developments surrounding trade tensions between the US and China, and its potential ripple effect on sentiment in the days ahead. Notably, market players were conscious of weakening product spreads or etac production margins. Eroding margins have thus left regional suppliers with little room to scale back asking levels, despite the current market climate that was viewed as largely skewed towards buyers. EYES ON POSSIBLE TRADE TALKSAs the US-China trade war persists, both sides have indicated a willingness to engage with each other on trade talks. On Friday, a spokesperson of China’s Ministry of Commerce said that senior US officials have “repeatedly expressed their willingness” to negotiate with China on tariffs, according to state media outlet CCTV. The spokesperson said that the US has sent requests hoping to talk to China, and the Asian country is currently evaluating them. “China’s position is consistent. If we fight, we will fight to the end; if we talk, the door is open,” the spokesperson said. Meanwhile, US President Donald Trump has maintained that trade talks are ongoing between the two largest economies in the world, which Chinese state media denied. Amid US tariffs, manufacturing activity continued to remain sluggish across Asia, including China and Japan. In April, China’s manufacturing activity shrank as export orders weakened due to the escalating trade war with the US. The official purchasing managers’ index (PMI) dropped to 49.0, indicating contraction, down from 50.5 in March. Japan’s manufacturing PMI rose to 48.7 in April from 48.4 in March, marking the tenth consecutive month of contraction. Focus article by Jonathan Yee Additional reporting by Seymour Chenxia, Helen Yan, Julia Tan, Joy Foo and Matthew Chong and Melanie Wee.