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Ethylene07-Jul-2025
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.
Gas07-Jul-2025
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.
Polypropylene07-Jul-2025
Brazil’s Novonor, fund seeking to acquire its Braskem
controlling stake notify competition authority
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

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Speciality Chemicals07-Jul-2025
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.
Ethylene07-Jul-2025
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.
Petrochemicals07-Jul-2025
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.
Speciality Chemicals07-Jul-2025
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.
Gas07-Jul-2025
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.
Gas04-Jul-2025
SAO PAULO (ICIS)–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.
Ethylene supply, necessary for acetic acid
and MEG plants, uncertain
Investments in Rio could indicate favorable
Petrobras-Braskem dynamics
New cabinet in 2027 may bring new Petrobras
CEO, new capex plans
While Petrobras fell short of giving more
details on the petrochemicals investments, the
company was more specific on capex plans for
base oils and several fuels, including
biofuels.
In base oils, a company executive said earlier
in the week at an industry event in Rio that
the company is targeting 2029 for first
production from its Group
II base oils project at the Boaventura
Energy Complex, also called as the municipality
is in, Itaborai.
The acetic acid and MEG plants would also be
built at the complex.
“A study for the production of acetic acid and
MEG is under evaluation at the Boaventura
Complex. Acetic acid is an important raw
material for the production of paint, PET
[polyethylene terephthalate], and the broader
chemical industry,” it said.
“Brazil currently imports its entire acetic
acid demand and complements MEG demand with
imports.”
The company had not responded to a request for
additional comment at the time for writing.
For instance, to produce acetic acid and MEG
Petrobras would need a supply of ethylene,
which is in short supply in Rio unless
petrochemicals major Braskem expanded its
cracker in the state.
Petrobras is the second largest shareholder in
Braskem – with a stake of 36.1% although voting
rights of 47% – and both companies are at the
same time in talks on natural gas supply to
Braskem’s Duque de Caxias complex in Rio.
In coming years, the company will aim to switch
feedstock at the site, from the current plans
mostly running on crude-based naphtha into
natural gas-based ethane facilities, currently
more competitive.
Analysts have said those investments will
require large sums in coming years, but
most of all would need the until now elusive
gas on natural gas, which basically depends on
Petrobras given its dominance in the Brazilian
market.
In June, Braskem said the deal on gas, if
reached, could unlock investments at its
site of R4.3 billion.
In fact, on Friday afternoon Petrobras released
another statement which mentioned Braskem as
investing R4 billion in Duque de Caxias, which
would add to the R29 billion Petrobras is to
invest and making the total R33 billion.
The first statement had mentioned those two
figures but linked the R4 billion to another
project operating in “synergy” with its assets.
On Friday, the statement read: “Of the total to
be invested, R29 billion will be contributed by
Petrobras and R4 billion by Braskem, in a
project that works in synergy with Petrobras
assets.”
Also, in the previous release it mentioned
Braskem’s R4 billion figure another time but,
as it had been the official position up to now,
those interments were subject to final
approvals.
Braskem’s own positioning on Friday was indeed
the same. In a statement sent to ICIS late on
Friday, the company said the potential
investments – which it has always said would be
R4.3 billion instead of Petrobras’ figure –
remained only a potential because the deal with
Petrobras on ethane has not yet been signed.
FUELS, LUBRICANTSApart
from targeting production 12,000 barrels/day of
base oils Group II by 2029, Petrobras’ special
products commercial manager, Ulysses
Donadel, also said at the industry event the
company is mulling production of re-refined
base oils (RRBO).
Later, Petrobras’ statement on capex this week
gave more clarity on capacities. It said it
will also increase capacities for production of
S-10 diesel, up by 76,000 barrels/day, and jet
fuel, up by 20,000 barrels/day.
The plans also include a “dedicated” biofuels
facility for production of 19,000 barrels/day
of hydrotreated vegetable oil (HVO) and
sustainable aviation fuel (SAF).
“The project also includes two gas-fired power
plants at the Boaventura Complex, which will
participate in capacity reserve auctions. The
engineering project for the power plants has
been approved, and the units will leverage
synergies with the infrastructure of the
Itaborai Natural Gas Processing Unit (UPGN),”
said Petrobras.
“A lubricant oil re-refining project with a
capacity of 30,000 cubic meters (cbm)/month, or
6,300 barrels/day, is also under evaluation at
Reduc [its other side in Rio, included in the
same complex as Duque de Caxias].
“With the operation of the Boaventura Complex
for Group II lubricant oil production, Reduc
may repurpose existing units to re-refine used
oil, applying the circular economy concept to
generate high-value products from waste,” it
added.
The company said the co-processing test is
expected to take place this year after it had
been authorized by Brazil’s oil and gas
regulator the ANP. Petrobras said initial tests
had proved reductions in emissions.
As part of its green efforts, the company said
it will build a new thermal power plant at
Reduc to replace “obsolete” steam and power
generation equipment, with expected capex of
R860 million.
“Investments of up to R2.4 billion in
maintenance shutdowns at Reduc are also planned
from 2025 to 2029, to ensure the integrity,
reliability, and safety of the facilities.
Major shutdowns are scheduled for 2026 in the
delayed coking and hydrotreatment units of the
refinery,” the company added.
UNCERTAINTIESIn May,
Petrobras said it had started commercial
operations at the second module of that
Natural Gas Processing Unit (NGPU) at the
Boaventura Energy Complex, an expansion which
stalled in the mid-2010s as the company got
embroiled the Latin American-wide corruption
scandal known as Lava Jato.
Brazil’s rampant corruption levels have dwarfed
many industrial plans before, but in the case
of Petrobras there is an additional factor.
The company is de facto controlled by
the government in office in Brasilia, and the
CEO is directly appointed by the president and
it basically has the same status as a minister.
Current polling shows the current center-left
cabinet of Luiz Inacio Lula da Silva may
struggle to revalidate the coalition of parties
which support it in Parliament in the general
election to be held in October 2026.
In other words, a new president may appoint a
new CEO – Lula has appointed two since 2023 –
and it remains to be seen whether there will be
new priorities.
Moreover, some of the investments mulled in the
sizeable capex plans to 2029 depend not only on
Petrobras but other players in the chain.
if a change at the helm does occur, it will be
also interesting to see what direction
Petrobras takes on fertilizers policy.
The previous center-right administration
mandated a complete exit from the sector, even
leaving some plants idle in a powerhouse
agricultural country that depends largely on
imports.
That policy has been completely reversed since
2023 and Petrobras is amid considerable
investments to revive the fertilizers division.
Front page picture: Rio de Janeiro’s Duque
de Caxias/Reduc complex
Picture source: Petrobras
Focus article by Jonathan
Lopez
Additional reporting by Al
Greenwood
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