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

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

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

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

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

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

MADRID (ICIS)–Brazil’s President Luiz Inacio Lula da Silva signed late on Wednesday a provisional measure with support measures for Brazilian exporters facing US tariffs totaling Brazilian reais (R) 30 billion ($5.5 billion). The so-called Sovereign Brazil Plan allocates funds from the Export Guarantee Fund (FGE) for affordable credit alongside measures including export credit insurance changes, tax suspension extensions and public procurement support for tariff-affected products. At the signing ceremony at the Planalto Palace in Brasilia, Lula said, “sovereignty is untouchable”, but added that Brazil remains open to negotiations with the US to resolve the trade crisis. The plan envisages public support in the areas: strengthening the productive sector, protecting workers and advancing commercial diplomacy and multilateralism to reduce dependence on US markets while preserving employment and encouraging strategic investment, said the Brazilian cabinet. Credit measures are to prioritize companies based on US export revenue dependence, product type, and company size, with access conditional on maintaining employment levels. Small and medium-sized enterprises (SMEs) will receive specific support through expanded guarantee fund access, the cabinet said. The R30 billion credit allocation provides funding for affordable lending, with additional R1.5 billion contributed to the Foreign Trade Guarantee Fund, R2 billion to the Investment Guarantee Fund, and R1 billion to the Operations Guarantee Fund. Drawback regime deadlines receive exceptional one-year extensions for companies with US export commitments, affecting $10.5 billion of the $40 billion exported to the US in 2024 under the regime, said the government. An enhanced Reintegra program increases tax refunds by up to 3 percentage points for affected companies, raising large and medium companies’ rates to 3.1% and SMEs to 6%, valid until December 2026 with up to R5 billion impact. From January to July 2025, US exports to Brazil grew 12.7% while Brazilian exports to the US increased just 4.6%, creating, “an impressive surplus, almost three times larger in these first seven months”, said Brazilian Vice President Geraldo Alckmin, who is also minister for industry. “We will continue to persist in negotiations. Because we like to negotiate. And we don’t want conflict. If there are more things, we will do them for the workers. Because in this country, we’ve learned that no one lets go of anyone else’s hand. The only thing we need to demand is that sovereignty is untouchable,” said Lula. “Brazil had no real reason to be taxed, nor will we accept any accusation that we don’t respect human rights in Brazil. I want to say to business owners and workers: we will try to do everything in our power to minimize the problems that have been caused to us,” he declared. Brazil said it would advance commercial diplomacy through concluded agreements with the EU and the European Free Trade Association (EFTA), ongoing negotiations with UAE and Canada, and dialogue processes with India and Vietnam. Finance Minister Fernando Haddad said that tax reform already benefits exporters while new measures, “will empower the entire export sector to mobilize in search of new markets”. Brazil’s chemicals trade group Abiquim had not responded to a request for comment at the time of writing. Thumbnail image: Brazil’s port of Santos in the state of Sao Paulo (Image source: Port of Santos Authority)

LONDON (ICIS)–European methyl tertiary butyl ether (MTBE) reporter Gabrielle Jordan and methanol senior editor Eashani Chavda discuss the supply-demand dynamics of each market as both face atypical, subdued demand in the third quarter, on a below-par summer driving season. Topics discussed include: Supply-demand dynamics Increasing import reliance Potential US tariffs and their effects Podcast by Gabrielle Jordan and Eashani Chavda

SINGAPORE (ICIS)–Mesaieed Petrochemical Holding Co (MPHC) reported a net profit of Qatari riyal (QR) 379 million ($104.1 million) for the first six months of 2025, a 5% year on year decline compared to the same period last year, amid declining prices and macroeconomic headwinds, the Qatari chemicals firm said on 12 August. in Qatari riyal (QR) million H1 2025 H1 2024 % Change Sales 585 559 5 EBITDA 610 627 -3 Net profit 379 398 -5 Weak industrial activity and cautious consumer spending contributed to subdued demand for products such as ethylene (C2) and its derivatives during the first half of 2025, said MPHC. At the same time, there was a surge in global capacity, leading to heightened competition and lower operating rates, and contributing to some project delays or shutdowns. “Additionally, fluctuations in feedstock and energy costs, particularly crude oil and ethylene, have added to the pricing volatility,” MPHC added. On a quarter-on-quarter basis, production increased, primarily driven by notable growth in volumes in the petrochemical sector. MPHC recorded an increase in sales volumes compared to the first half of 2024 despite lower total revenue, thanks to stronger operational performances. During the first half of 2025, the chlor-alkali segment suffered from lower average selling prices compared to the same period last year as sluggish demand and macroeconomic pressures persisted. Oversupply and reduced ethylene prices also weighed on market sentiment. Sharing an update on its 350,000 tonne/year polyvinyl chloride (PVC) project, MPHC said it is expected to commence production during the second half of 2025. ($1 = QR3.64)