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US Celanese shares fall 23% to 2013 levels amid weak guidance
HOUSTON (ICIS)–Shares of Celanese fell by 23% in afternoon trading to reach lows last seen in 2013, after the company gave weak guidance for the first two quarters of the year and implied that growth would come from costing cutting and efficiency programs – and not from any widespread increase in demand. The following tables shows Celanese’s Q1 segment guidance and compares it with Q1 2024. Figures are in millions of dollars. Adjusted EBIT Q1 25 Q1 24 % Change Acetyl Chain 175-190 296 -38.3% Engineered Materials 90-110 201 -50.2% Source: Celanese Operating EBITDA Q1 25 Q1 24 % Change Acetyl Chain 235-250 353 -31.3% Engineered Materials 190-210 303 -34.0% Source: Celanese For Celanese as a whole, adjusted earnings/share should be 25-50 cents in the first quarter, down from $2.08 from Q1 2024. Second-quarter earnings/share should be $1.25-1.50 before taking into account the benefits from any other business improvements being taken by Celanese. That is down from $2.38 in adjusted earnings/share for Q2 2024. Celanese shares were trading below $54 in the late afternoon. They were above $174 as recently as March 2024. GRIM DEMAND OUTLOOKThird-party forecasters expect almost no growth in 2025 auto builds. This makes up the largest market for Celanese’s Engineered Materials segment. Celanese sees few signs of any near-term improvement in any region for paints, coatings and construction, key end markets for the Acetyl Chain segment. Because of the weak demand outlook in its core markets, Celanese is focusing on steps the company can take to cut costs, increase cash flow and boost revenue through the business models it uses in its Acetyl Chain and Engineered Materials segments. “With little indication of near-term recovery, it is our job to drive productivity and earnings growth at Celanese even if fundamental demand remains flat or declines further,” said Scott Richardson, CEO. The second half of the year should be better than the first half, but that is because of the timing of dividend payments from an affiliate in China, the completion of turnarounds and self-help actions. DESTOCKING TO CONTINUE IN Q1Celanese expects to continue working down inventories in its Engineered Materials segment, although not to the same magnitude as the fourth quarter, Richardson said. ISOLATED GROWTH POCKETSSome market segments are showing some signs of growth, which Celanese will target – including servers, medical applications, and athletic wear. The company sees opportunities in electric vehicles, which have unique material challenges. CELANESE PUTS A PRIORITY ON CASHGiven its debt levels, Celanese is making cash a priority, Richardson said. “We are looking to do everything we can to unlock cash,” he said. “It is a focus on on cash first.” Thumbnail shows money. Image by ICIS
SHIPPING: US ports of Freeport, Corpus Christi closed amid heavy fog, high winds
HOUSTON (ICIS)–The US ports of Freeport and Corpus Christi were closed on 19 February because of dangerous weather conditions, shipping brokers told ICIS. Port Houston remains open, as are the Texas ports of Texas City and Galveston, and Lake Charles, Louisiana. The Port of Freeport closed at 5 am to all inbound traffic. The port of Corpus Christi closed at 2 am and suspended boarding of all vessels because of heavy weather, high winds and offshore conditions. The National Weather Service has issued gale warnings that will remain in effect until 3 pm on Wednesday for areas in the US Gulf including Matagorda and Galveston Bays, and coastal waters from Freeport to the Matagorda ship channel out 20 miles. Port Houston has seen heavy morning fog over the past week to 10 days that has slowed some movement through the channel, according to market participants. Port Houston is the busiest port in vessel and barge movements and the largest US port by tonnage, with more than 200 docks and 270 facilities. It is home to the largest petrochemical manufacturing complex in the nation. It is also the top US port for petroleum and the fifth largest container port in terms of TEUs (20-foot equivalent units) in 2022.
PODCAST: Europe MX and PX chemical demand braces for headwinds
LONDON (ICIS)–In this podcast, market editors Zubair Adam (MX) and Miguel Rodriguez Fernandez (PX) discuss the challenges for future demand. MX are traded in two grades. The isomer-grade xylene is mainly used as a feedstock for PX and OX production, while the main application for solvent grade is as a raw material for dye, organic pigment, perfume and medicines, as well as a general solvent for paint and agricultural pesticides. PX is widely used as a building block to manufacture other industrial chemicals, notably DMT and purified terephthalic acid (PTA), which is used in the production of PET.

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EU clean industrial deal targets lower costs, focus on Europe purchasing
LONDON (ICIS)–A new framework aimed at increasing the competitiveness of European industry is targeting lower energy costs and stronger purchase incentives for local and sustainable products, according to a leaked early draft of the measures. New legislation intended to reduce energy costs for industry Increased focus on purchasing local products No watering down of decarbonisation targets A draft text of the European Commission’s Clean Industrial Deal sets out plans to strengthen the markets for sustainable products and provide greater assistance for heavy industry to cope with energy costs, rather than easing decarbonisation targets. Details of the industrial deal are set to be released formally on 26 February ENERGY European industry has increasingly struggled to remain viable in the wake of surging energy costs on the back of the region’s shift away from Russian natural gas since 2022. The Commission has discussed various options to mitigate this in recent weeks, including an energy price cap. The draft deal text – which is incomplete and subject to change –  proposes that the European Investment Bank (EIB) backstop power purchase agreements for small and energy-intensive businesses. Modernising the bloc’s grid infrastructure is also a priority. The EIB would counter-guarantee part of the PPAs taken on by businesses for long-term renewable energy purchases, to lower the cost of investing and provide guarantees allowing green power projects to move forward. In a bid to push down energy prices in the short-term, the Commission is also pushing for member states to cut electricity taxes to the legal minimum thresholds for industrial players investing in decarbonisation. The Commission is currently scrutinising the functioning of Europe’s gas markets through a task force set up this month. EUROPE FOCUS “European preference criteria” are set to become a prominent factor in public and private procurement, according to the draft text, as well as new labelling for industrial products to more clearly delineate greener products from fossil-based ones. The new measures could set out “minimum local content” requirements along with more robust sustainability criteria for public procurement, as well as exploring options for embedding similar “non-cost criteria” into product legislation. CIRCULARITY, HYDROGENThe Commission could be set to limit the export of waste raw materials deemed critical for circular production, and is expected to ease restrictions on movement of raw materials across the region in the Circular Economy Act, expected next year. Policymakers are also looking to clarify rules on low-carbon hydrogen production, and are set to launch a third call for projects through the Hydrogen Bank, the auction house set up to incentivise projects and investment, in the third quarter 2025. CBAM REFORMS, DECARBONISATION TARGETSWith a targeted package for the chemicals sector, which the draft text refers to as the “industry of industries”, expected towards the end of the year, the Commissions’ review of the proposed carbon border adjustment mechanism (CBAM) continues. Intended to levy fees on the CO2 emissions of energy-intensive goods imports such as steel and fertilizers, the Commission is proposing to simplify the framework ahead of its roll-out next year, and reduce the administrative burden on businesses. A review of the planned measures will be released in the second half of 2025, which will also see potential for CBAM to be extended to other downstream products. Chemicals sector executives have largely opposed the prospect of CBAM being applied more widely to products from the sector. While the draft clean industrial deal text prioritises reducing the cost burden of the energy transition, no move has been made to water down the overall carbon reduction targets in place in the region. The target remains to become a decarbonised economy by 2050, and cut emissions by 90% by 2040. Focus article by Tom Brown. Thumbnail photo: At the European Council, Brussels (Source: Shutterstock)
PODCAST: Sustainably Speaking – How EU regulation is changing the landscape for recycling
LONDON (ICIS)–John Richardson, ICIS market development director, hosts this new series of ICIS podcasts focusing on the subject of sustainability, and more specifically, recycling. In this first episode, John speaks to Helen McGeough, global plastics recycling analytics team lead, and Matt Tudball, senior editor for recycling, Europe about how EU regulation is impacting the European recycling market now and in the future, and why European regulation will have a much more global impact. Topics include: Breaking down European legislation (single-use plastics; packaging and packaging waste; end-of-life vehicles) Impact on collection, sorting and quality of plastic waste in Europe and beyond Europe’s competitiveness in the recycling space and how the economics compare How regulation may be a barrier for imports into the EU What’s the future of plastics if the regulation does not work?
UK inflation rate up sharply in January to hit 10-month high
LONDON (ICIS)–UK inflation rose sharply in January to its highest level in 10 months, according to official data on Wednesday. The Consumer Prices Index (CPI) increased by 3.0% in the 12 months to January, up from 2.5% in the previous month to hit the highest rate since March 2024. Transport costs, and food and non-alcoholic beverages were the main drivers for the rise, the Office for National Statistics (ONS) said. The Bank of England cut interest rates again in early February as it tries to balance high inflation against low economic growth, with UK GDP rising by just 0.1% in the fourth quarter of 2024 after trending down throughout the year.
PODCAST: How to accelerate drive to net zero carbon along chemical value chains
BARCELONA (ICIS)–The Global Impact Coalition (GIC) aims to bring chemical companies and value chain partners together to solve challenges on the road to net zero carbon. Collective effort will bring down the cost of sustainable solutions GIC is spin off from the World Economic Forum Major chemical company members include BASF, SABIC, Clariant, Covestro, LyondellBasell, Mitsubishi, Syensqo, LG Chem Automotive plastics recycling is a key focus Fully decarbonised car would only add $900 to final price On average, decarbonising only adds 2-4% to final price of most goods However decarbonization costs rise steeply up the value chain GIC aims to grow geographically and along industrial value chains Will Beacham interviews Charlie Tan, CEO of the GIC and Lars Kissau, president of BASF’s Net Zero Accelerator. Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson’s ICIS blogs.
S Korea prepares W366 trillion trade package to counter US tariffs
SINGAPORE (ICIS)–South Korea’s government on 18 February unveiled an emergency trade package worth at least won (W) 366 trillion ($255 billion), the largest ever, as economic cushion amid a global trade war. Of that amount, trade insurance worth W100 trillion will be provided to small and medium-sized enterprises (SMEs), the Ministry of Economy and Finance said at a 18 February meeting chaired by Acting President Choi Sang-mok. Tax incentives will be offered to companies with existing businesses overseas which may be looking at relocating back to South Korea amid the trade situation. The ministry said that there will also be a W1.2 trillion marketing budget to further boost promotional efforts for SMEs, including in the “Global South”, referring to the emerging economies of Brazil, Vietnam and South Africa, among others. In 2024, South Korea’s exports were at an all-time high of $683.7bn, up by 8.1% in the previous year. For 2025, however, export prospects are more uncertain than ever due to recent announcement of policies by the Trump administration in the US, said Choi. US President Donald Trump has announced reciprocal tariffs as well as tariffs of around 25% on vehicle imports, which could hit South Korea hard. The US’ 25% tariffs on steel and aluminium will take effect on 12 March, while its additional 10% tariffs on Chinese goods took effect on 4 February. In January, South Korea had prepared a W10 trillion stabilization fund  amid concerns about fresh US tariffs before Trump’s inauguration as the 47th US president. South Korea’s petrochemical industry is a major exporter of the feedstock ethylene, as well as aromatics such as benzene, toluene and styrene monomer (SM). However, an oversupply from China as well as weakening demand overseas have posed ongoing challenges for the industry. ($1 = W1,439.23)
S Korea’s S-Oil earmarks W3.5 trillion for Shaheen project in 2025
SINGAPORE (ICIS)–S-Oil plans to spend about South Korean won (W) 3.5 trillion ($2.4 billion) in its Shaheen crude-to-chemical project in Ulsan, which accounts for the bulk of the refiner’s capital expenditure (capex) set for the year. Shaheen project on track for H1 ’26 completion S-Oil plants run below full capacity over past three years Full-year net loss caused by heavy refining losses, lower petrochemicals profit The project capex for the year was increased by about a third from W2.61 trillion in 2024, and accounts for 86% of the total for the current year, S-Oil stated in a slide presentation to investors dated 24 January upon announcing its Q4 results. The project, whose name was derived from the Arabic word for falcon, is now 55% complete and is on track for commercial operations in H2 2026, S-Oil said on 17 February. S-Oil is 63%-owned by Saudi Aramco, the world’s biggest exporter of crude oil. Shaheen will have a 1.8 million tonne/year mixed-feed cracking facility; an 880,000 tonne/year linear low density polyethylene (LLDPE) unit; and a 440,000 tonne/year high density PE (HDPE) plant. The site will have a thermal crude-to-chemical (TC2C) facility, which will convert crude directly into petrochemical feedstocks such as liquefied petroleum gas (LPG) and naphtha, and the cracker is expected to recycle waste heat for power generation in the refinery. “The project is progressing smoothly as planned,” S-Oil had said in the presentation, noting that completion rate as of end-December stood at 51.8%. Installation is underway for 10 cracking heaters, pipe rack modules at steam cracker and aboveground piping, it added. Construction of the multibillion US dollar project at the Onsan Industrial Complex of Ulsan City started in March 2023, with mechanical completion targeted by the first half of 2026. Over the past two years, S-Oil had poured nearly W5 trillion into the project, about half of the estimated project cost of $7 billion, based on capex. “Shaheen Project is a pivotal expansion into chemical business with industry-leading competitiveness, which will enable another leap forward in future profit generation capacity,” S-Oil said. The project is expected to yield 70% more chemicals, with a capex/operating expenditure savings pegged at 30-40% versus conventional process. At its Onsan site, S-Oil currently produces a range of petrochemicals and fuels including benzene, mixed xylenes, ethylene, methyl tertiary butyl ether (MTBE), paraxylene, polypropylene, propylene, propylene oxide, biodiesel, and potentially bio-based aviation and other bio-derived products. The second-biggest item in S-Oil’s 2025 capex list is upgrade & maintenance at W463 billion, up by more than 75% from 2024, noting that its residual fluid catalytic cracking unit (RFCC) is scheduled for turnaround this year, based on the presentation. For the past three years, the company’s plants have not been running at full capacity, with a marked reduction of run rates at its paraxylene (PX) plants. For the whole of 2024, the company incurred a net loss of W163.4 billion, reversing the profit of nearly W1 trillion in the previous year, on heavy losses from refining and a 29% profit decline in petrochemicals. in billion won (W) Q4 2024 Q4 2023 Yr-on-yr % change FY2024 FY2023 Yr-on-yr % change Revenue 8,917.0 8,830.0 1.0 36,637.0 35,727.0 2.5 Operating income 260.8 (56.4) – 460.6 1,354.6 (66.0) Net income  (102.1) 160.5 – (163.4) 948.8 – Refining operating profit  172.9 (311.3) – (245.4) 353.5 – Petrochemical operating profit  (28.1)  33.9 – 134.8 190.6 (29.3) Lube operating profit 115.9 221.0 (47.6) 571.2 810.5 (29.5) In the first quarter of 2025, S-Oil expects additional demand for PX and upstream benzene as new downstream facilities start up, “offsetting ample supply”, it said, adding that a recovery in gasoline blending demand may further support the markets. Polypropylene (PP) and propylene oxide (PO) will “continue to see capacity expansions in China while demand recovery is anticipated from China’s economic stimulus measures,” it said. China, the world’s second-biggest economy is a major market for South Korean exports. Amid an economic slowdown, the Chinese government have been introducing measures to boost consumption and revive its ailing property sector. Focus article by Pearl Bantillo ($1 = W1,441)
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