LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 30 May. Europe PA market expected to face continued weak demand; supply projected to remain balanced to long Weakened demand and stable supply in the Europe phthalic anhydride (PA) market are expected to continue into June. Moody’s downgrades Sasol on weak chems, oil markets Moody’s has cut its rating for Sasol from stable to negative on the back of “continued operating performance deterioration” in the face of weak chemicals and oil markets, the agency said on Thursday. ExxonMobil to sell its Gravenchon, France refinery to Canada’s North Atlantic ExxonMobil is selling its refinery at Gravenchon, France, to Canadian refining group North Atlantic. Clariant rejects fresh €1 billion damages claim from OMV Clariant has rejected OMV’s claim for around €1 billion in damages for competition law infringement, the Swiss producer announced.

SINGAPORE (ICIS)–China’s official manufacturing purchasing managers’ index (PMI) in May remained below the expansion threshold of 50.0 but was up from the previous month amid a pause in the US-China tariff war. Official PMI contracts for second straight month Trade-war pause lifts demand China Q2 GDP to post 4.9% annualized growth – UOB The official purchasing managers’ index (PMI) of the world’s second-biggest economy inched up to 49.5 in May from April’s reading of 49.0, data from the National Bureau of Statistics (NBS) showed. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction. Trade tensions between with the US eased in May following an agreement between the world’s two biggest economies to suspend tariffs on each other until August. China is a major importer of petrochemicals whose self-sufficiency has been growing over the years due to strong capacity expansion. “Some US-related companies reported that foreign trade orders were restarted at an accelerated pace, and import and export conditions improved,” NBS senior statistician Zhao Qinghe said. The official manufacturing PMI surveys large state-owned enterprises. Both production and demand in May improved compared with the previous month’s, indicating an acceleration in both manufacturing and new orders, according to the NBS. Production index rose to 50.7 in May from 49.8 in the previous month, while new orders index inched up to 49.8 from 49.2 over the same period. Production of equipment, high-tech and consumer goods improved, registering readings above 50. China’s non-manufacturing PMI, comprising services and construction, eased to 50.3 in May from 50.4 in April, nudging up the composite PMI (which includes the improved reading for manufacturing) to 50.4 compared with the previous month’s 50.2. OUTLOOK In a research note on Monday, economists at Singapore-based UOB Global Markets & Research said the trade truce would provide “some near-term support for [GDP] growth”, which is projected at 4.9% for Q2. However, UOB added that the growth pace would slow to 4.2% year on year in the second half of the year amid continued uncertainty over ongoing trade discussions between the US and China, as well as where the tariff rates will land eventually. “China’s stimulus will lend further support to stabilize its outlook,” said UOB. Focus article by Jonathan Yee Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy. Thumbnail image: At a port in Qingdao City in Shandong, east China on 27 May 2025. (Shutterstock)

SINGAPORE (ICIS)–Japan’s manufacturing purchasing managers’ index (PMI) continued to contract in May, with a reading below 50 for the 11th consecutive month. The May number at 49.4, however, inched up from 48.7 in the previous month as downturn in new orders eased, au Jibun Bank said on Monday. A PMI reading above 50 indicates expansion, while a lower number denotes contraction. “Business conditions faced by Japanese manufacturers deteriorated at the softest pace in 2025 so far in May,” the bank said in a statement. Operating conditions for investment goods makers in Japan improved in May, while conditions deteriorated at a softer pace across the intermediate goods segment. A softer decline in overall new work received by Japanese manufacturers in May contributed to the improved index. Total new business fell modestly, generally linked to subdued demand amid US tariffs and increased “client hesitancy”. The decline in new export orders also moderated since April. Softer demand conditions led to a further reduction in factory output across Japan during May. The rate of contraction was modest, though it quickened slightly from April. Optimism strengthened for the year-ahead outlook for output, rising from April’s near five-year low, au Jibun Bank said. “Growth projections were often supported by forecasts of firmer global demand conditions and new product releases,” it said. However, some firms expressed concerns over US tariffs, inflation, and a shrinking population. Manufacturers in Japan signaled another marginal deterioration in supplier performance during May. A number of companies suggested that material and labor shortages at some vendors had stretched delivery times. Average input costs faced by Japanese goods producers increased at a softer pace in May, with the rate of inflation the weakest in 14 months. At the same time, selling price inflation also eased in May, with charges rising at the softest rate in nearly four years. Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy. Thumbnail image: At a port in Tokyo, Japan, 12 May 2025. (FRANCK ROBICHON/EPA-EFE/Shutterstock)

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 30 May. Thailand’s GC deepens focus on specialties amid overcapacity – CEO By Nurluqman Suratman 26-May-25 11:16 SINGAPORE (ICIS)–Thailand’s PTT Global Chemical (GC) is deepening its commitments to feedstock flexibility, high-value specialty and bio-based & green chemicals, as CEO Narongsak Jivakanun urges regional coordination within ASEAN to tackle global supply chain disruptions and overcapacity. INSIGHT: Asia oxo-alcohols prices expected to face downward pressure in H2 2025 By Lina Xu 26-May-25 12:00 SINGAPORE (ICIS)–Asia’s oxo-alcohols market is forecast to face significant downward pricing pressure in the second half of 2025, driven by rapid capacity expansion in China and an uncertain recovery in downstream demand. Asia fatty alcohol mid-cuts demand to soften as feedstock PKO declines By Helen Yan 27-May-25 11:18 SINGAPORE (ICIS)–Asia fatty alcohols market may see a further softening in demand as buyers hold back their purchases, given the decline in the feedstock palm kernel oil (PKO) costs in the past month. INSIGHT: China’s polyolefins demand shifts towards domestic consumption due to export uncertainty By Amy Yu 27-May-25 12:00 SINGAPORE (ICIS)–China’s polyolefins demand for 2025 is expected to reach 85 million tonnes, up by 3% year on year, driven by the domestic market in the face of the uncertain outlook of China-US trade negotiations. UPDATE: Japan’s Asahi Kasei to discontinue MMA, CHMA, PMMA, SB latex businesses By Nurluqman Suratman 27-May-25 15:42 SINGAPORE (ICIS)–Japanese chemicals major Asahi Kasei on Tuesday said that it will be discontinuing its businesses for methyl methacrylate (MMA) monomer, cyclohexyl methacrylate (CHMA), polymethyl methacrylate (PMMA) resin and styrene-butadiene (SB) latex. Singapore April chemicals output down 3.2%; H2 2025 outlook firm By Jonathan Yee 27-May-25 15:26 SINGAPORE (ICIS)–Singapore’s chemicals production declined 3.2% year on year in April amid tariff-led front-loading, official data showed on 26 May, while a pause in ‘reciprocal’ tariffs could support further growth in H2 2025. ASEAN leaders voice ‘deep concerns’ over US tariffs By Nurluqman Suratman 28-May-25 11:19 SINGAPORE (ICIS)–Southeast Asian leaders at the 46th ASEAN Summit in Kuala Lumpur, Malaysia have voiced “deep concern” over the US’ recent move to impose unilateral sweeping tariffs. INSIGHT: India PVC imports brace for monsoon dip, but policy twists could stir the market By Aswin Kondapally 30-May-25 10:02 MUMBAI (ICIS)–India’s Polyvinyl chloride (PVC) imports are expected to moderate in the coming months due to seasonal patterns, as monsoon conditions typically dampen demand from key sectors such as construction and agriculture.

SAO PAULO (ICIS)–Braskem has firmly denied it was preparing polyethylene (PE) price increases for June in anticipation of antidumping duties (ADDs) on US and Canadian imports, with a spokesperson at the Brazilian petrochemicals major calling such claims “absolutely unfounded”. In a phone interview with ICIS, the spokesperson also rejected suggestions Braskem had already communicated potential price rises for June on expected ADDs. The spokesperson later confirmed on Friday that Braskem’s PE prices would roll over in June from May. The proposal to implement ADDs on PE was brought forward in 2024 by Braskem, who is the sole PE producer in Brazil. The company has had to grapple with higher production costs than peers in North America, where natural gas-based ethane is widely available and has allowed a revival in polymers manufacturing. “The idea that we were putting up prices for May or for June based on a supposed decision regarding ADDs is absolutely unfounded. Braskem is not the one who sets the price: as the market knows, Braskem sets its prices accordingly to competitive market conditions rather than predetermined strategies,” said the spokesperson. The company’s representative also deemed necessary to distinguish between general import duties, which affect all countries importing into Brazil, and ADDs, which in this case would only target two countries, if Gecex finally deems PE from US and Canada contravened free trade rules. “For this particular case, it would not be the case that all imports would be affected – only the imports that are from the US,” concluded the spokesperson. PE imports from the US and Canada represented in 2024 around 75% of all of Brazil’s PE imports, according to the ICIS Supply and Demand Database. BUSY WEEK ENDS WITH A ROLLOVERBrazil’s policymakers and polymers players leave behind a busy week in which political decisions get mixed with business planning, irremediably affected by the low operating rates at most Brazilian and Latin American chemical plants. Hit by abundant and lower-priced imports, Brazil’s chemicals plants operating rates stand at around 60-65%, according to trade group Abiquim, which represents producers. Braskem’s statement on Friday sought to clarify several points of the many published this week about Brazil’s trade policy, but mostly the claim by market players that Braskem had already decided to increase prices on expectations of ADDs being imposed on US material. It stressed that any future price adjustments would not be related to antidumping measures, “because they are not in place”, and argued it was not aware yet of what way June pricing would go. It has been an intense week for trade policymakers, with the foreign trade committee Gecex sharply increasing ADDs on US PVC from 8.2% to 43.7%, despite the US being only the second largest supplier to Brazil, well behind Colombia. Meanwhile, Gecex postponed without explanation a meeting where it was expected to decide on imposing ADDs on PE imports from the US and Canada, planned for 29 May but rescheduled last minute, leaving Brazil’s PE market in uncertainty. Latin America has been one of the most vulnerable regions hit by the global petrochemicals oversupply and low prices. As around half of Brazil and the wider region chemicals demand is covered by imports, it is global prices that dictate the domestic pricing policies – a quintessential ‘price-taker’ status. After a considerable list of protectionist measures have been implemented in Brazil, fears among importers about rising input costs and overall national inflation rates are increasing. Small and large manufacturers up and down the country, which depend on imports for their production, will now face higher bills due to higher import tariffs on several chemicals as well as several ADDs in place for petrochemicals. However, Abiquim has said the measures’ influence on inflation would be minimal, adding they are sensible when taking into consideration that they would in part cushion the nation’s beleaguered chemicals producers from even lower operating rates or, in the worst-case scenario, plant closures. Additional reporting by Bruno Menini

Naftogaz expected to ramp up CEE gas imports Company scrambling to refill storage as it compensates for lost production Grid operators mull balance-of-month bundled capacity tender for TBP after initial auction falls through LONDON (ICIS)–The Ukrainian gas incumbent Naftogaz is expected to import up to 1 billion cubic meters (bcm) of gas from central and eastern European countries in July after reportedly securing more European funding, traders told ICIS. The company said on 30 May it had been in talks with international lenders including the European Bank for Reconstruction and Development (EBRD) to secure financial support to repair and increase local gas production. However, traders active in Ukraine said the incumbent may also have snapped up a €400 million credit line that would allow it to buy between 0.8bcm and 1bcm in July. Upcoming purchases are likely to be consistent with the incumbent import strategy since the beginning of the year. Naftogaz did not reply to questions by publication time. HIGH DEMAND The company has been scrambling to buy gas on central European hubs as it ended the storage season with limited stocks and a large part of its domestic gas production had been destroyed following Russian missile attacks earlier this year. Traders say Naftogaz would need to import around 5bcm by the start of the cold season in November to ensure it reaches a storage target of just over 13bcm. At the end of May Ukraine was importing just over 20 million cubic meters (mcm)/day from Poland, Hungary and Slovakia, but traders say offtakes should ramp up to at least 24mcm/day in June to ensure it secures close to 4bcm by the end of the injection season. However, in order to increase imports it needs access to additional capacity. NEW BUNDLED CAPACITY TENDER Ukraine has been in talks with countries in southeast Europe, including Romania, Moldova, Bulgaria and Greece to launch a bundled capacity transmission product for exports of gas directly from Greece to Ukraine. The first auction held on 29 May fell through because companies did not have sufficient time to prepare. However, a source at one of the regional gas grid operators told ICIS they were assessing the possibility of launching a balance-of-month product for delivery of gas in the second half of June, followed by monthly bundled capacity for the period July–September 2025.

BARCELONA (ICIS)–As the 12 June deadline for entries to the ICIS Innovation Awards approaches, a judge and a 2024 winner describe why this topic is so important for the future of the chemical industry and society. Innovation breaks down silos, encourages collaboration Enables industrial value chains to decarbonize Chemical industry provides essential raw materials Awards are a chance to gain external recognition for your innovations Deadline is 12 June, entry is free and quick – click here for full details In this Think Tank podcast, Will Beacham interviews Alessia Ielo, global sustainable solutions manager for Brenntag Essentials and Ian Temperton, CEO of Plastic Energy. 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.

HOUSTON (ICIS)–The US can maintain nearly all the plastic and chemical tariffs it imposed this year after an appeals court granted on Thursday the government’s request to stay the judgment of a lower court. The stay will remain in place while the case is under consideration by the US Court of Appeals for the Federal Circuit. Earlier, the US lost a judgment over its tariffs in the US Court of International Trade. That lower court ruled that the president exceeded its authority when it imposed tariffs under the International Emergency Economic Powers Act (IEEPA). These IEEPA tariffs included nearly all of the duties that the US imposed in 2025 on imports of commodity plastics and chemicals. Had the appeals court rejected the government’s request for a stay, then the US would have had 10 calendar days to withdraw the tariffs it imposed under IEEPA. The tariffs covered by the ruling include the following: The 10% baseline tariffs against most of the world that the US issued during its so-called Liberation Day event on 2 April. These include the reciprocal tariffs that were later paused. The US issued the tariffs under Executive Order 14257, which intended to address the nation’s trade deficit. The tariffs that the US initially imposed on imports from Canada under Executive Order 14193. These were intended to address drug smuggling. The US later limited the scope of these tariffs to cover imported goods that do not comply with the nations’ trade agreement, known as the US-Mexico-Canada Agreement (USMCA). The tariffs that the US initially imposed on imports from Mexico under Executive Order 14194. These were intended to address illegal immigration and drug smuggling. Like the Canadian tariffs, these were later limited to cover imported goods that did not comply with the USMCA. The 20% tariffs that the US imposed on imports from China under Executive Order 14195, which was intended to address drug smuggling. Because the appeals court granted the government’s request for a stay, the US can maintain the IEEPA tariffs. The ruling did not cover sectoral tariffs imposed on specific products like steel, aluminium and auto parts, and it does not cover the duties that the US imposed on Chinese imports during the first term of US President Donald Trump. IMPLICATIONS OF THE RULINGIf the ruling is upheld by the higher courts, it could bring some imports of plastics and chemicals back to the US while lowering costs of other products. While the US has large surpluses in many plastics and chemicals, it still imports several key commodities. US states that border Canada import large amounts of polyethylene (PE) and other plastics from that country because it is closer than the nation’s chemical hubs along the Gulf Coast. Other significant imports include base oils, ammonia, polyethylene terephthalate (PET), methylene diphenyl diisocyanate (MDI), methanol and aromatics such as benzene, toluene and mixed xylenes (MX). RULING COULD REDIRECT CHINESE EXPORTS OF PLASTIC PRODUCTSThe IEEPA tariffs of the US caused countries to redirect exports of plastics and chemicals to other markets, particularly to Europe. The result depressed prices for those plastics and chemicals. If the ruling holds, some of those exports could return to the US and reduce the quantity of exports arriving in Europe. The IEEPA tariffs had a similar effect on the plastic products exports by China. Those exports were redirected to other countries, especially southeast Asia. These redirected shipments flooded those countries with plastic goods, displacing local products and lowering domestic demand for the plastics used to make those products. If the ruling is restored by higher courts, then it could direct many of those shipments back to the US, although they would unlikely affect shipments of auto parts. Those shipments are covered by the sectoral tariffs, and the court ruling did not void those tariffs. RULING REMOVES BASIS FOR RETALIATORY TARIFFS AGAINST US PLASTICS, CHEMSChina had already imposed blanket tariffs in retaliation to the IEEPA tariffs the US imposed on its exports. China unofficially granted waivers for US imports of ethane and PE, but those for liquefied petroleum gas (LPG) were still covered by the duty. China relies on such imports as feedstock for its large fleet of propane dehydrogenation (PDH) units, which produce on-purpose propylene. If upheld, the ruling could restore many of those exports and improve propylene margins for those PDH units. The EU was preparing to impose retaliatory tariffs on exports of nearly every major commodity plastic from the US. Other proposals would cover EU imports of oleochemicals, tall oil, caustic soda and surfactants from the US. Canada also prepared a list of retaliatory tariffs that covered US imports of PE, polypropylene (PP) and other plastics, chemicals and fertilizers. If the ruling holds, it would remove the basis for the proposed tariffs of Canada and the EU as well as the existing ones already imposed by China. RULING WOULD NOT ELIMINATE THREAT OF FUTURE TARIFFSEven if the higher courts uphold the ruling and bars tariffs under IEEPA, the US has other means to impose duties that are outside of the bounds of the ruling. Section 122 of the Trade Act of 1974. Such tariffs would be limited to 15%, could last for 150 days and address balance of payment deficits. Tariffs imposed under the following statutes would require federal investigations, which could delay them by several months. Section 338 of the Tariff Act of 1930. The president can impose tariffs of up to 50% against countries that discriminate against US commerce. Section 301 of the Trade Act of 1974, which addresses unfair trade practices. This was the basis on the tariffs imposed on many Chinese imports during the peak of the trade war between the two countries. Section 232 of the Trade Expansion Act of 1962, which addresses imports with implications for national security. Trump used this provision to impose tariffs on steel and aluminum. The US has started Section 232 on the following imports: Pharmaceutical and active pharmaceutical ingredient (APIs) – Section 232 Semiconductors and semiconductor manufacturing equipment – Section 232 Medium and heavy-duty trucks, parts – Section 232 Critical minerals – Section 232 Copper – Section 232 Timber and lumber – Section 232 Commercial aircraft and jet engines – Section 232 Ship-to-shore cranes assembled in China or made with parts from China – Section 301 Shipbuilding – Section 301 The case number for the appeal is 2025-1812. The original lawsuit was filed in the US Court of International Trade by the plaintiffs VOS Selections, Genova Pipe, Microkits, FishUSA and Terry Precision Cycling. The case number is 25-cv-00066. Thumbnail Photo: A container ship, which transports goods overseas. (Image by Costfoto/NurPhoto/Shutterstock) Visit the ICIS Topic Page: US tariffs, policy – impact on chemicals and energy

HOUSTON (ICIS)–Rates for shipping containers from Asia to the US are already facing upward pressure amid the 90-day tariff pause, but Wednesday’s ruling by a federal court could add fuel to the trend, according to shipping analysts. “The decision of the US Court of International Trade to deem [US President Donald] Trump’s sweeping tariffs as unlawful is good news for shippers – but it could signal the beginning of the next era of confusion in global supply chains,” analysts at ocean and freight rate analytics firm Xeneta said. Emily Stausboll, Xeneta senior shipping analyst, said that even if the appeal fails, Trump will not throw in the towel, and he has other levers to pull to achieve the same outcome as the sweeping tariffs. “We only have to look at the US government proposal to introduce port fees on China-affiliated ships and the SHIPS for America Act to understand the range of options at Trump’s disposal in the ongoing trade wars,” Stausboll said. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said the 90-day pause on 145% tariffs on Chinese goods has already driven a sharp rebound in ocean freight demand. “Shippers have been frontloading to beat the August expiration,” Levine said. “This ruling may add fuel to that trend, especially if tariffs are actually suspended – even temporarily.”’ Levine said that some shippers deterred by the 30% tariffs may now rush to move goods before the appeals process concludes or new tariff mechanisms are activated. “That could increase container demand even further, adding to the strength of the early start to peak season,” Levine said. RULING ADDS UNCERTAINTY Lars Jensen, president of consultant Vespucci Maritime, said the ruling by the court adds a new level of uncertainty for US importers. “Not only do they have to contend with the risks associated with changing tariffs, now it is also cast into doubt whether or not the announced tariffs will even be implementable – and this also raises the question whether tariffs paid in recent weeks can ultimately be reclaimed,” Jensen said in a post on LinkedIn. If, after appeals, the tariffs are ultimately found to be unlawfully implemented, shippers should have a good case for getting the paid tariffs back, Jensen said. 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. Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Logistics: Impact on chemicals and energy topic page