HOUSTON (ICIS)–Belgium chemical distributor Manuchar announced it has reached an agreement to acquire a majority stake in Proquiel Quimicos. While financial terms were not disclosed, Manuchar said this acquisition fits their ambition to strengthen its distribution platform and broaden its product portfolio. Established in 1985, Proquiel Quimicos specializes in chemical distribution serving a wide range of industries with a comprehensive portfolio including solutions for mining, water treatment, fertilizer, aquaculture and industrial applications. The company has five strategic locations across Chile serving more than 1,000 active customers. Manuchar has been present in Chile since 2004, operating via its regional headquarters in Santiago and three additional offices and operational sites. The closing of the acquisition by Manuchar is expected to occur in Q4 2024, subject to approval by competition authorities. “Proquiel is a sophisticated and highly diversified business with exposures to attractive end markets. It is highly complementary to Manuchar’s growth strategy in areas such as human nutrition, animal nutrition and mining related to renewable energy,” said Philippe Huybrechs, Manuchar Group CEO. “Manuchar intends to take a leading role in the consolidation of the global chemical distribution landscape. We are happy to welcome Proquiel Quimicos into our Manuchar Group.”

TORONTO (ICIS)–Freight railroads Canadian Pacific Kansas City (CPKC) and Canadian National (CN) may start to lock out workers on 22 August: CPKC will issue notice to labor union Teamsters Canada Rail Conference (TCRC) “of its plan to lock out employees at 00:01 ET on August 22 if union leadership and the company are unable to come to a negotiated settlement or agree to binding interest arbitration”, it said in a statement. CN will have “no choice” but to begin a phased and progressive shutdown of its network, starting with embargoes of hazardous goods, which would culminate in a lockout at 00:01 Eastern Time on August 22nd, “unless there is immediate and meaningful progress at the negotiating table or binding arbitration”, it said. CN also requested the intervention of Canada’s federal labor minister, it added. TCRC, for its part, said that it remains committed to negotiating new collective agreements. The railroads’ lockout warning comes after the Canada Industrial Relations Board (CIRB) on 9 August imposed a 13-day cooling-off period in the labor dispute about wages, benefits, work scheduling and safety. Canada’s chemicals, fertilizer and other industries have been facing the threat of a rail labor disruption for months now. In early May about 9,300 unionized conductors, train operators and engineers at CN and CPKC voted for a strike as early as 22 May, while the labor minister referred the matter to the CIRB for a decision about a strike’s impacts on public safety and health. With the referral, the minister suspended the right to strike as under law a legal strike or lockout could not occur until the board had made its decision. The minister asked the CIRB to examine whether certain rail deliveries such as fuel, food and chlorine for water-treatment facilities should be declared essential services, allowing shipments to continue during work stoppages. However, the CIRB ruled last Friday (9 August) that no rail activities needed to be maintained during a strike or lockout, thus clearing the way for industrial action after the expiry of the 13-day cooling off period. IMPACT ON CHEMICALS Trade group Chemistry Industry Association of Canada (CIAC) warned again of the impact of a freight rail disruption on Canada’s chemical industry and the overall economy. “Canada’s economy relies on rail to keep products and commodities moving,” the group’s CEO, Bob Masterson, said in a statement. Chemicals needed for water treatment and sewage treatment are shipped by rail, he said. Many CIAC members were “captive” to CPKC and/or CN, with no viable alternatives for shipments, he said. Companies producing highly regulated goods – about one-third of CIAC members – typically begin shutdown procedures before 72 hours’ notice of a strike or lockout is given, he said. Although plants at some CIAC member companies can only operate up to two days without rail service before having to be shut down, most will be shut down within a week, he said. The Canadian chemistry sector alone moves over 500 railcars/day, he said. It would require over 1,500 road-based tanker trucks to carry the same load,  he said. There was no “Plan B” because of a lack of availability of trucks and drivers and the additional cost of moving product over long distances, Masterson said. Furthermore, many chemical products are restricted to move by rail due to their hazardous nature, he added. According to CIAC, more than Canadian dollar (C$) 76 million (US$55 million) of industrial chemical products move on Canada’s rail network daily, or C$28 billion each year. Chemicals account for nearly 10% of all Canadian rail traffic, the group said. Furthermore, the chemical industry’s customers in the automobile, forest products, minerals and other industries ship most of their product by rail, it said. CIAC is urging a negotiated solution to the conflict, it said. However, should negotiations fail, Canada’s federal government “must be prepared to act quickly to order the parties to return to work and the negotiating table to protect Canadians, Canadian workers directly affected by the disruption, and the Canadian economy,” the group said. The group added that the CIRB’s decision not to impose requirements to ensure the rail shipment of essential products – such as fuel, food or chlorine for water treatment – during industrial action was “concerning”. FERTILIZERS In the fertilizer industry, trade group Fertilizer Canada said that the railroads on Monday, 12 August, issued embargoes immediately halting certain fertilizer shipments 10 days ahead of an expected labor disruption. The threat of a work stoppage has already begun to impact the movement of fertilizers, and the industry expects further embargoes and slowdowns in rail service, the group said. A work stoppage that prevents the transportation of fertilizer would have “potentially disastrous effects” on crop yields and food security, it added. Fertilizer Canada wants the government “to take immediate action to assist all parties” in reaching agreements, “including ordering a directive for binding arbitration that prohibits TCRC from undertaking strike action and CN and CPKC from lockout action,” it said. Furthermore, the group is asking the federal government to recognize fertilizers as an essential good critical to domestic and global food security that should continue to move during work stoppages, it said. Canada’s reputation has already been damaged by numerous supply chain disruptions in the recent past and the renewed labor uncertainty will give its international competitors an advantage, Karen Proud, CEO of Fertilizer Canada, added. Canadian chemical producers rely on rail to ship more than 70% of their product, with some exclusively using rail, while in the fertilizer industry about 75% of all fertilizers produced and used in Canada is moved by rail. The following table by the American Association of Railroads (AAR) shows Canadian freight rail traffic for the week ended 3 August  and the first 31 weeks of 2024: In their recent earnings calls, midstream energy firms Pembina and Keyera, as well as fertilizer major Nutrien and others raised the looming rail disruption as a concern, and CN reduced its 2024 earnings guidance, citing the impact of the labor uncertainty. Meanwhile, Canada continues to face the threat of new labor disruptions at its West Coast ports. However, as of Monday, neither the BC Maritime Employers Association (BCMEA) nor trade union and International Longshore and Warehouse Union Local 514 issued the required 72-hour notices before a legal strike or lockout can begin. (US$1=C$1.37) Additional reporting by Al Greenwood Thumbnail photo source: Keyera

LONDON (ICIS)–Sentiment for Germany’s economic outlook fell sharply in August on concerns over the US economy and the protracted conflict in the Middle East. A monthly survey of analysts and investors carried out by the Germany-headquartered think tank ZEW saw its indicator of economic sentiment fall to 19.2 points. The drop marked a decrease of 22.6 points from July. It was also the strongest decline in two years. An assessment of the current economic situation in Germany also saw a drop in its reading, with the corresponding indicator still in negative territory and down by 8.4 points to -77.3 points. “It is likely that economic expectations are still affected by high uncertainty, which is driven by ambiguous monetary policy, disappointing business data from the US economy and growing concerns over an escalation of the conflict in the Middle East,” ZEW president Achim Wambach said in a statement. The economic outlook for the eurozone also fell to 17.9 points, a drop of 25.8 points from July. While the current situation indicator for the eurozone was assessed slightly higher by 3.7 points, it was still in negative territory at -32.4 points. Thumbnail photo: Dortmund port, Germany (Source: Christopher Neundorf /EPA-EFE/Shutterstock)  

SINGAPORE (ICIS)–Singapore’s non-oil domestic exports (NODX) growth forecast for 2024 has been revised downward to 4-5%, Enterprise Singapore (EnterpriseSG) said on 13 August. The forecast is down from its initial 4-6% projection amid external demand concerns. Support for NODX expected to come from electronics sector Q2 decline in NODX driven by 9.2% drop in non-electronic NODX GDP growth forecast for 2024 narrows to 2-3% The adjustment comes as the country’s NODX fell by 6.4% year on year in the second quarter following a 3.4% decline in Q1, the government agency championing enterprise development said in a statement. Singapore’s petrochemical exports rose by 14.9% year on year in the second quarter, extending the 0.7% expansion in the first three months of the year. “Key downside risks remain for the NODX forecast, including a weaker-than-expected recovery in H2 2024, which could potentially lead NODX growth for the year to come in below the forecast range,” EnterpriseSG said. The Q2 decline in NODX was largely driven by a 9.2% year-on-year drop in non-electronic NODX, primarily due to a significant decrease in pharmaceuticals exports. Non-electronic NODX includes petrochemical shipments abroad. Electronic NODX bucked the trend with a 3.8% year-on-year increase in the second quarter, after a 1.6% decline in the first three months of the year. Support for Singapore’s NODX in the second half of 2024 is expected to come primarily from the electronics sector, driven by growing demand for artificial intelligence (AI) servers and consumer devices, EnterpriseSG said. This optimism is bolstered by a revised upward forecast for global chip sales, now projected to increase by 19.2% in 2024, up from the previous forecast of 17.4%. “In addition, a net weighted balance of 36% and 56% of firms in the electronics and pharmaceuticals clusters respectively forecast new export orders for the upcoming quarter,” EnterpriseSG added. In its outlook, EnterpriseSG noted the International Monetary Fund’s (IMF) projection of a 3.2% growth in global economic activity for 2024. “Most of Singapore’s key trade partners, including China, the US, the EU 27 and ASEAN-5 are projected to grow in 2024,” it said. ASEAN-5 comprises the following Association of Southeast Asian Nations (ASEAN) member countries: Indonesia, Malaysia, the Phillippines, Thailand and Singapore. On the trade front, the IMF forecasts a 3.1% increase in global trade volume for 2024, a significant improvement from the 0.8% growth in 2023. The World Trade Organization (WTO) also projects a 2.6% expansion in global merchandise trade for 2024, reversing the 1.2% decline seen in 2023. Separately, Singapore’s Ministry of Trade and Industry (MTI) on 13 August said the country’s GDP growth forecast for 2024 has been narrowed to 2-3%, versus the previous estimate of a 1-3% expansion. The country’s economy expanded by 2.9% year on year in the second quarter, in line with its advance estimates released in July, bringing growth in the first half of the year to 3.0%. Focus article by Nurluqman Suratman Thumbnail image: Part of the Singapore city skyline, with Marina Bay Sands and the ArtScience Museum in the background. (Photo source: Wallace Woon/EPA/REX/Shutterstock)

HOUSTON (ICIS)–US crops are moving closer to full maturity with corn acreage now at 94% silking while soybeans have reached 91% blooming, according to the latest US Department of Agriculture (USDA) weekly crop progress report. For corn, the pace of acreage reaching the silking phase is just behind the 95% rate from 2023 but is equal to the five-year average of 94%. The amount of crop now at the dough stage is 60%, which matches the 60% level from last year and is above the five-year average of 56%. Corn which has reached the dented phase is at 18%, which is ahead of both the 15% achieved in 2023 and the five-year average of 12%. Corn conditions remain unchanged with there being 3% rated very poor, 7% poor, 23% fair, 51% good and 16% as excellent. For soybeans, there is now 91% of the crop blooming. This does trail the 2023 level of 93% but is slightly ahead of the five-year average of 90%. The amount of acreage setting pods is at 72%, which is behind the 75% from last year, but is above the five-year average of 70%. For soybean conditions, there continues to be 2% listed as very poor, 6% as poor and 24% rated as fair. There is now 55% seen as good with 13% as excellent. In harvesting updates, winter wheat is now at 93% completed with this current pace ahead of the 91% rate from 2023 as well as the five-year average of 91%. Spring wheat harvest has reached 18% completed, which does trail both the 20% level from last year and the five-year average of 21%.

HOUSTON (ICIS)–The US Department of Agriculture (USDA) is forecasting increased corn and soybean production, according to the August World Agricultural Supply and Demand Estimate (WASDE) report. Corn production is being calculated at 15.1 billion bushels, up 47 million bushels from the July report, while soybeans are projected to be 4.6 billion bushels, up 154 million bushels. Looking further at the domestic corn crop, the USDA said the monthly outlook is for larger supplies, lower domestic use, greater exports and smaller ending stocks. Projected beginning stocks are now 10 million bushels lower based on a slightly higher use forecast for 2023-2024, with higher exports partly offset by reductions in corn used for glucose, dextrose and starch. Corn production is forecasted at 15.1 billion bushels, up 47 million bushels from last month with the agency saying a 700,000 acre decline in harvested area is fully offset by an increase in yield. The season’s first survey-based corn yield forecast is at a record 183.1 bushels per acre, which is 2.1 bushels higher than last month’s projection. Among the major producing states there are indications that yields will rise year on year in Illinois, Indiana, Iowa, Missouri, Nebraska and South Dakota, with yields in Ohio forecasted to be below a year ago. Total US corn use is forecast 60 million bushels higher to now stand at 15.0 billion bushels. Exports for 2024-2025 are being lifted by 75 million bushels to a total of 2.3 billion bushels, which the USDA said reflects US export competitiveness and relatively low world market prices. With supply rising less than use, ending stocks are now calculated to be lower by 24 million bushels to 2.1 billion bushels. The August WASDE said the season-average farm price received by producers is lowered by 10 cents to stand at $4.20 per bushel. For soybeans, the USDA said the outlook includes higher production, exports and ending stocks. Currently production is being forecasted at 4.6 billion bushels, which is an increase of 154 million bushels and is based on higher area and yield. The harvested area is being calculated at 86.3 million acres, which is 1 million acres higher from the July WASDE. The first survey-based soybean yield forecast is at 53.2 bushels per acre, which is up 1.2 bushels from last month’s projection. Soybean supplies are being estimated at 4.9 billion bushels, which is 11% higher year on year. The USDA said exports are up 25 million bushels on higher supplies and crush unchanged, with ending stocks now expected to be 560 million bushels, up 125 million bushels from last month. The season-average soybean price is forecast at $10.80 per bushel, down 30 cents from July. The next WASDE report will be released on 12 September.

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 9 August. Canada labor tribunal rules on rail strike, orders 13-day cooling-off period The Canada Industrial Relations Board (CIRB) on Friday ruled that no rail activities need to be maintained in case of a strike or lockout at rail carriers Canadian National (CN) and Canadian Pacific Kansas City (CPKC). Celanese lifts force majeure on acetic acid, VAM in western Hemisphere Celanese has lifted the force majeure it declared on acetic acid and vinyl acetate monomer (VAM) sold in the western Hemisphere, the US-based acetyls producer said on Thursday. INSIGHT: So far, recession is unlikely despite market turmoil Chemical companies are expecting a lacklustre second half of the year, but, so far, they will unlikely suffer through a recession, despite the spate of pessimistic economic data and the worst stock-market selloff in more than a year. Avient hikes guidance after strong Q2, sees restocking in packaging and consumer Avient has raised its 2024 guidance for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) following stronger-than-expected Q2 results. US chem shares plunge for third day amid fears of hard landing Shares of US-listed chemical companies fell sharply for the third consecutive trading day on Monday amid growing concerns that the US economy could head towards a hard landing and enter a recession. US recession fears fan slide in global stocks US stocks were trading down around 3% mid-morning on Monday, with the major chemical companies posting double-digit falls on growing fears about a recession after the world’s largest economy reported weak economic data.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 9 August. Europe propylene glycol ethers market to focus on imports until year end A balanced propylene glycol ethers market in Europe is widely expected to continue for the remainder of the year with the focus to remain heavily on changes in supply. Supply changes to drive European ethanolamines market into the autumn Supply changes are expected to remain the driving force in the European ethanolamines market for the remainder of the year. Europe ACN market to see seasonal demand shift in H2 2024 Evolving geopolitics-led supply chain developments and the macroeconomic picture will dominate changes to supply and demand in the European acrylonitrile (ACN) market in H2 2024. Europe methanol run rates to remain low to counterbalance demand European methanol demand is likely to remain stable in the second half of 2024, with limited recovery in derivative markets expected. Europe chems stocks tumble amid global sell-off on US economic fears Chemical stocks in Europe slumped in early trading on Monday after a market rout in Asia following bearish US economic data at the end of last week prompted fears of a slowdown.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 9 August 2024. INSIGHT: The future of gasoline demand under India’s new fuel efficiency norms By Man Yiu Tse 08-Aug-24 12:00 SINGAPORE (ICIS)–India’s newly proposed Corporate Average Fuel Efficiency (CAFE) norms for passenger cars until 2037 will drive a significant shift towards compressed natural gas (CNG), hybrid, and electric passenger cars, reducing the dominance of gasoline models and influencing the long-term trajectory of gasoline demand. OUTLOOK: Asia Group I base oils supply constraints to persist in H2 amid demand uptick By Michelle Liew 08-Aug-24 11:03 SINGAPORE (ICIS)–Asia’s Group I base oils supply, especially for heavy neutrals, is expected to remain tight in H2 2024 despite subdued demand, which may pick up towards September. PODCAST: China’s Third Plenum signals optimism for Asia’s propylene markets By Damini Dabholkar 08-Aug-24 00:32 SINGAPORE (ICIS)–The third plenary session of the Chinese Communist Party (CCP) Central Committee recently concluded in July, with the CCP underlining the country’s long-term economic strategy. This session, a significant event in China’s economic planning, serves as a guide for both immediate and long-term policies. OUTLOOK: Asia mixed xylenes market could continue to face headwinds By Jasmine Khoo 07-Aug-24 10:44 SINGAPORE (ICIS)–Mixed xylenes (MX) in Asia for both the isomer and solvent grades are expected to continue facing headwinds from various market factors. Asia shares rebound after sharp losses, oil prices rise more than $1/barrel By Nurluqman Suratman 06-Aug-24 18:32 SINGAPORE (ICIS)–Asian shares rebounded on Tuesday, staging a relief rally after historic losses the previous day, as fresh US economic data for July alleviated recession fears.