HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 28 June. US June propylene contracts rise on higher spot prices US June propylene contracts for the majority of market participants settled up 2 cents/lb on higher spot prices. US consumer confidence and ICIS leading business barometer fall in June US consumer confidence fell in June, as did the ICIS US leading business barometer (LBB). Aditya Birla Chemicals plans new US epoxy facility in Texas Aditya Birla Chemicals is planning to build a new epoxy facility in Beaumont, Texas, according to the company. Flat chemical prices to increase in coming quarters; volumes booming – US HB Fuller Most chemical prices have stabilized, and a few are posting small rises, a trend which should strengthen in coming quarters as global manufacturing picks up, executives at US-headquartered adhesives producer HB Fuller said on Thursday. SHIPPING: Panama Canal increases drafts, to add another transit slot on 5 August The Panama Canal Authority (PCA) has increased the maximum allowable draft to transit the Neopanamax locks effective immediately, announced that another increase will take effect on 11 July, and will add an additional booking slot in the Neopanamax locks during Booking Period 2 for booking dates beginning 5 August.

SINGAPORE (ICIS)–In this podcast, ICIS analyst Claire Gao explores the oxo-alcohols market overview and outlook. Q2 oxo-alcohols prices largely fluctuate upwards amid low inventories, but decline at the end of the quarter Several new plants scheduled to start-up in Q3 may intensify competition Plentiful exports in up and downstream sectors in H1 2024; huge uncertainty in H2

LONDON (ICIS)–Eurozone manufacturing sector activity slipped further into contraction in June as demand slowed in most of the bloc’s largest economies, while conditions improved in the UK. The purchasing managers’ index (PMI) for the eurozone sector fell to 45.8 from 47.3 the previous month, representing the fastest rate of decline seen so far this year as demand weakened and new export orders saw a 28th consecutive monthly drop. Germany was the weakest-performing of the eight largest eurozone member state economies, with the manufacturing PMI sinking to 43.5, according to data from S&P Global. A PMI score of below 50.0 signifies decline. Despite the ongoing impact of Red Sea shipping disruption, manufacturers in the region reported further shortening of supplier delivery times. Despite steadily-falling order times, input costs for eurozone factories increased for the first time in 16 months, while the prices charged for finished items continued to fall in the face of the ongoing demand chill. Reported across much of the bloc, weaker demand resulted in manufacturers purchasing lower quantities of raw materials on the back of lower production requirements, with the drop in buying levels sharper than in May. “This decline comes after a record stretch of 25 consecutive months of falling demand, but a vague hope that things were improving in May when the respective index showed some increase,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, which helps to assemble the PMI data. “This means that any significant recovery will likely be postponed until at least the end of the summer or the beginning of fall,” he added. Output in Greece remained on growth footing despite its manufacturing PMI dropping to a six-month low, standing at 54.0, with activity in Spain and the Netherlands also growing despite a slowdown in the rate of expansion. Conditions in Ireland, France, Italy and Austria remained contractionary, despite manufacturing output in Italy firming to a two-month high at 45.7. Manufacturing activity in the UK continued firm during the month, with activity remaining near May levels at 50.9 as broad-based new order intake across sub-sectors continued to drive growth. Despite the strong demand across manufacturing sectors, that growth was largely confined to orders to large firms, with demand falling for smaller and mid-sized businesses. Two months of stronger activity has also driven an increase in cost inflation, modest overall but particularly pronounced for input prices. “The performance of the domestic market remains a real positive, providing a ripe source of new contract wins,” said S&P Global director Rob Dobson. “In contrast, the ongoing weak export performance is concerning, with manufacturers reporting difficulties in securing new business in several key markets including the US, China and mainland Europe,” he added. Stronger manufacturing conditions in the UK, as well as certain key markets, increase the hope that the decline seen in the eurozone in June may be short-lived, according to de la Rubia. “We are inclined to see this more as a temporary blip rather than a sign of a prolonged downturn,” he said. “Manufacturing growth was seen in other parts of the world in June, such as the United States, UK, and India, according to their respective Flash PMI. This global recovery provides a supportive backdrop for Eurozone manufacturers.” Focus article by Tom Brown. Thumbnail photo: A production line at BMW’s factory in Munich, Germany (Source: Anna Szilagyi/EPA-EFE/Shutterstock)

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which celebrates the blog’s 17th anniversary. 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.

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended Friday 28 July. Soft MA demand pressures prices lower, Red Sea tensions cap supply European maleic anhydride (MA) spot prices have softened as availability improved while poor demand slowed orders for July deliveries. Europe capro supply could be more balanced in July Following the severe shortages the European caprolactam (capro) market has struggled with over the past few months, supply is expected to be more balanced with demand in July. Europe orthoxylene sentiment for July stable-to-soft as feedstock costs show a mixed trend Europe orthoxylene (OX) contract price discussions for July are due to start next week amid persistently weak demand and mixed feedstock xylenes movements. Covestro to save €400m/year by 2028 through focus on digitalization, AI Covestro will save €400 million annually in material and personnel costs by the end of 2028 through a transformation programme focused on digitalization and artificial intelligence, it said on Tuesday. ADNOC and Covestro in concrete negotiations following €11.7bn offer Covestro and ADNOC have begun concrete negotiations on a possible investment by the Abu Dhabi oil company that would value the German chemical producer’s equity at €11.7bn, Covestro said on Monday.

SINGAPORE (ICIS)–Caixin’s China manufacturing purchasing managers’ index (PMI) rose to 51.8 in June from 51.7 in May as production growth accelerated on the back of rising new orders, the Chinese media firm said on Monday. Caixin’s headline PMI print was in contrast to China’s June official manufacturing PMI which remained stable from May at 49.5, data from the National Bureau of Statistics (NBS) showed on 30 June. A PMI reading below 50 indicates contraction in the manufacturing economy, while a higher number denotes expansion. The June reading marks the Caixin index’s eighth straight month in expansionary territory and its highest level since May 2021, showing ongoing improvement in the sector, said Wang Zhe, a senior economist at Caixin Insight Group. Manufacturing output growth reached a two-year high, driven by five consecutive months of expansion in both supply and demand, he said. Demand remained strong, with the total new orders subindex in expansionary territory for 11 months straight, led by consumer and intermediate goods, according to Wang. While exports continued to grow, the pace slowed for the first time in six months, suggesting a slight weakening of overseas demand, he said. “Recent macroeconomic data show that the economy continues to recover, with stable production, demand, employment and prices, as well as strong exports,” Wang said. “Despite this, insufficient market confidence and effective demand remain key challenges. Looking ahead, policy support requires further consolidation.” The Caixin PMI surveys small and medium-sized enterprises (SMEs) and export-oriented enterprises located in eastern coastal regions while the official PMI is tilted toward larger state-owned enterprises.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 28 June 2024. Asia melamine sees uptick on tighter supply; demand recovery uncertain By Joy Foo 28-Jun-24 12:54 SINGAPORE (ICIS)–Asia’s melamine spot market for China-origin product faced some pressure from early June due to lagging demand. China MEG market supported by limited import arrivals By Cindy Qiu 26-Jun-24 12:20 SINGAPORE (ICIS)–China’s monoethylene glycol (MEG) prices rose after falling in June, reflecting supply-demand dynamics, but the price growth may be capped by increasing domestic supply and curtailed downstream polyester production, despite limited import arrivals expected in July. India’s BPA import price surges; freight continues to exert pressure By Li Peng Seng 24-Jun-24 11:53 SINGAPORE (ICIS)–India’s bisphenol A (BPA) average import price hit its highest level in nearly 20 months recently due to firm ocean freight rates, a phenomenon that is expected to persist in the short term as vessel space is likely to stay tight. PODCAST: Asia base oils supply, demand to gradually rise in H2 By Damini Dabholkar 26-Jun-24 18:13 SINGAPORE (ICIS)–Asia’s base oils supply is expected to improve slightly in H2 2024, while a seasonal peak in overall demand is due to kick off in the later part of Q3. INSIGHT: Asia isocyanates H1 performance mixed, poor expectations for Q3 By Shannen Ng 26-Jun-24 14:30 SINGAPORE (ICIS)–Demand in Asia’s import markets for polymeric methylene diphenyl diisocyanate (PMDI) and toluene diisocyanate (TDI) is likely to remain limited in the upcoming summer months of July and August, and the outlook for late Q3 is uncertain. Chemanol to supply methanol to Saudi Amiral project over 20 years By Pearl Bantillo 25-Jun-24 12:52 SINGAPORE (ICIS)–Saudi Arabia’s Methanol Chemicals Co (Chemanol) has signed a 20-year deal to supply methanol to the Amiral petrochemical project of Saudi Aramco Total Refining and Petrochemical Co (SATORP).

HOUSTON (ICIS)–Global sustainable technology firm Metso announced it has been awarded  an order by Brazilian producer Galvani Fertilizante to deliver a lime calcination kiln and cooler package for their fertilizer plant in Irece, Brazil. The company said Galvani is taking a significant step at their Irece project by introducing sustainable technological innovation with this new unit expected to produce 350,000 short tons of phosphate concentrate and 600,000 short tons of agricultural limestone annually. Metso will supply a rotary kiln, a rotary cooler and ancillary equipment with the kiln and cooler system a critical part in the process to remove limestone from the phosphate concentrate. The kiln will be the largest lime calciner Metso has ever delivered, measuring almost six meters in diameter and over 140 meters in length. For its part Galvani said the partnership will bring strategic benefits and allow gains in mineral processing at their new unit. “The laying of the foundation stone for this unit, which took place in May of this year, reinforces the importance of this project for the development of the economy of the state of Bahia, in Brazil, and for the generation of jobs and income,” said Marcelo Silvestre, Galvani CEO. “This milestone represents our commitment to innovation and development, boosting our ability to meet the demands of the fertilizer market.”

HOUSTON (ICIS)–This spring US farmers planted less corn than last year but conversely increased their soybeans sowings, according to the US Department of Agriculture (USDA) in the acreage estimate report. The agency said corn planted area for all purposes in 2024 is estimated at 91.5 million acres, down by 3% or 3.17 million acres year on year. Overall, this year’s crop represents the eighth highest planted acreage in the US since 1944. Compared with last year, planted acreage is expected to be down or unchanged in 31 of the 48 estimating states. Area harvested for grain is being projected at 83.4 million acres, which is a decrease of 4% from last year. Looking at soybeans the USDA said planted area is estimated at 86.1 million acres, up 3% year on year, with planted acreage being up or unchanged in 24 of the 29 estimating states. All wheat planted area for 2024 is estimated at 47.2 million acres, down 5% from 2023 with all cotton planted area for this season being calculated at 11.7 million acres, up 14% year on year.