News library
Subscribe to our full range of breaking news and analysis
Viewing 1-10 results of 57132
Ammonia29-Jul-2024
HOUSTON (ICIS)–US crops have continued to make
steady progress with 77% of the corn acreage
now silking with soybean blooming also at 77%,
according to the latest US Department of
Agriculture (USDA) weekly crop progress report.
The current rate of silking does trail the 79%
level achieved in 2023 but is slightly ahead of
the five-year average of 76%.
Corn having reached the dough stage is now at
30%, above both the 25% mark from last year and
the five-year average of 22%.
For corn conditions, there is still 3% rated
very poor with 6% now listed as poor. There
remains 23% considered fair with 52% now seen
as good and 16% continuing to be viewed as
excellent.
For soybeans, there is 77% of the crop now
blooming, which is just below the 79% from 2023
but is ahead of the five-year average of 74%.
The amount of acreage setting pods has reached
44%, which is behind the 46% from last year,
but it is above the five-year average of 40%.
For soybean conditions, there remains 2% as
very poor and 6% as poor. There is now 25%
listed as fair with 54% as good and 13% as
excellent.
In harvesting updates, winter wheat is now at
82% completed, which is ahead of the 77% mark
from 2023 and the five-year average of 80%.
Ethylene29-Jul-2024
HOUSTON (ICIS)–So far in the earnings season,
US chemical producers have given up on a second
half recovery and will rely on their own
actions to increase earnings while they wait
for interest rates to fall.
US-based chlor-alkali producer Olin and
specialty chemicals producer Eastman were the
latest to abandon the prospect of a second-half
recovery.
Excluding the effects of Hurricane Beryl,
Olin expects the second half of 2024
to resemble its first half in terms of
adjusted earnings before interest, tax,
depreciation and amortization (EBITDA).
Eastman
does not expect any improvement in primary
demand in its key markets and geographies.
US-based paints and coatings producer
Sherwin-Williams flat-out said that
it did not expect to get any help from the
market during the company’s second half.
Improvements will have to come from within
Sherwin-Williams.
Similarly, RPM International said it will rely
on its margin achievement plan (MAP) to
increase earnings in
what it has called a no-growth and
low-growth economy.
Such self-help measures led Evonik to raise its
guidance even though it noted
the absence of any broad-based macroeconomic
recovery.
PPG lowered its full-year guidance because of
lower auto production and uneven industrial
production. However, PPG did break from the
trend, in that it expected US economic activity
to improve as the second half progressed.
Growth should continue in Mexico.
In China, PPG said growth should continue for
the company during the second half but at a
slower pace. Demand in Europe is uneven but
stabilizing.
Dow, meanwhile,
expects a slower pace of recovery for some
of its end markets for 2024.
In an interview with ICIS, Dow’s CFO said
consumer durables and building and construction
will likely remain weak through the rest of the
year.
In North America, volumes for architectural
coatings will not return to pre-pandemic levels
until 2025, Dow said.
HIGHER INTEREST RATES HOLD BACK KEY
CHEM END MARKETSFor many key
chemical end markets, elevated interest rates
continue to suppress demand.
The Federal Reserve has maintained the nation’s
benchmark federal funds rate at a multiyear
high of 5.25-5.50% as part of a campaign to
lower inflation to its target of 2%.
The elevated federal funds rate has raised
interest rates throughout the US economy,
making big-ticket items like homes,
automobiles, appliances and furniture more
expensive.
The higher rates have had an additional effect
on the existing home market. Consumers who have
cheap mortgages are reluctant to sell their
houses and assume a new 30-year loan with a
much higher rate.
These homeowners are hanging on to their
houses, and this trend has battered the
nation’s existing home market,
bringing sales to a 30-year low.
The slowdown in existing home sales has lowered
demand for architectural coatings, furniture,
mattresses and appliances.
For these end markets to recover, Dow said that
30-year mortgage rates need to fall to about
5%. Right now,
they are at 6.78%.
SIGNS OF CONSUMER
STRAINSherwin-Williams noted
some signs of strain among US consumers. It is
not just inflation, which remains above the
Fed’s target of 2%. They have depleted savings
and taken on debt.
Business from insurance claims declined because
consumers were reluctant to pay deductibles,
the company said.
It noted weakness in its do-it-yourself (DIY)
products sold to consumers through third-party
retail stores. These customers tend to be more
sensitive to price than those that shop at
Sherwin-Williams’ paint stores.
Dow noted that sales to contractors were
stronger than those to DIY consumers.
RPM also warned of uncertain DIY demand.
Companies outside of the chemical industry are
also seeing signs of weakening consumer demand.
The fast-food chain McDonald’s
also noted consumer weakness. In the second
quarter, global same-store sales fell by 1.0%
and US same-store sales fell by 0.7%. The
broadcaster CNBC said it was the first time
that same-store sales fell since the fourth
quarter of 2020.
McDonald’s said that consumers have become more
careful about how they spend their money.
Real disposable incomes in the US
barely grew in June following an increase
of 0.3% the previous month. Growth in consumer
spending also slowed down in June.
RATE CUTS BECOME MORE
LIKELYConsumers could get some
relief in the upcoming months. The Federal
Reserve could indicate that it is ready to
start lowering the benchmark interest rate
during its next meeting on 31 July.
Inflation is showing signs of falling to its
target of 2%.
Many expect that the first rate cut will happen
during the Federal Reserve’s meeting on 18
September.
The anticipation of future rate cuts would
trickle through the economy and lower rates for
mortgages and other forms of debt.
If the inflation continues to cool and if the
Federal Reserve continues lowering rates, then
mortgages could reach the 5% threshold that Dow
said could lead to a sustained recovery for
several key end markets.
MORE CHEMS SCHEDULED TO DISCUSS
OUTLOOKSMany more companies
should reveal their guidance and outlook during
the next two weeks as earnings season
continues. So far, it looks like the industry
will have to continue waiting for a sustained
recovery.
Insight article by Al
Greenwood
Thumbnail shows a torn dollar. Image by
Shutterstock.
Ethylene29-Jul-2024
HOUSTON (ICIS)–Here are the top stories from
ICIS News from the week ended 26 July.
INSIGHT OUTLOOK:
Next US president may upend EV policies, trade,
regulations
The US election could see Donald Trump return
as president with majorities in both
legislative chambers, which could bring a
reduction in excessive red tape, weaker support
for electric vehicles (EVs) and impose even
more ponderous tariffs and trade restrictions.
OUTLOOK: Red Sea
diversions, tight capacity to pressure rates
higher, but could ease in
August
Tight capacity as vessels continue to divert
away from the Red Sea and Suez Canal for the
longer voyage around the Cape of Good Hope is
likely to keep upward pressure on ocean freight
rates, but an early start and end to the
typical peak season could provide some relief.
INSIGHT: US
chemical exports more exposed to China today as
potential new trade war looms – ICIS
analysis
As campaigns heat up heading towards the US
elections in November, trade wars and tariffs
are now front and center in the minds of global
chemical players. Producers and customers must
brace for the prospects of higher tariffs,
particularly on Chinese imports, as well as
retaliatory tariffs by China.
Dow sees B&C,
consumer durables weakness persisting through
2024, rate cuts needed – CFO
Weakness in building and construction, and
consumer durables demand is expected to persist
through 2024, likely pushing out a meaningful
earnings recovery to 2025, Dow’s chief
financial officer said on Thursday.
INSIGHT:
Venezuela’s petchems may finally get a chance –
but unlikely to be under
Maduro
Venezuelans go to the polls on Sunday with the
hope of a free and fair election, in which case
President Nicolas Maduro is widely expected to
lose office in a country where the economy has
been battered by years of mismanagement,
corruption, and US sanctions.
Global News + ICIS Chemical Business (ICB)
See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.
Petrochemicals29-Jul-2024
LONDON (ICIS)–Click
here to see the latest blog post on
Chemicals & The Economy by Paul Hodges,
which looks at warning signs around the oil
market.
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.
Speciality Chemicals29-Jul-2024
LONDON (ICIS)–Here are some of the top stories
from ICIS Europe for the week ended 26 July.
BASF
sees slowing electric vehicle sector, pauses
Tarragona refinery plans
BASF is moving to “de-risk” its exposure to the
electric vehicles sector in response to slowing
market dynamics, CEO Markus Kamieth said on
Friday, pausing or deciding against several
investments connected to the industry.
Dow
sees B&C, consumer durables weakness
persisting through 2024, rate cuts needed –
CFO
Weakness in building and construction, and
consumer durables demand is expected to persist
through 2024, likely pushing out a meaningful
earnings recovery to 2025, Dow’s chief
financial officer said on Thursday.
Eurozone private sector
momentum slows further in July
Eurozone private sector momentum almost slowed
to a standstill in July, dropping to a
five-month low as new orders fell and business
confidence ebbed.
Africa PE/PP demand to
remain flat, supply picture difficult to
predict
Little is certain when it comes to African
economics but it appears a fairly safe bet that
underlying demand in the polymer markets will
remain subdued for the second half of the year
across the continent.
EU
announces provisional ADDs on biodiesel imports
from China
The EU has implemented provisional antidumping
duties (ADDs) on biodiesel from China after
deciding that a recent surge in imports has
harmed the competitiveness of Europe-based
operations. The European Commission has
suggested a provisional tariff between 12.8% to
36.4% starting in mid-August.
Gas29-Jul-2024
SINGAPORE (ICIS)–Here are the top stories from
ICIS News Asia and the Middle East for the week
ended 26 July 2024.
Typhoon Gaemi makes landfall in southern China;
hits port operations
By Nurluqman Suratman 26-Jul-24 10:36 SINGAPORE
(ICIS)–Typhoon Gaemi slammed into Fujian
province in southern China on the evening of 25
July, bringing heavy rains as it continues to
move inland on Friday, with the strong downpour
expected to last three days.
PODCAST: Typhoon Gaemi to delay propane, butane
cargo arrivals in China
By Zhou Shihao 25-Jul-24 14:49 SINGAPORE
(ICIS)–Typhoon Gaemi will test the resilience
of the liquefied petroleum gas (LPG) supply
chain, causing temporary shipment delays and
port closures, but market prices and arrival
schedules are expected to remain stable and
manageable.
PODCAST: Hydrogen – the critical blend for
decarbonizing gas power in China
By Yu Yunfeng 25-Jul-24 09:47 SINGAPORE
(ICIS)–China’s installed capacity of gas power
generation is projected to surpass 150 GW by
2025, representing roughly 6% of the country’s
total installed power generation capacity.
VIDEO: China’s LDPE market weakens as supply
tightness eases
By Joanne Wang 24-Jul-24 14:35 SINGAPORE
(ICIS)–Watch ICIS senior industry analyst
Joanne Wang discuss the driving factors behind
the China’s low density polyethylene (LDPE)
price fluctuations this year and briefly
discuss prospects for the second half of this
year.
India cuts MDI import duty; plans six-month
review of overall tariff structure
By Nurluqman Suratman 23-Jul-24 18:04 SINGAPORE
(ICIS)–India will cut import duties for
methylene diphenyl diisocyanate (MDI) by 2.5
percentage points to 5.0% effective 24 July,
with plans to review the country’s overall
tariff structure in the next six months.
OUTLOOK: China’s H2 refinery throughput to be
weighed by economic slowdown, fuel
substitution
By Patricia Tao 23-Jul-24 11:21 SINGAPORE
(ICIS)–China’s crude throughput is forecast to
edge lower to 15.05 million barrels/day in the
second half of 2024, about 0.4% lower year on
year amid continued sluggishness of the
domestic economy and the growing competition
from alternative fuels.
INSIGHT: China PE demand growth for 2024 to be
slowed by weak consumer confidence
By Amy Yu 22-Jul-24 17:41 SINGAPORE
(ICIS)–China polyethylene (PE) demand is
expected to shift to the traditional off-season
in July, due to the impact of high temperatures
and flood season.
Potassium Sulphate (SOP)26-Jul-2024
HOUSTON (ICIS)– Producer Agrimin Limited said
their Mackay Potash project in Western
Australia is now advancing towards a final
investment decision.
In an update on quarterly activities the
company said it continues to focus on their
project which is planned to be able to
manufacture standard and granular sulphate of
potash (SOP) products.
Current activities include efforts towards
project funding and strategic partnerships,
design works, environmental approvals as well
as product marketing.
The Mackay project is set to undertake
sustainable extraction of brine from Lake
Mackay using a network of shallow trenches,
which will be transferred along trenches into a
series of solar evaporation ponds.
Raw potash salts will crystallize on the floor
of the ponds and be collected by wet harvesters
and pumped as a slurry to the processing plant
that will refine harvested salts into high
quality finished SOP ready for direct use by
customers.
SOP volumes will be hauled by a dedicated fleet
of road trains to a purpose-built storage
facility at Wyndham Port. At the port it will
be loaded via an integrated barge loading
facility for shipment to customers.
The project’s definitive feasibility study
(DFS) was completed in July 2020 and
demonstrated that once in operation it could be
the world’s lowest cost source of seaborne SOP.
The independent technical review of the DFS was
completed in April 2021.
The company has signed three binding offtake
agreements with Sinochem Fertilizer Macao
Limited for the supply of 150,000 tonnes/year,
Nitron Group for 115,000 tonnes/year and with
MacroSource for 50,000 tonnes/year.
Agrimin has already completed site-based
testing for the salt harvesters, geotechnical
sampling and for the sealed haul road.
Additionally, the company has worked with its
proposed power contractor to refine the
project’s site power station design which has
resulted in a hybrid diesel, solar, wind and
battery solution.
Regarding environmental clearance the company
said the project is being assessed by the
Western Australian Environmental Protection
Authority (EPA) and during the quarter it
resubmitted the environmental impact assessment
response, which included revised management and
monitoring plans.
It is still expected that the EPA approval will
come during the second half of 2024.
Agrimin said it is also progressing other
secondary approvals, licenses and agreements
which included coverage for mining operations
project safety and water regulations.
Ammonia26-Jul-2024
The infographic for this story was
initially developed by ICIS hydrogen policy and
regulation analyst Aayesha Pathan
LONDON (ICIS)–On 17 July the government of the
Czech Republic approved an update to its
hydrogen strategy. The update follows a wide
array of European policy developments such as
targets for the use of renewable hydrogen in
transport and industry, as well as alternative
fuels infrastructure regulation on hydrogen
refuelling stations.
The strategy indicates a three phased-approach
to the development of the market, focusing
initially on localized production and offtake
through hydrogen valleys, moving towards
large-scale hydrogen imports towards the end of
the decade and into the 2030s.
ICIS has produced the following infogram to
reflect some of the core principles of the
strategy update.
Recycled Polyethylene Terephthalate26-Jul-2024
LONDON (ICIS)–Senior Editor for Recycling Matt
Tudball discusses the latest developments in
the European recycled polyethylene
terephthalate (R-PET) market, including:
Eastern Europe bale bullishness eases
Some northwest Europe flake sellers’ views
on August offers vary
Swedish deposit return scheme (DRS)
introduces R-PET cap from May 2025
Contact us
Partnering with ICIS unlocks a vision of a future you can trust and achieve. We leverage our unrivalled network of industry experts to deliver a comprehensive market view based on independent and reliable data, insight and analytics.
Contact us to learn how we can support you as you transact today and plan for tomorrow.