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Brazil’s Braskem stock shoots up on reports billionaire Nelson Tanure aims to acquire Novonor stake
SAO PAULO (ICIS)–Braskem’s stock rose sharply in Friday trading after reports citing unnamed sources said Brazilian entrepreneur Nelson Tanure would be seeking to acquire Novonor’s controlling stake at the petrochemicals major. At some point, Braskem’s share rose nearly 10% on Friday, taking the whole Ibovespa stock index in Sao Paulo higher. By afternoon trading, however, the stock had moderated the gain although it was still rising nearly 6%, compared with the previous close on 22 May. The offer was first reported by Brazilian daily O Globo, with financial daily Valor Economico and news agency Reuters subsequently also publishing reports confirming the bid, citing also unnamed sources. According to those sources, Tanure would be intending to indirectly assume control previously held by Novonor (called formerly Odebrecht) through one of his investment funds. The proposal includes maintaining Novonor in the shareholding structure with a minority stake of 3%-5%, signaling a gradual transition strategy. Novonor currently holds 50.1% of Braskem’s voting shares, while Brazil’s state-owned energy major Petrobras controls 47%. However, the transaction depends on negotiations with Novonor’s creditor banks – Bradesco, Itaú, Banco do Brasil, Santander, and Brazil’s investment bank BNDES – which hold Braskem shares as collateral for debt estimated at Brazilian reais (R) 15 billion ($2.65 billion). These banks currently control 50.1% of Braskem’s common shares, representing 38.3% of total capital. Any control change must also consider Petrobras’ position as the second-largest shareholder with significant strategic influence. In a written response to ICIS, Braskem said it would not comment. Novonor and Petrobras had not responded to a request for comment at the time of writing. Braskem’s financial metrics have been suffering for several quarter due to the global petrochemicals oversupply and low prices, which have hit hard some of the company’s key products such polyethylene (PE), polypropylene (PP), or polyvinyl chloride (PVC). Earlier in May, however, it said it had swung to a net profit during Q1 2025, compared to a net loss in the same quarter a year earlier. Its sales and earnings, however, continued shrinking during Q1 in the year-on-year comparison. Braskem(in $ million) Q1 2025 Q1 2024 Change Q4 2024 Q1 2025 vs Q4 2024 Sales 3,331 3,618 -8% 3,285 1% Net profit/loss 113 -273 N/A -967 N/A Recurring EBITDA 224 230 -2% 102 121% WHO IS TANURE While it has been elusive for most media outlets to put a figure on Nelson Tanure’s fortune – even the well-known Forbes magazine has not put a figure on it and has not included him in its Rich List – the entrepreneur is considered one of Brazil’s richest men. His businesses span in a wide range of sectors such energy (mostly electric utilities), civil construction through its firm Gafisa; oil and gas through PetroRio and investments in the exploration of natural resources; telecommunications, with participations in operators Oi and TIM Brasil; and healthcare, with Alliance Health and diagnostic laboratories, among others. UNSUCCESSFUL DISPOSAL SO FARNovonor has attempted to sell its Braskem stake for years without conclusion. Previous interested parties included Abu Dhabi’s energy major Adnoc, Saudi Arabia’s SABIC – now part of oil major Aramco – and Brazilian conglomerate J&F, owned by the Batista brothers. J&F reportedly offered R10 billion for Novonor’s stake, but neither this nor the other transactions materialized. Novonor suffers from high leverage since the 2010s, when the company was at the center of the large, Latin America-wide corruption scandal known as Lava Jato in the mid-2010s. The scandal also engulfed personalities from the first administration of the Workers Party (PT), the party of President Luiz Inacio Lula da Silva, now back in power again and at the time led by him and his successor Dilma Rousseff. ($1 = R5.67)
VIDEO: Europe R-PET high bale costs squeeze margins amid June price talks
LONDON (ICIS)–Senior editor for recycling Matt Tudball discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: High bale costs across Europe still major concern for recyclers Margins are squeezed as flake, pellet price talks continue Cost-conscious buyers battle with high R-PET costs compared to PET Cheaper R-PET imports also still offered into Europe
Canada finds ‘reasonable indication’ China, Pakistan PET dumping hurting local producers
SAO PAULO (ICIS)–The Canadian International Trade Tribunal (CITT) has determined there is “a reasonable indication” that the dumping and subsidizing of polyethylene terephthalate (PET) originating in or exported from China and Pakistan has caused injury to Canadian producers. The resolution published this week follows on from the inquiry opened in March after producer Compagnie Alpek Polyester Canada, a subsidiary of Mexico’s Alpek, filed a complaint with the Canada Border Services Agency (CBSA). “The CBSA will continue its investigations and, by 17 June, will issue preliminary determinations,” said the Tribunal this week. If successful, the investigation could conclude advising to impose antidumping duties (ADDs) against PET imports from China and Pakistan, meaning PET imports from both jurisdictions would face higher-than-average import taxes to enter Canada. The CITT is an independent quasi-judicial body that reports to Parliament through the Minister of Finance, and it hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement, and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters. The Canadian market of imports for PET resin was estimated at around $193 million in 2023, and at $185 million in 2024, according to government data. In 2024, imports from China made up 46% of total imports into Canada, while shipments from Pakistan made up 28% of imports. The two countries were second and third suppliers of PET to Canada, after the US. PET resins can be broadly classified into bottle, fiber or film grade, named according to the downstream applications. Bottle grade resin is the most commonly traded form of PET resin and it is used in bottle and container packaging through blow molding and thermoforming. Fiber grade resin goes into making polyester fiber, while film grade resin is used in electrical and flexible packaging applications. PET can be compounded with glass fiber for the production of engineering plastics. DAK Americas, Indorama, Nan Ya Plastics Corporation and Far Eastern New Century (FENC) are PET producers in the US. Additional reporting by Melissa Wheeler

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US to hit EU imports with 50% tariffs starting 1 June
LONDON (ICIS)–US President Donald Trump has warned of plans to impose a  50% tariff on imports from the EU starting on 1 June. In a post on the Truth Social platform, which is owned by Trump, on Friday, the US President said negotiations with the EU “were going nowhere” and said the bloc “has been very difficult to deal with”. “Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the US of more than $250,000,000 a year, a number which is totally unacceptable,” the post on social media read. Trump went on to stipulate that no tariff would be applied if the product was built or manufactured in the US, but did not clarify how this would pertain to raw materials higher up the value chain. As a net importer, the repercussions for the European chemicals industry may be cushioned from direct tariffs, although this could have more of an impact for certain products like benzene or paraxylene (PX). The EU has declined to respond to the latest announcement. On 9 May, the EU launched a public consultation to determine which US products should be subject to levies, including many chemicals and plastics. The consultation is scheduled to remain open until 10 June, as the EU Commission also consults on restricting certain EU steel scrap and chemical products worth €4.4bn to the US. A 50% duty is an escalation from the previous 20% tariff announced by President Trump on 2 April, when levies of varying degrees were applied to most international trading partners, including a 10% baseline rate for the majority of countries. Tensions between the US and EU eased after a 90-day pause was agreed in early April to allow time for discussions to pave the way for a deal palatable to both parties. Since the initial announcement, the US secured a deal with the UK, with a 10% tariff for auto parts (down from 27.5%), keeping the previously announced baseline 10% rate in place. In exchange, the US will have increased access to UK chemicals, ethanol, and beef markets. The US also agreed a 90-day pause with China on 12 May, allowing Chinese imports to the US to be subject to a 30% tax instead of the 145% tariff, with US goods to China held at a 10% rate instead of 125%. thumbnail photo source: Shutterstock
UK Q3 energy price cap falls quarterly but rises year on year
UK energy price cap for July-September set at £1,720 for an average household This has risen £152 year on year, but is £129 lower than the Q2 cap Forward prices for Q4 ‘25 at premium to Q3 ‘25 anticipating higher winter demand By Anna Coulson and Ethan Tillcock LONDON (ICIS) –The UK energy price cap for July-September will be higher than the third quarter of 2024, energy regulator Ofgem said on 23 May, but will fall compared to the price cap in the second quarter of 2025. Ofgem stated that the recent fall in wholesale prices is the main driver of the overall price cap reduction, accounting for around 90% of the fall, with the remainder primarily due to changes to operating cost allowances suppliers can recover. If forward prices for delivery in the fourth quarter of 2025 remain at current levels, the wholesale component of the cap for the period October-December is expected to be higher than the third quarter. RISING PRICES ICIS assessed the British NBP gas Q3 ‘25 contract at an average of 94.400p/th from 18 February to 16 May, which was the period used by Ofgem to calculate wholesale energy costs for the upcoming cap. This is 35% higher than the Q3 ’24 contract average over equivalent dates in the previous year. Several factors are likely to have contributed to elevated wholesale gas prices. The end of Russian gas transit via Ukraine cut around 15.5bcm/year of remaining supply to Europe at the start of the 2025. European gas reserves finished the winter withdrawal season down significantly year on year, increasing forecast summer injection demand annually. This supported British hub prices as higher prices on the continent drive exports via the BBL and Interconnector pipelines. Investment funds amassed large net long positions in European gas futures amid speculation of a tight summer injection market. Hub prices declined towards the end of the period, trading lower on US tariffs driving global demand reduction forecasts, and the EU easing storage regulations, reducing expected summer injection demand. Gas is a key price driver for the UK power market due to its role in power generation, with power prices tracking the upward trend in NBP prices. ICIS assessed the UK power baseload Q3 ‘25 contract at an average £80.64/MWh between 18 February and 16 May, 25% higher than the Q3 ‘24 over equivalent dates. The Q3 ’25 UK power contract is at a premium to the European equivalents, indicating that the UK is likely to import power through the front quarter. Q4 CAP OUTLOOK On 22 May, ICIS assessed the NBP Q4 ‘25 contract at 94.525p/th, 7.950p/th above the Q3 ‘25 contract. On the same day, the UK power baseload Q4 ‘25 contract was £87.00/MWh, £6.85/MWh above the corresponding Q3 ’25 contract. European gas markets continue to exhibit sensitivity to multiple regulatory and geopolitical drivers. US tariffs are likely bearish for global demand due to stifling economic growth; however, de-escalation may continue in the coming months. Reduced gas storage targets at the EU level may push increased risk across the region from the injection season into Winter ’25 delivery. Entering the fourth quarter, cold weather and low wind generation present risks as this would increase heating and gas-for-power demand, with several periods of dunkelflaute in the previous winter causing demand surges. French nuclear availability is another key driver for UK power prices through the fourth quarter. ICIS assessed the UK power baseload Q4 ’25 contract at €102.41/MWh on 22 May, €25.61/MWh above the French contract, indicating that the UK is likely to import power from France. Data from EDF on 22 May shows that French nuclear availability is scheduled to average 57.1GW from 1 October to 31 December, 15.1GW above the 2020-24 average amid the recent commissioning of the 1.6GW Flamanville 3 plant. However, downward revisions in French nuclear availability through the fourth quarter of 2025 would be a bullish driver for French and UK power prices BACKGROUND Introduced in January 2019, the price cap sets the maximum price that energy suppliers can charge end-users for each unit of energy. .
Malaysia’s Lotte Chemical Titan inks 3-year naphtha deal with Saudi Aramco
SINGAPORE (ICIS)–Malaysia-based LOTTE Chemical Titan (LCT) has signed a three-year naphtha sales contract with Saudi Aramco, according to the company in a bourse statement. The naphtha, estimated at between 300,000-400,000 tonnes/year, will be supplied by Aramco’s unit in Singapore, said LCT on Friday. “Aramco is a major feedstock supplier of naphtha … and has been our long-term supplier,” the company said. The contract will run from July 2025 to June 2028, while the pricing will be based on the market price. LCT operates 12 plants across two sites in Malaysia and holds a 40% share in LOTTE Chemical USA Corp. It has three polyethylene plants in Indonesia through PT LOTTE Chemical Titan Nusantara. LCT is a subsidiary of South Korean major LOTTE Chemical Corp under the LOTTE Group.
Brazil’s Unigel, Petrobras end fertilizers plants lease, contractual disputes
SAO PAULO (ICIS)–Brazil’s state-owned energy major Petrobras and chemicals producer Unigel have finally signed an agreement to end contractual disputes related to the two fertilizers plants in the country’s north which had been leased to Unigel. Late on 22 May, the companies said the two fertilizers plants in the states of Bahia and Sergipe (northeast) would thus return to Petrobras’ portfolio. The agreement must still be ratified by Brazil’s Arbitral Tribunal. “The agreement provides for the reinstatement of Petrobras’ possession of the fertilizer plants (FAFENs) in Bahia and Sergipe, and the resumption of operations by Petrobras through a bidding process for the contracting of operation and maintenance services, in compliance with applicable governance practices and internal procedures,” said Petrobras. “Petrobras aims to resume activities in the fertilizer segment to create value through the production and commercialization of nitrogen-based products, while aligning with the oil and natural gas production chain and the energy transition.” Meanwhile, Unigel said the agreement represented the “definitive resolution of the contractual disputes” and litigation existing between the companies due to disagreements about the lease for the two plants. The deal represents the withdrawal of the company from the fertilizers sector altogether. The Camacari plant in Bahia state can produce 475,000 tonnes/year of ammonia and 475,000 tonnes/year of urea. The plant in Laranjeiras, Sergipe, can produce 650,000 tonnes/year of urea, 450,000 tonnes/year of ammonia and 320,000 tonnes/year of ammonium sulphate (AS). FAILED FERTILIZERS ADVENTURE The agreement puts an end to the 10-year lease for the plants signed by Unigel and Petrobras in 2019. While successful at first, as fertilizers prices shot up immediately after the first wave of the COVID-19 pandemic, prices started to fall in 2022 though while prices for natural gas rose sharply. In 2024, Unigel idled the two plants as high prices for gas and low selling prices made operations unprofitable, it said. Along the way, Petrobras accused Unigel of not fulfilling the terms and conditions of what they had agreed. Moreover, from 2022, woes at Unigel’s petrochemicals divisions – mostly producing styrenics – added to those in fertilizers. By the end of 2023, the company was forced to enter a debt restructuring process from which it only emerged in 2024. Earlier in May, Unigel presented its first comprehensive quarterly financial metrics since 2023, when it entered the restructuring process. Brazil’s financial regulations provide for such a provision for companies in financial distress. While it posted small earnings before interest, taxes, depreciation, and amortization (EBITDA), the producer continued haemorrhaging money in the first quarter, with sales falling year on year and posting a net loss of Brazilian reais (R) 209 million ($37 million). ($1 = R5.71)
Japan April inflation surges to over two-year high amid rising food prices
SINGAPORE (ICIS)–Japan’s core consumer price index (CPI) rose by 3.5% year on year in April, raising pressure on the central bank to continue raising interest rates, official data showed on Friday. Headline inflation, which includes all items, climbed by 3.6% year on year in April, steadying from a month ago. The Bank of Japan’s (BOJ) preferred measure of inflation, which excludes fresh food and fuel, rose 3.0% year on year in April, above the 2.9% gain recorded in March. Japan’s inflation has remained above the central bank’s 2% target since April 2022, prompting policymakers to gradually increase interest rates. In January, the BOJ raised its short-term interest rate to 0.5% from 0.25%, a sign of growing confidence in achieving its inflation target sustainably. While the BOJ has indicated further rate hikes are likely, it must also weigh external pressures such as potential impacts from US tariffs against ongoing domestic price increases, particularly in food.
TRUCKING: April volumes edge lower as US market remains weak from tariffs, soft economy
HOUSTON (ICIS)–US trucking activity edged lower in April as the industry has yet to experience a recovery as it deals with tariff uncertainty and softening economic indicators, according to the American Trucking Associations (ATA) seasonally adjusted For-Hire Truck Tonnage Index. The index fell by 0.3% in April after contracting by 1.5% in March, as shown in the following chart. Source: American Trucking Associations ATA chief economist Bob Costello said the index has fallen for two consecutive months after surging in February to its highest since May 2024. “Unfortunately, a recovery that was expected this year hasn’t transpired as the industry deals with a freight market in flux from tariffs and softening economic indicators,” Costello said. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 112.0 in April, 2.2% below March’s reading of 114.6. Both indices are dominated by contract freight, as opposed to traditional spot market freight. RATES EDGE HIGHER ON ROADCHECK WEEK Broker-posted spot rates in the FTR Transportation Intelligence Truckstop system for dry van and refrigerated equipment soared during the week ended 16 May (week 19) due to the annual International Roadcheck roadside inspection event, which was held 13-15 May. FTR’s Trucking Conditions Index reading for March improved to a positive 0.28 reading from -0.21 in February, as shown in the following chart. Avery Vise, FTR’s vice president of trucking, said more volatility is expected in the near term. “After a strong first quarter in freight volume – at least partially due to a pull-forward of imports in advance of tariffs – we expect more volatility in the months ahead as shippers respond to US trade policy shifts,” Vise said. “The recent short-term agreement between the US and China greatly reduces the potential near-term hit to freight volumes, but we still expect uncertainty and higher costs for consumers to be drags on the economy and freight,” Vise said. WHITE HOUSE ORDER COULD REDUCE DRIVERS Vise said a wild card that market participants are watching is whether renewed scrutiny concerning truck drivers’ English language skills and non-domicile commercial driver’s licenses (CDLs) will affect the driver supply significantly. US President Donald Trump signed an executive order recently aimed at, “ensuring anyone behind the wheel of a commercial vehicle is properly qualified and proficient in English”. ATA Senior Vice President of Regulatory & Safety Policy Dan Horvath said the executive order responds to its concerns on the uneven application of this existing regulation and looks forward to working with regulators on an enforcement standard. A distributor in the US chemical markets said it has not seen any disruptions in its trucking operations and suggested enforcement could be difficult. Trump’s order reversed a 2016 policy that said commercial vehicle drivers should not be placed out-of-service for English language proficiency (ELP) violations. The Commercial Vehicle Safety Alliance (CVSA), a nonprofit organization comprised of local, state, provincial, territorial and federal commercial motor vehicle safety officials and industry representatives, issued updated guidance this week that ELP violations will be out-of-service offenses again beginning 25 June.
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