News library
Subscribe to our full range of breaking news and analysis
Viewing 1-10 results of 57802
Ethylene23-Dec-2024
HOUSTON (ICIS)–Here are the top stories from
ICIS News from the week ended 20 December.
CP Chem’s US, Qatar JV projects on
track for 2026 startup – Phillips
66
Two world-scale joint venture projects being
developed by Chevron Phillips Chemical and
QatarEnergy remain on track to start operations
in 2026, Phillips 66 said on Monday.
Canada in turmoil as finance minister
resigns, CEOs worry about fiscal
policies
Canadian CEOs and business trade groups are
warning about the state of Canada’s fiscal
policies.
US Fed cuts rate by quarter point,
expects fewer cuts in 2025
The Federal Reserve lowered on Wednesday its
benchmark interest rate by a quarter point
while reducing the number of cuts it expects to
make in 2025.
INSIGHT: US Gulf chems face more
freezing spells amid warmer
winters
Chemical plants and refineries along the Gulf
Coast of the US will likely face another winter
that will be warmer than usual but punctuated
with brief periods of freezing temperatures,
which could disrupt operations.
Oil prices fall on stronger US dollar,
looming US government
shutdown
Oil prices fell sharply on Friday on a stronger
US dollar and amid a looming US government
shutdown over the failure to pass a budget bill
in the House of Representatives.
SHIPPING: Asia-US container rates surge
as volumes pulled forward ahead of strike,
tariffs
Rates for shipping containers from east Asia
and China to the US surged this week as
importers pulled volumes forward ahead of the
possible restart of the US Gulf and East Coast
port strike and anticipated tariff hikes under
the incoming Trump Administration.
Crude Oil23-Dec-2024
LONDON (ICIS)–The UK economy was weaker than
initially thought in Q3 with GDP showing zero
growth, according to official data on Monday.
There was no growth in the services sector,
while a 0.7% increase in construction was
offset by a 0.4% fall in production.
The Q3 GDP figure was revised down from
a
first estimate of 0.1% growth, the Office
for National Statistics (ONS) said.
Quarterly growth has trended down throughout
2024 with GDP at 0.7% in Q1, 0.4% in Q2 and 0%
in Q3.
On a monthly basis, GDP fell by 0.1% in
September and October, according to the ONS.
Last week, the Bank of England (BoE) held
its key interest rate at 4.75% as inflation
continued to firm despite weakening industrial
activity.
Economic growth in
the eurozone and EU has been more positive
with Q3 GDP rising by 0.4% in both blocs from
the previous quarter.
Speciality Chemicals23-Dec-2024
LONDON (ICIS)–Here are some of the top stories
from ICIS Europe for the week ended 20
December.
Stagnant manufacturing,
overcapacity, looming trade war weigh on Europe
chems in 2025
Europe’s petrochemical sector will be under
even more pressure in 2025 as demand from the
region’s manufacturing sector remains in
contraction, global overcapacity gets worse and
amid the possibility of increased exports from
China and the US.
Europe melamine December
contracts roll over, Q4 contracts rise on
margin pressure
European December melamine contracts were
assessed steady, in line with market feedback.
Europe paraxylene
December contract price up €5/tonne
The Europe paraxylene (PX) December contract
reference price rose €5/tonne from November’s
levels.
German business sentiment
weakest since May 2020
German business sentiment dropped to its lowest
point since May 2020 in December, according to
the latest data from the Ifo Institute on
Tuesday.
Eurozone private sector
closes out 2024 in contraction as manufacturing
slows
The eurozone private sector ended the year on a
bearish note as output contracted driven by a
weakening manufacturing sector, which offset a
return to growth for services.
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.
Gas23-Dec-2024
SINGAPORE (ICIS)–Here are the top stories
from ICIS News Asia and the Middle East for
the week ended 20 December.
Study on Oman’s Duqm
petrochemical complex to be completed in
2025
By Jonathan Yee 16-Dec-24 15:09 SINGAPORE
(ICIS)–A feasibility study for a joint
venture petrochemical complex in the Duqm
Special Economic Zone (SEZ) in Oman will be
completed in 2025, an official from Oman’s
national oil and gas company OQ told ICIS.
UPDATE: South Korea
bourse closes lower, won softer after Yoon’s
impeachment
By Jonathan Yee 16-Dec-24 16:52 SINGAPORE
(ICIS)–South Korea’s benchmark stock market
index was closed lower on Monday, snapping
four straight days of gains, after the
country’s parliament impeached President Yoon
Suk Yeol over the weekend for imposing a
short-lived martial law on 3 December.
UPDATE: ChemOne’s
Malaysia $5.3bn complex start-up delayed to
Q4 2028
By Nurluqman Suratman 16-Dec-24 21:21
SINGAPORE (ICIS)–ChemOne Group has delayed
the start-up of its $5.3 billion Pengerang
Energy Complex (PEC) in Johor, Malaysia to Q4
2028, after facing “complex financing”
issues, the CEO of the project’s operator
said on Monday.
Malaysia Lotte Chemical
Titan to shut some PE, PP units in line with
cracker shutdown
By Izham Ahmad 17-Dec-24 12:30 SINGAPORE
(ICIS)–Malaysia’s Lotte Chemical Titan will
shut some of its downstream polyethylene (PE)
and polypropylene (PP) plants to account for
a reduction in feedstock after it shuts down
one of its crackers in Pasir Gudang,
according to market sources.
INSIGHT: China economy
ends 2024 on mixed note amid Trump 2.0
concerns
By Nurluqman Suratman 18-Dec-24 13:07
SINGAPORE (ICIS)–China’s economic data in
November were mixed, with weaker retail sales
growth offset by some signs of stability in
property prices and a slightly quicker
industrial output growth, as policymakers
brace for more US trade tariffs once
President-elect Donald Trump takes office for
a second time.
INSIGHT: China oil
demand to peak in 2026 as transportation fuel
drags
By Fanny Zhang 19-Dec-24 14:00 SINGAPORE
(ICIS)–China is expected to see its overall
oil demand peaking in 2026 amid ongoing
changes in the key transportation market,
analysts said.
Oil
prices fall on stronger US dollar, looming US
government shutdown
By Jonathan Yee 20-Dec-24 11:55 SINGAPORE
(ICIS)–Oil prices fell sharply on Friday on
a stronger US dollar and amid a looming US
government shutdown over the failure to pass
a budget bill in the House of
Representatives.
Asia BD imports stay
supported by China domestic market bull
run
By Ai Teng Lim 20-Dec-24 14:31 SINGAPORE
(ICIS)–Sentiment is buoyant in Asia’s
butadiene (BD) import market as sellers chase
higher selling targets, emboldened by what
they perceive as strong buying power in
China.
Bank of Japan maintains
interest rates as Nov core inflation
surges
By Jonathan Yee 20-Dec-24 14:50 SINGAPORE
(ICIS)–The Bank of Japan (BOJ) has kept its
interest rates unchanged as inflation levels
rose to 2.7% year on year in November,
raising analyst expectations of a rate hike
in Q1 2025.
Ammonia20-Dec-2024
HOUSTON (ICIS)–The Fertilizer Institute (TFI)
has announced the launch of the Verified
Ammonia Carbon Intensity (VACI) program, which
is a voluntary certification of the carbon
footprint of ammonia production at a specific
facility.
The VACI is the first program of its kind with
the industry group saying it is designed to
provide ammonia consumers seeking to reduce
emissions across their supply chains with an
independent and certifiable carbon intensity
score.
TFI said the VACI certification framework will
standardize the approach for calculating the
carbon intensity of ammonia encompassing all
aspects of ammonia manufacturing from feedstock
production through the finished product at the
plant gate.
Producers will use the VACI standard to
calculate the carbon intensity of ammonia
produced at their facilities then an
independent, third-party auditor will then
verify or validate that the carbon intensity
score is accurate.
TFI president and CEO Corey Rosenbusch said
ammonia is a critical input for both
agriculture, emissions control and many
commercial products including fabric and
pharmaceuticals.
“As agriculture and other industries
increasingly look to develop more sustainable
and resilient supply chains, the Verified
Ammonia Carbon Intensity program provides
ammonia consumers with certifiable transparency
that will allow them to quantify the positive
impact using low-carbon ammonia has on their
greenhouse gas emissions footprint,” said
Rosenbusch.
Ammonia production typically uses natural gas
as a feedstock for its hydrogen component and
is an energy-intensive process with substantial
carbon dioxide emissions as a byproduct.
Currently there are US ammonia producers who
are investing in technologies to dramatically
reduce emissions with the VACI enabling them to
document the varying levels of emissions
reduction these technologies provide.
The VACI program was developed by TFI in
collaboration with technical industry experts
from producers CF Industries, LSB, Nutrien, OCI
and Yara with guidance from Hinicio, a
strategic and technical consulting firm
specializing in hydrogen and its derivatives
and industrial decarbonization.
Facilities certified under the program include
Nutrien at Redwater in Canada and CF Industries
in Donaldsonville, Louisiana, with audits that
have been completed.
Audits for LSB Industries in El Dorado,
Arkansas, and CVR Energy in Coffeyville,
Kansas, in progress.
TFI said the VACI is undertaking a 60-day
public consultation period for ammonia
consumers and stakeholders to provide feedback
on the program and its methodology and intends
to refine the program based on comments
received.
Speciality Chemicals20-Dec-2024
HOUSTON (ICIS)–Rates for shipping containers
from east Asia and China to the US surged this
week as importers pulled volumes forward ahead
of the possible restart of the US Gulf and East
Coast port strike and anticipated tariff hikes
under the incoming Trump Administration.
Rates from Asia to both US coasts had been
trending steadily lower since July.
Rates from Shanghai to New York began
stabilizing in October before surging by almost
17% this week, according to data from supply
chain advisors Drewry.
Rates from Shanghai to Los Angeles were falling
steadily before jumping by almost 26% this
week, as shown in the following chart from
Drewry.
Drewry has global average rates up by 8% this
week, as shown in its World Container Index.
Drewry expects an increase in rates on the
transpacific trade in the coming week, driven
by front-loading ahead of the looming port
strike and possible tariffs.
Rates at online freight shipping marketplace
and platform provider Freightos also showed
significant increases to both coasts.
Judah Levine, head of research at Freightos,
suggested that the pull-forward for the pending
strike is largely over as the pre-15 January
arrival window has closed.
Levine thinks a strike – or at least a
prolonged one – is unlikely now that
President-elect Trump has backed the union in
the dispute.
But the anticipation of increased tariffs is
still driving some
unseasonal volume strength, Levine 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.
They also transport liquid chemicals in
isotanks.
LIQUID TANKER RATES
STABLE
Overall, US chemical tanker freight rates were
unchanged this week for most trade lanes
ex-USG.
For the USG to ARA, both spot cargoes and
contract of affreightment (COA) nominations to
northwest Europe took a slight dip this week,
with minimal opportunities quoted but remained
relatively flat week over week.
COA volumes for January are still pending so it
is not clear how much space will be available,
but sentiment is that contract business will be
strong, making spot space harder to find.
Along the USG to Asia route, there was a bit
more activity this week with January base oils,
ethanol and vegoil requirements being quoted
out in the market.
The January chemical COAs are showing healthy
levels, and most regulars are reporting that
space is currently tight on paper. Most market
participants expect rates to remain steady for
the balance of the year.
COA nominations are strong on the USG-Brazil
trade lane with still some space available for
the end of December. However, several traders
were in the market with 10,000 tonnes of
caustic soda ex-Point Comfort to Santos for
loading on prompt dates.
So far, no fixture has been reported yet,
leaving this market overall quiet.
Additionally, ethanol, glycols and caustic soda
were seen in the market to various regions.
Additional reporting by Kevin Callahan
Thumbnail image shows a container ship.
Photo by Shutterstock
Gas20-Dec-2024
By Patrick Heren
LONDON (ICIS)–This is a memory from 30 years
ago of an incident, minor in itself, which was,
for me, a pivotal moment in the evolution of
the competitive gas market.
But as it was so long ago, modern readers may
need a bit of historical background.
Before the appearance of GIF’s forerunner
European Gas Markets, free market gas prices
were invisible.
Wholesale British gas prices were a private
contractual matter between offshore gas
producers and onshore consumers. Up until about
1990 there was really only one buyer, British
Gas, and the output of the dozens of gas fields
it purchased were priced according to long term
agreements.
Prices were set at levels agreed at the time
each individual field was developed and they
were escalated, usually annually, by a wide
range of indices – consumer price inflation,
fuel oil, heating oil etc.
Prices were confidential, though fairly well
known within the industry. The closest we got
to transparency was when, once a year British
Gas published its wacog, or weighted average
cost of gas. In 1994, the year when I first
began publishing spot gas prices, the BG wacog
was just over 19 pence per therm.
By 1994, British Gas had been functionally
divided into three: Centrica, the trading,
sales and marketing arm; BG, the E&P
business, plus international; and Transco (now
National Grid Gas), the pipeline operator. The
regulator, then known as Ofgas, had decreed
that no more than 90% of the output of any new
gas field could be sold to the former monopoly.
There was, luckily for the producers, a big new
market for their gas, and that was the emerging
independent power sector. The liberalisation of
the electricity supply industry had lagged the
gas industry by a couple of years, but once it
had begun, 15 or 16 new independent producers
built gas fired power stations which of course
needed gas. As there was no spot gas market at
the time, they all bought North Sea gas on more
or less the same terms as British Gas.
Ironically, the origins of British spot gas
trading lay with some of these long term
agreements.
Gas was delivered to some IPP’s before the
turbines were ready, and the power companies
were forced to find alternative buyers –
usually the new gas marketers trying to break
into the industrial and commercial sector. Of
course the prices paid were below the long term
contract levels, and it was these confidential
spot deals that I had been trying to report
since the beginning of 1994.
That day, I had just put the December edition
of European Gas Markets to bed, and taken a cab
over to the BP Christmas press party at Butlers
Wharf near Tower Bridge.
BP always threw a good party, and the press
office ensured there were plenty of senior
executives on hand, including board members, to
be grilled by us hacks.
It was past 2 PM when I arrived, and the party
was in full swing, crowded and noisy. I was
standing just inside the entrance, trying to
get my bearings, when John Browne followed me
in. He was then CEO of BP Exploration, and
about to become CEO of BP plc. He was also
socially awkward and looked slightly
intimidated by the noisy throng.
I grabbed a couple of glasses of champagne from
a passing waiter, gave him one and began to ask
questions.
Browne politely answered my queries about a
variety of subjects – LNG, Russia, power
generation – in greater detail than I would
have expected. But it was all pretty routine
until I put the question that most concerned
me. It was the question I asked all gas
executives I encountered in those days, a
question most of them appeared baffled by.
“So, John, how would you feel about selling
BP’s North Sea gas on a spot index?”
He suddenly became animated, even enthusiastic.
“I cannot wait to start selling on a spot gas
index!” Browne exclaimed.
“Let me tell you what happens now when we find
a new commercial gas field. Our people sit down
with the people from British Gas, and they have
a series of lunches that goes on for a couple
of years. At the end of that time, they agree a
price that any two intelligent people could
have come up with in ten minutes. Then they
agree to index it to something completely
irrelevant, and I can guarantee you that by the
time my gas is flowing across the beach, the
price we get for it bears no relation to its
value. Sometimes we get less than it’s worth,
and sometimes we get more: of course I Iike the
more, but I’d much rather sell all of it for
its actual market value.”
I agreed that this was the wise course, and
explained that I was endeavouring to establish
just such a gas price index, though without
much assistance from the industry, including
BP.
“I can imagine,” he replied. “The gas market is
in the dark ages. But we at BP have survived in
the crude oil market for many years, not only
survived but prospered – my gas colleagues
should reflect on that. I wish you luck!”
John Browne glanced at his watch. “Oh dear, I’m
late for a meeting of the BP Pension Fund.” And
that was that. It took his gassy colleagues
many months before they began to get the
message.
But three months later we launched the Heren
Index and the ancestor of ESGM and by the end
of 1995, our prices were being written into
contracts.
Ethylene20-Dec-2024
LONDON (ICIS)–A hoped-for recovery in
Germany’s chemical industry has been pushed out
to 2026, as shown by an industry survey
presented at a webinar hosted by chemical
producers’ trade group VCI.
No recovery before 2026
Chemical production seen flat in 2025
Persistent lack of orders
The VCI survey, conducted in November, found
that 52% of German chemical companies expect a
recovery to only take place in 2026 or later,
whereas a previous survey conducted this summer
showed that a majority had expected a recovery
in 2025.
Now, only 22% expect a recovery in the second
half of 2025 while 8% expect it to occur in the
first half, according to the latest survey
As for sales and profits, 33% expect a sales
decline in 2025 and 46% expect lower profits.
Companies are particularly pessimistic about
sales expectations for Germany and Europe, but
are less pessimistic about business outside
Europe.
With nearly every second company expecting
falling profits next year, business will remain
difficult, said VCI economist Christiane
Kellermann.
LACK OF ORDERS
The share of companies complaining about a lack
of orders is around 40%, the same level as at
the start of the coronavirus lockdowns in early
2020, she said.
Producers have been complaining about a lack of
orders since the end of 2022, and there was
still no prospect of an improvement, she said.
The share of companies stating that a lack of
orders was no problem for them and that
business was good was “vanishingly small”, she
added.
New orders were weak both domestically and
internationally, she said.
LOSS OF COMPETITIVENESS
Germany as a place for industrial production is
losing competitiveness because of its high
bureaucratic costs, high labor costs, high
taxes and levies, and high energy costs, she
said.
Adding to these challenges is rising
geopolitical uncertainty, in particular in the
wake of Donald Trump’s victory in the 5
November US presidential election, she said.
Companies were trying to determine what Trump’s
second term as president will mean for them in
terms of trade
conflicts and tariffs.
They were not only worried about direct tariff
impacts, but also about the impact on China
where the tariffs are likely prompt producers
to ship more product to Europe, she said.
As for German politics, there are hopes that a
new government next year will address at least
some of the challenges the country faces, she
said.
The coalition government of Chancellor Olaf
Scholz collapsed last month,
and new elections are expected to be held in
February.
CHEMICAL PRODUCTION TO STAGNATE IN
2025
In 2024, total chemical-pharmaceutical
production rose 2.0%, led by a 4.0% increase in
chemicals, according to preliminary data,
Kellermann said.
2024, percentage change in production,
by major segments:
Inorganic basic chemicals: +7.0%
Petrochemicals: +8.5%
Polymers: +4.0%
Fine and specialty chemicals: -2.0%
Consumer chemicals: +2.0%
Pharmaceuticals: -1.5%
While some segments saw a significant
year-on-year increase in production, the
increases did not offset the declines in 2023,
she said.
Demand for chemicals across industrial
customers was weak, especially in Germany, she
said.
For 2025, VCI currently forecasts that
chemical/pharmaceutical production will inch up
0.5%, with chemical production expected to
stagnate:
Production, year-on-year %-changes
2025 forecast
2024 (based on
preliminary data)
2023
Chemicals &
pharmaceuticals
+0.5%
+2.0%
-7.9%
Chemicals (ex pharma)
flat
+4.0%
-10.4%
COMPANIES REACT
Companies are reacting to the challenges they
face in Germany with a range of measures,
Kellermann said.
They include restructuring; improvements in
productivity and energy efficiency; cost
cutting programmess; shifting production
abroad; divestments of businesses lines; and
plant closures, she said.
The country was seeing a permanent shutdown in
production, and this trend may accelerate, she
added.
Only 25% of the chemical companies surveyed
expect their investments in plants, equipment
and machinery at German locations to increase
next year, whereas 40% expect their investments
to decline.
On the other hand, 46% expect an increase in
their investments abroad.
Companies were investing, but not necessarily
in Germany, Kellermann said.
VCI chief economist Henrik Meincke, who also
presented at the webinar, said following steady
growth in the years after the 2008-2009 global
financial crisis, “multiple shocks” have hit
Germany’s economy and its energy-intensive
industrial producers since 2018:
2018/19: US-China trade conflict
2020: Pandemic lockdowns
2020/21: Supply chain crisis
2022: Ukraine war and energy price shock
2023: Inflation, and high interest rates to
contain it
Germany was currently in a stagflation phase,
with core-inflation above 2% – and this has
come at a time of enormous political and
economic risks as well as the challenge of
transforming the economy to net zero-emissions,
he said.
Thumbnail photo of BASF’s Ludwigshafen
site; source: BASF
Ammonia19-Dec-2024
HOUSTON (ICIS)–Dakota Gasification Company has
confirmed that the company and fertilizer
producer OCI decided earlier this month to
dissolve their joint marketing venture N-7 and
that it will begin its own fertilizer sales and
marketing beginning 1 February.
This move comes after a strategic review by
both parties it was determined to dissolve the
joint venture, which was focused on selling
nitrogen fertilizers, industrial ammonia, urea
liquor and diesel exhaust fluid (DEF).
Since the partnership formed in July 2018, N-7
has shipped over 26.5 million short tons of
product to more than 520 customers in
3,100 cities.
The company said it will continue to offer the
same products moving forward including ammonia
and urea, and rather than reduce their
workforce this change has lifted levels.
“We have expanded our team with highly skilled
professionals to enhance our ability to deliver
exceptional products and service to our
customers,” said a Dakota Gasification Company
spokesperson.
The parent company said in a statement the
decision reflects a mutual recognition of the
unique growth opportunities available to both
companies independently.
“This partnership allowed us to serve our
customers with exceptional products while
achieving significant milestones together,”
said Daniel Gallagher, Basin Electric commodity
sales & trading director. “Dakota Gas
remains committed to producing and delivering
high-quality products to our customers.”
The companies will honor all agreements
previously undertaken by N-7 with a
spokesperson saying, “the market has responded
favorably to our decision”.
Netherlands-based OCI has not responded for
comment but when the partnership was first
announced it had stated N-7 would market and
distribute product from Iowa Fertilizer
Company, the OCI Partners operations in Texas
and the Dakota Gas facility in North Dakota.
In addition, it intended to market any imported
product from their operations outside North
America.
Ending the N-7 venture follows the sale of Iowa
Fertilizer Company and OCI Beaumont.
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.