HOUSTON (ICIS)–There is now 47% of the corn crop completed with soybeans at 67% harvested according to the latest US Department of Agriculture (USDA) weekly crop progress report. The ongoing pace of the corn harvest is ahead of the 42% rate seen in 2023 and is above the five-year average of 39%. Texas now has 98% of its acreage harvested, followed by North Carolina and Tennessee at 88%. There is now 94% of the crop rated mature, which is above the 93% from last season as well as higher than the five-year average of 89%. For corn conditions there is 4% listed as very poor with 8% still as poor and 24% now as fair. There remains 49% ranked as good and 15% as excellent. Soybeans dropping leaves has climbed to 95%, which trails the 96% from last season but is above the five-year average of 92%. Harvesting of the soybean crop has jumped to 67%, which is ahead of 57% mark from 2023 as well as the five-year average of 51%. Minnesota is now the top state with 88% of their soybeans now completed with Mississippi coming next at 84% finished. There were no further updates for soybean conditions. In other harvesting updates the USDA said there is now 34% of the cotton crop finished with sorghum acreage now at 53% completed.

HOUSTON (ICIS)–The fertilizer industry, like the rest of the Tampa, Florida, community, was still feeling the effects from Hurricane Milton even days after the storm as producers continue to assess damages and determine the impact this might have on their production. With electrical power steadily being restored, the cleaning up efforts are also making progress with flooding appearing to have had the most far-reaching consequences as the incredible powerful hurricane is estimated to have unleashed 3.4 trillion gallons of water upon Florida. As a key hub for fertilizers in the US, with both production and logistics as well as storage and corporate offices, there had been concerns over how much destruction could have been experienced if it had not weakened some before landfall or had made a direct strike into Tampa. Industry sources within the area said some normality to everyday life was returning with market activity likely needing several more days to recover.  As a participant said it is “all good here, got power everywhere now. No damage to the office or homes.” For producers, the review of the consequences of Milton were still at hand but considering the magnitude of the event it looks like the industry’s assets held up fairly well and that output of phosphates will only see a very short delay. With their White Springs phosphate facility located within Florida, Canadian fertilizer producer Nutrien had previously said it was not impacted by Hurricane Milton, but it was by the earlier strike of Hurricane Helene, with those affects still underway. “The timeline for re-starting our White Springs phosphate facility continues to be assessed. We are working with our customers on any potential impacts to supply,” said a Nutrien spokesperson. Having not completely escaped the wrath of Milton, Mosaic had confirmed on 14 October that there was limited damage to their facilities and warehouse product. The producer is expecting to resume full production in the coming days, and also said there was no significant environmental impacts that occurred due to the storm. It is understood that producer Yara did not suffer any damages or lost time at its ammonia plants from the hurricane.

SAO PAULO (ICIS)–Petroquimica Rio Tercero has shut its toluene di-isocyanate (TDI) plant in Cordoba on the back of global oversupply, a spokesperson for the Argentinian producer confirmed to ICIS on Tuesday. The plant had a production capacity of 28,000 tonnes/year of TDI, which is a key feedstock to produce polyurethane foam. Production there stopped on 14 October. Rio Tercero said it would dismiss 1,250 employees. “This decision [to shut the TDI plant] is mainly due to the transformation the sector has undergone worldwide, with the emergence of large-scale plants, especially in Asia, which are producing an oversupply of TDI which caused global prices to fall abruptly in recent years,” said the company. “Another determining factor is the limited production capacity of our Rio Tercero plant, which makes it impossible to compete with larger global companies.” The spokesperson said Rio Tercero would now “become a TDI trader” to ensure the continuity of the company, given that it will still need the product to produce polyaluminum chloride (PAC), an inorganic coagulant used in water purification. The company’s PAC production capacity stands at 58,000 tonnes/year, according to the spokesperson. As well as PAC, Rio Tercero also produces sodium hypochlorite, with a production capacity of 97,500 tonnes/year, and sodium hydroxide, with a production capacity of 11,000 tonnes/year. All the remaining production plants are operating normally, the spokesperson said. The company is a subsidiary of Buenos Aires-based Grupo Piero. According to local media reports, the provincial government has contacted the union to express its support to the plant’s workers, but it remains unclear whether the government could make any significant intervention to avoid the closure. EASIER TO SHUT PLANTSUnder the new Administration of Javier Milei which took office in December 2023, labor laws have been eased and firing employees has now become easier for companies. Earlier in October, US chemicals major Dow also said it would stop producing polyether polyols at its site in San Lorenzo, in Argentina’s province of Santa Fe, on the back of poor economics. The company had already tried to close that plant earlier, but pressure from the trade unions and tighter labor regulations at the time made the company backtrack in its plans. According to the ICIS Supply & Demand Database (ISDD), with Rio Tercero’s TDI Plant now shut and Dow’s in the process of shutting its polyols facility, no company in Argentina will produce any isocyanates or polyether polyols. Consequently, companies producing polyurethane (PU) will have to import all their inputs, among other examples. Rigid PU foams are used mainly in insulation, refrigeration, packaging and construction, while flexible PU foams have applications such as upholstery, mattresses and seats. Polyols can also be used in elastomers, adhesives, coatings and fibers. Front page picture: Petroquimica Rio Tercero’s facilities south of Cordoba city, Argentina Source: Petroquimica Rio Tercero Additional reporting by Al Greenwood

LONDON (ICIS)–The outlook for Germany’s economy improved in October, think tank ZEW said on Tuesday, as its economic sentiment indicator ticked up following three months of decline. The research group’s October economic sentiment indicator increased by 9.5 points from September to reach 13.1 points. However, its assessment of the current situation in Germany continued to worsen as the group’s index fell 2.4 points from September to -86.9 points in October. “Starting from a very poor assessment of the current situation, the economic sentiment for Germany has risen in the latest survey,” said ZEW president Achim Wambach. “Contributing factors include the expectation of stable inflation rates and the associated prospect of further interest rate cuts by the ECB. Positive signals are also coming from Germany’s export markets.” For the eurozone, the group’s economic sentiment indicator rose by 10.8 points to 20.1 points in October, while the current situation index remained in negative territory at -40.8 points, down by 0.4 points from the previous month.

SINGAPORE (ICIS)–Watch ICIS analyst Aviva Zhang discuss the implications of China’s growing styrene monomer (SM) capacity, which is poised to open up export opportunities for the remainder of 2024. Chinese SM capacity currently at over 20 million tonnes/year; market pressured by new capacity ⁠Downstream acrylonitrile-butadiene-styrene (ABS) margins still negative while polystyrene (PS) margins are constrained Implementation of new macroeconomic policies is expected to stimulate end-use demand, which players are closely watching ICN

MUMBAI (ICIS)–India’s retail inflation hit a nine-month high of 5.49% in September, mainly on firmer food prices, while the country’s industrial output in August shrank for the first time in 22 months. The year-on-year increase in the consumer price index (CPI) in September was higher than the 3.65% rate seen in August, the Ministry of Statistics and Programme Implementation (MoSPI) said on Monday. “It is likely that the increase in inflation rate for the month of September 2024 is due to high-base effect and weather conditions,” the MoSPI said. The September inflation figure remains within the Reserve Bank of India’s (RBI) tolerance band of 2.00-6.00%. Inflation had softened significantly in July and August with both months recording an inflation rate below the central bank’s target of 4%. Food inflation, which forms a significant portion of the CPI, stood at 9.20% in September, a sharp increase from 5.66% in August. On 9 October, the central bank kept its key interest rate unchanged at 6.5% but changed its monetary policy stance to “neutral”, following a deceleration in GDP growth below 7% in fiscal Q1. RBI maintained its inflation forecast for the fiscal year ending March 2025 at 4.5%, while retaining its full-year GDP growth forecast at 7.2%. India – a giant emerging market in Asia – overperformed most economies last year, posting a robust 8.2% GDP growth in the year ending March 2024. Meanwhile, India’s factory output in August, as measured through the Index of Industrial Production (IIP), declined for the first time in 22 months – down by 0.1% year on year compared with a 4.7% expansion in July. The decline was caused by an unfavourable base effect and excessive rainfall in several regions across the country, data released on 11 October showed. August manufacturing output grew 1% year on year, while mining output contracted by 4.3% and power generation declined by 3.7%. In the same period last year, manufacturing posted a 10% growth, with mining and power generation posted increases of 12.3% and 15.3%, respectively. For the first five months of the current fiscal year (April-August 2024), India’s IIP grew by an average of 4.2%, weaker than the 6.2% expansion recorded in the previous corresponding period. Focus article Priya Jestin

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 11 October. NEWS Dow shuts Argentina polyols plant on global oversupplyDow has decided to stop producing polyether polyols at its site in San Lorenzo, in Argentina’s province of Santa Fe, on the back of poor economics, the US chemicals major confirmed to ICIS on Wednesday. Brazil growth story props up chloralkali sector; Argentina still distant from being out of woods – CloroSurBrazil’s healthier than expected growth in 2024 has greatly propped up the chloralkali sectors, while Argentina’s woes, although improving, will take some time to be fixed, said the director general at Brazil’s trade group Abiclor. Brazil’s September inflation ticks up to 4.4% on drought-induced higher electricity, food costsThe drought affecting Brazil filtered through consumers prices with higher energy bills and foods prices, pushing the annual rate of inflation to 4.4%, up from 4.14% in August, the country’s statistics office IBGE said on Wednesday. Argentina’s chemicals output down 3.5% in August, manufacturing down 6.9%Argentina’s chemicals and some petrochemicals-intensive sectors such as manufacturing and construction continue to bear the brunt of the recession, with output falling again in August, the country’s statistics office Indec said on Tuesday. Chile’s September inflation down to 4.1%, central bank expected to cut rates furtherChile’s annual rate of inflation fell in September to 4.1%, down from July’s 4.7%, reinforcing analysts’ expectation the central bank is to cut interest rates further later this month. Brazil’s Q3 automotive output highest since 2019Brazil’s petrochemicals-intensive automotive output posted in Q3 its best quarter since 2019 and fully recovered its pre-pandemic levels, trade group Anfavea said. Lula signs law to promote cleaner energy in BrazilOn Tuesday, President Luiz Inacio Lula da Silva officially signed into law the Combustivel do Futuro (PL 528/2020), a significant legislative step aimed at promoting cleaner energy in Brazil. Mexico’s Alfa completes key step towards Alpek spinoffThe proposed spinoff of Mexican polyester producer Alpek has reached a key milestone, with corporate parent Alfa saying on Tuesday that it has solicited consents from more than 90% of the holders of a batch of senior notes. Argentina’s inflation falls to 209%; monthly price rises finally below 4% markArgentina’s annual rate of inflation fell in September to 209%, down from 237% in August, the country’s statistics office Indec said on Thursday. Brazil’s Grupo Potencial to expand soybean oil-based biodiesel plant in ParanaBiodiesel and glycerine producer Grupo Potencial is to invest Brazilian real (R) 600 million ($107 million) to expand its facility in Lapa, in Parana state’s region of Curitiba, to up its capacity to 1.62 billion liters/year (1.42 million tonnes/year) of biodiesel, the government of Parana said this week. PRICING LatAm PP international prices increase in Chile, Peru on higher Chinese offersInternational polypropylene (PP) prices increased in Chile and Peru on the back of higher offers from China, while in Argentina and Brazil, prices dropped tracking competitive offers from abroad. LatAm PE international prices fall on competitive US export offersInternational polyethylene (PE) prices fell across Latin American (LatAm) countries on competitive offers from the US. Brazil expanding sectors drive PVC import surgeBrazil’s polyvinyl chloride (PVC) imports emerged in 2024, driven by the improved demand from the construction and automotive sectors.

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 11 October. Hurricane Milton on track to hit US fertilizer hub in Tampa Milton strengthened on Monday into a powerful Category 4 hurricane, and it is expected to continue strengthening before making landfall by midweek near Tampa, Florida, a major fertilizer hub that was drenched by an earlier major hurricane. Florida ports close as Hurricane Milton approaches Tampa fertilizer hub Ports along Florida’s Gulf Coast are closed to vessel traffic as Milton approaches the state’s fertilizer hub in Tampa as a Category 4 hurricane. Railroad shuts many Florida terminals ahead of Hurricane Milton Railroad company CSX is suspending operations at several of its intermodal and TRANSFLO terminals in Florida ahead of Milton, which has shifted its path away from Tampa, a major fertilizer hub. Hurricane Milton makes landfall in Florida as Category 3 storm Hurricane Milton has made landfall near Siesta Key, along Florida’s Gulf Coast in the US as a Category 3 storm, bringing strong winds and heavy rains, with warnings of a storm surge in effect at several locations. UPDATE: Hurricane Milton moves off Florida’s east coast with damaging winds, heavy rainfall Hurricane Milton is moving away from Florida’s east coast but is still producing damaging winds and heavy rainfall in the state, according to the latest update on Thursday. INSIGHT: After Milton, global chems face future of rapidly intensifying hurricanes Warmer waters in the Atlantic Basin could make record-setting hurricanes like Milton and Beryl more common, which strengthened rapidly to become major storms that caused significant damage. Some Florida ports reopen while millions lack power after Milton Some ports in Florida have resumed operations while millions in the US state remain without power after Hurricane Milton made landfall earlier in the week, south of the fertilizer hub of Tampa.

LONDON (ICIS)–Click here to see the latest blog post on Chemicals & The Economy by Paul Hodges, which looks at  ‘reinvention’ as a critical issue for the industry. 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.