SINGAPORE (ICIS)–Neste will supply 7,400 tonnes (9.5 million liters) of unblended sustainable aviation fuel (SAF) to DHL Express at Singapore’s Changi Airport beginning this month for a year, the Finland-based company said on Tuesday. The SAF, which will account for approximately 35% to 40% of the overall fuel blend composition of DHL Express’ fleet of Boeing five 777 freighters, is produced at Neste’s refinery in Tuas, located in southwest Singapore. “We are excited to expand our cooperation with DHL to Singapore, a leading aviation hub in Asia-Pacific,” said Carl Nyberg, senior vice president, Commercial, Renewable Products at Neste. “It leverages our SAF production and supply capabilities in Singapore, and demonstrates how we are working with DHL globally to help the company achieve its air transportation decarbonization targets using a solution that is available at scale today,” Nyberg added. Said Christopher Ong, managing director for DHL Express Singapore: “This partnership with Neste to procure and uplift SAF for DHL Express’ international air cargo flights from Singapore is a significant milestone for us.” “Not only will it enable us to gain new strides in emissions reduction in air transport, it also allows us to strengthen our commitment to customers to provide more sustainable shipping options,” Ong said. The agreement will contribute to a target of 1% SAF use on all passenger and cargo flights from 2026 onwards, according to the statement. Neste’s SAF, made from renewable waste and residues including used cooking oil and animal fats, is certified for commercial aviation and can be blended up to 50% with conventional jet fuel without infrastructure changes. Neste’s global SAF production capacity is 1.5 million tonnes/year, with plans to grow to 2.2 million tonnes/year in 2027.

LONDON (ICIS)—“The founding fathers of the Energy Community and the Energy Community Treaty signed exactly 20 years ago proposed three objectives:  competitiveness, security of supply and sustainability,” Energy Community director Artur Lorkowski told ICIS in a recent podcast. “And those three are the principles that are being pursued until today,” Lorkowski concluded, adding that the principles are aligned with the integration new countries with the European Union. Accession negotiations are now pending for Ukraine, Moldova and Bosnia-Herzegovina. The purpose of the organisation established by the Energy Community Treaty in 2005 was to extend the EU internal energy market to southeastern Europe and beyond – with Georgia (2017), Ukraine (2011) and Moldova (2010) being the latest additions. This would be achieved by integrating non-EU countries into the bloc’s unified legal and regulatory energy framework. Twenty years ago, reforms in the EU energy sector indeed centered around increasing competition through liberalising member states’ gas and electricity markets. In the gas market, legal and ownership unbundling of gas supply and transport was one of the key topics. The main purpose of this was to allow competition, break up the grip of incumbent monopolies and diversify sources of supply. Many infrastructure projects in central and eastern Europe carried out with this goal in mind helped to negotiate the price of gas even with dominant suppliers – like Russia’s Gazprom at the time. For example, the Hungary-Slovakia interconnector built in July 2015 stayed dormant for years although the first technical tests, flowing gas from Slovakia to Hungary at the Velke Zlievce border point, took place in February 2016. The lack of commercially viable transport tariffs and low liquidity on both hubs were cited as obstacles. Nevertheless, the pipeline did give Hungary more leverage in negotiations with Russia’s Gazprom by providing an alternative supply source, even on paper. However, while EU political and public figures may still be using the words “competition” and “security of supply” what stands behind them has become quite obscure in the past decade or so. On the political level the EU has been shifting towards ever-greater centralised power, extending even to attempts of joint gas purchasing through the AggregateEU platform. This goes hand in hand with expanding the European Commission’s influence through an ever greater and closer union. When it comes to the energy sector, climate goals and ensuing scores of regulation trumped any considerations of energy costs. As the Energy Community marks its milestone anniversary news headlines regarding the state of the European industry are bleak. On 8 July, polyvinyl chloride (PVC) producer Vynova announced the closure of its plant in Beek, the Netherlands, by November 2025. The plant is closing due to a lack of competitiveness and the weak European market, according to CEO Christophe Andre. “The European PVC market is under strong pressure due to global overcapacity, persistently weak demand and increased competition from regions with lower production costs and less stringent regulations, he said, before adding, ‘These conditions are unlikely to improve in the near term.’ Only one day earlier, Dow announced the closure of three plants in Europe with the loss of 800 jobs – an ethylene cracker in Bohlen, Germany, chloralkali and vinyl assets in Schkopau, Germany and a siloxanes plant at Barry, UK. “This second closure announcement this week by Vynova Group follows Dow on 7 July, highlighting the plight of Europe’s energy-intensive chemical sector,” said Will Beacham, deputy editor at ICIS Chemical Business. “Without EU protection and support we are in danger of hollowing out upstream chemical value chains and increasing vulnerability for the downstream industries they support. More than 5 million tonnes/year of ethylene capacity in Europe is now under threat of closure or other strategic moves, according to latest ICIS estimates.” Joining the European Union used to mean becoming part of a free and economically prosperous part of the world. This had special significance for people in eastern, southern and central Europe who had lived for decades under the oppression of the Soviet Union – a country based on a false ideology kept together through severe suppression of political freedoms and top-down control. On paper, being part of the Energy Community is still expected to improve its members’ economic status through application of laws and regulations that are supposed to foster competition thus improving security of supply. But the reality of the current state of EU industries stifled by endless regulation prompts the conclusion that the EU’s real goal is expanding its own ideology and spere of influence while paying lip service to concepts of freedom, competition and market economy.

HOUSTON (ICIS)–There is 34% of the corn crop now silking and 47% of soybeans blooming, according to the latest crop progress report from the US Department of Agriculture (USDA). The amount of corn currently at the silking stage trails the 39% achieved in 2024 but is slightly ahead of the five-year average of 33%. Corn reaching the dough stage is at 7% of the crop, which equals the 7% from 2024 and is above the five-year average of 5%. Corn conditions are unchanged with 1% listed as very poor, 4% as poor, 21% as fair, 57% as good and 17% as excellent. Soybean blooming has reached 47%, which is lagging the 49% from 2024 yet is equal to the five-year average of 47%. Soybeans setting pods are at 15% and are behind the 17% rate from 2024, but remain ahead of the five-year average of 14%. For soybean conditions, the amount of very poor has decreased to 1% with the amount of the crop listed as poor down to 4%. The level of fair is lower at 25%, with the acreage ranked as good having increased to 58% and the amount rated as excellent is unchanged at 12%. Winter wheat harvest is now 63% completed.

HOUSTON (ICIS)–The short-term reaction to 30% tariffs levied on imports from the EU and Mexico is likely to be the same wait-and-see approach taken after US President Donald Trump’s Liberation Day tariffs, according to a shipping industry analyst. Lars Jensen, president of consultant Vespucci Maritime, said he expects any and all non-urgent cargo orders to be put on hold from 1 August in the expectation, or hope, that these tariffs will again be reduced. “That will mean a short-term dip in cargo demand on all origins to the US,” Jensen said. Jensen noted that the letters being sent to nations describing the level of new tariffs will not be legally valid until an executive order or congressional action is taken. “What is presently legally binding is the executive order from Liberation Day outlining the original levels of reciprocal tariffs as well as the executive order pausing the implementation until 1 August,” Jensen said. And if the new tariff levels take effect and persist, Jensen said many US importers will have little choice but to resume importing their goods and pay the tariffs. “This will mean demand will be at a level roughly around or slightly below the minimum level of import volumes necessary to meet demand in the US and we might see more of a drawdown on inventories,” Jensen said. The trade war has already had an impact on volumes. Orient Overseas Container Line (OOCL), a unit of China’s container shipping major Cosco, said global volumes were up by 4.4% in the second quarter. But Jensen noted underlying data that showed Pacific volumes down by 4.3% and Atlantic volumes up by 20.5%. Meanwhile, rates for containers from east Asia and China to the US continue to fall on low demand and as front-loading during the tariff pause is ending. 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), which are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Logistics: Impact on chemicals and energy topic page

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 11 July. INSIGHT: Further cracker rationalization could threaten Germany’s ethylene derivative operations The evolving European cracker landscape could have far more wide-ranging repercussions on ethylene consumption in the region than is immediately visible. Derivative units, especially those in Germany’s Ruhr area, that rely on the pipeline network connecting industrial hubs in Belgium, Germany, and the Netherlands are particularly vulnerable/at risk. IPEX: Index rises in June as Middle East tensions drive upstream costs higher The ICIS Petrochemical Index (IPEX) for June was up across all regions, not least northeast Asia and the US Gulf, as growing tensions between Israel and Iran pushed crude oil costs higher and raised concerns about supply levels. INSIGHT: Dow, Vynova close plants as Europe crisis deepens; EU unveils action plan for chemicals In the same week that Dow and Vynova announced major capacity closures, signalling the next step in Europe’s chemical industry crisis, the European Commission has unveiled an action plan to tackle the region’s competitiveness problem. But time is running out. Vynova to close Beek PVC plant by November 2025 Polyvinyl chloride (PVC) producer Vynova has announced the closure of its plant in Beek, the Netherlands, by November 2025, according to a company statement. Dow to close three Europe plants, cut 800 jobs, as asset review progresses Dow is moving ahead with the closure of three plants in Europe with the loss of 800 jobs as it progresses a review of regional assets announced in April 2025.

SINGAPORE (ICIS)–The EU and Indonesia are pursuing a comprehensive economic partnership agreement (CEPA) amid continued uncertainties over US tariffs. The deal is expected to be concluded in September, Indonesia’s chief economic minister Airlangga Hartarto said in a post on social media platform X on Monday. “The CEPA negotiation process has currently reached the stage of finalizing technical issues, fine-tuning, and developing a more detailed timeline to achieve the ratification stage,” he added. The European bloc consisting of 27 countries, and southeast Asia’s biggest economy have “reached a political agreement to advance the trade agreement,” European Commission President Ursula von der Leyen on 13 July. Businesses active in agriculture, automotive, and services will “massively benefit from it”, she said. The free trade agreement (FTA) will also “help strengthen the supply chains of critical raw materials, essential for Europe’s clean tech and steel industry”, von der Leyen said. The EU and Indonesia officially launched negotiations for a CEPA in July 2016. “For Indonesia, CEPA is not only about trade, it is about fairness, respect, and building a strong future together,” Indonesian President Prabowo Subianto said in the statement issued by the Commission. “The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals. We are ready to finalize it soon, in a way that benefits both our peoples.” The EU is Indonesia’s fifth-largest trading partner with bilateral trade between them reaching $30.1 billion in 2024, according to data by the European Commission. The EU has separate bilateral FTAs with Singapore and Vietnam among ASEAN countries, which took effect in November 2019 and August 2020, respectively. Talks to relaunch negotiations with Thailand were announced in March 2023, while negotiations with the Philippines resumed in March 2024. Visit our Topic Page: Tariffs, policy – impact on chemicals and energy Thumbnail image: Container port activities in Jakarta, Indonesia – 09 July 2025 (BAGUS INDAHONO/EPA/Shutterstock)

SINGAPORE (ICIS)–Singapore’s economy expanded by 4.3% year on year in Q2 2025, accelerating from the 4.1% expansion in Q1, but significant global economic uncertainty persists in the second half, driven by unclear US tariff policies, official preliminary data showed on Monday. On a quarter-on-quarter seasonally adjusted basis, Singapore’s GDP expanded by 1.4% in the second quarter, reversing the 0.5% contraction Q1 2025, the Ministry of Trade and Industry (MTI) said in a statement. For the first half of 2025, the annual average GDP growth was 4.2%. Full-year 2024 growth was 4.4%. “There remain significant uncertainty and downside risks in the global economy in the second half of 2025 given the lack of clarity over the tariff policies of the US,” MTI said. Singapore’s manufacturing sector grew by 5.5% year on year in Q2 2025, faster than the 4.4% expansion in the previous quarter. “Growth was driven by output expansions across all clusters, except for the chemicals and general manufacturing clusters,” the MTI added. The MTI in April this year lowered its GDP growth forecast for 2025 to 0-2%, from 1-3% previously, mainly due to the anticipated impact of US President Donald Trump’s tariff policies. The Trump administration began issuing tariff letters to several countries last week, with higher tariffs set to take effect from 1 August. Singapore is a leading petrochemical manufacturer and exporter in southeast Asia, with more than 100 international chemical companies, including ExxonMobil and Aster Chemicals & Energy, based at its Jurong Island hub. Visit our Topic Page: Tariffs, policy – impact on chemicals and energy

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 11 July. Asia petrochemical shares little changed ahead of US tariffs deadline By Nurluqman Suratman 07-Jul-25 11:53 SINGAPORE (ICIS)–Asian petrochemical shares were little changed on Monday as economies in the region work out separate deals with the US, whose 90-day pause on its reciprocal tariffs expires on 9 July. Vietnam Q2 GDP growth rises to 7.96% on export front-loading By Jonathan Yee 07-Jul-25 17:28 SINGAPORE (ICIS)–Vietnam’s economy surged to 7.96% year on year in the second quarter of 2025 amid front-loading of exports, according to the General Statistics Office (GSO) in a report on 7 July. S Korea benzene bound for US hit by 25% tariff; producers weigh options By Angeline Soh 08-Jul-25 11:31 SINGAPORE (ICIS)–South Korea-based benzene producers awoke to news that the US had imposed a 25% tariff rate on imports from South Korea starting 1 August, with mixed reactions from buyers and sellers. S Korea, Japan PX bound for US hit by 25% tariff; supply to stay within Asia By Samuel Wong 08-Jul-25 14:17 SINGAPORE (ICIS)–South Korea and Japan paraxylene trade flows are likely to see limited impact from the imposition of a 25% tariff by the US for imports from both countries. INSIGHT: Europe ammonia to rise 7% through to Jan on snug supply, Mideast tensions By Bee Lin Chow 08-Jul-25 14:54 SINGAPORE (ICIS)–Europe’s import prices of ammonia are forecast to rise continually from July 2025 to peak in January 2026 given snug supply and the ongoing Iran-Israel geopolitical tensions keeping feedstock natural gas prices elevated. India PVC sentiment softens amid BIS extension, ample Chinese supply By Aswin Kondapally 08-Jul-25 15:10 MUMBAI (ICIS)–Sentiment in India’s polyvinyl chloride (PVC) market is likely to remain subdued in the near term, as sluggish seasonal demand coincides with improved supply from China following the extension of the Bureau of Indian Standards (BIS) implementation deadline. NE Asia acetic acid spot trades jump on Japan plant hiccup By Hwee Hwee Tan 09-Jul-25 15:25 SINGAPORE (ICIS)–Intra-northeast Asia acetic acid trade flows are expanding into July, buoyed by a longer than expected plant turnaround. PODCAST: Asia methanol supply normalizes, uncertainty over demand remains By Damini Dabholkar 09-Jul-25 22:37 SINGAPORE (ICIS)–Asian methanol prices have experienced significant volatility over recent weeks, on geopolitical concerns in the Middle East. While most production returned to normal in early July, some questions still remain around demand, both in India and the rest of Asia. PODCAST: US tariffs impact on C2, C3 gradual, starting with finished goods By Damini Dabholkar 10-Jul-25 16:06 SINGAPORE (ICIS)–Trade tensions have been in focus for the wider petrochemical markets since US Liberation Day tariffs were announced. In this podcast, propylene editor Julia Tan speaks with ethylene editor Josh Quah to examine how recent tariff developments have impacted the Asian olefins market. Arkema targets 5-10% annual growth in Asia; to ramp up capex – CEO By Jonathan Yee 10-Jul-25 18:04 SINGAPORE (ICIS)–France-based specialty chemicals firm Arkema is intensifying its focus on Asia as a cornerstone of its growth strategy, with the region already contributing 25% of its total sales, company chairman and CEO Thierry Le Henaff told ICIS. INSIGHT: New US 1 August tariff deadline tightens squeeze on Asia trade deals By Nurluqman Suratman 11-Jul-25 10:00 SINGAPORE (ICIS)–Asia-Pacific economies are facing intensified pressure to finalize trade agreements following a last-minute extension of US President Donald Trump’s “reciprocal” tariffs to 1 August.

HOUSTON (ICIS)–Rates for shipping containers from east Asia and China to the US fell again this week as demand has fallen after a brief period of front loading during a pause in tariffs. With this week’s decreases, rates from Shanghai to Los Angeles have fallen by more than 50% over the past month, and rates from Shanghai to New York have fallen by more than 33% over the same time, as shown in the following chart from supply chain advisors Drewry. Rates from China to the US West Coast have fallen faster than on other trade lanes because of the surge in shipping capacity once the Trump administration put a pause on extremely high tariffs on goods from China. But average spot rates from Asia to the US East Coast are likely to fall faster than rates to the West Coast and could be within $1,000/FEU (40-foot equivalent unit) by the end of July as carriers stop adding capacity to the transpacific trade lane. Average global rates continue to trend lower, falling by 5% week on week as shown in the following chart from Drewry. Drewry expects spot rates to continue to decline next week as well due to excess capacity and weak demand. Rates from online freight shipping marketplace and platform provider Freightos also showed significant decreases to both US coasts. Rates to the West Coast are around $3,000/FEU (40-foot equivalent unit) while rates to the East Coast are around $5,000. Judah Levine, head of research at Freightos, said during a webinar this week that there remains a lot of uncertainty in ocean freight, especially since US President Donald Trump extended the tariff deadline to 1 August. “This three-week extension for reciprocal tariffs could mean that importers from those impacted countries will resume shipping activities that maybe they are already getting ready to pause if tariff hikes had materialized this week,” Levine said. “But this short run by only three weeks until August does not really make it possible to move goods from Asia in time.” Levine said that carriers canceled general rate increases (GRIs) for July and have mostly suspended or reduced peak season surcharges also aimed at July volumes. Levine said some carriers have already begun to remove capacity from the trade lane in efforts to stop the rate deterioration. 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. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES UNCHANGED US chemical tanker freight rates assessed by ICIS were steady this week with rates holding steady despite continuing to face downward pressure on several trade lanes. There is a downward pressure on rates along the USG-Asia trade lane as charterers are still in wait-and-see mode. Besides contract cargoes, there is very little seen in the market. The tariffs and looming uncertainty continue to dampen the spot market, pressuring rates. The usual spot cargoes of methanol from Jose to China are the only ones reported, leaving methanol requirements from the region active to Asia. For the time being, larger parcels seem to have found a floor in the $60/tonne range. Similarly, rates from the USG to ARA and all other trade lanes also held steady. The previous uptick in activity which resulted from the recent Israel/Iran hostilities appears to have calmed and the market to Europe fell flat. As a result, this route remained quiet this week, which has placed downward pressure on freight rates. There have only been a few cargos fixed, a few more outsiders have come on berth and are working to fill space which has led to more competition for regular owners. MTBE, methanol and caustic soda are the most frequently reported in the market. From the USG to Brazil, this trade lane remains unusually quiet and in turn rates seem to have softened. Although availability for prompt space seems to be somewhat tight but there is plenty of open space for mid-July into August. The USG to India route has not seen an uptick in inquiries over the last week with no confirmed fixtures. There was only one new inquiry seen for 8,000-9,000 tonnes Pascagoula/Mumbai for August dates. Along with the other regions, freight rates are widely viewed as softer. Additional reporting by Kevin Callahan Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Logistics: Impact on chemicals and energy topic page