LONDON (ICIS)–Throughout October, demand in the European oxo-alcohols and derivatives markets has been slow-paced and below initial expectations. Sluggishness is expected to persist throughout the remainder of Q4, influenced by various factors including wider economic weakness, geopolitical tensions, and end-of-year destocking. Butyl acetate reporter Marion Boakye speaks to oxo-alcohols reporter Nicole Simpson, glycol ethers reporter Cameron Birch and acrylate esters reporter Mathew Jolin-Beech about market dynamics down the oxo-alcohols value chain.  

TORONTO (ICIS)–Dock workers at the Port of Montreal in Canada will go on an indefinite strike at two container terminals, starting Thursday, 31 October, 11:00 local time, labor union and industry officials confirmed. This new strike action follows a 24-hour port strike on 27 October and an earlier three-day strike at the two terminals. Furthermore, a strike on overtime at all terminals that started on 10 October remains in effect. Canada’s second largest port has four container terminals and handles more than 35 million tonnes/years of goods, according to its website. The two terminals account for about 40% of the port’s container traffic. The labor dispute, which is about wages and work scheduling, does not affect liquid bulk handling or the port’s grain terminal. Montreal is a key hub for exports and imports in eastern Canada but can also serve as an alternative for shipments to the northeast US in case of disruptions at US East Coast ports, where a strike has been paused until 15 January. Meanwhile, on Canada’s West Coast, employers and labor union officials are scheduled to meet on 29 October about a labor dispute at the operations of logistics company DP World. Additional reporting by Adam Yanelli Thumbnail shows containers of the sort handled by the dockworkers who will go on strike. Image by Shutterstock. 

Industry figures have warned of the vast challenge facing the transmission grid as the UK seeks to deploy more renewable generation The UK has an ambitious target to decarbonize the power system by 2030 LDES could be a solution to overcome grid bottlenecks and reduce curtailment costs LONDON (ICIS) – As the UK awaits the delivery of the Labour government’s first budget on 30 October, industry figures have warned of the scale of the challenge facing the transmission grid as it seeks to integrate rising volumes of intermittent renewables. National Grid CEO John Pettigrew told the Financial Times Energy Transition Summit in London on 24 October that the UK faced a “Herculean effort” to transform the grid, requiring changes to planning rules, regulatory frameworks, supply chains and skills training. GRID CONNECTIONS National Grid proposed applying a ‘first ready, first connected’ approach to all projects in the grid connection queue in April, which would enable earlier connection dates for viable projects. Pettigrew confirmed that this process would be implemented by the end of the first quarter of 2025 and that National Grid would prioritize technologies needed to meet the UK’s 2030 targets. These targets aim to double onshore wind, triple solar, and quadruple offshore wind capacity to decarbonize the power system by 2030. With up to 1GW/day awaiting connection at points in 2023, according to Pettigrew, streamlining the queue is a positive step, but grid constraints present another key issue. CURTAILMENT COSTS Many wind farms in the UK are located far from demand centers, and the electricity generated needs to be transported around the network. However, grid bottlenecks and a lack of storage solutions can force capacity curtailments when there is excess generation. Carolina Tortora, head of innovation, AI transformation and sector digitalization at National Energy System Operator (NESO), told delegates that capacity curtailments in the UK cost £1.4bn a year and that a solution is needed quickly. Two new 2GW-capacity interconnectors between Scotland and England, the Eastern Green Link 1 and 2, are not set to be operational until 2029. Tortora said that long duration electricity storage (LDES) could help manage the situation and reduce curtailment costs, pointing to Italian grid operator Terna’s success at using batteries to help manage congestion. LONG DURATION ELECTRICITY STORAGE LDES technologies store renewable energy and release it onto the grid when required, providing flexibility in the system often met by gas generation. The UK government launched a cap and floor investment scheme for LDES on 10 October, which could help developers overcome high upfront project costs for storage systems with a duration of 4 hours or above. Rubina Singh, senior investment manager at Foresight Ventures, told the summit that the mechanism reduced risk for revenue generation and debt security, but more still needed to be done. Laura Sandys, chair of the Green Alliance think tank suggested a move to blended incentives such as coupling a contracts for difference (CfD) agreement with LDES, to spur development of a wind farm and co-located battery. NESO estimates that 11.5GW-15.3GW of LDES will be required by 2050 to achieve net zero. However, pumped hydro storage is the only established LDES in the UK, with 2.8GW of capacity across four existing projects. Other technologies under development include compressed air storage, liquid air storage and flow batteries. Tortora told the event that caverns from extracted oil and gas could be used for compressed air, a technology that also contributes to inertia. Inertia is produced by the rotation of large generators, making it abundant in the power system underpinned by fossil fuels. This movement can temporarily cover a gap in power lost by a failing generator and allow the operator to respond. Inverter-based renewables, such as wind and solar, do not synchronize with the grid in a way that provides inertia, making compressed air a potential method to provide stability.

LONDON (ICIS)–Demand in the EU and US epoxy markets remains sluggish in a still difficult climate, but players are eagerly awaiting anti-dumping duty (ADD) decisions which could provide some domestic demand support into 2025. Senior editor Heidi Finch, who covers the Europe epoxy market, and fellow senior editor Tarun Raizada, who covers the US epoxy market, share insights on key topics discussed at a recent industry event, current market sentiment and near-term expectations. Markets muted in Q4 so far, still fragile climate US market subdued ahead of November duty announcements US players in wait-and-watch mode, no major supply/demand forecasting taking place Slight degree of optimism in US epoxy for 2025, but year-over-year growth expectations tempered EU likely to gain share into 2025, due to the ADD case EU macroeconomics improving slowly, but fundamental recovery likely to take longer, geopolitics major risk Podcast editing by Will Beacham

SINGAPORE (ICIS)–China’s major isocyanate producer Wanhua Chemical reported a 29% year-on-year decrease in Q3 profit as falling prices of some products and rising cost eroded margins, the company said on Tuesday. Turnarounds at its production units at Yantai in China, and in Hungary also dragged down earnings for the period. million CNY Q3 2024 Q3 2023 % change Jan-Sept 2024 Jan-Sept 2023 % change Revenue 50,536.79 44,927.77 12.5% 147,604.15 132,554.14 11.4% Operating profit 3,985.81 5,316.14 -25.0% 14,556.54 15,592.67 -6.6% Net Profit 2,918.95 4,134.95 -29.4% 11,093.32 12,703.18 -12. 7% Key points: – Q3 demand for pure methylene diphenyl diisocyanate (MDI) sluggish amid high inventory and fierce competition – For polymetric MDI, demand from the fridge sector as well as from the construction sector increased, while exports were stable in July-September 2024. – For toluene diisocyanate (TDI), demand was weak amid mounting inventories in downstream home furnishing industry. – Demand of polyols also slumped by poor needs from home furnishing and car sectors. – On cost side, Q3 prices of benzene and liquefied petroleum gas (LPG) – two of Wanhua Chemica’s key raw materials – increased by 13%-25% on year, although coal prices dropped by about 2%.

HOUSTON (ICIS)–Corn harvesting has climbed to 81% completed with soybeans now at 89% finished, according to the latest US Department of Agriculture (USDA) weekly crop progress report. Taking full advantage of the continued stretch of warmer and drier conditions in several areas, the current progress of the corn harvest is ahead of both the 68% rate from 2023 and the five-year average of 64%. Texas is the top state with 99% of its acreage finished, followed by North Carolina at 97%. The USDA has stopped issuing any further updates for corn. Soybeans harvest is 89% completed, which is ahead of 82% mark from 2023 as well as the five-year average of 78%. Minnesota is still ahead of the other reporting states with 98% of their crop now completed with Louisiana at 97% finished. There are no further updates for soybeans. In other harvesting updates the USDA said there is now 52% of the cotton crop finished with sorghum acreage 75% completed.

HOUSTON (ICIS)– Spanish fertilizer firm Highfield Resources announced that the Navarra Government has not relinquished the Goyo mining concession, which is one of the three mining concessions for their Muga potash project in Spain. The company said it wanted to clarify the issue as there was previously a procedural flaw which has been identified in the internal administrative coordination process for the granting of the mining concession. There were no details provided regarding the mistake in the process, but Highfield Resources did say it has received confirmation that the ruling is being analyzing. Further, the company said the government stated it will resolve the situation as soon as possible to enable the implementation of the project, which it said has already been evaluated with sufficient rigor. Highfield Resources said at Goyo the production from that section is only expected to happen after year six of their mining plan.

HOUSTON (ICIS)–Australian Fertoz Limited said demand for direct application of rock phosphate and their fertilizer pellet product Fertify remained positive in Q3, with significant orders for Fertify starting in September. The company expects this uptick to continue through late 2024 with the phosphate producer saying this positive direction has come forth despite significant losses for farmers in the Alberta region of Canada due to pre-harvest hailstorms. In its quarterly activities report, Fertoz said there were delays in upgrades to granulation processing equipment by key customers, which slowed sales, but the expectations are for completion of these upgrades by year’s end. Fertoz managing director and CEO Daniel Gleeson said the bulk sample permit for 10,000 tonnes in Barnes is in the final stages with submission of a technical assessment review to the Ministry of Energy, Mines and Low Carbon Innovation. This permit is expected to be ready for the start of the 2025 mining season, with the next bulk sample permit at Pump Station, also for 10,000 tonnes, part of their overall advancement towards receiving an industrial minerals permit for up to 250,000 tonnes. The industrial permit is also expected to be completed early next year with Gleeson saying Fertoz continues to assess their Wapiti project for suitability of making phosphoric acid for the lithium iron phosphate (LFP) battery and liquid phosphate fertilizer markets. “Wapiti samples have been received by the testing party, with positive desktop results achieved, and will now process them in the laboratory for final reportable and definitive results. These final testing results are expected in December,” said Gleeson. “Concurrently we continue to engage with relevant parties of the LFP supply chain industry in North America who have expressed interest in our resources.” He said because of the significant direct government investments across North America and substantial future tax credits that overall interest remains elevated in their high quality, low impurity sedimentary rock phosphate deposits.

HOUSTON (ICIS)–Union dock workers and US East Coast port operators will resume negotiations on a new master agreement in November, according to a joint statement from both parties. The International Longshoremen’s Association (ILA), representing the dock workers, and the United States Maritime Alliance (USMX), which represents the ports, reached a tentative agreement on 3 October that ended a three-day strike. The strike was paused until 15 January after parties agreed on the salary portion of the agreement, essentially meeting in the middle. But the union remains adamant against any full or partial automation at ports that could threaten union jobs. The respective negotiating committees will meet in New Jersey, where they will look to agree on terms for a new contract that can be presented to the full ILA Wage Scale Committee for approval, and later, to ILA membership for ratification, the statement said. “The ILA and USMX welcome the opportunity to return to the bargaining table and get a new agreement in place as soon as possible,” the parties said. The two sides will not discuss details of negotiations with the media prior to these meetings. IMPACTS TO CHEM MARKETS The short strike had some impact on the US chemicals industry, with polyethylene (PE) exports to Brazil being put on hold in the lead up to the work stoppage. The polyvinyl chloride (PVC) industry was concerned as all US Gulf PVC exports move out of one of the impacted East Coast ports. In the polyethylene terephthalate (PET) market, imports of PET resins were diverted to the US West Coast in anticipation of the work stoppage. The dock workers do not handle liquid chemical tankers, as most terminals that handle liquid chemical tankers are privately owned and do not necessarily use union labor. Also, tankers do not require as much labor as container or dry cargo vessels, which must be loaded and unloaded with cranes and require labor for forklifts and trucks. But 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. Visit the ICIS Logistics – impact on chemicals and energy topic page Thumbnail image shows a container ship. Photo by Shutterstock