European styrene acrylonitrile (SAN) market participants are still waiting for signs of a pick up in January demand, as the month gets off to a ‘quiet’ start, sources said on Tuesday.
“Demand is still quite quiet,” a distributor said.
“[We] didn't expect … demand would pick up that much for SAN [this month]. Order levels are comparable to January 2012,” a major producer said.
However, players are not too concerned about current demand levels during the first full working week of the New Year. Players said that next week will present a much clearer picture of January demand.
“Demand is good enough. Order entry is still good, customers had low stocks [before the holiday season] and need to replenish,” a distributor said, adding demand has not increased or decreased compared with December.
Despite a slow start to January, producers are still targeting increases for January contract prices.
On 20 December, Styron, a major producer of SAN in Europe, announced an initial contract business price increase of €100/tonne for January business. However, figures may need to be revised downwards following a lower-than-expected increase in the January feedstock styrene contract price.
Other producers have targeted increases of €50-80/tonne up from December, for January business, citing increased feedstock styrene costs and squeezed margins as reasons to move prices up.
The January styrene barge contract price was settled at €1,488/tonne ($1,958/tonne) free on board (FOB) Amsterdam-Rotterdam-Antwerp (ARA), an increase of €60/tonne from December.
The majority of SAN consumers are attempting to secure January SAN contract price rises of €40-50/tonne, accepting some increase on the back of hikes in raw material costs.
Asian-produced compounding grade material remains competitively priced, with prices of €1,450-1,600/tonne FD NWE heard from European distributors.
“[Asian prices] could go up $80/tonne and will still be attractive to European buyers,” a distributor said, adding it expected Asian prices to be fairly stable into February.
European buyers are also waiting for a clearer idea of where the January feedstock acrylonitrile (ACN) contract price will settle before agreeing their SAN prices with suppliers.
Source ICIS News - For internal use only
Monsanto’s annual research and development (R&D) update highlighted project advancements across the company’s breeding, biotechnology, and improved agronomics platforms, all aimed at sustainably maximizing farmer productivity while conserving resources like water and land. Monsanto has a pipeline of exciting products in development, including yield and stress work in collaboration with BASF Plant Science. This yield and stress collaboration focuses on key row crops with investments of $2.5 billion over the life of the collaboration.
>>> Drought-Tolerant Corn (Launched) – Collaboration between Monsanto and BASF
During the annual R&D update, Monsanto highlighted the launch of Genuity® DroughtGard™ Hybrids, developed in collaboration with BASF. This drought-tolerant corn system is designed to enhance yield stability when water is limited, providing farmers in tough environmental conditions with an opportunity to improve yield and consistency.
DroughtGard™ Hybrids demonstrated strong performance in 2012 Ground Breakers® trials, with projected commercial products showing a yield advantage of more than 5 bushels per acre over competitive hybrids in the Western Great Plains.
Monsanto will introduce Genuity® DroughtGard™ Hybrids in the Western Great Plains for the 2013 growing season under stewardship requirements due to pending import approvals in key export markets. These hybrids combine germplasm selected for its drought-tolerant characteristics through breeding, the drought-tolerant biotechnology trait and agronomic recommendations. Genuity® DroughtGard™ Hybrids are the first commercial product launch from the Monsanto and BASF Plant Science yield and stress collaboration. Visit http://www.genuity.com/corn/Pages/Genuity-DroughtGard-Hybrids.aspx
Source BASF Official Press Release
Bayer CropScience has signed an agreement to acquire Prophyta GmbH, a leading supplier of microbial crop protection products headquartered in Malchow on the island of Poel in Mecklenburg-Vorpommern, Germany, along with the company´s R&D laboratories and its state-of-the-art production and formulation facilities in Wismar, Germany. The acquisition further complements Bayer CropScience´s portfolio and will help the company build a leading offer of integrated crop solutions based on high-value seeds, innovative crop protection solutions and customized services. Closing is expected within a few weeks. Financial details were not disclosed. “This acquisition not only further strengthens our successful fruits and vegetables business,” said Dr. Rüdiger Scheitza, Member of the Board of Management of Bayer CropScience AG and Head of Strategy & Business Management. “Prophyta´s patented solid-state fermentation technology and strong expertise in the formulation of live fungal spores will also help us bringing new, innovative solutions to market.” Prophyta will expand Bayer CropScience´s existing biological pest control portfolio and allow the company to further leverage its technology platform acquired through Athenix Corporation and AgraQuest.
“We are proud to become part of Bayer CropScience,” commented Prophyta Managing Director Dr. Peter Lüth. “Our comprehensive production and formulation capacities will help Bayer CropScience to supply its worldwide customers with large quantities of biologics based on natural fungal micro-organisms.” This acquisition also opens up many opportunities for innovation in the area of Research & Development as well as growth within the Bayer CropScience Marketing & Sales network.
Prophyta, founded in 1992, offers customers well-established products primarily based on biological control agents which are registered in more than 30 countries worldwide. Key brands are Contans™ for control of Sclerotinia and the nematicide BioAct ™. Furthermore, Prophyta has developed a unique solid-state fermentation technology for production and bioprocess development of filamentous fungi. Using this patented technology, large quantities of fungal biomass as well as fungal spores can be produced under axenic conditions. Prophyta employs a total staff of approximately 30 full-time employees.
Source BAYER Official Press Release
Released on 11/12/12
Les nanomatériaux sont définis comme des matériaux dont la taille des particules est inférieure à 100 nm, pour au moins une des dimensions. Depuis près de dix ans, les applications des nanomatériaux se développent dans de nombreux domaines. Parmi ces derniers:
- la médecine,
- les systèmes de traitement des eaux,
- les procédés de transformation alimentaire,
- la préservation de l'environnement dans le cadre de programmes de bioremédiation par exemple.
Néanmoins, le développement des nanomatériaux dans le secteur de l'agriculture est relativement récent et nécessite de plus vastes études. Les premiers travaux de recherche ont concerné des procédés de nanoencapsulation de produits chimiques habituellement pulvérisés sur les champs, le but étant de réduire la présence d'éventuelles traces dans l'alimentation humaine tout en préservant l'environnement en limitant l'interaction directe des résidus avec le sol [1]. Un second type de travail tout à fait intéressant pour le secteur agricole, a concerné la mise en place d'outils de détection à base de nanomatériaux (carbone, argent, silice, ...) pour détecter les maladies des plantes pouvant avoir un impact négatif sur le rendement des cultures [2]. Ce type d'outil permettrait de détecter, à un stade précoce, les pathologies et ainsi de définir le protocole de traitement (nutriments ou produits agrochimiques) approprié.
Désormais, comme nous le décrit une étude réalisée par l'université de Floride et l'Institut de Technologie du Massachusetts, les innovations en la matière s'intéressent à de nouvelles applications. Parmi ces dernières, l'activation de la germination et de la croissance des plantes par l'insertion directe de nanoparticules dans les graines ou encore la détection des résidus de pesticides ou d'herbicides par l'usage de nanocapteurs et de nanopuces.
Améliorer la germination des plantes
Une des hypothèses retenue par les scientifiques travaillant dans le domaine des nanotechnologies tient au fait que le taux de germination des graines pourrait être amélioré par l'introduction de nanomatériaux dans la graine des plantes. Il est en effet connu que les nanomatériaux peuvent traverser la paroi des cellules des plantes et ainsi favoriser l'apport de molécules extérieures. Par ailleurs, l'inclusion de nanoparticules de métal permettrait de réduire la production d'ions superoxyde, à partir d'oxygène, ce qui favoriserait la résistance de la plante au stress oxydatif. Plusieurs études ont été menées pour confirmer ou infirmer cette hypothèse.
Ainsi, dans le cadre d'une étude de 2005, menée par une équipe du Département des Sciences de la Vie de l'université de Suzhou en Chine, des nanoparticules de dioxyde de titane (nanoTiO2) ont été intégrées dans des graines d'épinards. Ces nanoparticules étaient susceptibles d'augmenter l'absorption de composés organiques ainsi que d'eau et d'oxygène par la plante et de limiter la formation de radicaux libres produits lors de la photosynthèse. Les résultats ont montré que la plante, après germination, possédait 73% de poids sec supplémentaire, un taux de photosynthèse trois fois plus élevé, et une augmentation de la formation de chlorophylle supérieure de 45% comparativement à une plante non traitée avec ces nanoparticules [3]. Dans le cadre d'une seconde étude, dirigée par une équipe de l'université d'Arkansas en 2009, l'exposition de graines de tomates à des nanotubes de carbones (MWCNT) a permis d'augmenter la germination de la plante de 90% grâce à une pénétration facilitée de l'eau dans la graine de la plante [4]. Enfin, Irina Belozerova, du Département de Biologie du Collège Darwin dans l'état de New-York, a montré dans le cadre de travaux menés en 2009, que les nanoparticules de métal (silicium, palladium, or, cuivre) ont également une influence positive sur la germination de la laitue [5].
Cependant, malgré les résultats positifs qui ont été observés, certains nanomatériaux présentent une phytotoxicité qui reste un élément important à évaluer dans ce type d'expérimentation. Des études ont révélé que selon les quantités de nanomatériaux intégrées aux graines des plantes, des conséquences néfastes sur la croissance pouvaient être observées. Pour exemple, une concentration supérieure à 200mg/l de nano-Zinc inhiberait la croissance des racines du radis, du colza, de l'ivraie, de la laitue, du maïs, et du concombre [6].
Par ailleurs, un second cas à noter concerne les nanoparticules contenant de l'argent, sous forme sphérique. Elles peuvent conduire à la formation d'oxydes ou d'ions d'argent, qui pourraient être phytotoxiques pour les plantes. L'Agence Américaine de Protection de l'Environnement (EPA) apporte actuellement son soutien à des études sur les conditions de cette phytotoxicité au travers d'un programme qui a répertorié en 2010, plus de 100 pesticides possédant des propriétés anti-microbiennes et contenant des molécules d'argent [7].
Les futures recherches concernant la germination des plantes devraient, selon les experts, se concentrer sur la phytotoxicité due à des concentrations élevées. Parmi les autres sujets on trouve le caractère imprévisible de l'action de certains nanomatériaux selon le type de plantes étudié, et l'influence de la taille des nanomatériaux sur le transport des composés organiques et inorganiques et l'activité de photosynthèse.
La détection des résidus de pesticides pour protéger la santé humaine
Environ 1 045 produits chimiques, considérés comme dangereux pour la santé humaine ont été répertoriés par l'Agence Américaine de l'Alimentation et des Médicaments (FDA) [8]. Afin de détecter les résidus potentiels des pesticides, plusieurs programmes ont été menés pour développer des nanocapteurs capables de les détecter en remplacement des méthodes actuelles telles que la chromatographie en phase liquide ou solide et la spectrométrie de masse, qui sont plus longues à mettre en oeuvre. Selon les travaux de Liu et al, menés en 2008 [9], les nanocapteurs présenteraient une sensibilité élevée, des seuils de détection faibles, une bonne sélectivité, et des temps de réponse rapides même sur des particules de petites tailles. Néanmoins, plusieurs questions persistent sur l'efficacité des nanocapteurs telles que leur degré de sensibilité selon les pesticides, leurs techniques de fabrication et d'instrumentalisation, la fiabilité et la répétabilité de la détection des résidus à l'état de traces et les coûts d'analyse.
La détection précoce des agents pathogènes
L'objectif est une détection et une localisation des agents pathogènes présents dans le végétal afin de mettre en place, le plus tôt possible, le traitement adéquat (produit, quantité, ...). Les nanoparticules pourraient être utilisées comme biomarqueurs pour la détection de bactéries, virus et de champignons pathogènes.
Différentes études ont déjà été menées sur ce sujet. Des nanopuces, connues pour leur sensibilité et spécificité à détecter un simple changement de nucléotides ont été analysées pour détecter les réactions d'hybridations. Utilisation est faite de sondes de capture marquées par un composé fluorescent, présentes dans les plantes et signes de la présence d'agents pathogènes [10]. Les nanoparticules d'or sont généralement utilisées pour le développement de capteurs immunologiques, utilisant le principe de la résonance plasmonique de surface par exemple, pour détecter la maladie Tilletia indica (Karnal Bunt ) - maladie due à la présence du champignon Tilletia indica Mitra - au sein du blé [11].
Les orientations des futurs travaux de recherche
La toxicité pour l'écosystème, les résidus potentiels transférés dans les denrées alimentaires, et la phytotoxicité des nanomatériaux sont quelques-unes des préoccupations majeures pour l'application des nanomatériaux dans l'agriculture. Les questions relatives à la santé humaine ont déjà été abordées dans de nombreux travaux de recherche mais il faut cependant compléter ces travaux par l'étude de la toxicocinétique (mouvement des nanomatériaux dans le corps) et de la toxico-dynamique des nanomatériaux (effets chroniques) liés à usage dans la production agricole.
Des données sont encore à analyser sur la caractérisation précise des nanomatériaux dans les matrices biologiques pour une compréhension en profondeur des mécanismes de leur toxicité dans les systèmes biologiques, les interactions des nanomatériaux dans la matrice végétale, les relations dose-réponse, le cycle de vie des produits traités avec des nanomatériaux, les résidus de nanomatériaux dans les aliments et les matrices alimentaires.
Conclusion
Cette analyse de l'utilisation et de l'impact des nanomatériaux dans l'agriculture a porté principalement sur les applications spécifiques des nanomatériaux pour l'agriculture telles que la protection des végétaux, la détection des pathogènes et la détection des résidus de pesticides, entre autres.
Les nouvelles avancées montrent que les applications des nanomatériaux peuvent aider à une germination plus rapide des végétaux (selon le type de plante) avec un impact réduit sur l'environnement. Selon les auteurs des études citées dans cet article, les nanomatériaux, en fonction de leurs caractéristiques telles que leur nature ou leur formulation, devraient idéalement se décomposer plus rapidement dans le sol que dans la plante, ce qui permettrait d'éviter la pollution des sols et de l'environnement tout en présentant une activité au niveau du végétal [12]. En outre, les nanocapteurs pourraient être une option tout à fait intéressante pour détecter les résidus de pesticides directement sur le terrain. Bien que cet examen démontre le potentiel des nanomatériaux pour diverses applications agricoles, une enquête plus approfondie et de nouveaux travaux de recherche sont nécessaires pour élargir les possibilités d'application dans le secteur agricole et déterminer de nouvelles méthodes pour évaluer leur innocuité.
Plusieurs laboratoires de recherche aux Etats-Unis ont développé des compétences, à noter le laboratoire de micro et nanotechnologies de l'université de l'Illinois, le laboratoire des nanotechnologies des sciences spatiales de l'Institut de Technologie du Massachusetts ou le laboratoire de nanotechnologies de l'université de Villanova en Pennsylvanie. Les agences fédérales travaillent également sur ce thème telles que le Service de recherche agricole du Département américain de l'Agriculture (USDA/ARS), le Département américain de la défense (DOD), le Département américain de l'énergie (DOE) ou encore l'Agence américaine de l'alimentation et des médicaments (FDA).
Pour mémoire, les Etats-Unis ont mis en place, depuis l'an 2000, un programme fédéral de R&D destiné à comprendre et contrôler la matière à l'échelle nanométrique, le but étant de "révolutionner les technologies et les industries de demain" : Projet National de Nanotechnologie (National Nanotechnology Initiative - NNI). Vingt-six agences fédérales, dont celles citées précédemment, avec des missions allant de la recherche à la réglementation, participent et financent, en partie, ce programme. De nombreux projets de recherche ont déjà été accomplis par le NNI tels que "L'amélioration de la compréhension des nanotechnologies par la population et ses applications en matière d'agriculture et d'alimentation" ou "De nouveaux nanomatériaux pour la détection d'agents biologiques dangereux dans les aliments" [13]. Le budget fourni par le Gouvernement en 2013 serait de 1,8 milliards de dollars.
Source ADIT
China’s Sinopec Qilu is planning to shut its 250,000 tonne/year styrene butadiene rubber (SBR) plant at Zibo in east China in early April for about 40 days, a company source said on Wednesday.
The shutdown is to coincide with its 30-day regular maintenance at its upstream 164,000 tonne/year butadiene (BD) unit at the same site during the same period, the source added.
"This shutdown may directly tighten SBR supply in Shandong market as the capacity of the plant is extremely large," a market player said.
Domestic prices for non-oil grade SBR 1502 increase to yuan (CNY) 17,200-17,900/tonne ($2,761-2,873/tonne) EXWH (ex-warehouse) on 8 January, up by CNY1,800-1,900/tonne compared with CNY15,400-16,000/tonne on 8 December because of rising feedstock BD prices and better market sentiment, according to Chemease, an ICIS service in China.
The producer also operates a 70,000 tonne/year butadiene rubber (BR) unit at the same site in Zibo and it is running at full capacity, the source added.
Source ICIS News
Une équipe de chercheurs de l'Université Julius Liebig (JLU) de Giessen (Hesse), en partenariat avec le Laboratoire de batteries et électrochimie (BELLA) [1] et l'entreprise BASF, a conçu une cellule de batterie rechargeable sodium-oxygène [2].
Jusqu'alors, les recherches de matériaux appropriés pour les batteries métal-oxygène se concentraient principalement sur le lithium. Néanmoins, le recours au lithium dans de telles batteries pose des problèmes de décomposition irréversible de l'électrolyte durant les cycles de charge-décharge. En raison de sa stabilité, la cellule sodium métallique-oxygène offre de nouvelles perspectives de développement. De plus, elle fonctionne à température ambiante, possède une densité de courant s'élevant jusqu'à 0,2 mA/cm2 et une cathode en carbone ne nécessitant pas de catalyseur.
Source ADIT
L'Institut coréen des sciences et technologies avancées, le KIST, annonce avoir développé une technologie permettant à des voitures électriques de parcourir l'équivalent de la distance Séoul-Busan, soit 800 kilomètres. Le Centre de recherche de convergence énergétique, et plus particulièrement l'équipe du Professeur CHO Byung-won, a ainsi développé une batterie magnésium-air ; des tests concluants auraient déjà été effectués.
Le grand avantage de cette technologie réside en la simplicité de son changement, quand il faut plusieurs heures pour recharger la batterie d'une voiture électrique actuelle.
Source ADIT
Dow Chemical has restarted the Olefins 2 plant at its St. Charles Operations near Hahnville, LA, and the unit has been producing on-spec ethylene since 25 December, the company announced on Monday. Dow estimates that the plant’s operation will increase Ebitda by $150 million this year.
Brian Ames, president, Dow Olefins, Aromatics and Alternatives, calls the start-up of St. Charles ethylene plant “the first major milestone” of Dow’s US Gulf Coast investment strategy, which will connect the company’s downstream businesses to advantaged feedstocks from natural gas. “This action further reduces the company’s purchased ethylene, lowering costs and strengthening the competitiveness of our high-margin, high-growth derivatives businesses,” he adds.
Dow idled the St. Charles unit in January 2009, following an extended period when operating rates in North America were in the low 80% range, according to IHS Chemical. Other producers idled or closed units as well, with the result that between 2008 and 2010, 2.4 million m.t. of regional production capacity—6.7% of the total—were taken off the market.
IHS Chemical estimates total nameplate North American ethylene capacity in 2011 at 33.4 million m.t., and operations that year at 89.9%.
Eastman Chemical and Chevron Phillips Chemical restarted idled ethylene plants in 2010. The Dow plant, which has an estimated capacity of 386,000 m.t./year, will be the last of the idled operations to return to service, says IHS Chemical.
Several expansions are in the works, however. BASF/Fina, Ineos, LyondellBasell Industries, Westlake, and Williams have announced debottlenecks of existing units totaling around 1.5 million m.t. Formosa, Occidental Chemical, Chevron Phillips, Exxon Mobil, Sasol, Dow, and Royal Dutch Shell have announced plans to build new steam crackers with a total capacity of around 8.7 million m.t.
IHS Chemical expects nameplate North American ethylene capacity to reach 39.1 million m.t. in 2017.
Source Chemical Week
Researchers working on the biofuel crop Miscanthus sacchariflorus, commonly known as Asian Elephant Grass, have shown that delaying flowering in the plant can result in a 50% growth increase.
The discovery could have important implications for biofuel production, leading to higher yields and increased productivity from the crop - helping increase its commercial viability and reduce carbon emission for energy and fuel production.
Using non-food crops such as the fast-growing M. sacchariflorus to make biofuels is an important avenue of research, as the world's population is predicted to rise to nine billion by 2050. Food productivity will have to rise by 70% to meet demand, raising concerns over the use of food crops for bioenergy. Non-edible plants are therefore an attractive alternative if they can be grown in a way that does not compete with food.
The team from the Institute of Biological, Environmental and Rural Sciences in Aberystwyth University grew six varieties of M. sacchariflorus, representing a range of latitudes from their origin in Asia. The use of different temperature and light treatments showed that delaying flowering by an average of 61 days resulted in an average growth increase of 52%.
"We need to maximise outputs and minimise inputs in order to make biofuels and bioenergy sustainable," says Dr Elaine Jensen of Aberystwyth University. "Day lengths vary across different latitudes, so this research helps us understand what kind of impact that could have on yield".
As well as demonstrating for the first time that M. sacchariflorus plants flower more slowly, but with increased biomass, when daylight hours exceed 15 hours in a 24 hour period, the research also provided key information regarding what day length and temperature treatments are best used to synchronise flowering between different Miscanthus species and types.
"We are breeding new Miscanthus varieties that will be optimised for growth in different environments, but making crosses between some plants has been problematic. ", says Dr Clifton-Brown, Miscanthus breeder at Aberystwyth University, "This research has provided fundamental knowledge on flowering synchronisation so that we can breed new, high performance varieties."
The findings, published in the Journal of Experimental Botany (doi:10.1093/jxb/ers346), also showed that flowering responses in Miscanthus sacchariflorus resembled those of its close relative, Sorghum, another important energy crop. Research by the same group in Aberystwyth has recently highlighted similarities between the Sorghum and Miscanthus genomes (PloS ONE, 7 (3): e33821), meaning that advances in understanding the genetic mechanisms underlying flowering in one crop will likely promote understanding in its counterpart.
Source India Pharma News
Proterro Inc, a company making sugar instead of extracting it from crops, has closed on a $3.5 M financing round led by investor Braemar Energy Ventures. Cultivian Ventures and Middleland Capital joined as new investors, with other existing investors, Battelle Ventures and its affiliate, Innovation Valley Partners, also participating in the round. Proterro has a process of developing sucrose by extracting sugars from biomass, according a Braemar Energy Ventures official. Proterro received a notice of allowance from the US Patent and Trademark Office on a cornerstone composition of matter patent protecting the company's unique, engineered sucrose-producing cyanobacteria and their genetic code.
Source specialchem4polymers
The European Chemicals Agency (ECHA; Helsinki) has added 54 substances of very high concern (SVHC) to the candidate list of substances for authorization under the European Union's Registration, Evaluation, Authorisation, and Restriction of Chemicals (Reach).
Please click for full list of candidate chemicals
Source Chemical Week
BASF’s planned takeover of Norway-based pharmaceutical company Pronova BioPharma may face opposition from shareholders who maintain the price offered for the business is too low, an investor said on Monday.
The offer of Norwegian kroner (NKr) 12.50 (€1.70, $2.23) per share for the omega-3 fatty acids manufacturer, made on 21 November last year, offers a premium far below the market average for pharmaceutical company takeovers, according to Rolf Solgard, chief portfolio manager of Danish financial services company Nykredit Asset Management.
“I think a fair standalone price is much higher than what you had in the share price before the bid. A bid premium of 4% compared to the share price the day before the bid and an EBITDA multiple of 5.7x is far below what we have seen for acquisitions in the sector.
“We are hearing a lot of shareholders have the same opinion as ourselves,” he added.
Solgard, told ICIS that that the offer price does not adequately reflect Pronova’s growth potential, which is being driven by entry to new markets and a current capacity utilisation level estimated at 55-60%.
“[Pronova] has started to enter the consumer space, and we’ll see a lot of activity there going forward. Within their traditional phama business, they just got acceptance from Japan, so we will see them entering that market in the next few months, so I do see a lot of ways that they can use the excess capacity they have,” he said.
A condition of Germany-based BASF’s current takeover offer is that the company needs to receive acceptance from holders of over 90% of Pronova’s total share capital.
BASF estimated on 19 December last year that it had received acceptances from shareholders representing 67.2% of Pronova’s share capital, but has extended the offer period for the bid to 18 January. This represents the maximum extension of the offer period, according to documents published in December.
Nykredit owns over 1% of Pronova, according to Solgard. Norway-based investor ODIN Fund Management, which owns around 4.7% of the company, is also reported to be sceptical of the current offer price.
BASF’s current offer is worth Nkr4.85bn including the assumption of all net financial liabilities. According to the company, Pronova’s board of directors and management team “unanimously support BASF's offer and recommend its acceptance”.
A BASF spokesperson contacted on Monday ruled out any increases on the current offer value.
“We maintain the price,” the spokesperson said.
Source ICIS News
Dow Chemical wants to raise prices on vinyl acetate monomer (VAM) by 6 cents/lb ($132/tonne, €100/tonne) immediately, according to a letter the producer sent customers on Monday.
The letter follows a force majeure on VAM made at an INEOS plant in England that was announced on 4 January.
Europe is a net importer of VAM and depends on US producers for its supply. Belgium historically has been the largest export destination for US-made VAM.
Dow did not return calls immediately regarding the letter, which contained no explanation for the increase.
Besides the INEOS force majeure, another impact on VAM prices comes from feedstock US ethylene spot prices, which have jumped nearly 17% in the past month or so.
Few buyers could be reached late Monday for comment on the Dow hike, though one said the increase made sense in light of INEOS’s force majeure.
US VAM spot prices closed the year at $850-950/tonne, as assessed by ICIS, with one seller saying pricing had been down in December compared to November.
Source ICIS News
RELATED STORIES
INEOS declares force majeure on VAM from Hull, UK plant
South Korean industrial conglomerate LG Group is planning to invest a total of won (W) 3,500bn ($3.3bn) into its chemical business this year, a company spokesman said on Tuesday.
Part of the spending will go towards the expansion of affiliate LG Chem’s ethylene vinyl acetate (EVA) and solution styrene butadiene rubber (SSBR) production lines, the spokesman said without providing the exact proportion of investment that will go into this project.
“All I can say now it that the investment scale for EVA and SSBR won't be too large,” he said.
The investment allotted for the chemical business will not be solely invested in LG Chem, according to the spokesperson, adding that the group has various chemical business affiliated companies, including LG Chem, LG Household & Health Care, LG Life Sciences, among others.
“We don't provide a breakdown of investment plans for each affiliate company,” he said.
A portion of the overall investment in the chemicals business this year will also support research and development (R&D) relating to high-capacity, high-power batteries for electric cars, as well as high quality liquid crystal display (LCD) glass substrates, among others, the LG spokesperson said.
LG Group earlier this week announced that it plans to boost its overall investment to a record W20,000bn this year, a 19.1% increase from 2012.
The group is planning to invest W13,400bn, representing 67% of the total, into its electronics business; W3,500bn into its chemical business; and W3,100bn into its telecommunications business, according to the spokesman.
Source ICIS News
Stronger global economic and industrial production growth is needed before upstream petrochemical players can feel much easier.
Economic uncertainty hangs heavy over the sector and the possibly improved business confidence signalled by some indicators has yet to filter into the thinking of most industry participants.
They have to deal with a reality that saw cracker operating rates cut back in Asia in December because of weak demand, and a subdued operating environment in Europe.
But ICIS year-end reviews of the industry have underscored a spirit of determined optimism. And the need to shift stocks so far in 2013 is giving prices some buoyancy.
In the olefins business, a heavy cracker maintenance schedule in Europe in the first and second quarters is expected to bring supply and demand back into better balance. The turnarounds in Europe could also help underpin operating rates in the Middle East and in Asia.
Yet some much more fundamental industrial growth is needed to push olefins demand higher.
Cracker operating rates were cut last year as downstream demand worsened, with polymers particularly weak. The situation in Asia prompted cracker operators in South Korea and Taiwan to trim rates in December as naphtha-based margins dropped into the red.
Margins improved slightly towards the end of the year but some operators could not muster a particularly positive outlook. The suggestion was that demand in China, Europe and North America had to improve first.
Producers are hoping that polymers demand will strengthen around the time of the Lunar New Year which begins on 10 February in 2013.
And while some pre-buying ahead of the holidays may force prices higher, there are those that are concerned about the lengthening of supply in 2013. The Asia cracker maintenance schedule this year is lighter than it was in 2012. New cracker start-ups in China also are expected to reduce the needs for imports. But China’s downstream markets remain weak.
In Europe, producers really do need to see polymer demand improve before they can feel more comfortable.
Demand is coming back a bit but that is really because downstream inventories were cut towards the 2012 year end.
A large slug of cracker capacity will come off-line in the first quarter but the real supply crunch is expected in the second quarter when four crackers will be closed for maintenance including two of the largest in Europe.
Yet as far as supply/demand balances and market tightness are concerned there are two broad schools of thought. Some expect pre-buying ahead of the cracker maintenance shutdowns – some derivatives units will come off-stream with their crackers. Others believe that the net effect of the turnarounds will be minimal and that there will be not much change in olefins supply/demand balances in Europe this year compared with 2012.
Clearly, with high feedstock, energy and other costs, many European derivatives players are concerned about their competitive position.
The opposite view prevails in North America where the low natural gas price helps keep energy costs low and the low ethane price is buoying the industry.
Olefins prices in the US rose towards the 2012 year end on a series on unplanned cracker outages. And planned maintenance shutdowns in the first months of 2013 are expected to underpin the higher prices.
North America’s ethylene producers are planning significant new capacity additions to take full advantage of increased ethane supplies from shale gas extraction and a mood of optimism prevails in the sector.
In 2013 more than 2bn pounds (more than 900,000 tonnes) of ethylene capacity will be added to the US total.
This 3.3% increase in the US ethylene capacity total is expected to help stabilise prices which fluctuated wildly in 2012 as the impact of numerous scheduled maintenance shutdowns was amplified by a string of unplanned outages.
Cracker operators are keen to take full advantage of North America’s ethane advantage which has put the region second only to the Middle East in terms of feedstock cost competitiveness.
Capitalising on that advantage, however, is causing disruption in a low demand-growth environment.
US cracker operating rates have been estimated at 85% in 2012 compared to closer to 92% in 2011 but rates could push back up to above 90% this year with fewer turnarounds putting some downward pressure on prices.
Source ICIS News