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Released on 04/01/13
Indonesia’s state-owned refiner Pertamina has delayed the start-up of its new 178,000 tonne/year propylene facility at Balongan in West Java to February from January this year, a company source said on Friday.
He did not mention the reasons for the postponement but the start-up of the residual catalytic cracking off-gas to propylene (ROPP) unit was previously delayed several times because of technical problems.
The source said the new ROPP unit was expected to produce around 9,000 tonnes of propylene per month in the initial phase.
Separately, Pertamina also operates a residual fluid catalytic cracker (RFCC) at the same site. The unit is currently producing around 200-250 tonnes of propylene per day –less than half of its usual output – because of problems with the heat exchanger, the source added.
Source ICIS News
Indonesia’s state-owned refiner Pertamina has delayed the start-up of its new 178,000 tonne/year propylene facility at Balongan in West Java to February from January this year, a company source said on Friday.
He did not mention the reasons for the postponement but the start-up of the residual catalytic cracking off-gas to propylene (ROPP) unit was previously delayed several times because of technical problems.
The source said the new ROPP unit was expected to produce around 9,000 tonnes of propylene per month in the initial phase.
Separately, Pertamina also operates a residual fluid catalytic cracker (RFCC) at the same site. The unit is currently producing around 200-250 tonnes of propylene per day –less than half of its usual output – because of problems with the heat exchanger, the source added.
Source ICIS News
Released on 07/01/13
China’s Sinopec Guangzhou plans to shut its 30,000 tonne/year butadiene (BD) unit on 10 January for scheduled maintenance, a source close to the company said on Monday.
The shutdown will last 10 days, and the company is expected to have a loss of about 900 tonnes of BD output because of this maintenance, the source said.
Sinopec held its offers stable at yuan (CNY) 13,300/tonne ($2,135/tonne) EXW (ex-works) on 7 January. It is expected to maintain its offers at this price to Lunar New Year, the source added.
China’s Sinopec Guangzhou is a BD producer in China.
Source ICIS News
RELATED STORIES
China’s Sinopec Maoming to start up its new BR plant after Feb
China’s Sinopec Guangzhou plans to shut its 30,000 tonne/year butadiene (BD) unit on 10 January for scheduled maintenance, a source close to the company said on Monday.
The shutdown will last 10 days, and the company is expected to have a loss of about 900 tonnes of BD output because of this maintenance, the source said.
Sinopec held its offers stable at yuan (CNY) 13,300/tonne ($2,135/tonne) EXW (ex-works) on 7 January. It is expected to maintain its offers at this price to Lunar New Year, the source added.
China’s Sinopec Guangzhou is a BD producer in China.
Source ICIS News
RELATED STORIES
China’s Sinopec Maoming to start up its new BR plant after Feb
Released on 04/01/13
In most cases, a new year brings with it opportunity for companies to start again, to make up for any shortfalls made over the past 12 months. The problem is, as much as the chemical industry will look forward to a fresh canvas, powers outside its control have already chosen the colours.
And the economy provides a very grey backdrop indeed. Although it’s been more a mixed bag than an empty one for European chemical companies in 2012, a turnaround in the industry’s prospects for the new year seems well out of reach. The consensus plan will be to survive 2013 and pray for things to get better in the run up to 2014.
Activity levels in the European chemical industry have been severely impacted by the sovereign debt crisis in Europe, while falling consumer confidence and turbulent oil prices have caused more volatility. This situation is unlikely to change drastically in 2013.
According to the Organisation for Economic Co-operation and Development’s (OECD's) latest global outlook, eurozone GDP is likely to contract by 0.1% next year before expanding by 1.3% in 2014 as part of a “hesitant” global economic recovery. The international economic organisation added that a slow global recovery over the next two years is likely to be reversed if the eurozone fails to deal with its ongoing economic crisis.
OECD secretary-general Angel Gurria said: “The world economy is far from being out of the woods ... governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the US, in Europe, and elsewhere.”
It’s a quote which could have come from many European leaders during the past three years to describe the macroeconomic quagmire the eurozone finds itself in, showing how little progress the region’s policymakers have made in resolving the financial crisis.
European Central Bank (ECB) President Mario Draghi announced the bank has also revised down its eurozone growth forecasts for this year and the next.
The bank expected the eurozone's economy to shrink between 0.4% and 0.6% this year, before economic activity gradually recovers.
The ECB revised down its forecast for economic growth in the eurozone next year to be between minus 0.9% and plus 0.4% and growth of between 0.2% and 2.2% for 2014.
“Over the shorter term, weak activity is expected to extend into next year, reflecting the adverse impact on domestic expenditure of weak consumer and investor sentiment and subdued foreign demand,” Draghi said.
“A gradual recovery should start later in 2013 as our accommodative monetary policy stance and significant improvement in financial market confidence work their way through to private domestic expenditure, and a strengthening of foreign demand should support export growth,” he added.
The European Chemical Industry Council (Cefic) recently slashed its output forecasts for the industry in 2012 and 2013 in Europe on the back of a stagnant economy and weak performances from key end markets. The industry body predicts that European chemicals output will contract by 2.0% in 2012 compared with 2011, and will expand by 0.5% in 2013.
The move represents the association’s latest downgrade of its output forecasts for the European chemicals industry. Cefic predicted in September that industry output would contract by 1.5% in 2012, down from earlier estimates that output would be static year on year, and that output would increase by 1% in 2013.
At the time, Cefic president and BASF CEO Kurt Bock said: “The EU chemicals sector faces increasing uncertainty as the domestic market continues to struggle and overseas competition remains relentless. EU policymakers need to continue to work towards putting Europe on a better economic footing to help us move out of this difficult period.”
It is important to also take into consideration that chemical firms will have to deal with tough comparatives in the first quarter of 2013 compared with the same period of 2012 which saw a strong restocking phase by customers after a year-end inventory wind down in the fourth quarter of 2011.
This, combined with some softening in key-end markets, such as automotive, construction and industrial machinery, means companies will be constrained to providing a ‘wait and see’ outlook.
It is likely European chemical groups will invest outside of Europe and announce further cost cutting measures in the next twelve months. Regions such as Asia and the Middle East will continue to be locations of substantial chemical industry investment, while it is a good bet there will be a spate of ventures into North America to exploit shale gas and lower chemical feedstock costs.
Many of the big chemical producers which dominate, and act as a bellwether for, the European industry, have already put in place such plans.
With expectations of a volatile and insecure chemicals market in 2013, BASF has looked to protect its earnings with the acquisition of US-based biological seed treatment technology provider Becker Underwood from investment firm Norwest Equity Partners (NEP) for $1.02bn (€772m) with the outlook for agrochemicals seemingly healthy. Bock’s Germany-based chemicals major BASF is still aiming for 2012 sales and EBIT before special items to exceed 2011 record levels, despite revising downwards its expectations for the global economy.
“In this challenging environment, we are concentrating on our strengths and expanding our business, but we are also keeping an eye on the costs and are continuing to optimise our business processes,” Bock said in a quarterly earnings announcement.
Other European producers are also following suit.
Earlier in the year, Finland’s Kemira reported it would cut up to 600 jobs as part of a global restructuring programme to improve profitability, lower costs and accelerate growth in emerging markets, while Belgium-based chemicals firm Tessenderlo, which reported a third-quarter net loss, also said its top priority would be the divestment of non-core businesses and acquisitions in growth activities.
Meanwhile, France-based specialty company Arkema will look to divest small non-core businesses, including its tin stabilisers unit, following the divestment of its vinyl business at the beginning of July. Arkema’s CEO Thierry Le Henaff said the company will continue to focus on expansion in higher growth countries.
Much of the performance of the European chemical industry in 2013 will depend on political leaders creating a stronger, more integrated Europe to improve the competitiveness of its chemicals industry.
Borealis CEO Mark Garrett said in November that due in part to an unwillingness by EU politicians to make substantive structural changes to their economies, Europe has entered a 10-year period of entrenched economic stagnation, akin to that experienced by Japan.
If 2013 is to be a prosperous year, chemical companies will need a stable economy to work in, supported by solid and progressive policy from governments and institutions, so it can do what it does best – driving innovation and job creation.
Source ICIS News
In most cases, a new year brings with it opportunity for companies to start again, to make up for any shortfalls made over the past 12 months. The problem is, as much as the chemical industry will look forward to a fresh canvas, powers outside its control have already chosen the colours.
And the economy provides a very grey backdrop indeed. Although it’s been more a mixed bag than an empty one for European chemical companies in 2012, a turnaround in the industry’s prospects for the new year seems well out of reach. The consensus plan will be to survive 2013 and pray for things to get better in the run up to 2014.
Activity levels in the European chemical industry have been severely impacted by the sovereign debt crisis in Europe, while falling consumer confidence and turbulent oil prices have caused more volatility. This situation is unlikely to change drastically in 2013.
According to the Organisation for Economic Co-operation and Development’s (OECD's) latest global outlook, eurozone GDP is likely to contract by 0.1% next year before expanding by 1.3% in 2014 as part of a “hesitant” global economic recovery. The international economic organisation added that a slow global recovery over the next two years is likely to be reversed if the eurozone fails to deal with its ongoing economic crisis.
OECD secretary-general Angel Gurria said: “The world economy is far from being out of the woods ... governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the US, in Europe, and elsewhere.”
It’s a quote which could have come from many European leaders during the past three years to describe the macroeconomic quagmire the eurozone finds itself in, showing how little progress the region’s policymakers have made in resolving the financial crisis.
European Central Bank (ECB) President Mario Draghi announced the bank has also revised down its eurozone growth forecasts for this year and the next.
The bank expected the eurozone's economy to shrink between 0.4% and 0.6% this year, before economic activity gradually recovers.
The ECB revised down its forecast for economic growth in the eurozone next year to be between minus 0.9% and plus 0.4% and growth of between 0.2% and 2.2% for 2014.
“Over the shorter term, weak activity is expected to extend into next year, reflecting the adverse impact on domestic expenditure of weak consumer and investor sentiment and subdued foreign demand,” Draghi said.
“A gradual recovery should start later in 2013 as our accommodative monetary policy stance and significant improvement in financial market confidence work their way through to private domestic expenditure, and a strengthening of foreign demand should support export growth,” he added.
The European Chemical Industry Council (Cefic) recently slashed its output forecasts for the industry in 2012 and 2013 in Europe on the back of a stagnant economy and weak performances from key end markets. The industry body predicts that European chemicals output will contract by 2.0% in 2012 compared with 2011, and will expand by 0.5% in 2013.
The move represents the association’s latest downgrade of its output forecasts for the European chemicals industry. Cefic predicted in September that industry output would contract by 1.5% in 2012, down from earlier estimates that output would be static year on year, and that output would increase by 1% in 2013.
At the time, Cefic president and BASF CEO Kurt Bock said: “The EU chemicals sector faces increasing uncertainty as the domestic market continues to struggle and overseas competition remains relentless. EU policymakers need to continue to work towards putting Europe on a better economic footing to help us move out of this difficult period.”
It is important to also take into consideration that chemical firms will have to deal with tough comparatives in the first quarter of 2013 compared with the same period of 2012 which saw a strong restocking phase by customers after a year-end inventory wind down in the fourth quarter of 2011.
This, combined with some softening in key-end markets, such as automotive, construction and industrial machinery, means companies will be constrained to providing a ‘wait and see’ outlook.
It is likely European chemical groups will invest outside of Europe and announce further cost cutting measures in the next twelve months. Regions such as Asia and the Middle East will continue to be locations of substantial chemical industry investment, while it is a good bet there will be a spate of ventures into North America to exploit shale gas and lower chemical feedstock costs.
Many of the big chemical producers which dominate, and act as a bellwether for, the European industry, have already put in place such plans.
With expectations of a volatile and insecure chemicals market in 2013, BASF has looked to protect its earnings with the acquisition of US-based biological seed treatment technology provider Becker Underwood from investment firm Norwest Equity Partners (NEP) for $1.02bn (€772m) with the outlook for agrochemicals seemingly healthy. Bock’s Germany-based chemicals major BASF is still aiming for 2012 sales and EBIT before special items to exceed 2011 record levels, despite revising downwards its expectations for the global economy.
“In this challenging environment, we are concentrating on our strengths and expanding our business, but we are also keeping an eye on the costs and are continuing to optimise our business processes,” Bock said in a quarterly earnings announcement.
Other European producers are also following suit.
Earlier in the year, Finland’s Kemira reported it would cut up to 600 jobs as part of a global restructuring programme to improve profitability, lower costs and accelerate growth in emerging markets, while Belgium-based chemicals firm Tessenderlo, which reported a third-quarter net loss, also said its top priority would be the divestment of non-core businesses and acquisitions in growth activities.
Meanwhile, France-based specialty company Arkema will look to divest small non-core businesses, including its tin stabilisers unit, following the divestment of its vinyl business at the beginning of July. Arkema’s CEO Thierry Le Henaff said the company will continue to focus on expansion in higher growth countries.
Much of the performance of the European chemical industry in 2013 will depend on political leaders creating a stronger, more integrated Europe to improve the competitiveness of its chemicals industry.
Borealis CEO Mark Garrett said in November that due in part to an unwillingness by EU politicians to make substantive structural changes to their economies, Europe has entered a 10-year period of entrenched economic stagnation, akin to that experienced by Japan.
If 2013 is to be a prosperous year, chemical companies will need a stable economy to work in, supported by solid and progressive policy from governments and institutions, so it can do what it does best – driving innovation and job creation.
Source ICIS News
Released on 27/01/13
ReportsnReports.com adds 'Ethylene Vinyl Acetate (EVA) Global
Market to 2017 - Growth in the Asia-Pacific and North American Solar Panel
Sectors to Drive Demand' market research report to its store. This new
report says Asia's impressive manufacturing industry will be largely
responsible for a predicted worldwide EVA demand increase - from 2011's
total of 2,286,193 tonnes to 2,966,078 tonnes in 2017, climbing at a
Compound Annual Growth Rate (CAGR) of 4.4%. The huge economic progress of
countries across the continent is the primary driver for the continued
growth of the global Ethylene Vinyl Acetate (EVA) market. According to this
research, Asia was accountable for 49% of the global EVA demand in 2011,
with the market driven primarily by China (with a 62% share of the
continent's total), followed by Japan (16%) and South Korea (8%). Original
Source: ReportsnReports.com, 2012. Found on website:
Source
ReportsnReports.com adds 'Ethylene Vinyl Acetate (EVA) Global
Market to 2017 - Growth in the Asia-Pacific and North American Solar Panel
Sectors to Drive Demand' market research report to its store. This new
report says Asia's impressive manufacturing industry will be largely
responsible for a predicted worldwide EVA demand increase - from 2011's
total of 2,286,193 tonnes to 2,966,078 tonnes in 2017, climbing at a
Compound Annual Growth Rate (CAGR) of 4.4%. The huge economic progress of
countries across the continent is the primary driver for the continued
growth of the global Ethylene Vinyl Acetate (EVA) market. According to this
research, Asia was accountable for 49% of the global EVA demand in 2011,
with the market driven primarily by China (with a 62% share of the
continent's total), followed by Japan (16%) and South Korea (8%). Original
Source: ReportsnReports.com, 2012. Found on website:
Source
Released on 20/12/12
Polish company Synthos has signed a framework agreement with OMV
for the supply of butadiene. The agreement runs to the end of 2019 and is
worth Zloty 3 bn (EUR 734 M). Synthos is Poland's and the Czech Republic's
largest rubber and PS producer. Its sales rose 20.6% in Jan-Sep 2012 to
Zloty 4.847 bn. Operating profits were down 19% at Zloty 654 M and net
profits fell 32.5% to Zloty 463 M.
Source Chemie Aktuell
Polish company Synthos has signed a framework agreement with OMV
for the supply of butadiene. The agreement runs to the end of 2019 and is
worth Zloty 3 bn (EUR 734 M). Synthos is Poland's and the Czech Republic's
largest rubber and PS producer. Its sales rose 20.6% in Jan-Sep 2012 to
Zloty 4.847 bn. Operating profits were down 19% at Zloty 654 M and net
profits fell 32.5% to Zloty 463 M.
Source Chemie Aktuell
Released on 05/01/13
Kochi,Jan 5 (PTI) Prime Minister Manmohan Singh will on January 7 lay the foundation stone for the Rs 14,225 crore BPCL-Kochi Refinery's Integrated Refinery Expansion project, near here, which aims to meet the country growing energy needs and make auto fuels more environment friendly.
The foundation stone will be laid at the Kochi-BPCL Refinery complex at nearby Ambalamugal.
Governor H R Bhardwaj, Chief Minister Oommen Chandy, Union ministers-- M Veerapa Moily, Vayalar Ravi, K V Thomas and Lakshmi Panabaaka will be among those present.
The project envisages increasing the refining capacity of the Kochi refinery from the present 9.5 MMTPA to 15.5 MMTPA, modernising of refinery to produce auto fuels complying with Euro IV/ Euro V specifications, upgradation of low value refinery residue stream to value added products, refinery sources said.
The refinery presently produces Euro-III/IV compliant auto-fuels and various other petroleum products. From the initial capacity of 2.5 Million Metric Tonnes Per Annum (MMTPA), it has progressively grown to its present level of 9.5 MMTPA, refinery sources said.
Kerala Government has signed an MoU with BPCL during the Emerging Kerala Investors Meet for implementation of the project, which is scheduled to be completed by December 2015.
One of the major initiatives identified by BPCL is to utilize the propylene to make petrochemical products like Acrylate and Super absorbent Polymer which are predominantly imported into the country today.
This propylene based petrochemical complex is envisaged as Joint Venture where the JV partner's technology and marketing expertise will be used.
BPCL has already signed an MoU with Petrochemical major M/s LG Chem, South Korea. The estimated investment on this Petrochemical JV is estimated to be in the range of Rs 5000-Rs 6000 crore and the complex is expected to be on stream in tandem with the above expansion project.
This investment totalling to about Rs 20,000 crore is the single largest investment in Kerala, which can generate ample employment.PTI UD BN HKS
Source Press Trust of India
Kochi,Jan 5 (PTI) Prime Minister Manmohan Singh will on January 7 lay the foundation stone for the Rs 14,225 crore BPCL-Kochi Refinery's Integrated Refinery Expansion project, near here, which aims to meet the country growing energy needs and make auto fuels more environment friendly.
The foundation stone will be laid at the Kochi-BPCL Refinery complex at nearby Ambalamugal.
Governor H R Bhardwaj, Chief Minister Oommen Chandy, Union ministers-- M Veerapa Moily, Vayalar Ravi, K V Thomas and Lakshmi Panabaaka will be among those present.
The project envisages increasing the refining capacity of the Kochi refinery from the present 9.5 MMTPA to 15.5 MMTPA, modernising of refinery to produce auto fuels complying with Euro IV/ Euro V specifications, upgradation of low value refinery residue stream to value added products, refinery sources said.
The refinery presently produces Euro-III/IV compliant auto-fuels and various other petroleum products. From the initial capacity of 2.5 Million Metric Tonnes Per Annum (MMTPA), it has progressively grown to its present level of 9.5 MMTPA, refinery sources said.
Kerala Government has signed an MoU with BPCL during the Emerging Kerala Investors Meet for implementation of the project, which is scheduled to be completed by December 2015.
One of the major initiatives identified by BPCL is to utilize the propylene to make petrochemical products like Acrylate and Super absorbent Polymer which are predominantly imported into the country today.
This propylene based petrochemical complex is envisaged as Joint Venture where the JV partner's technology and marketing expertise will be used.
BPCL has already signed an MoU with Petrochemical major M/s LG Chem, South Korea. The estimated investment on this Petrochemical JV is estimated to be in the range of Rs 5000-Rs 6000 crore and the complex is expected to be on stream in tandem with the above expansion project.
This investment totalling to about Rs 20,000 crore is the single largest investment in Kerala, which can generate ample employment.PTI UD BN HKS
Source Press Trust of India
Released on 04/01/13
German firm BASF officially opened in Dec 2012 a new dispersions
plant within Daya Bay Petrochemical Industrial Park in Huizhou, China. The
firm will manufacture styrene butadiene dispersions, mainly used as coating
binders for paper, and styrene acrylic dispersions, used in paint and
coatings, printing and packaging, construction materials and adhesives, at
the new facility. Original Source: European Paint and Resin News,
Source PRA
German firm BASF officially opened in Dec 2012 a new dispersions
plant within Daya Bay Petrochemical Industrial Park in Huizhou, China. The
firm will manufacture styrene butadiene dispersions, mainly used as coating
binders for paper, and styrene acrylic dispersions, used in paint and
coatings, printing and packaging, construction materials and adhesives, at
the new facility. Original Source: European Paint and Resin News,
Source PRA
Released on 05/01/13
US butadiene (BD) sources are emphasising that when downstream styrene butadiene rubber (SBR) producers begin ordering more than contractual minimums, they will begin to see the US BD market regain strength.
The SBR industry is a major consumer of BD, with about 75% of the chemical composition of SBR coming from BD.
Tyres are the major end-product of SBR, accounting for 75-80% of its use.
When the tyre market sees weak demand, so do the SBR and BD markets.
BD is not solely tied to the tyre industry, however. BD sources continually point to the tyre market as being key for their success in moving material.
Other downstream markets for BD include acrylonitrile-butadiene-styrene (ABS); adiponitrile (ADN), which is used to produce nylon 6,6; and butadiene rubber (BR).
The ABS market has not seen the same severe downturn in demand as SBR. In fact, the automotive industry has helped the ABS suppliers and buyers enjoy one of their best years in a while.
About 25-30% of ABS use is in the automotive sector.
Unfortunately, BD is a small component of the ABS material, about 5-30%, but typically around 20%. Styrene is the largest component of ABS.
The automotive sector also helped the nylon market have a better-than-expected year.
Despite those highlights for the BD market, it continues to be a waiting game that has been taking place for much of the second half of 2012.
It is taking its toll on those in the BD market involved in the industry’s largest downstream sector.
The wait is not over, but it could be in the first half of 2013, sources believe.
Those involved would prefer the wait was a short one, however several market sources believe it will be the second quarter before market conditions improve.
US BD contract prices have fallen by 29% from the June contract price of $1.07/lb ($2,359/tonne, €1,769/tonne) and by 50% since the peak of 2012 contract prices, $1.52/lb, in April.
The US BD markethas seen demand dwindle throughout the second half of 2012. At the same time, contract prices fell below $1.00/lb and have stayed below that level, moving from $1.07/lb in June to 90 cents/lb in July, 83 cents/lb in September and76 cents/lb for December.
While BD buyers have welcomed the lower contract prices, they have little room for material as their downstream users have no need for it.
Producers are hoping contract prices do not go lower, as they say margins have eroded.
At the same time, buyers say producers must remain competitive with their pricing or face an influx of lower-priced material from abroad, which would be even more devastating for US producers.
Several BD and SBR sources agree that the following action plan must take place before those in the BD market will be able to reap the benefits of a resurgent SBR market..
On a regional basis, those measures include the need to determine a decisive direction for the US economy.
Until the public returns to the tyre stores for replacements, manufacturers, and therefore SBR producers and BD producers, will continue to suffer from weak sales.
When flat sales projections are based on low sales for the previous year, that does not bode well for the industries involved.
Another aid to tyre sales will be a drop of the unemployment rates, but only if it reflects people gaining employment, not leaving the lists because they have been unemployed for more than six months or because they have stopped looking for work.
Tied to this is consumer confidence. Without its return, the US driving public will continue to minimise its need to drive, and therefore the replacement of tyres will be delayed.
Source ICIS News
US butadiene (BD) sources are emphasising that when downstream styrene butadiene rubber (SBR) producers begin ordering more than contractual minimums, they will begin to see the US BD market regain strength.
The SBR industry is a major consumer of BD, with about 75% of the chemical composition of SBR coming from BD.
Tyres are the major end-product of SBR, accounting for 75-80% of its use.
When the tyre market sees weak demand, so do the SBR and BD markets.
BD is not solely tied to the tyre industry, however. BD sources continually point to the tyre market as being key for their success in moving material.
Other downstream markets for BD include acrylonitrile-butadiene-styrene (ABS); adiponitrile (ADN), which is used to produce nylon 6,6; and butadiene rubber (BR).
The ABS market has not seen the same severe downturn in demand as SBR. In fact, the automotive industry has helped the ABS suppliers and buyers enjoy one of their best years in a while.
About 25-30% of ABS use is in the automotive sector.
Unfortunately, BD is a small component of the ABS material, about 5-30%, but typically around 20%. Styrene is the largest component of ABS.
The automotive sector also helped the nylon market have a better-than-expected year.
Despite those highlights for the BD market, it continues to be a waiting game that has been taking place for much of the second half of 2012.
It is taking its toll on those in the BD market involved in the industry’s largest downstream sector.
The wait is not over, but it could be in the first half of 2013, sources believe.
Those involved would prefer the wait was a short one, however several market sources believe it will be the second quarter before market conditions improve.
US BD contract prices have fallen by 29% from the June contract price of $1.07/lb ($2,359/tonne, €1,769/tonne) and by 50% since the peak of 2012 contract prices, $1.52/lb, in April.
The US BD markethas seen demand dwindle throughout the second half of 2012. At the same time, contract prices fell below $1.00/lb and have stayed below that level, moving from $1.07/lb in June to 90 cents/lb in July, 83 cents/lb in September and76 cents/lb for December.
While BD buyers have welcomed the lower contract prices, they have little room for material as their downstream users have no need for it.
Producers are hoping contract prices do not go lower, as they say margins have eroded.
At the same time, buyers say producers must remain competitive with their pricing or face an influx of lower-priced material from abroad, which would be even more devastating for US producers.
Several BD and SBR sources agree that the following action plan must take place before those in the BD market will be able to reap the benefits of a resurgent SBR market..
On a regional basis, those measures include the need to determine a decisive direction for the US economy.
Until the public returns to the tyre stores for replacements, manufacturers, and therefore SBR producers and BD producers, will continue to suffer from weak sales.
When flat sales projections are based on low sales for the previous year, that does not bode well for the industries involved.
Another aid to tyre sales will be a drop of the unemployment rates, but only if it reflects people gaining employment, not leaving the lists because they have been unemployed for more than six months or because they have stopped looking for work.
Tied to this is consumer confidence. Without its return, the US driving public will continue to minimise its need to drive, and therefore the replacement of tyres will be delayed.
Source ICIS News
Released on 04/01/13
Iran has opened a new petrochemical plant in the western province of Kermanshah.
The Kermanshah Polymer Petrochemical Plant has an annual production capacity of 300,000t of heavy polyethylene. It will employ nearly 1,500 people and is also expected to market nearly $429m petrochemical products annually.
As well as the Kermanshah plant, Iran has also launched two other petrochemical projects, which include Kavian Petrochemical Complex and the West Ethylene Pipeline in Assaluyeh, both located in the onshore installations of the South Pars Gas Field, Persian Gulf.
Kavian Petrochemical Complex, with a capacity of 2.18 million tonnes per annum for petrochemical production, is the main source of ethylene for the West Ethylene Pipeline.
Iran has expanded the range and volume of its petrochemical products over the past few years, reports presstv.com.
Source Chemicals Technology
Iran has opened a new petrochemical plant in the western province of Kermanshah.
The Kermanshah Polymer Petrochemical Plant has an annual production capacity of 300,000t of heavy polyethylene. It will employ nearly 1,500 people and is also expected to market nearly $429m petrochemical products annually.
As well as the Kermanshah plant, Iran has also launched two other petrochemical projects, which include Kavian Petrochemical Complex and the West Ethylene Pipeline in Assaluyeh, both located in the onshore installations of the South Pars Gas Field, Persian Gulf.
Kavian Petrochemical Complex, with a capacity of 2.18 million tonnes per annum for petrochemical production, is the main source of ethylene for the West Ethylene Pipeline.
Iran has expanded the range and volume of its petrochemical products over the past few years, reports presstv.com.
Source Chemicals Technology
Released on 24/12/12
After decades of rapidly growing global agricultural output, production of four of the world's most important crops could be stagnating or even slowing in some regions, according to a new study published in Nature, a top scientific journal. The study, by the University of Minnesota's Deepak Ray and four others, examined millions of census reports from the last half century to gather their data.
The authors are careful to point out that crop production is still increasing in parts of the world; it is by no means a categorical decline. The report's abstract reads summarizes, "Although yields continue to increase in many areas, we find that across 24 39% of maize-, rice-, wheat- and soybean-growing areas, yields either never improve, stagnate or collapse." That's about a quarter to a third of global production of four of our most important crops.
This is potentially a very big deal. World populations are still growing. So is the global middle class, members of which tend to consume more meat and dairy per person, which means more crops per person. That's been happening for a while, and it's been fine as long as food production has kept pace. But the pace of crop production growth appears to be slowing in some really important regions, particularly in parts of India and China and, yes, the U.S.
How did this happen? Study co-author Jonathan Foley, talking to Science Daily, suggests one possible explanation. "This finding is particularly troubling because it suggests that we have preferentially focused our crop improvement efforts on feeding animals and cars, as we have largely ignored investments in wheat and rice, crops that feed people and are the basis of food security in much of the world," he said. Yikes.
What do the data show us? The authors kindly shared some charts and maps illustrating their data. As Ray told Science Daily, it "both sounds the alert for where we must shift our course if we are to feed a growing population in the decades to come, and points to positive examples to emulate."
Here, first, is what the data look like for changes in wheat production. The green indicates rising production (and, again, keep in mind that some growth is necessary to keep pace with population increases), orange for stagnating production, and red for a decrease. You'll notice lots of orange (as well as some green splotches) in Asia.
Here are similar maps for rice and soybeans. The map for maize (corn) appears at the top of the page. Again, look closely at quick-growing Asia, where you'll see both good and bad news, although ideally they would be all green:
And here are some sample findings from the study's data, showing what it looks when a crop stagnates growth, collapses, never improved, or is still growing. Take a look at the sample locations places like Argentina and Morocco are in there, but so are Arkansas, Texas, and Minnesota and you'll remember that sustainable crop production really is a global problem.
America's population might not be growing as quickly as India's or China's, but it is growing, and its consumption habits tend to require more crops per person. That's because we need crops not just to feed ourselves but to fuel our cars and to support our enormous demand for meat and dairy, which require substantial crop outputs. As Asian societies become not just larger but increasingly wealthy, the stress on the world's food supply is expected to increase. If crops are to keep pace, we'll need more of the world following the examples of places like Big Stone County, Minnesota, which has seen consistent growth in wheat production.
People have been predicting a Malthusian crisis, in which population growth outstrips the world's ability to feed and house everyone, for centuries. The predictions have all been wrong. Let's hope it stays that way.
Source Washington Post
After decades of rapidly growing global agricultural output, production of four of the world's most important crops could be stagnating or even slowing in some regions, according to a new study published in Nature, a top scientific journal. The study, by the University of Minnesota's Deepak Ray and four others, examined millions of census reports from the last half century to gather their data.
The authors are careful to point out that crop production is still increasing in parts of the world; it is by no means a categorical decline. The report's abstract reads summarizes, "Although yields continue to increase in many areas, we find that across 24 39% of maize-, rice-, wheat- and soybean-growing areas, yields either never improve, stagnate or collapse." That's about a quarter to a third of global production of four of our most important crops.
This is potentially a very big deal. World populations are still growing. So is the global middle class, members of which tend to consume more meat and dairy per person, which means more crops per person. That's been happening for a while, and it's been fine as long as food production has kept pace. But the pace of crop production growth appears to be slowing in some really important regions, particularly in parts of India and China and, yes, the U.S.
How did this happen? Study co-author Jonathan Foley, talking to Science Daily, suggests one possible explanation. "This finding is particularly troubling because it suggests that we have preferentially focused our crop improvement efforts on feeding animals and cars, as we have largely ignored investments in wheat and rice, crops that feed people and are the basis of food security in much of the world," he said. Yikes.
What do the data show us? The authors kindly shared some charts and maps illustrating their data. As Ray told Science Daily, it "both sounds the alert for where we must shift our course if we are to feed a growing population in the decades to come, and points to positive examples to emulate."
Here, first, is what the data look like for changes in wheat production. The green indicates rising production (and, again, keep in mind that some growth is necessary to keep pace with population increases), orange for stagnating production, and red for a decrease. You'll notice lots of orange (as well as some green splotches) in Asia.
Here are similar maps for rice and soybeans. The map for maize (corn) appears at the top of the page. Again, look closely at quick-growing Asia, where you'll see both good and bad news, although ideally they would be all green:
And here are some sample findings from the study's data, showing what it looks when a crop stagnates growth, collapses, never improved, or is still growing. Take a look at the sample locations places like Argentina and Morocco are in there, but so are Arkansas, Texas, and Minnesota and you'll remember that sustainable crop production really is a global problem.
America's population might not be growing as quickly as India's or China's, but it is growing, and its consumption habits tend to require more crops per person. That's because we need crops not just to feed ourselves but to fuel our cars and to support our enormous demand for meat and dairy, which require substantial crop outputs. As Asian societies become not just larger but increasingly wealthy, the stress on the world's food supply is expected to increase. If crops are to keep pace, we'll need more of the world following the examples of places like Big Stone County, Minnesota, which has seen consistent growth in wheat production.
People have been predicting a Malthusian crisis, in which population growth outstrips the world's ability to feed and house everyone, for centuries. The predictions have all been wrong. Let's hope it stays that way.
Source Washington Post
Released on 04/01/13
China’s Sinopec Maoming Company plans to bring on stream its new 100,000 tonne/year butadiene rubber (BR) plant at Maoming of Guangdong province after February, a company source said on Friday.
The company completed the construction of BR unit on 27 December 2012, the source said but did not give a reason of why the plant’s start-up has been delayed.
The company started building the plant in September 2011, the source added.
The company delayed its start-up date likely due to the coming Chinese Lunar New Year holidays (9-15 February), a market source said.
Source ICIS News
China’s Sinopec Maoming Company plans to bring on stream its new 100,000 tonne/year butadiene rubber (BR) plant at Maoming of Guangdong province after February, a company source said on Friday.
The company completed the construction of BR unit on 27 December 2012, the source said but did not give a reason of why the plant’s start-up has been delayed.
The company started building the plant in September 2011, the source added.
The company delayed its start-up date likely due to the coming Chinese Lunar New Year holidays (9-15 February), a market source said.
Source ICIS News
Released on 04/01/13
Taiwan’s Formosa Plastics Corp (FPC) intends to shut down its 98,000 tonne/year methyl methacrylate (MMA) plant starting from 5 January, a company source said on Friday.
The acetone cyanohydrin-based MMA plant is scheduled to remain off line for nearly a month and is expected to restart around end January, the source added.
MA is used in the production of PMMA, artificial marble, cast sheets and acrylic resins for coatings and emulsions.
Source ICIS News
Taiwan’s Formosa Plastics Corp (FPC) intends to shut down its 98,000 tonne/year methyl methacrylate (MMA) plant starting from 5 January, a company source said on Friday.
The acetone cyanohydrin-based MMA plant is scheduled to remain off line for nearly a month and is expected to restart around end January, the source added.
MA is used in the production of PMMA, artificial marble, cast sheets and acrylic resins for coatings and emulsions.
Source ICIS News
Released on 03/01/13
The 2013 price outlook for polystyrene (PS) in the Middle East is bearish because feedstock styrene monomer (SM) costs are expected to remain high and affect the downstream demand, said producers.
SM prices, which rose to highs of above $1,710/tonne (€1,299/tonne) CFR (cost & freight) China in December 2012, are forecast to remain firm in the coming year, owing to high upstream benzene costs, according to market sources.
PS prices rose in tandem with feedstock costs, with general-purpose PS (GPPS) prices rising by $10-45/tonne week on week in the Middle East and south Asian markets, ICIS data showed on 21 December.
“2013 is likely to be a gloomy year [for PS], overshadowed by high SM prices,” said a northeast Asian producer and exporter of PS.
The demand for PS is likely to remain largely stable over the year, but high PS prices, as a consequence of rising SM costs, are expected to deter end-users from making bulk purchases.
In the Middle East, demand for PS from the downstream food and beverage packaging sector traditionally picks up in January, after the winter season.
However, many producers are uncertain about the extent of the recovery in demand in 2013 since they plan to raise their PS offers in response to the higher monomer costs.
The region, which sources the bulk of its PS requirements from Asia, showed much resistance to the higher offers in October-December 2012.
“It is difficult to absorb higher prices, because prices in the downstream markets have not risen at a similar pace, and it has become very difficult to pass on the price increase to end-customers in competitive markets,” added a regional PS importer.
Producers expect the buyer resistance to continue in 2013 because they are looking to hike their offers further to improve their margins, which are currently in negative territory.
PS producers’ offers for general purpose PS (GPPS) were at $1,875-1,925/tonne CFR Middle East and high-impact PS (HIPS) offers were at $1,950-2,000/tonne CFR Middle East on 21 December, according to ICIS data.
These offers were on par or below producers’ manufacturing cost of the polymer, as feedstock SM prices were hovering at above $1,700/tonne CFR China in December, according to market participants.
A conversion cost of about $100/tonne is involved in the manufacture of GPPS from PS. The manufacture of HIPS involves an additional cost of $150-200/tonne over that of GPPS.
Adding to that is the freight element, which varies between $70/tonne and $90/tonne, depending on the region that the cargo is scheduled for.
Demand in the Middle East is thus largely expected to be for covering the immediate needs of buyers, who are unlikely to hold significant volumes in their inventories.
($1 = €0.76)
Source ICIS News
The 2013 price outlook for polystyrene (PS) in the Middle East is bearish because feedstock styrene monomer (SM) costs are expected to remain high and affect the downstream demand, said producers.
SM prices, which rose to highs of above $1,710/tonne (€1,299/tonne) CFR (cost & freight) China in December 2012, are forecast to remain firm in the coming year, owing to high upstream benzene costs, according to market sources.
PS prices rose in tandem with feedstock costs, with general-purpose PS (GPPS) prices rising by $10-45/tonne week on week in the Middle East and south Asian markets, ICIS data showed on 21 December.
“2013 is likely to be a gloomy year [for PS], overshadowed by high SM prices,” said a northeast Asian producer and exporter of PS.
The demand for PS is likely to remain largely stable over the year, but high PS prices, as a consequence of rising SM costs, are expected to deter end-users from making bulk purchases.
In the Middle East, demand for PS from the downstream food and beverage packaging sector traditionally picks up in January, after the winter season.
However, many producers are uncertain about the extent of the recovery in demand in 2013 since they plan to raise their PS offers in response to the higher monomer costs.
The region, which sources the bulk of its PS requirements from Asia, showed much resistance to the higher offers in October-December 2012.
“It is difficult to absorb higher prices, because prices in the downstream markets have not risen at a similar pace, and it has become very difficult to pass on the price increase to end-customers in competitive markets,” added a regional PS importer.
Producers expect the buyer resistance to continue in 2013 because they are looking to hike their offers further to improve their margins, which are currently in negative territory.
PS producers’ offers for general purpose PS (GPPS) were at $1,875-1,925/tonne CFR Middle East and high-impact PS (HIPS) offers were at $1,950-2,000/tonne CFR Middle East on 21 December, according to ICIS data.
These offers were on par or below producers’ manufacturing cost of the polymer, as feedstock SM prices were hovering at above $1,700/tonne CFR China in December, according to market participants.
A conversion cost of about $100/tonne is involved in the manufacture of GPPS from PS. The manufacture of HIPS involves an additional cost of $150-200/tonne over that of GPPS.
Adding to that is the freight element, which varies between $70/tonne and $90/tonne, depending on the region that the cargo is scheduled for.
Demand in the Middle East is thus largely expected to be for covering the immediate needs of buyers, who are unlikely to hold significant volumes in their inventories.
($1 = €0.76)
Source ICIS News
Released on 02/01/2013
Dow Chemical tells CW in a statement that it is postponing the second phase of its Santa Vitória, Brazil, biobased polyethylene (PE) project with Mitsui & Co.
Dow and Mitsui said that they would form a 50-50 joint venture to build and co-own a 240,000-m.t./year ethanol plant at Dow's existing sugarcane operation at Santa Vitória. A separate memorandum of understanding stipulated how Dow and Mitsui would expand the sugarcane and ethanol venture to include additional mill capacity, and ethylene and PE production units.
"The decision to delay the second phase of the joint venture is driven primarily by an escalation in costs to design, construct, and operate the facility, as well as uncertainties around land ownership legislation in Brazil," Dow says. "The decision to delay phase two contributes to Dow’s action plan of scaling back growth in pursuit of long-term strategy and near-term earnings targets." The company adds that it expects to capture growth in the Americas through its previously announced US Gulf Coast investments, "which will take advantage of increasing supplies of US shale gas to manufacture high-performance materials for the high-performance packaging, electrical and telecommunications, elastomers, and hygiene and medical markets."
Financial terms of the project were never disclosed, although at the time Dow said the project would be its largest investment in Brazil. The company did not include a revised timeline. The jv with Mitsui is Dow's second attempt at building a world-scale PE plant based on sugarcane ethanol in Brazil. Dow first linked with local ethanol producer Crystalsev in 2007 to build a $1-billion 350,000 m.t./year linear low-density PE plant at Santa Vitória, after the economic downturn caused Crystalsev’s shareholders to divest the business in 2009.
Source Chemical Week
Dow Chemical tells CW in a statement that it is postponing the second phase of its Santa Vitória, Brazil, biobased polyethylene (PE) project with Mitsui & Co.
Dow and Mitsui said that they would form a 50-50 joint venture to build and co-own a 240,000-m.t./year ethanol plant at Dow's existing sugarcane operation at Santa Vitória. A separate memorandum of understanding stipulated how Dow and Mitsui would expand the sugarcane and ethanol venture to include additional mill capacity, and ethylene and PE production units.
"The decision to delay the second phase of the joint venture is driven primarily by an escalation in costs to design, construct, and operate the facility, as well as uncertainties around land ownership legislation in Brazil," Dow says. "The decision to delay phase two contributes to Dow’s action plan of scaling back growth in pursuit of long-term strategy and near-term earnings targets." The company adds that it expects to capture growth in the Americas through its previously announced US Gulf Coast investments, "which will take advantage of increasing supplies of US shale gas to manufacture high-performance materials for the high-performance packaging, electrical and telecommunications, elastomers, and hygiene and medical markets."
Financial terms of the project were never disclosed, although at the time Dow said the project would be its largest investment in Brazil. The company did not include a revised timeline. The jv with Mitsui is Dow's second attempt at building a world-scale PE plant based on sugarcane ethanol in Brazil. Dow first linked with local ethanol producer Crystalsev in 2007 to build a $1-billion 350,000 m.t./year linear low-density PE plant at Santa Vitória, after the economic downturn caused Crystalsev’s shareholders to divest the business in 2009.
Source Chemical Week
Released on 27/12/12
PERSONAL NOTE According to BIOMASS MAGAZINE, [...] process allows Cobalt to produce butadiene using the 1-butene pathway from n-butanol as the starting point. [...]
SABIC said late on Wednesday that it has signed an agreement with Saudi Kayan Petrochemical Co (Saudi Kayan) and Sadara Chemical Co (Sadara) to build a new butanol plant in Saudi Arabia.
The butanol plant will be located at Tasnee Petrochemicals Complex in Jubail Industrial City and be operated by Tasnee, SABIC said in a statement.
The plant, which will cost around Saudi riyal (SR) 1.94bn ($517m), is scheduled to come on stream in the first quarter of 2015, SABIC added.
The facility will be designed to produce 330,000 tonnes/year of n-butanol and 11,000 tonnes/year of iso-butanol, the Saudi Arabian company said.
SABIC, Saudi Kayan and Sadara will have an equal stake in the butanol plant’s output, which will be used for downstream application or for sales in local and overseas markets.
SABIC added that it will be marketing Saudi Kayan’s share of the butanol plant’s output.
“The butanol project will strongly support the coatings value chain in the Kingdom,” said Mutlaq Al-Morished, Saudi Kayan’s chairman and SABIC’s executive vice-president of corporate finance.
“Potential investors can build on the normal-butanol and its derivates produced by the new joint-venture partners, and introduce a wide range of coating products for the local, regional and global markets,” he added.
The new plant will be the first butanol production facility in the Middle East and the largest in the world, according to SABIC.
Under the joint-venture agreement, the three companies will also establish a new firm called Saudi Butanol Co.
Source ICIS News
PERSONAL NOTE According to BIOMASS MAGAZINE, [...] process allows Cobalt to produce butadiene using the 1-butene pathway from n-butanol as the starting point. [...]
SABIC said late on Wednesday that it has signed an agreement with Saudi Kayan Petrochemical Co (Saudi Kayan) and Sadara Chemical Co (Sadara) to build a new butanol plant in Saudi Arabia.
The butanol plant will be located at Tasnee Petrochemicals Complex in Jubail Industrial City and be operated by Tasnee, SABIC said in a statement.
The plant, which will cost around Saudi riyal (SR) 1.94bn ($517m), is scheduled to come on stream in the first quarter of 2015, SABIC added.
The facility will be designed to produce 330,000 tonnes/year of n-butanol and 11,000 tonnes/year of iso-butanol, the Saudi Arabian company said.
SABIC, Saudi Kayan and Sadara will have an equal stake in the butanol plant’s output, which will be used for downstream application or for sales in local and overseas markets.
SABIC added that it will be marketing Saudi Kayan’s share of the butanol plant’s output.
“The butanol project will strongly support the coatings value chain in the Kingdom,” said Mutlaq Al-Morished, Saudi Kayan’s chairman and SABIC’s executive vice-president of corporate finance.
“Potential investors can build on the normal-butanol and its derivates produced by the new joint-venture partners, and introduce a wide range of coating products for the local, regional and global markets,” he added.
The new plant will be the first butanol production facility in the Middle East and the largest in the world, according to SABIC.
Under the joint-venture agreement, the three companies will also establish a new firm called Saudi Butanol Co.
Source ICIS News