Date: 2014 June 30
FMC announced today it is cutting its second-quarter and full-year earnings guidances, to 95 cts–$1.05/share and $4.10–4.30/share, respectively. The decreases are about 9.1% for the second-quarter guidance and about 5.6% for the full-year guidance. The cuts are due to persistent weakness in the company’s agricultural solutions segment, which is now expected to increase revenue and earnings increases by “mid-single digits,” the company says.
The ag weakness is mostly due to cold weather in North America and drought conditions in Brazil. The cold weather in North America hurt first-quarter results, but FMC said at that time that it expected a the second quarter bounce back to make up the difference. However, the cold weather persisted into the second quarter, and the subsequent improvement in sales did not match management’s expectations. Sales of soybean preemergent herbicides rose as expected, FMC says, but sales of other products, particularly corn insecticides, continued to lag.
In Brazil, FMC’s ag segment was hit by a drought in São Paulo state, which cut into sales to sugarcane customers. The drought has unexpectedly continued into the second quarter, leading growers to use less of crop protection products. FMC does not expect conditions to improve in sugarcane farming for the year. Sugarcane is 11% of the segment’s sales, according to Laurence Alexander, an analyst with Jefferies (New York).
FMC still expects results for the health and nutrition and minerals segments to be in line with expectations, however. Growth in health and nutrition is expected to be driven by higher volumes for texture and stability and natural color and binder products, the company says. For minerals, higher volumes in lithium and soda ash, along with higher prices in soda ash, are expected to drive growth. The minerals business will be spun off into a separate entity sometime around the end of 2014.
Wall Street analysts have generally cut earnings and price targets for FMC and notes that investors were watching the company after the weather-driven weak results in the first quarter. “The weakness in what is viewed as their core growth franchise will likely increase near-term volatility, at least until there is better visibility on the bridge to 2015 earnings,” Alexander says.
Source: IHS Chemical week
DATE : 2014-06-27
Lucite International restarted its 100,000 tonne/year methyl methacrylate (MMA) plant in Shanghai earlier in the week, a source close to the company said on Friday.
The plant was taken off line more than a week ago because of a mechanical issue.
The company also operates a 130,000 tonne/year MMA plant in Singapore.
Lucite International is a subsidiary of Japanese producer Mitsubishi Rayon Co (MRC), which is one of the largest MMA producers in Asia.
SOURCE Icis News
DATE : 2014-06-27
Thai MMA has restarted operation its No 2 methyl methacrylate (MMA) line in Map Ta Phut earlier in the week, a company source said Friday.
The plant was taken off line unexpectedly on 20 May following an outage at its 90,000 tonne/year MMA line at the facility.
Thai MMA has another MMA line at the site, with a nameplate capacity of 90,000 tonne/year line. The line is running as per normal at the moment.
The company is a joint venture between Japan's Mitsubishi Rayon Corp (MRC) and Thailand's Siam Cement Group.
SOURCE Icis News
DATE : 2014-06-26
A joint venture between Saudi Basic Industries Corp. (2010.SA) and Mitsubishi Rayon will build two petrochemical plants in the kingdom at a cost of 4.5 billion riyals ($1.2 billion), the Saudi petchem giant said Thursday.
The joint venture has signed a contract with Taiwan's CTCI Corp. (9933.TW) to build the plants at Jubail Industrial City in Saudi Arabia's eastern province, Sabic said in a statement posted on the Saudi bourse website Thursday.
One of the plants will produce 250,000 metric tons of Methyl Methacrylate Monomer annually, while the other will produce 40,000 tons of Poly Methyl Methacrylate a year.
The company said: "the process of preparing the fundamental engineering designs and concluding the procurement agreements took longer than scheduled" but construction has begun and should be completed in the first quarter of 2017. Commercial operations are scheduled to begin later in that year.
The project will be financed by partners and banks, the statement said.
SOURCE Dow Jones Newswires
DATE : 2014-06-26
The Egyptian Ethylene and Derivatives Company (ETHYDCO) expects its 460,000 tonnes a year ethane-based cracker and butadiene (BD) extraction unit to come onstream in the fourth quarter of next year, according to Ihab Yabia, ETHYDCO's Head of Marketing.
The cracker and 20,000 tonnes/year BD unit will be based at El Amreya, near Alexandria.
Speaking at the 1st ICIS Asian Butadiene and Derivatives conference, the BD produced is eventually intended to feed the 36,000 tonnes/year downstream BD rubber and styrene butadiene rubber (SBR) units - the start up of these units has been deferred by 3-5 years.
SOURCE Icis News
DATE : 2014-06-20
South Korea’s Daesan MMA (DMMA) restarted its 90,000 tonne/year methyl methacrylate (MMA) plant in Daesan earlier in the week, a source close to the company said on Friday.
The plant was taken offline on 15 May for a planned maintenance.
DMMA has a separate MMA plant in Yeosu with a nameplate capacity of 98,000 tonne/year.
The company is a joint venture between Japan’s Mitsubishi Rayon Co (MRC) and South Korea’s Honam Petrochemical.
SOURCE Icis News
DATE :2014-06-20
Sinopec Zhenhai Refining & Chemical has delayed the restart of a steam cracker.
A Polymerupdate source in China informed that the restart of the cracker has been postponed to next week. The plant was initially scheduled to restart on June 18, 2014.The plant was shut in mid-May 2014 for maintenance turnaround.
Located in Zhenhai, Zhejiang province of China, the cracker has an ethylene capacity of 1 million mt/year, propylene capacity of 550,000 mt/year and butadiene capacity of 180,000 mt/year.
SOURCE Icis News
DATE : 2014-06-21
Butadiene (BD) is used primarily as a chemical intermediate and polymer component in the manufacture of synthetic rubber.
It is a major raw material for styrene butadiene rubber (SBR) and polybutadiene rubber (PBR).
SBR is the largest consumer of BD followed by PBR.
SBR and PBR are major raw materials used in the production of tyres for the automotive industry.
The next largest consumers of BD are styrene butadiene latex (SBL) and acrylonitrile butadiene styrene (ABS) resins. It is also used to make adiponitrile (ADN) for nylon 6,6 production.
SUPPLY/DEMAND
Supply may be balanced in the near term as several major South Korean and Taiwanese BD producers have switched to using more liquefied petroleum gas (LPG) partially as a feedstock, given the higher naphtha costs. Using more LPG will yield less BD.
Demand is also expected to pick up in the near term as new downstream SBR plants have either started up or are expected to start up in China and India.
China’s Zhejian Weitai Rubber has started up its new 100,000 tonne/year SBR plant in Zhejiang province in the second quarter of this year while Indian conglomerate, Reliance Industries (RIL) is scheduled to start up its new 150,000 tonne/year SBR plant in Hazira in the third quarter.
PRICES
Asia BD prices may still have room to climb in the near term because of strong demand and limited spot availability.
However, the upward price momentum of BD may be capped by the soft natural rubber (NR) prices amid a supply glut.
NR and the downstream SBR and PBR are substitute raw materials in the production of tyres and their price movements tend to influence each other.
Additional BD capacities coming onstream in China this year are also expected to cap any significant price increase in BD.
China’s Shanghai SECCO Petrochemical is expected to start up a new 90,000 tonne/year BD unit in Shanghai in July while Fujian Refining &Petrochemicals (FREP) has started commercial production of its new 60,000 tonne/year BD unit in Quanzhou, Fujian province in the second quarter.
TECHNOLOGY
BD is produced as a by-product of the same steam cracking process used to produce ethylene and other olefins.
Traditionally, BD has been made from heavier feedstocks such as naphtha as it results in greater yield.
But with the abundance of lighter feedstocks, more BD may be made from ethane, despite the lower yield.
On-purpose BD plants, which makes BD by dehydrogenating normal butane, are also in the pipeline in Asia. China’s Shandong Wanda Chemical is expected to start up its new on-purpose 150,000 tonne/year BD unit at Dongying in Shandong province in the third quarter of this year.
OUTLOOK
Asia market players are confident that BD prices will continue to remain firm in the near term at around $1,350-1,400/tonne CFR NE Asia in view of the strong demand for June and July shipments.
If the downstream SBR and PBR prices continue to move upwards, there will be buyers’ support for BD prices rising to above $1,400/tonne CFR NE Asia.
However, the downstream SBR and PBR producers are adopting a cautious stance because of the NR glut which may weigh down demand for SBR and PBR and put a cap on the synthetic rubber price increases. The uncertain market outlook for Thailand and Indonesia, both key production centres for major automotive makers in Southeast Asia, is also expected to dampen buying sentiment for synthetic rubber.
In view of the relatively subdued automotive industry in Asia, it may be difficult for the BD price to continue to trend up for the rest of the year because the major downstream SBR and PBR producers will resist any significant BD price hikes – which will erode their margins.
SOURCE Icis News
DATE : 2014-06-19
Janssen Pharmaceuticals, Inc. (Janssen) announced today that it has entered into an exclusive license agreement with Vertex Pharmaceuticals for the worldwide development, manufacturing and commercialization of VX-787, a novel medicine in Phase II development for the treatment of influenza A.
VX-787 is an investigational medicine designed to directly inhibit replication of the influenza A virus, including recent H1 (pandemic) and H5 (avian) influenza strains, based on in-vitro data. Influenza is an acute viral infection that spreads easily through respiratory droplets produced when an infected person coughs or sneezes, or through contaminated hands and surfaces.[1] Universally, resistance has emerged to existing antivirals for influenza and, through the development of VX-787, Janssen hopes to provide an additional treatment option for patients.
"Influenza infection remains one of the most serious public health challenges globally. In addition to the burden of seasonal influenza, the pandemics of the 20th and 21st centuries exemplify the threat the influenza A virus presents," says Johan Van Hoof, Global TA Head Infectious Diseases and Vaccines, Managing Director, Crucell. "This agreement builds on Janssen's legacy of innovation and partnership, and we are proud to collaborate with Vertex on this novel medicine. This treatment has the potential to address a significant unmet medical need and to improve the well-being of patients everywhere."
The license agreement also grants Janssen rights to develop, manufacture and commercialize VX-787's back-up compound, VX-353, as well as rights to develop, manufacture and commercialize certain other back-up compounds for the prevention and/or treatment of influenza. The agreement is subject to the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Vertex completed a Phase IIA study of VX-787 in 2013. The parties expect additional clinical trials to begin in the coming months.
About VX-787
VX-787 is a first-in-class, influenza A-specific, oral polymerase inhibitor. It is the first and most advanced example of a novel mode of action (MOA) direct acting antiviral working through the influenza virus PB2 polymerase subunit. Targeting an alternative part of the viral replication process may help ensure that this new medicine can successfully treat strains of the influenza virus which may be resistant to existing antiviral drugs with other MOAs.
VX-787 has demonstrated potent and rapid in-vitro antiviral activity on all Vertex tested influenza A strains to date, including oseltamivir (Tamiflu(R)) resistant strains.[2] Initial clinical assessments of VX-787 have also been promising. Phase I studies demonstrated the molecule was well tolerated in healthy volunteers providing a pharmacokinetic profile supportive of once daily dosing.[2] Vertex has also completed a Phase IIA challenge study that showed statistically significant improvements in viral and clinical measurements of influenza A infection and demonstrated clinical proof of concept.
SOURCE PRNewswire
DATE : 2014-06-19
China's Sinopec Zhenhai Refining & Chemical Corp (ZRCC) plans to restart its 165,000 tonne/year butadiene (BD) unit at Ningbo in Zhejiang province in early July following a 47-day turnaround, a company source said on Thursday.
The BD unit was taken off line on 16 May, the source added.
"ZRCC's BD unit may achieve on-spec production in early July," the source said.
SOURCE Icis News
DATE : 2014-06-18
Butadiene shortages loom as plastics manufacturers switch their feedstock to less expensive light feed. Estimates suggest it could be as little as 7% over the next decade if only North American industry shifts to gas feedstocks, or as much as 27% if Europe and Asia embrace the trend.
To recoup the shortage, petrochemical and engineering companies are partnering on-purpose production facilities.
In Europe, BASF and Linde have announced plans to pool their expertise, starting with a mini plant and pilot plant operation in Ludwigshafen. No date for commercialization has yet been given.
In another project, which the partners claim is more advanced, Honeywell is partnering with Houston, Texas-based TPC Group on an on-purpose commercial-scale butadiene plant due on stream in 2017 or 2018.
The US companies plan to have technology ready by year end and are already talking with potential licensees, Jim Rekoske, petrochemical global business director for Honeywell's UOP unit, said in an interview with the trade journal Hydrocarbon Processing. Demand could require as many as 20 to 30 plants worldwide, he said.
While ethane and naphtha both yield ethylene, ethane yields only about 14% of the butadiene that comes from naphtha processing. Ethane also yields less propylene and benzene.
Butadiene prices climbed to $1,499/t in April 2014 from $1,190/t in December 2013, according to Nexant data compiled by Bloomberg. The chemical's highest price was in recent years was to $3,858/t in August 20112, its lowest was $610 in June 2009.
SOURCE CHE Manager
DATE : 2014-06-18
BASF’s new 155,000 tonne/year butadiene (BD) extraction unit in Antwerp, Belgium, will start up in the third quarter this year, a company spokesman said on Wednesday.
“The butadiene project in Antwerp will be completed in time and is planned to start operation in Q3 2014,” the company spokesman said.
BASF already operates a 105,000 tonne/year BD unit in Mannheim, Germany.
BASF announced the project in July 2012 and at the time said the decision had been made in light of the increasingly tight supplies of butadiene on global markets.
The current BD market however is somewhat less than inviting – supply and demand are well balanced but at the same time the market is viewed as soft with limited structural improvement thought likely for the remainder of 2014.
The new BASF plant is one of a handful of BD projects announced for Europe.
In the fourth quarter of 2013, LyondellBasell expanded BD capacity at its extraction unit in Wesseling, Germany, by 40% to 238,000 tonnes/year. Evonik’s new 100,000 tonnes/year extraction unit also in Antwerp, is due to come onstream in the second quarter 2015.
SOURCE Icis News
DATE : 2014-06-18
BASF and Linde are to collaborate on the development of new production process for butadiene from butane via butenes. Butadiene is currently produced as a by-product of ethylene in steamcrackers using naptha feedstock. However, the increased importance of ethane as a feedstock, particularly in the US due to shale gas supplies is likely to put pressure on butadiene supplies. BASF will develop extraction technology with Linde contributing its expertise in optimization and marketing.
SOURCE Chimie Pharma Hebdo
DATE : 2014-06-17
On 11 Jun 2014, Mitsui Chemicals Agro, Inc and BASF announced the signing of an exclusive global development and license agreement for a new insecticide (MCAG's development code "MCI-8007"). Under the terms of the agreement, MCAG has granted BASF a worldwide, exclusive license to commercialize the new insecticide, except in Japan and some other countries where MCAG will hold the exclusive and/or co-exclusive rights. Intended use applications for the new insecticide include leafy vegetables, fruiting vegetables, soybeans and other legumes, cotton, corn and rice as
well as urban pest control settings. It will control many problematic insects, including caterpillars and beetles in specialty and row crops as well as termites, ants, cockroaches and flies in the professional pest management market. Both companies intend to develop unique formulations for specific markets and applications. Significant research over the next three years will continue, with the first registration submission in 2016 for Japan, with other markets following in 2017. The agreement remains subject to relevant governmental approvals. Additional details of the agreement were
not disclosed.
SOURCE Icis News
DATE : 2014-06-16
LG Chem will construct a joint venturebattery production plant in China to fulfill rising demand there. LG said in a statement, LG Chem is in the final stage ofchoosing a strategic partner toestablish a battery joint venture inChina . "We will unveil the exact location of theventure and other details later." LG refused to name the potentialChinese partner, however said it wouldmake an declaration soon. The plant will be LG Chem's third overseas battery plant. UnderPresident Kwon Young-soo, the company has a battery plant in Koreathat can produce 200,000 units a year, and a plant in Michigan in theU.S. LG Chem in addition has a factory in Nanjing, making small batteries forsmartphones and other mobile devices. Demand for lithium-ion batteries is expected to surge, with the marketprojected to grow to $26 billion annually by 2023.
The consistent and dependable performance of the rechargeable batteries more and more used in electric vehicles (EVs) partly lies in China's effortsto fight pollution and cut reliance on oil imports. Beijing intends to have up to 5 million EVs or plug-in hybrids across thecountry by 2020. Company spokesman Song Choong-sup said, "China leads the industry growth. LG Chem can't afford to lose thathuge market . "Bydirectly operating a new battery plant in China, we will be able to meetdemand from clients effectively." The company in addition said that it lately signed agreements with ShanghaiAutomobile and Industrial Corporation (SAIC) and Qoros to supply LG-manufactured batteries. SAIC is China's top automaker. Song would not give additional financial details or say which SAIC andQoros models would use LG batteries. He said, "We can confirm that SAIC"s plug-in hybrid EVs and Qoro's next-generation EVs will use LG batteries . The latest agreements take LG's battery clients to four, which makes itthe industry leader in China. " The top three Chinese carmakers have become LG clients," . "Those three LG clients collectively sold 10 million vehicles lastyear, accounting for 60 percent of the total. We are better positionedthan other battery suppliers for a greater share in the booming EVmarket in China." LG Chem said that it had secured global 20 carmakers from GeneralMotors, Hyundai-Kia to Ford and Volvo as clients, while rivals SamsungSDI and SK Innovation had four and three battery-selling clientsrespectively. LG Chem said that its batteries were guaranteed in terms of stability. Songstressed that the EV batteries had not caused any safety problems. Hyundai-Kia has sold 100,000 units of Sonata hybrid vehicles. Otherautomakers are selling more electricity-powered vehicles. In Asia, Nissan and Mitsubishi have also committed to using lithium-ionbatteries across.
SOURCE Al Bawaba.com