Blog

DATE: 2018-03-24

China’s central province of Hubei has listed a total of 144 chemical plants that will be relocated or re-engineered before 2025, a step toward its goal of keeping production of toxic chemicals away from densely-populated areas.

Small and middle-sized plants are required to compete the relocation/re-engineering before 2020, according to a document released by Hubei provincial government in late December 2017. (Please see the complete list below)

Some 28 producers are rejecting the option to move their operations into chemical parks, according to a local government official, adding that their plants are at risk of permanent closure.

China's central government in September last  year ordered all provinces to work out a detailed plan on relocating plants of dangerous chemicals away from cities.

Source Icis News

DATE: 2018-04-13 

The successful start-up of the Saudi Methacrylates (SAMAC) plant in Saudi Arabia, was the main focus of the European methyl methacrylate (MMA) market, one that has been plagued by tightness since mid-2016.

The news of the successful start-up of the plant in Saudi Arabia was welcomed by MMA buyers, many of whom questioned what the impact will be on the global supply and demand balance.

The SAMAC facility is a joint venture between Mitsubishi Chemical Corporation (MCC) and Sabic, with a 50/50 spilt of the capacity between the two producers.

MCC said in a press statement that the facility will be a strategic asset, with the ability to supply the Asian, European, Middle Eastern and African markets.

European players expect European product to be displaced from the Middle Eastern, Turkish and African markets because of this.

An increase of Saudi imports are also expected in Europe, but this is largely dependent on market conditions globally and netbacks in other regions.

“It will certainly take the pressure off Europe, the prices we have seen in the last 12 months have been a disaster in the coatings and adhesive industry,” said one MMA buyer.

However, although the new plant will boost the global supply and demand balance, the market is still expected to remain tight for the first half of the year.

This is largely linked to the series of ongoing turnarounds globally, notably a lengthy stoppage for Lucite International in the UK. The market at this time is well prepared for the stoppage, with Lucite building inventory, and traders and buyers ordering additional spot volumes in advance.

Spot prices remain stable in the week ending 6 April, with the market calm and prepared with the turnaround progresses as planned.

However, April remains a key month for MMA players, with the market waiting with bated breath for the restart of the Lucite Cassel plant.

Demand in April is expected to pick-up, after a disappointing March, linked to unseasonably cold weather. Supply and demand fundamentals continue to drive contract talks, with March contract prices settling in the week ending 6 April.

The March contract settled at a rollover, with prices remaining at an historical high. April and second-quarter contract talks are ongoing, with discussions in the early stages for both. March prices settled at €2,965-3,070/tonne FD northwest Europe, a rollover from February.

MMA is used in the manufacture of acrylic sheet, surface coatings, emulsion polymers and adhesives.

Source Icis News

DATE: 2018-04-04

Saudi Methacrylates (SAMAC), a joint venture between Mitsubishi Chemical Corporation (MCC) and Sabic, have started commercial operations of its methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) plants in Saudi Arabia, MCC announced in a press release on Wednesday.

The producer has completed performance tests and commenced commercial operations of both plants on 2 April 2018.

“SAMAC commenced test production and achieved in-specification production of both MMA monomer and PMMA last November, after which, first shipment of MMA to customers was made. It has been in the process of optimising operations since then,” the producer added.

The MMA plant has an annual capacity of 250,000 tonnes, using the Alpha technology, with ethylene as a feedstock.

The PMMA plant has a capacity of 40,000 tonne/year, with the joint venture agreement meaning a 50/50 split between the two chemical companies.

The news of the successful start-up of the plant has been eagerly awaited by global MMA and PMMA players, in a market that has been plagued with tightness since mid-2016.

“MCC will utilize SAMAC as a strategic supply base for markets in Asia, Europe, Middle East and Africa,” the producer added in the press release.

Material from the facility started to arrive in Europe in March, with product initially expected in late 2017.

There are currently a number of global turnarounds taking place, and a major overhaul for Lucite International at its Cassel, UK facility at its 200,000 tonne/year plant.

Lucite International are part of MCC, with the producer having a two-month maintenance stop in the UK from March- April.

Given the ongoing tightness in the market, steady growth in demand in line with GDP, and the number of current turnarounds, the successful start-up of the Saudi plant will be welcomed news to MMA buyers.

Source Icis News

DATE:2018-03-06

German specialty chemicals company Evonik Industries AG (EVK.DE) said Tuesday that its Board would evaluate all options for the future development of the methacrylates business. The options also include potential partnerships and complete divestment, the group noted.

Evonik said it is evaluating these options as part of its ongoing development of its portfolio and that it is concentrating on its four growth engines- health & care, smart materials, specialty additives, and animal nutrition.

The methacrylates business, which is part of the Performance Materials segment, is outside Evonik's defined growth areas, and comprises high-volume monomers such as MMA, various specialty monomers as well as the PLEXIGLAS brand of PMMA molding compounds and semi-finished products. These products are manufactured at various locations in Germany, North America and Asia.

In 2017, Evonik generated around 40 percent of the sales of the Performance Materials segment with its methacrylates business.

Source RTTNews

DATE: 2018-02-22

Arkema is shifting into acquisition mode following the completion of its three-year divestment programme, with around €1bn earmarked for investments over the next few years, the CEO of the France-based specialties company said on Thursday.

After completing its 2015-17 initiative to sell down €700m worth of operations as part of its ongoing rebalancing of geographic focus and a push to derive 80% of sales from specialties by 2023, the company is shifting into a programme of bolt-on purchases.

This will be focused on Bostik, the adhesives specialist Arkema acquired from former parent Total in 2015, Le Henaff said, along with the high performance materials division that houses it, and downstream acrylic opportunities.

“We plan to have half organic growth, half external growth in the coming three to four years, meaning €1bn of acquisitions, and we have the flexibility to deliver that,” Le Henaff said, noting that beyond potential small-scale sales of incidental parts of the company’s operations, no further divestments are planned.

The company is aiming to derive a third of its sales from Bostik by 2023, with acquisition investment a substantial driver behind that. The company completed the integration of Netherlands-based sealants company Den Braven and flooring chemicals specialist CMP into Bostik last year, and completed the $205m purchase of US flooring adhesives producer XL Brands in early 2018.

Bostik’s earning before interest, taxes, depreciation and amortisation (EBITDA) contribution has risen 50% since the company was acquired, according to Arkema, and acquisition opportunities continue to abound in a sector the company characterises as extremely fragmented, with few large dominant players.

The company is also looking to substantially increase capital expenditure on its industrial operations in 2018 following strong growth in earnings in 2017.

Industrial investment is likely to grow by around €120m year on year to €550m, driven in part by substantial new mooted investments in developing local polyamides production in Asia.

Substantial investment in Asia polyamides capacities is driven by a push over the last decade to manufacture materials in the location they are sold, reducing the impact of currency translation costs and shipping.

“We have a much better balance now, between where we manufacture and where we sell, meaning this transaction effect is much lower,” Le Henaff said.

“Where we still have work to do in terms of geographic development is polyamides,” he added. “We and our competitors manufacture in Europe so this is the last major step to having a good balance between the regions of the world,” he added.

Arkema has committed to increasing its global production capacity of polyamide 12 by 25% through a substantial capacity ramp-up in Changshu, China, by 2020, and is to move forward with a €300m investment in a new polyamide 11 plant at an as-yet undisclosed location in Asia this year.

Expected new capacity this year will focus around the US and Asia, with a poly-ether-ketone-ketone (PEKK) facility coming onstream online in Mobil, Texas, expanded polyvinylidene fluoride (PVDF) capacity in Calvert City, Kansas, and a new powder coatings facility expected online in Navi Mumbai, India.

None of the significant new capacity investments expected online through 2021 are located in Europe.

Source Icis News

DATE:2018-02-14

Un règlement, publié ce 14 février au Journal officiel de l'UE, renforce les restrictions applicables au bisphénol A (BPA) dans les matériaux en contact avec les aliments. Il abaisse la limite de migration spécifique (LMS), qui est la quantité de matière plastique autorisée à migrer dans les aliments, de 0,6 à 0,05 milligrammes de BPA par kilogramme de denrées alimentaires (mg/kg).

DATE: 2018-01-25

USES

Polymethyl methacrylate (PMMA) is an acrylic polymer that has high ultraviolet (UV) resistance and is available as resin or sheet. About two-thirds of consumption is in sheets produced by extrusion or casting, while the remainder is moulded into various shapes. PMMA’s primary use is in car headlamps and tail lights. The second largest use is in construction (pool and sanitary ware, architectural fittings) and glazing/signage. Other uses are household appliances, optical media, electronics, mobile phone displays, cosmetics packaging, toys, pens and furniture.

SUPPLY/DEMAND

Demand for PMMA was healthy throughout 2017, with strong performances from the automotive and construction sectors. Overall demand is expected to grow above GDP, but there will be some applications that are expected to significantly outperform this. As the automotive sector continues a shift toward lightweight vehicles, then the demand for PMMA continues to grow, with a doubledigit percentage increase expected in 2018. Producers continue to develop methods to increase the impact-resistance for PMMA, which means it can be used in more parts of a vehicle, including bumpers. There are also further opportunities in the construction sector. The main concern, especially after a year of global shortage in 2017, is whether there will be the material to meet the growth in the industry.
Players are eagerly awaiting new capacity in the Middle East, with production now expected online in the first half of 2018. An additional 40,000 tonnes/year additional PMMA capacity is expected to come online for Saudi Methacrylates, along with MMA. The 250,000 tonne/year MMA plant is a joint venture between Mitsubishi Chemical (MCC) and newcomer to the market SABIC. There will also be an additional 50,000 tonne/year PMMA facility for Petro Rabigh, with the 90,000 tonne/year MMA plant expected on line in the first half of 2018, after a numbner of delays to the project. Petro Rabigh is the joint venture between Japan’s Sumitomo Chemical and state-owned energy firm Saudi Aramco.

PRICES

European PMMA prices increased by 34% last year, with further triple-digit increases being discussed for first-quarter contracts for 2018. The extreme MMA shortage has altered the makeup of the downstream market, with contract terms changing and some buyers leaving the market for supply security. This is expected to continue into 2018, with both MMA and PMMA expected to remain unbalanced for at least the first half of the year. The monthly European MMA contract rose 68% between January and December, significantly increasing costs for PMMA producers. A number of quarterly contracts were changed to monthly, and even the large automotive players had to compromise to quarterly contracts from six-monthly. Although the vast majority of business is still on a quarterly basis, shorter-term contracts will remain a factor in the market until supply rebalances. With MMA prices at an historical high at the start of 2018, many PMMA players are questioning if 2018 will show an improvement, and how long can the shortage continue before it has long-term damage on the sector.

TECHNOLOGY

PMMA is produced from polymerizing MMA and several processes are in operation. For glazing uses, some MMA can be pre-polymerized in a continuous stirred tank reactor and the resulting viscous liquid is fed into a series of flat glass plate-like moulds. This type of batch operation is very cumbersome, so continuous polymerization/cast technologies also operate. In belt polymerization processes, the MMA/PMMA syrup is injected between continuous highly polished metal belts. Continuous and batch solution processes also exist.

OUTLOOK

There is a major stoppage approaching for Lucite International at its 200,000 tonne/year MMA facility in Cassel, UK. The overhaul will take place at the end of the first quarter, and is expected to take approximately two months. There will also be a series of upstream MMA stoppages in Asia in 2018, which are likely to impact the flow of PMMA to Europe. Imports were low level for the bulk of 2017, with buyers also unable to pay the higher prices for Asian product. There are worries over margins for buyers, as many have been unable to pass on the sharp increases, with prices fixed on an annual basis. Buyers in the extruded sheet sector in particular are citing poor and in some cases negative margins, with PMMA prices at their current level. In the long term, the current price level for MMA is not seen as sustainable, with prices at an all-time high. However, prices are also not expected to fall to the lows of 2016, as it was the low margins of then that in part led to the series of production outages, with a lack of investment in facilities. Although the second half of 2018 may bring relief to the market, turbulence is expected until then, as players battle with further outages and strong demand.

Source Icis News

Acrylic acid markets continued to face supply problems during 2017, notably in the US on the back of disruption caused by hurricanes Harvey and Irma. Fortunately, the US market was able to get back on its feet comparatively quickly, and ended the year in a better supply position, but also with stronger than forecast demand, which looks set to continue into early 2018. The European market has also suffered supply tightness which came about following planned and unplanned stoppages and problems in supply relating to the US situation in August/September. Some acrylate markets have been through very tight periods, especially during the fourth quarter. In Asia, for most of 2017, the acrylic acid market was relatively stable, with little fluctuation in prices. At the same time, market movements were more dramatic in China. The Chinese market went down and then firmed before coming back down again in quarter four. During this period, AA operating rates in China were estimated at about 65%. Chinese BA exports declined significantly in the second half of 2017.

After a year of interesting developments and margin recovery in many of the global acrylic acid and acrylate esters markets, what can we expect to see in 2018?

Two major announcements regarding the acrylic acid market were made in the final few weeks of 2017. Firstly, Dow and Evonik announced that their joint venture StoHaas would be dissolved at the end of December 2017. The 50/50 joint venture includes a 265ktpa European site in Marl, Germany which will revert to ownership by Evonik, and a 328 ktpa US site in Deer Park, Texas which will be wholly owned by Dow.

Later in December, South Korea’s petrochemical giant LG Chem announced that it would be investing in a new acrylic acid and superabsorbent polymers (SAP) capacities in Yeosu, South Korea. The $278 million investment is scheduled to be completed by the first half 2019. LG Chem stated that it plans to focus on advancing its higher value petrochemical operations. The expansion will increase crude acrylic acid production by 180ktpa to 700ktpa, whilst the company will increase super absorbent polymer production by 100ktpa to 500ktpa.

There will be a limited amount of new acrylic acid capacity in 2018. A new acrylic acid plant in Europe, Nippon Shokubai’s new capacity at Antwerp, Belgium is due to start up in May 2018, with a nameplate capacity of 100ktpa. At the same site, Nippon Shokubai is expanding its superabsorbent polymers capacity by 100ktpa which is due within the same time frame. China’s Jiangsu Sanmu is expected to double its AA, GAA and BA capacities by April 2018.

The AA and acrylates markets have started 2018 in reasonably good shape. After two disastrous years with the business suffering from poor margins in 2015 and 2016, acrylic acid and acrylates producers in Asia and China finally saw some improvement in margins in 2017. Chinese producers have also learned over the last couple of years to control their output and focused more on profitability. Keeping the business profitable therefore remains to be the key challenge for the industry, especially amid a few new planned capacity additions in China expected to come onstream between 2018 and 2019. On the other hand, the environmental movement in China seemed to have had minimal impact on the acrylic acid and acrylates market so far, compared to some other products. However, it remains uncertain if the situation will change in the future.

In the US market, the fourth quarter saw ongoing improvements in product availability after the ravages caused by Hurricane Harvey which impacted production at some sites in Texas, and led to a volley of force majeure declarations. Demand has been positive partially due to the damage caused by the hurricanes, and propylene price increases in early 2018 have propelled price increase announcements for GAA and acrylates for mid-January onwards.

In Europe, acrylic acid and acrylate contract prices have risen gradually for much of 2017, and margins have in some cases ended the year in an improved position. The fourth quarter was dogged by a growing tension in the market as a number of production outages left supply tight in some market sectors. 2-EHA, EA and MA have been the worst affected. GAA and BA availability was not as badly impacted. In early January, the supply tensions have eased, but producers are expected to try to hold on to margin improvements as far as possible, although there is downward pressure from buyers now that supply is normalising.

Source: Tecnon 

DATE: 2017-12-29

DATE: 2017-12-29

Source Korean JoonAng Daily

DATE : 2017-11-21

SINGAPORE --Here is a plant status report:

Name: Shandong Yidali Chemical

Location: Shandong, China

Product: Methyl methacrylate (MMA)

Capacity: 40,000 tonnes/year

Event start: 19 November

Event finish: Unknown

Reason: Equipment trial

Comments: The facility began processing raw materials on 19 November, according to sources. The plant is likely to start MMA production at the end of month on smooth operations.

Source Icis News

DATE : 2017-11-17

DATE : 2017-11-15

Ascend Performance Materials has lifted its force majeure declaration on US acrylonitrile (ACN), according to a market source on Wednesday.

Ascend closed its ACN facility at Chocolate Bayou, Texas on 27 August amid the impact of Hurricane Harvey on production in the US Gulf region.

The plant has 590,000 tonnes/year of ACN capacity.

Ascend began the process of restarting the facility in early September but faced a problem with one of its ammonia pipelines as it looked to ramp up production.

The plant is heard to be running at high rates as it continues to increase production.

Major ACN producers in the US include Ascend Performance Materials, Cornerstone Chemical and INEOS Nitriles.

Source Icis News