LATEST HEADLINES
Singapore factory activity improves in Aug but
major external headwinds
remain
By Nurluqman Suratman 06-Sep-23 13:58 SINGAPORE
(ICIS)–The country’s manufacturing purchasing
managers’ index (PMI) rose marginally to 49.9
in August from 49.8 in July, marking the third
consecutive month of improvement, according to
data from the Singapore Institute of Purchasing
and Materials Management.
INSIGHT: Styrene capacity build up shifts
global cost curve and threatens structural
change
By Moritz Lank 05-Sep-23 23:40 LONDON
(ICIS)–High cost styrene production units are
challenged in a difficult, slow-growing demand
environment and one in which global capacity is
building fast.
INSIGHT: Trinseo seeks breathing room amid
fiercely challenging market, financing
conditions
By Joseph Chang 07-Sep-23 03:55 NEW YORK
(ICIS)–It has been a tough stretch for Trinseo
as the polymers and latex binders producer
seeks to refinance debt coming due next year
amid fiercely challenging market and credit
conditions, especially in Europe where it still
operates a good chunk of assets even after
shutdowns.
European caustic soda quiet during August lull,
spot prices under further
pressure
By Chris Barker 29-Aug-23 22:48 LONDON
(ICIS)–European caustic soda players cut back
activity in August, adding to the market’s
already weak outlook.
Asia fatty alcohols mid-cuts C12-14 weakens on
feedstock PKO decline
By Helen Yan 30-Aug-23 12:40 SINGAPORE
(ICIS)–Despite ongoing and upcoming plant
turnarounds, spot prices of mid-cuts C12-14 are
facing downward pressure from the decline in
the feedstock palm kernel oil (PKO) prices and
stagnant demand.
Europe MA offers undercut Asian offers, some
restocking may be seen
By Anne-Sophie Briant-Vaghela 29-Aug-23 22:05
LONDON (ICIS)–European maleic anhydride (MA)
prices could be near a bottom, although it
remains to be seen how long the uptick or a
halt in the downtrend will last given unanimous
expectations that underlying demand will be
stagnant for the rest of the year.
Europe jet fuel price
rally stalls following upstream volatility,
fading gasoil strength
By Shruti Salwan 25-Aug-23 17:17 LONDON
(ICIS)–Consumption for aviation and road fuels
has started to soften as the wind-down of the
summer travel season begins, with lower gasoil
and jet fuel spending exerting downward
pressure on prices.
CDI
Economic Summary: US mild recession expected in
H1 2024
By Kevin Swift 25-Aug-23 03:30 CHARLOTTE,
North Carolina (ICIS)–The US economy could
enter a mild recession in H1 2024 as the lag
effects from the Federal Reserve’s heavy dose
of rate hikes finally kick in. The Fed has also
signaled the potential for further hikes as
core inflation remains sticky.
Gas sell-off to
trigger German peak spark spread
upside
By Daniel Muir 24-Aug-23 22:48 LONDON
(ICIS)–The sell off of benchmark natural gas
contracts after Australian LNG strike risks
eased should see clean peak spark spreads for
German front-year delivery rebound in coming
sessions, traders told ICIS.
Front-month clean dark
and clean spark spreads
tighten
By Anna Coulson 24-Aug-23 00:32 LONDON
(ICIS)–Rising fuel costs saw German rolling
front-month Clean Dark and Clean Spark Spreads
improve slightly over the last seven days, but
a weaker fuel mix saw coal and gas front-year
profitability decrease.
Thailand 2023 growth
forecast cut to 2.5-3.0% after H1
slowdown
By Nurluqman Suratman 21-Aug-23 15:37
SINGAPORE (ICIS)–Thailand on Monday cut its
full-year growth forecast to 2.5-3.0% after the
economy slowed in the first half of the year
due to the weakness in global demand which has
weighed on exports and manufacturing.
INSIGHT: Shrinking China
trade signals trouble for chemicals
everywhere
By Will Beacham
10-Aug-23 19:26 BARCELONA (ICIS)–Double-digit
declines in China’s latest import and export
figures, together with shrinking domestic
manufacturing data, confirm a persistent
collapse in demand for chemicals around the
world.
Thailand’s PTTGC swings to Q2 net loss
on crude-led slump in product
prices
By Pearl Bantillo 10-Aug-23 15:04 SINGAPORE
(ICIS)–Thai producer PTT Global Chemical swung
into a net loss of baht (BT) 5.6bn ($159m) in
the second quarter of 2023 as product prices
tracked the slump in upstream crude prices amid
global recession and petrochemical overcapacity
concerns.
Saudi raises most Sept crude prices for
Asia; hikes all Europe
prices
By James Dennis 08-Aug-23 10:49 SINGAPORE
(ICIS)–Saudi Arabia issued its September
Official Selling Prices (OSP), with price rises
for most grades for customers in Asia and more
marked increases for customers in northwest
Europe and the Mediterranean, while there were
no increases for US buyers.
Saudi
Aramco Q2 net profit falls 37.9% on lower oil
prices, poor chemical
margins
By Nurluqman Suratman 07-Aug-23 15:49
SINGAPORE (ICIS)–Aramco’s net profit fell by
37.9% year on year in the second quarter on the
back of lower crude oil prices and weakening
refining and chemicals margins, the Saudi
energy giant said on Monday.
Singapore manufacturing
shows signs of recovery; external headwinds
persist
By Nurluqman Suratman
03-Aug-23 12:55 SINGAPORE (ICIS)–Singapore’s
manufacturing sector showed signs of recovery
in July as new orders improved, but export
headwinds are expected to persist as economic
conditions at major trading partners remain
poor.
OUTLOOK: US BD, SBR
likely to remain oversupplied amid weak
demand
By Amanda Hay
03-Aug-23 03:03 HOUSTON (ICIS)–US butadiene
(BD) and styrene butadiene rubber (SBR) are
expected to remain oversupplied through the
second half of 2023 because of weak demand for
tyres.
Austrian gas storage
withdrawals could buck 2022 trend in Q4
‘23
By Irina Breilean
02-Aug-23 22:54 LONDON (ICIS)–Austrian VTP
price dynamics suggest storage withdrawals will
likely concentrate during the first quarter of
2024, with VTP Q1 ’24 prices trading at a
premium over Q4 ’23, October ’23 and November
’23.
INSIGHT: BASF grapples
with demand trough, slow road
back
By Tom Brown 02-Aug-23
21:12 LONDON (ICIS)–BASF and the wider
chemicals sector is dealing with an environment
more singular even than the conditions seen in
the pandemic and 2008 financial crash according
to BASF chief Martin Brudermuller, with little
sign of a V-shaped recovery from the current
demand trough.
INSIGHT: Commercial
start-up of Vietnam petrochemical complex
delayed amid weak global
demand
By Pearl Bantillo 02-Aug-23 18:57
SINGAPORE (ICIS)–Thailand’s Siam Cement Group
(SCG) expects mechanical completion and
commissioning of Vietnam’s first cracker in
August to September, pushing back
the full
commercial start-up of the Long Son
Petrochemical project to the second half of the
year amid oversupply concerns in Asia.
China
rolls out fresh stimulus to boost growth as
July manufacturing contracts
By Fanny Zhang 31-Jul-23 16:30 SINGAPORE
(ICIS)–China has announced new measures to
revive its fragile economy that has been losing
steam since the second quarter, with the focus
on boosting consumption.
INFOGRAPHIC: Europe PET in survival mode
despite peak summer season
By Miguel Rodriguez Fernandez 24-Jul-23 19:01
LONDON (ICIS)–Post-COVID life, coupled with
the Russia-Ukraine war and the volatile
macroeconomics it has unleashed, are upending
consumers’ habits. Restaurants are full,
tourism is booming, yet people are saving on
supermarket purchases, which is severely
hurting demand f or polyethylene terephthalate
(PET).
IMF ups 2023 global GDP forecast, slowed growth
expectations remain
By Tom Brown 25-Jul-23 21:00 LONDON (ICIS)–The
IMF on Tuesday modestly increased its global
GDP growth estimates for 2023 while maintaining
expectations that the recovery over the next 18
months will continue substantially slower than
in 2022 as post-COVID headwinds and the
Russia-Ukraine war weigh on the economy.
OUTLOOK: Europe polyols demand forecast
uncertain for H2
By Zubair Adam 26-Jul-23 17:00 LONDON
(ICIS)–Polyols consumption in Europe was
mainly limited in H1 2023, and there is no
major recovery expected in H2.
OUTLOOK: Short-term European SBR demand
expectations bearish
By Melissa Hurley 27-Jul-23 17:00 LONDON
(ICIS)–European styrene butadiene rubber (SBR)
demand has weakened in 2023 and the situation
is expected to continue in the third quarter.
INSIGHT: Resurgence of Iran gas price debate as
politicians seek a rollback to
formula
By Keven Zhang 28-Jul-23 12:00 SINGAPORE
(ICIS)–In mid-July, an official announcement
from the Iranian government stated that the
natural gas price for petrochemical producers
was Iranian rials (Rls)70,000/cubic metre, up
from Rls50,000/cubic metre.
OUTLOOK: Europe PX braces
for a gloomy H2 amid recessionary
fears
By Miguel Rodriguez Fernandez 21-Jul-23
17:00 LONDON (ICIS)–The Europe paraxylene (PX)
market is getting ready to navigate a second
half of the year marked by disappointing
downstream demand, as the challenging
macroeconomic scenario keeps denting orders
from customers.
French nukes to drive
German gas-to-power demand in
August
By Eduardo Escajadillo 20-Jul-23 23:07
LONDON (ICIS)–German gas-fired generation
could potentially gain momentum in August to
compensate in the event of lower French nuclear
power output amid warmer temperatures forecast
in northwest Europe.
Ukraine needs more
realistic energy targets to attract investors,
MP
By Aura Sabadus 20-Jul-23 17:42 LONDON
(ICIS)–Ukraine must guarantee a stable
regulatory environment and competitive market
conditions if it is determined to attract
investments to rebuild its war-ravaged energy
sector, Andrii Zuphanyn, the chair of the gas
subcommittee in the Ukrainian parliament told
ICIS.
Profit warnings may drive
sell-side M&A – bankers
By Joseph Chang 20-Jul-23 04:55 NEW YORK
(ICIS)–A very active earnings
warning season for the chemical
industry portending difficult conditions
throughout 2023 could lead to more M&A
activity, particularly on the sell side.
Robust domestic demand to
drive Asia ‘23 growth amid weak
exports
By Nurluqman Suratman 19-Jul-23 14:31
SINGAPORE (ICIS)–The Asian Development Bank
(ADB) on Wednesday maintained its growth
outlook for developing economies in Asia and
the Pacific at 4.8% this year as robust
domestic demand continues to support the
region’s recovery.
INSIGHT: Pakistan gets
much-needed reprieve; polymer imports to
improve
By Pearl Bantillo 14-Jul-23 17:11
SINGAPORE (ICIS)–Billions of US dollars have
started flowing into Pakistan after getting the
much-awaited IMF stamp of approval that the
south Asian nation will set its house in order,
averting an impending sovereign debt default.
INSIGHT: Chems warn of
weak consumer goods, China as earnings season
starts
By Al Greenwood 13-Jul-23 21:41 HOUSTON
(ICIS)–Chemical companies have flagged
weakness in consumer goods and China in a wave
of profit warnings issued before the start of
earnings season.
PODCAST: Falling chemical
prices signal switch from inflation to
deflation
By Will Beacham 12-Jul-23 20:07 BARCELONA
(ICIS)–Falling chemical prices could be a
leading indicator of a switch from inflation to
deflation in the broader economy.
OUTLOOK: No respite from
economic pressures and weak demand for Europe
plasticizers market
By Nicole Simpson 12-Jul-23 17:21 LONDON
(ICIS)–Weak demand, strong competition between
sellers and economic woe are expected to
continue defining the European plasticizers
spot market through the second half of 2023.
OUTLOOK: As busy
‘warnings season’ nears end, a new reality sets
in for H2 2023
By Joseph Chang 12-Jul-23 05:37 NEW YORK
(ICIS)–A very active earnings warnings season
for the chemical industry is just about over,
resulting in a big reset downwards in earnings
expectations for Q2 and the rest of the year.
With a new reality setting in, the industry is
bracing for earnings and new guidance that is
likely to be far less optimistic than at the
start of the year.
OUTLOOK: Asia methanol to
grapple with more supply; feedstock swings to
direct market
By Keven Zhang 11-Jul-23 11:40 SINGAPORE
(ICIS)–Asia’s methanol market is expected to
grapple with increased global supply in the
second half of 2023 as new capacities are
slated to come on stream in China, Middle East
and north America.
Europe suffers further
operating rate cuts as demand malaise,
overcapacity bite
By Will Beacham 07-Jul-23 16:49 BARCELONA
(ICIS)–Collapsing demand and competition from
other regions have led to further deterioration
in operating rates for Europe’s petrochemical
sector, new data from ICIS shows.
South
Korea removes tariffs on naphtha, crude imports
until yearend
By Nurluqman Suratman 07-Jul-23 15:21
SINGAPORE (ICIS)–South Korea has removed
tariffs imposed on naphtha and crude oil
imports, to reduce cost burden for the domestic
petrochemical industry and tame high inflation.
Ukraine can scale up wind
output despite war, market
challenges
By Aura Sabadus 06-Jul-23 20:01 LONDON
(ICIS)–Ukraine could bring online as much as
55GW of wind capacity by 2050 despite major
challenges related to the Russian invasion and
issues linked to market design.
Weak
economic activity pressuring European oil
demand, refining margins
By Cecilia Barreiro 06-Jul-23 00:07 LONDON
(ICIS)–It has been difficult for oil prices to
push above the $80/bbl threshold as economic
anxiety weighs on the market. Weak industrial
and manufacturing demand in the US, EU and
China has driven bearish market sentiment
despite recent announcements from Saudi Arabia,
Russia and Algeria of further supply cuts.
Eurozone manufacturing
slips to mid-2020 levels as demand slows, rate
hikes bite
By Tom Brown 03-Jul-23 19:00 LONDON
(ICIS)–Eurozone manufacturing sector activity
slowed in June to the weakest level since the
early days of the COVID-19 pandemic as demand
continued to fall, confidence sank and
producers started to feel the impact of the
central bank’s interest rate hikes.
INSIGHT: China MTBE pushed into overseas
markets due to limited domestic
demand
By Aviva Zhang 30-Jun-23 12:30 SINGAPORE
(ICIS)–Chinese methyl tert-butyl ether (MTBE)
producers have been pushing into overseas
markets since 2022 due to limited domestic
consumption potential. Production capacity is
in surplus and gasoline demand has plateaued.
Brazil’s chemicals May producer prices fall
sharply on lower naphtha values, stronger
real
By Jonathan Lopez 30-Jun-23 02:26 SAO PAULO
(ICIS)–Brazil’s chemicals producer prices fell
by nearly 6% in May, month on month, on the
back of lower global naphtha values and a
stronger currency bringing down prices in
reais, the country’s statistics office IGBE
said on Thursday.
INSIGHT: Worries over weak Asia PA6 and
domestic China market remain
By Josh Quah 28-Jun-23 20:25 SINGAPORE
(ICIS)–Asia polyamide 6 (PA6) markets are
ending the quarter with much of the concerns
that have been prevalent since the start of it
– against a backdrop of weak demand in most
regions and already below-threshold margin
levels under pressure of falling further.
OX imports into Europe up by nearly 10% in
Q1
By Miguel Rodriguez Fernandez 27-Jun-23 19:55
LONDON (ICIS)–Imports of orthoxylene (OX) into
the EU and the United Kingdom went up by 9.9%
in Q1 year on year, according to the latest
data from the ICIS Supply and Demand database.
European heatwave could
dampen German power imports through
July
By Calum Andrews 23-Jun-23 01:05 LONDON
(ICIS)–Germany is likely to maintain a net
import position through July, market sources
have suggested to ICIS, however the extent will
largely hinge on European temperatures.
INSIGHT: Embedding
inflation further weakens 2023 industrial
demand for chemicals
By Nigel Davis 22-Jun-23 20:12 LONDON
(ICIS)–Chemical producers in Europe are in an
especially difficult position but operators
worldwide have had to face up to the fact that
demand recovery in 2023 appears increasingly
distant.
INSIGHT: LANXESS CEO
‘Lehman 2’ warning highlights extreme and
broadening demand weakness
By Joseph Chang 21-Jun-23 05:29 NEW YORK
(ICIS)–A huge earnings warning by
Germany-based specialty chemicals company
LANXESS highlights the extreme and extended
weakness in European and global construction
and electronics markets, along with surprising
declines in “usually stable” consumer
applications.
Asia
polyolefins overcapacity to worsen amid
eurozone recession
By Nurluqman Suratman 20-Jun-23 14:38
SINGAPORE (ICIS)–Asia’s polyolefins market is
bracing for a supply overhang as heavy capacity
additions coincide with a significant weakening
of demand from the recession-laden eurozone,
and amid the slowing Chinese economy.
Global weekly spot IPEX
down again on declines across
regions
By Yashas Mudumbai 19-Jun-23 18:58 LONDON
(ICIS)–The global spot ICIS Petrochemical
Index (IPEX) went down by 1.7% week on week on
the back of price declines across all regions.
Ample
UK gas supply to boost exports over winter
2023
By Hector Falconer 16-Jun-23 01:30 LONDON
(ICIS)–National Gas released its Gas Winter
Review and Consultation on 15 June. For this
coming winter, the British grid operator
expects:
INSIGHT: Shell joins list
of companies reviewing chemicals as demand
tanks, overcapacity grows
By Will Beacham 15-Jun-23 22:36 BARCELONA
(ICIS)–Shell has joined the ranks of major
chemical companies which are reviewing and
rationalising their operations as demand and
profitability continue to fall amid rampant
overcapacity.
INSIGHT: Asia
petrochemicals markets plunge in June on supply
length – ICIS analysts
By Ann Sun 15-Jun-23 18:24 SINGAPORE
(ICIS)–Following a weak May, petrochemical
markets in Asia are witnessing a further drop
in prices in June on supply/demand imbalances.
INSIGHT: Shell to be
‘ruthless’ in capital allocation with Singapore
petchems, Europe units under
review
By Joseph Chang 15-Jun-23 05:29 NEW YORK
(ICIS)–UK-based energy giant Shell will take a
“ruthless” approach to capital allocation along
with a focus on simplification. There will be a
renewed commitment to oil and gas, and
liquefied natural gas (LNG) where returns are
expected to be the highest, while chemicals
will come under greater scrutiny with the
Singapore energy and petrochemical
assets under
review and European plants being
evaluated “unit by unit”.
JUNE
CRUDE OUTLOOK: Bearish demand narrative
confronted by tightening global oil
supplies
By Cecilia Barreiro 13-Jun-23 22:39 LONDON
(ICIS)–Oil prices are expected to continue
retreating during the rest of June as worries
over the health of the global economy and
bearish oil demand prospects depress market
sentiment. However, dwindling spare capacity
and a tighter sour-crude market could rekindle
price volatility in July.
PODCAST: China, energy
transition spur volatility in oil and chemical
markets
By Will Beacham 13-Jun-23 20:36 BARCELONA
(ICIS)–As China’s economy decelerates and the
shift to renewable energy gathers pace, prepare
for much greater volatility in the oil and
chemical markets.
Global spot IPEX down for
ninth consecutive week on falls across all
regions
By Miguel Rodriguez Fernandez 12-Jun-23
19:31 LONDON (ICIS)–The global spot ICIS
Petrochemical Index (IPEX) went down by 1.8%
week on week on the back of price declines
across all regions.
Saudi
Arabia 2023 GDP growth slows to 2.1% on oil
output cuts – IMF
By Nurluqman Suratman 08-Jun-23 15:31
SINGAPORE (ICIS)–Saudi Arabia, the world’s
biggest crude exporter, is expected to post a
slower GDP growth of 2.1% this year in view of
production cuts announced in April, according
to the International Monetary Fund (IMF).
Czech
Republic eyes SMRs development in addition to
standard reactors by 2030
By Simona Uhrinova 08-Jun-23 01:14 LONDON
(ICIS)–The Czech Republic would need to
develop small and medium sized modular reactors
(SMRs) in addition to standard nuclear plants
to reduce its dependence on cross-border
imports before 2030.
ICIS
China May petrochemical price index slumps 7%;
June demand stays weak
By Yvonne Shi 08-Jun-23 11:33 SINGAPORE
(ICIS)–Sluggish demand sent the ICIS China
Petrochemical Price Index in May tumbling by 7%
from end-April despite some stability in the
upstream crude market during the period.
Fears
of gloomy summer for Europe PE,
PP
By Ben Lake 06-Jun-23 19:25 LONDON
(ICIS)–Polyethylene (PE) and polypropylene
(PP) players in Europe are bracing for a
challenging summer, with buyers worried by
woeful demand, while producers closely monitor
already lowered operating rates to avoid
dipping into negative margins.
Dow
cuts Q2 sales guidance on challenging
macros
By Joseph Chang 02-Jun-23 04:48 NEW YORK
(ICIS)–US-based Dow is taking down its Q2
sales forecast to a range of $11.0bn-11.5bn
from its prior estimate of $11.75bn-12.25bn on
challenging macroeconomic conditions and lower
pricing levels, its CEO said at an investor
conference.
PODCAST: Ukraine SOE
corporate governance is vital for
reconstruction efforts,
specialist
By Aura Sabadus 01-Jun-23 21:28 LONDON
(ICIS)– Corporate governance rules at
Ukraine’s energy state owned enterprises (SOEs)
have been critical to market reforms and to
helping the country secure a long-term gas
transit contract with Russia.
NE
Asia C2 outlook downbeat on rising regional
supply, weak China data
By Yeow Pei Lin 01-Jun-23 11:26 SINGAPORE
(ICIS)–Northeast Asia’s ethylene (C2) players
are cautious on expectations of rising regional
supplies and weak downstream outlook for the
third quarter as the recovery in the Chinese
economy loses momentum.
Caixin China May
manufacturing PMI rises to 50.9, first
expansion in three months
By Nurluqman Suratman 01-Jun-23 11:26
SINGAPORE (ICIS)–Caixin’s China manufacturing
purchasing managers’ index (PMI) picked up from
49.5 in April to 50.9 in May, marking the first
expansion in three months, the Chinese media
firm said on Thursday.
High
stocks could curb Italian Q4 ‘23 gas and power
risk
By Camilla Vitanza 31-May-23 23:44 LONDON
(ICIS)– High gas storage levels could reduce
some of the risk premium priced in the Italian
gas and power Q4 ’23 products ahead of expiry,
although LNG supply will likely remain a key
driver.
China
manufacturing weakness weighs on crude; outlook
dims further
By Nurluqman Suratman 31-May-23 13:36
SINGAPORE (ICIS)–China’s manufacturing sector
lost further momentum in May, heightening
concerns that oil consumption in the world’s
second-biggest economy could weaken further.
INSIGHT: Petrochemical
prices and margins under relentless
pressure
By Nigel Davis 31-May-23 00:38 LONDON
(ICIS)–The persistent global weak demand
environment continues to put pressure on
producers and prices are falling as the balance
with output remains elusive.
PODCAST: Demand flops in
chemical markets around the world, gloomy
outlook
By Will Beacham 30-May-23 20:25 BARCELONA
(ICIS)–Chemical markets around the world are
suffering from collapsed demand conditions and
oversupply with no prospect of a turnaround in
the coming months.
Depressed US
manufacturing activity weighing on PP
demand
By Zachary Moore 26-May-23 05:40 HOUSTON
(ICIS)–Demand for polypropylene (PP) in the US
is facing a bearish short-term outlook as the
US manufacturing sector remains in
contractionary territory.
INSIGHT: A tale of two
economies, as resurgent services eclipses
languishing industry
By Tom Brown 25-May-23 23:05 LONDON
(ICIS)–After the dark warnings of late 2022,
ministers at the European Commission could be
forgiven for sounding a little smug.
PODCAST: Rampant China
chemicals overcapacity could rebalance by
2024/5
By Will Beacham 25-May-23 21:00 BARCELONA
(ICIS)–Excess capacity plaguing China’s
petrochemical markets could return to more
balanced conditions by 2024/5 as the current
wave of additions ends and demand gradually
improves.
APIC
’23: INSIGHT: Asia petrochemicals navigate poor
demand amid China start-ups; carve ‘green’
path
By Pearl Bantillo 24-May-23 19:50
SINGAPORE (ICIS)–Uncertainties will hound
Asia’s petrochemical markets for the rest of
the year and possibly into 2024 amid the global
economic slowdown at a time of strong capacity
additions in regional powerhouse China.
INSIGHT: Europe
petrochemicals demand remains weak and prices
under intense pressure
By Nigel Davis 23-May-23 23:10 LONDON
(ICIS)–This striking chart from Germany’s
chemicals and pharmaceuticals trade
association, the VCI, does not even tell the
full story for the country’s petrochemical and
polymers sectors.
APIC
’23: Asia PE, PP margins to stay in unhealthy
range despite China
reopening
By Nurluqman Suratman 19-May-23 19:25 NEW
DELHI (ICIS)–Asia’s polyethylene (PE) and
polypropylene (PP) markets are expected to face
poor margins across all production routes
despite China’s reopening, an industry analyst
said on Friday.
APIC
’23: Japan petrochemical plants run at 80% on
current demand
By Pearl Bantillo 19-May-23 17:13 NEW
DELHI (ICIS)–Japan’s petrochemical plants have
been running at an average rate of about 80%
amid demand uncertainties this year, an
industry executive told ICIS.
INSIGHT: Fundamental Asia
olefin imbalance persists despite better
margins
By Joey Zhou 19-May-23 14:00
SINGAPORE(ICIS)–Asia olefin margins from major
production routes have improved and remained in
profitable territory since March, driven by
lower feedstock prices.
Eurozone inflation rises on energy cost
pressure
By Morgan Condon 17-May-23 20:05 LONDON
(ICIS)–Eurozone inflation edged up slightly on
persistent pressure from energy costs in April,
as the rate for the wider EU showed a soft
decrease, according to the latest data from the
EU’s statistical agency Eurostat on Wednesday.
Annual inflation in the eurozone rose to 7.0%,
up from 6.9% in March. In the wider EU,
annual inflation fell to 8.1%, from 8.3% in the
previous month. Compared to a year prior,
inflation for the eurozone remained slightly
softer, as the rate was pitched at 7.4% in
April 2022, while the level remained stable on
the previous year for the EU at 8.1%.
Global oil demand expectations for 2023
increased in May on stronger China recovery –
IEA
By Morgan Condon 16-May-23 22:25 LONDON
(ICIS)–Global oil demand is set to increase in
2023, driven by strength in China, according to
the International Energy Agency (IEA) on
Tuesday. The IEA’s monthly oil report shows
that demand is expected to rise by 2.2m bbl/day
year on year in 2023, marking an average 102m
bbl/day, supported by economic recovery in
China surpassing expectations. Macroeconomic
pressures and soft demand was reflected in
weaker oil pricing in April and early May,
caused lingering concerns of a recession in
some regions. The IEA, however, increased its
output forecast on a strong recovery in the
second half of the year. China is expected to
account for nearly 60% of global growth in
2023.
INSIGHT: Weak demand dominates
chemicals in Q2 as economies
drag
By Nigel Davis 11-May-23 00:41 LONDON
(ICIS)–The persistence and wide spread of the
demand slump is the key issue for chemical
producers in 2023, now mid-way through the
second quarter. Recent financial reporting from
chemical companies of all types and in all
locations has underlined the impact of weak
demand on sales in the first quarter. The
year-on-year comparisons have proved to be
stark, and reduced production the driver of
lower revenues at a time of still high costs of
sales. Certainly, the focus in Europe and large
parts of the rest of the world has shifted from
energy costs (and availability).
Higher feedstock costs,
slow demand maintain pressure on US polyether
polyol margins
By Zachary Moore 21-Apr-23 06:41 HOUSTON
(ICIS)–A combination of higher feedstock costs
along with slower demand has been maintaining
pressure on margins for US polyether polyol
producers, with margins likely to remain
compressed over the next few months.
INSIGHT: Plastics,
petchems in Europe still waiting for
construction season, Q2 may be reality
check
By Vicky Ellis 20-Apr-23 21:45 LONDON
(ICIS)–As warmer, sunnier days grow more
frequent, Europe’s construction industry should
be ramping up for a busy period. But the season
is proving a disappointment,
with weaker demand across a wide range of
petrochemical and plastics products.
INSIGHT: Hope for 2023
European construction market recovery falters
as spring demand uptick fails to
materialize
By Nicole Simpson 19-Apr-23 20:52 LONDON
(ICIS)–Since late 2022, chemicals players have
been hopeful that better demand is just around
the corner but optimism is faltering as
economic conditions remain challenging and
spring construction demand has failed to
ignite.
INSIGHT: Diverse Asia
April price trends for olefins and aromatics
chain chemicals
By Jimmy Zhang 19-Apr-23 19:15 SINGAPORE
(ICIS)– Weak consumer confidence and economic
pressures are expected to weigh on the price
outlook for Asia petrochemicals.
UK
summer demand to drop, exports to France in Q3
likely
By Anna Coulson 19-Apr-23 00:07 LONDON
(ICIS)–National Grid is confident that there
will be sufficient supply to meet electricity
demand over the summer, the UK’s Electricity
System Operator (ESO) announced in its Summer
Outlook 2023 on 18 April.
Global oil demand growth
hopes pinned on faltering Chinese
economy
By Barney Gray 12-Apr-23 18:42 LONDON
(ICIS)–Chinese government data for March,
published earlier this month, indicated that
domestic consumer demand is weak and the
manufacturing sector was under pressure at the
end of Q1, which could hinder the anticipated
China-led growth in global oil demand.
IMF
keeps developing Asia 2023 growth forecast at
5.3%; trims India
projections
By Nurluqman Suratman 12-Apr-23 13:23
SINGAPORE (ICIS)–The International Monetary
Fund (IMF) has kept its 2023 growth forecast
for developing Asia at 5.3% but trimmed its
forecast for next year amid rising risks in
global financial conditions.
INSIGHT: Europe chemicals
must wait until 2026/7 for gas cost
relief
By Will Beacham 11-Apr-23 22:58 BARCELONA
(ICIS)–Although record inflows of liquefied
natural gas (LNG) have helped European gas
prices fall, a cold winter could see them soar,
with relief from volatility only in prospect
for petrochemical customers by 2026/7 when
major new sources come onstream globally.
INSIGHT: Vietnam economy
sputters as first petrochemical complex about
to start up
By Pearl Bantillo 06-Apr-23 11:00
SINGAPORE (ICIS)–Vietnam hopes to stem
deteriorating manufacturing conditions, borne
of weak external demand, by cutting the cost of
borrowing to spur domestic activity as it gears
toward commercial operations of its first
petrochemicals complex.
US
auto sector faces economic headwinds on rising
interest rates, higher
prices
By Adam Yanelli 05-Apr-23 05:05 HOUSTON
(ICIS)–US March auto sales ticked lower from
February as economic headwinds have replaced
supply chain issues as obstacles facing the
industry that relies heavily on chemicals.
Developing Asia 2023 GDP
to grow faster at 4.8% but downside risks
remain – ADB
By Nurluqman Suratman 04-Apr-23 12:10
SINGAPORE (ICIS)–Developing economies in the
Asia Pacific region are projected to grow at a
faster pace of 4.8% this year and in 2024 on
the back of higher consumption, tourism and
investments due to continued easing of pandemic
restrictions, but downside risks remain, the
Asian Development Bank (ADB) said.
INSIGHT: Europe chems
look to tough Q2 as economic indicators remain
choppy
By Tom Brown 03-Apr-23 21:47 LONDON
(ICIS)–With expectations growing for some of
the headwinds buffeting the chemicals sector to
ease in the second half of the year, conditions
remain challenging for the second quarter,
while economic indicators point to a continuing
“volatile phase” according to an analyst.
Oil
surges after surprise OPEC+ output cut, lifting
Asia naphtha, benzene
By Nurluqman Suratman 03-Apr-23 12:57
SINGAPORE (ICIS)–Oil prices rose by more than
$6/bbl on Monday after the OPEC and its allies
unexpectedly announced further production cuts
of about 1.16m barrels per day on Sunday.
Hungary unlikely to reach EU
intermediate gas storage
targets
By Irina Breilean 29-Mar-23 12:53 LONDON
(ICIS)–Hungary may not reach the next EU
intermediate storage fullness target on 1 May,
ICIS analysis indicates. EU intermediate
targets have been in place since November 2022,
in preparation for the start of the 2023 gas
winter. The targets apply to all member states
with underground gas storage sites on their
territories and directly interconnected to
their market areas. Intermediate targets are in
force for 1 February, 1 May, 1 July, and 1
September, two months ahead of the beginning of
the gas year. ICIS data shows storage sites
across Hungary were 33.2% full on 27 March, a
26.2 percentage point increase compared to last
year. However, this still stands 3.8 percentage
points short of the upcoming May target of 37%.
Joint gas purchasing uptake may be slow
as buyers locked into
contracts
By Gretchen Ransow 28-Mar-23 23:20 LONDON
(ICIS)–Uptake of the EU’s joint purchasing
model may be limited in its first year, as
companies were already locked into contracts
due to “huge panic” about prices in 2022,
European Commission vice-president Maros
Sefcovic told the European Parliament’s
Committee on Industry, Research and Energy
(ITRE) on 28 March. However, if the platform
does prove successful the EU wants to extend
the model beyond gas to other strategic
commodities such as hydrogen, critical raw
materials or technologies linked to the energy
transition. Sefcovic told ITRE on 28 March that
there was still much work to do but joint gas
purchasing would give valuable experience for
the future.
Ukraine’s new policy proposals to
‘revolutionise’ energy
sector
By Aura Sabadus 28-Mar-23 00:22 LONDON
(ICIS)–Ukraine is preparing a raft of
wide-ranging regulations that could pave the
way for the complete overhaul of its energy
sector. The step is a priority for the
mid-term, a senior Kyiv-based lawyer told ICIS.
Maksym Sysoiev, partner at global law firm
Dentons, said the reconstruction of the energy
sector is deemed a priority for Ukraine and
added that if all regulations that are now
under discussion are implemented, they would
trigger a “revolution” in the energy sector.
Russia to extend export restrictions on
fertilizers until November
By Deepika Thapliyal 27-Mar-23 22:39 LONDON
(ICIS)–Russia is planning to extend
restrictions on fertilizer exports until
November to guarantee availability in the
domestic market, according to the country’s
agriculture minister Dmitry Patrushev. Current
restrictions on exports are valid until
end-May. To curb inflation and to ensure that
there was a reliable supply of fertilizers to
its farmers, the government imposed export
quotas in December 2021. The restrictions have
continued since the war with Ukraine broke out
in February 2022, although they have not had a
significant impact on the availability of
Russian fertilizer exports – apart from
nitrates.
Asia
petrochemicals demand tepid on macroeconomy,
oversupply concerns
By Nurluqman Suratman 24-Mar-23 14:16
SINGAPORE (ICIS)–Asia’s petrochemical markets
continue to face tepid demand as economic
recovery in regional bellwether China remains
slower than initially expected, with new
production capacities adding to oversupply
concerns.
European acrylates
subdued with underwhelming
demand
By Mathew Jolin-Beech 24-Mar-23 01:26
LONDON (ICIS)–The European acrylates markets
are all currently subdued with demand described
as “soft.”
CDI
Economic Summary: US regional banking crisis
lowers odds of soft landing
By Joseph Chang 23-Mar-23 22:21 NEW YORK
(ICIS)–The failure of two sizeable banks
(Silicon Valley Bank and Signature Bank) in the
US and the crisis of confidence contagion
spreading to other regional banks and now
European financial institutions threatens to
significantly tighten lending conditions at the
very least, further slowing economic growth and
potentially tipping US and European economies
into recession.
Asia
PMDI import markets bearish on poor downstream
demand
By Shannen Ng 23-Mar-23 15:12 SINGAPORE
(ICIS)–Asian import markets for polymeric
methylene diphenyl diisocyanate (PMDI) were
dominated by largely bearish sentiment in the
week ended 22 March.
PODCAST: Asia, Mideast PS
demand tepid on competitive imports, feedstock
volatility
By Damini Dabholkar 23-Mar-23 11:14
SINGAPORE (ICIS)–Asian and Middle Eastern
polystyrene (PS) markets are seeing slow demand
with regional supply remaining relatively
unchanged.
INSIGHT: US Fed
undeterred from 2% inflation goal means more
tough times ahead for
chemicals
By Joseph Chang 23-Mar-23 05:34 NEW YORK
(ICIS)–Even amid a regional banking crisis,
the US Federal Reserve remains undeterred in
its goal of bringing inflation down to its 2%
target. This was evidenced by another 0.25
percentage point rate hike and will mean
weakening economic conditions, a lower chance
of a soft landing and a more challenging demand
environment for chemicals going forward.
Phenol energy surcharges
will start to disappear on lower TTF, but no
demand improvement seen
By Jane Gibson 23-Mar-23 00:57 LONDON
(ICIS)–Falling upstream gas prices may offer
chemical sellers and buyers some relief but the
impact on demand levels has yet to be
significant.
PODCAST: Plunging
shipping rates point to normalising global
logistics, Europe under
pressure
By Will Beacham 22-Mar-23 22:58 BARCELONA
(ICIS)–Steep falls in container shipping rates
indicate that the pandemic-induced logistics
crisis may be drawing to a close, but this now
makes Europe more vulnerable to a flood of
cheap imports from Asia.
US
R-PET buying sentiment weakens in wake of
banking crisis
By Arianne Perez 22-Mar-23 20:11 SINGAPORE
(ICIS)–Asian exporters of recycled
polyethylene terephthalate (R-PET) cargoes are
expected to continue to see cautious buying
from converters in the US following the banking
crisis.
INSIGHT: New PE/PP
capacities risk derailing nascent Asia
polyolefin recovery
By Izham Ahmad 22-Mar-23 17:28 SINGAPORE
(ICIS)–A wave of new polyethylene (PE) and
polypropylene (PP) supply in Asia is
threatening to upend the tentative demand
recovery the region has been experiencing since
the end of the Lunar New Year holidays as new
suppliers fight to establish market share in an
increasingly crowded market.
Asia
polyamide 6,6 Q2 mood darkened by fiscal year
closing, demand outlook
By Josh Quah 22-Mar-23 13:12 SINGAPORE
(ICIS)–Asia’s nylon polyamide 6,6 (PA66)
markets remain weak, ahead of turnarounds
coming up for some producers in northeast Asia.
China
PP prices fall to nearly three-year low amid
increasing supply, lower-than-expected
demand
By Lucy Shuai 22-Mar-23 12:44 SINGAPORE
(ICIS)–China polypropylene (PP) prices fell to
a nearly three-year-low amid increasing supply
and lower-than-expected demand, and the market
may remain under pressure in Q2.
Asia
naphtha swings to multi-month lows on volatile
crude
By Melanie Wee 21-Mar-23 13:42 SINGAPORE
(ICIS)–Asia’s naphtha markets can expect
heightened volatility, largely tracking crude
oil futures movement, as demand prospects are
being weighed down by market jitters over the
health of the global banking system.
PODCAST: Subdued spot
trading activity in Europe’s oxo-alcohols and
derivatives markets
By Marion Boakye 21-Mar-23 03:35 LONDON
(ICIS)–Throughout March – the oxo-alcohols and
derivative markets in Europe have experienced
weak spot demand, ample supply, and thin import
opportunities.
INSIGHT: Constrained
consumer budgets limit demand for major
chemicals consuming sectors
By Nigel Davis 21-Mar-23 00:49 LONDON
(ICIS)–This is by no means an easy time for
chemical producers as the industry’s major
downstream markets continue to be influenced by
the impact on demand of rising costs and higher
interest rates.
Europe’s chemical sector
shrinks – battered by high costs, poor demand
and cheaper imports
By Will Beacham 20-Mar-23 23:10 BARCELONA
(ICIS)–Collapsing Q4 profits and losses for
European chemical majors, together with low
expectations for 2023, show just how badly the
sector is still suffering.
Europe markets firm after
emergency UBS Credit Suisse
purchase
By Tom Brown 20-Mar-23 20:15 LONDON
(ICIS)–European markets firmed on Monday after
Switzerland-based banking group UBS announced
plans to acquire embattled rival Credit Suisse,
raising market hopes that banking sector
contagion may be limited.
Global weekly spot IPEX
down on price declines across
regions
By Will Beacham 20-Mar-23 19:11 LONDON
(ICIS)–The global weekly spot ICIS
Petrochemical Index (IPEX) fell by 2.0% week on
week on the back of lower index values across
regions.
PODCAST: Asian PP markets
grapple with increased supply,
lower-than-expected demand in
2023
By Damini Dabholkar 20-Mar-23 19:06
SINGAPORE (ICIS)–Asian polypropylene (PP)
markets are being challenged by increasing
capacity in 2023, especially in the China
market, while demand continues to recover more
slowly than expected.
Crude
dips to lowest since December 2021 on banking
sector turmoil
By James Dennis 20-Mar-23 17:52 SINGAPORE
(ICIS)–Crude prices declined on Monday to
their lowest levels since December 2021 before
recovering on growing financial concerns
following equity market losses and instability
in the banking sector in Asian trading.
Asia
petrochemical shares, oil prices weaken after
UBS rescue of Credit Suisse
By Nurluqman Suratman 20-Mar-23 12:43
SINGAPORE (ICIS)–Shares of petrochemical
companies in Asia were mostly weaker and crude
futures fell on Monday on fears of
a banking
crisis contagion, as troubled Credit
Suisse was rescued by its Swiss rival UBS in a
government-backed deal.
INSIGHT: European TiO2
operations at risk, but China may not be the
answer
By Heidi Finch 17-Mar-23 17:53 LONDON
(ICIS)–While energy costs in Europe are more
relaxed compared with 2022 peaks, the
TiO2 marketand the wider chemical industry in
Europe are still facing residual economic and
demand headwinds. European production is at
risk, while China/Asia capacity is increasing.
Asia
glycerine demand weighed down by caution after
US bank collapse and turmoil
By Helen Yan 17-Mar-23 11:48 SINGAPORE
(ICIS)–Asia’s glycerine spot demand has been
weighed down by prevailing caution following
the collapse of two mid-sized banks in the US
and plunging bank stocks in Europe.
INSIGHT: Banking
contagion threatens to spread, hit chemicals
demand hard
By Joseph Chang 17-Mar-23 05:47 NEW YORK
(ICIS)–The failure of two sizeable banks
(Silicon Valley Bank, Signature Bank) in the US
and the crisis of confidence contagion
spreading to other US regional banks and now
European financial institutions threatens to
significantly tighten lending conditions at the
very least, further slowing economic growth and
potentially tipping the US and European
economies into recession.
Asia
naphtha tumbles on tepid demand; crude oil
losses
By Melanie Wee 16-Mar-23 12:56 SINGAPORE
(ICIS)–Asia naphtha markets are under pressure
on the back of fragile demand, while taking
cues from global crude oil futures.
INSIGHT: Banking woes
rattle US chem shares
By Al Greenwood 16-Mar-23 05:03 HOUSTON
(ICIS)–Shares of US-listed chemical companies
fell on Wednesday amid concerns about the
implications of a string of bank failures.
