The US will maintain its phase-one trade deal
with China but Hong Kong will no longer receive
special treatment. US chem shares rose after a
speech from the president. US epoxy markets
have softened during the pandemic.
Asian petrochemical shares fell along with
crude oil on Friday on concerns over China’s
decision to impose a new national security law
on Hong Kong, which the US, UK, Canada and
Australia deemed to be “in direct conflict with
its international obligations”.
In the vinyl acetate monomer (VAM) market,
northeast Asian producers have hiked offers to
pass on firmer ethylene input costs to buyers,
while demand remained weak and supply ample.
Economic data out of Asia continued to show
strong hits from the measures implemented to
contain the deadly novel coronavirus pandemic.
Japan’s industrial production in April fell
9.1% from the previous month and is projected
to contract again in May. The country was in a
state of emergency from early April to late
May.
On this topic page we analyse the
impact of coronavirus and the oil price
collapse on chemical markets and bring together
the latest news reported by ICIS. To visit the
ICIS energy markets topic page, click
here.
Scroll down to see the latest
interactive graphics, podcasts and
videos.
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here to register for regular updates to
help you navigate these challenging
times.
LATEST HEADLINES
US chem shares lessen losses after
Trump speech excludes China
trade
By Author: Al Greenwood 2020/05/29 HOUSTON
(ICIS)–US-listed shares of chemical companies
rose off of their lows on Friday after a speech
by US President Donald Trump made no mention of
tariffs or the country’s phase-one trade deal
with China – even though he criticised other
aspects of Chinese policy.
US to keep China trade deal but
withdraw Hong Kong
exemptions
By Al Greenwood 2020/05/29 HOUSTON (ICIS)–The
US will maintain its phase-one trade deal with
China, but it will remove the special treatment
it gives Hong Kong, President Donald Trump said
on Friday in a speech.
VIDEO: US epoxy soft during pandemic,
outlook cloudy amid restart
By Tarun Raizada 2020/05/29 HOUSTON
(ICIS)–Watch Senior Editor Manager Tarun
Raizada provide an update on US epoxy markets.
Slower demand during the coronavirus coupled
with a higher influx of imports have weighed on
the market, with players watching the pace of
recovery in Asia and the US as they gauge 2H
fundamentals.
Asia’s VAM market may
continue to languish amid ample
supply
By Helen Lee
2020/05/29 SINGAPORE (ICIS)–Asia’s vinyl
acatete monmer (VAM) market may continue to
languish despite firmer upstream ethylene input
costs in May as the lack of supply shortage
amid a weakened state of demand continued to
negate suppliers’ price hike initiatives.
Northeast Asia-based producers announced price
hikes in their domestic and export offers in an
attempt to pass on firmer ethylene input costs.
Japan
April industrial production falls led by motor
vehicles
By Pearl Bantillo
2020/05/29 SINGAPORE (ICIS)–Japan’s industrial
production in April declined, led by motor
vehicles, with further contraction expected in
May as the world’s third-biggest economy is in
the throes of a pandemic-induced
recession.
The April production index on a seasonally
adjusted month-on-month basis was down 9.1% ,
and down 14.4% on a year-on-year basis, data
from Japan’s Ministry of Economy, Trade and
Industry (METI) showed.
Asia
petrochemical shares, oil prices fall amid
growing US-China tensions
By Nurluqman Suratman 2020/05/29 SINGAPORE
(ICIS)–Asian petrochemical shares and oil
prices fell on Friday as risk sentiment
continued to be weighed by ongoing tensions
between the US and China.
US IPA price ranges narrow as supply increases,
demand stays high
By Deniz Koray 2020/05/28 HOUSTON (ICIS)–
Isopropanol (IPA) price ranges continue to
narrow as the high end of the market sees
declining prices.The lower end is seeing either
stable or slightly increased pricing, because
demand is still much higher compared with
pre-coronavirus levels.
PE price downturn an ‘over-correction’ – Dow
CEO
By Joseph Chang 2020/05/28 NEW YORK
(ICIS)–Polyethylene (PE) prices have
over-corrected based on a sharp collapse in
crude oil prices in late April. This could now
reverse amid the upturn in crude and a
continued recovery in demand as economies open
up, the CEO of Dow said on Thursday.
Dow wants clarity on US, China trade
before pursuing megaprojects
By Al Greenwood 2020/05/28 HOUSTON (ICIS)–Dow
wants more clarity about how trade relations
between the US and China will evolve before it
pursues a large chemical megaproject, the CEO
said on Thursday.
PODCAST: US PE demand better than
expected in May, packaging industry a bright
spot
By Zachary Moore 2020/05/28 HOUSTON (ICIS)–US
polyethylene (PE) markets may be nearing a
trough as demand improves and feedstocks move
higher.
INSIGHT: US CO2 shortage persists amid
lower ethanol, refinery
rates
By Al Greenwood 2020/05/28 HOUSTON
(ICIS)–Falling production at refineries and
ethanol plants in the US has caused a shortage
of carbon dioxide (CO2), leading to surcharges
that can sometimes exceed the price of the gas.
Europe chems
stocks rise on lockdown easings despite uphill
struggle ahead
By Jonathan Lopez 28-May-20 18:29 LONDON
(ICIS)–European chemicals stocks and bourses
rose healthily on Thursday on the back of hopes
the lockdown easings will revive economic
activity and liquidity provided by central
banks will soften the recession blow.
However, crude oil futures for delivery in
July, which surpassed the $36/bbl mark earlier
in the week, traded by Thursday afternoon
closer to the $34/bbl mark.
As such, values for crude-linked petrochemicals
like naphtha or styrene have also fallen
slightly from prices earlier in the week.
Russia, key ally of the OPEC cartel, is showing
signs of a faltering commitment to the output
cut agreement with Saudi Arabia, which has put
pressure on prices.
Another risk factors increasing is the US-China
relationship, which is also showing growing
tensions on the back of China’s security law on
Hong Kong passed on Thursday.
German economy to
contract by 6.6% in 2020, chems to recover in
nine months
By: Morgan Condon 2020/05/28 LONDON
(ICIS)–The German economy is anticipated to
contract by 6.6% in 2020, leading to growth of
10.2% the following year from that lower level,
according to analysis from the ifo Institute on
Thursday.
The estimate was released in the institute’s
updated economic forecast for 2020/21 –
following a survey among companies in May –
which outlines a 12.4% drop in the second
quarter this year and a recovery expected by
the middle of 2021.
While services remain more affected by the
impact of the pandemic than manufacturing, the
chemicals industry may be one of the slowest to
recover, with normalisation in the sector
likely to happen in 10 months’ time.
China must import more crude oil,
expand storage amid low
prices
By Fanny Zhang 28-May-20 12:13 SINGAPORE
(ICIS)–China must take advantage of current
low oil prices to import more volumes, with
members of its parliament urging the government
to boost storage capacity.
Members of the country’s National People’s
Congress (NPC), whose sessions this year run
from 22-28 May, have called on the government
to make use of all facilities, including
strategic reserve, commercial reserve, big
tankers or refiner’s tanks to stockpile as much
as possible to secure supply at low cost.
Asia petrochemical shares mixed on
US-China worries; oil drops on US inventory
build
By Nurluqman Suratman 28-May-20 12:11 SINGAPORE
(ICIS)–Asian petrochemical shares were mixed
on Thursday amid growing tensions between the
US and China while oil prices fell after weekly
data showed a surprise increase in inventories.
Investors are now worried that any punitive
response by the US to China over Hong Kong
could result in a tit-for-tat reaction from the
Chinese government, but sentiment remains
supported by news of further stimulus measures.
India’s antidumping probe into NBR
imports to have limited
impact
By Helen Yan 28-May-20 16:38 SINGAPORE
(ICIS)–The impact of anti-dumping
investigations into acrylonitrile butadiene
rubber (NBR) imports into India will be limited
as overall demand has shrunk due to the fallout
from the coronavirus pandemic.
“Demand is weak everywhere due to the pandemic.
It is the tendency of every country to protect
their local economy and it will be difficult to
redirect the sales to India to other
countries,” an Asian NBR producer said.
US fuel ethanol prices rise, concerns
around US-China trade tensions
mount
By Alex Snodgrass 2020/05/27 HOUSTON (ICIS)–US
spot fuel ethanol prices rose this week as
demand continues to show signs of a recovery,
although not as quickly as market participants
had thought.
US May propylene contracts roll over on
higher costs, lower demand
By Michael Sims 2020/05/27 HOUSTON (ICIS)–US
May propylene contracts settled at a rollover
from April, as rising feedstocks and less
refinery production are being counter-balanced
by coronavirus-softened demand.
Germany’s VCI
pulls 2020 forecast, expects ‘severe
recession’
By: Stefan Baumgarten 2020/05/27 LONDON
(ICIS)–Germany’s chemicals trade group VCI
expects a “severe recession” with a significant
drop in chemical and pharmaceutical production
and sales because of the coronavirus pandemic,
it said on Wednesday.
The group dropped its previous projection from
March when it forecast a production decline of
1.5% this year and sales of €196bn. VCI expects
to publish an updated 2020 forecast only after
Q2.
A decline in orders, disrupted supply chains
and a lack of transport capacities were causing
problems for the industry, VCI said.
Pandemic could
deepen petchems supply/demand imbalance –
IEA
By: Tom Brown 2020/05/27 LONDON
(ICIS)–The economic impact of the coronavirus
pandemic could exacerbate the supply/demand
imbalance for some petrochemicals brought on by
huge capacity expansions in recent years, the
International Energy Agency (IEA) said on
Wednesday, as energy investment this year
stands to drop to historic lows.
The impact of global economic collapse brought
on by the coronavirus outbreak has led the
agency to reverse its projections for energy
sector investment growth this year, from a 2%
increase to a 20% drop, representing an
investment shortfall of $400bn compared to
2019, according to the agency’s energy
investment report.
The IEA report traditionally looks at spending
patterns the previous year, but the dramatic
disruption this year led the agency to look at
spending in 2020 so far and projections for the
future.
Asia
petrochemical shares mixed; oil falls on
US-China tensions
By
Nurluqman Suratman 2020/05/27 SINGAPORE
(ICIS)–Asian petrochemical shares were mixed
on Wednesday, while oil futures were lower amid
concerns over rising tensions between the US
and China.
Asia
adipic acid trade subdued; June downstream
demand weak
By Zhi Xuan Ho SINGAPORE (ICIS)–The Asia
adipic acid (ADA) markets were weakly traded in
May, with several key buyers in China and South
Korea reducing contractual volumes and cutting
back on spot purchases on consistently weak
downstream demand.
Ongoing lockdowns and physical distancing
measures in Asia to curb the spread of the
coronavirus have caused most brick-and-mortar
stores to remain closed, greatly reducing
demand for PU, synthetic leather, and shoes.
VIDEO: China’s domestic
SM prices fluctuate in May amid strong
fundamentals
By Veronica Zhang 2020/05/27 SINGAPORE
(ICIS)–Watch industry analyst Tina Zhang
discuss the latest developments in China’s
domestic styrene monomer (SM) market which have
seen prices fluctuating amid strong supply and
demand.
VIDEO: Asian chemical
freight rates see support from improving
demand
By Ai Teng Lim 2020/05/27 SINGAPORE
(ICIS)–Watch ICIS editor Ai Teng discuss the
latest developments in the Asian chemical
shipping market.
US chem shares soar with stock
market
By Al Greenwood 2020/05/26 HOUSTON
(ICIS)–US-listed shares of chemical companies
surged on Tuesday with the general market, amid
news of another company proceeding with plans
to develop a vaccine against the coronavirus
(Covid-19).
ICIS Webinar: Debt ratio spikes in
chemicals amid coronavirus likely to be
transitory – Moody’s
By Joseph Chang 2020/05/26 NEW YORK (ICIS)–The
expected increase in leverage ratios for US and
European chemical companies amid the
coronavirus crisis is likely to be transitory,
analysts at credit ratings agency Moody’s
Investors Service said on Tuesday.
INSIGHT: Europe
PET demand outlook unclear as lockdowns ease,
market remains in survival
mode
By Caroline Murray 2020/05/26 LONDON
(ICIS)–The polyethylene terephthalate (PET)
industry in Europe had a surprisingly good run
on sales during March’s pandemic shopping
spree, but there is no getting away from the
toll of a depressed economy.
Consumer focus was on essentials. And on the
shopping list were 1l, 1.5l even 2l PET bottles
of water and olive oil, for example.
Plastic-clad fruit and vegetables and other
foods encased in packaging won over shoppers
because of the hygiene aspect.
April demand was still good, particularly the
first half, but the panic has since
disappeared.
Europe virgin
PET much cheaper than R-PET
PODCAST: Global
PVC export prices rebound in May as demand
recovers, players sense end of
dip
By ICIS Editorial 2020/05/26 LONDON
(ICIS)–US and European polyvinyl chloride
(PVC) export prices have rebounded in May after
a severe slump in April, as demand has
recovered and market players sense that the
downtrend has come to an end.
US senior editor, manager Bill Bowen and UK
senior editor Chris Barker discuss the outlook
for the market in view of the coronavirus
impact.
Click on the headline or scroll down to
hear the podcast.
PODCAST:
Chemicals to be squeezed between rising costs,
collapsing demand
By Will Beacham 2020/05/25 BARCELONA
(ICIS)–The global chemical industry will
suffer more than other manufacturing sectors,
squeezed between rising feedstock costs and
collapsed demand as the coronavirus pandemic
unfolds.
– Rising oil price heaps pressure on
chemicals
– Many chemical prices not rising with oil,
squeezing margins
– Consumer sentiment poor, strong rebound as
lockdowns ease unlikely
– Demand growth expected very negative,
especially for durable goods
– Hertz bankruptcy will flood US market with
used vehicles
– China export demand low, slow path out of
crisis
– China: could chemicals ramp up be
speculative?
– Decade of lost growth for developing
countries, millions pushed into poverty
– World moving to a New Normal of persistent
low demand growth
– Chemical industry should “wake up” and focus
on new reality
– Concerns about social unrest as economic
depression develops
Click on the headline or scroll up to hear
the podcast.
Asian petrochemical shares, oil prices rise on
H2 recovery hopes
By Nurluqman Suratman 2020/05/26 SINGAPORE
(ICIS)–Asian petrochemical shares and oil
prices rose on Tuesday as more countries eased
coronavirus restrictions, supporting investor
hopes of a global recovery in the second half
of the year.
Singapore’s Q1 GDP contracts by 0.7%;
2020 growth forecast lowered
By Nurluqman Suratman 2020/05/26 SINGAPORE
(ICIS)–The Singapore economy contracted by
0.7% year on year in the first quarter, the
first contraction since the global financial
crisis, partly weighed by the output decline in
the chemicals cluster, official data showed on
Tuesday.
The first-quarter contraction reverses the 1.0%
growth seen in the fourth quarter of 2019, the
Ministry of Trade and Industry (MTI) said in a
statement.
PODCAST: Asia Special Report – China Base
Oils
By Whitney Shi 2020/05/26 SINGAPORE (ICIS)–CFR
(cost & freight) China prices for Group II
base oils have dropped to a 10-year low in
mid-May. On 22 May, import prices for Group II
base oil N150 averaged $350/tonne CFR China,
down by $265/tonne from the beginning of the
year.
In this episode of the ICIS Asia podcast, Jady
Ma speaks with Whitney Shi, editor for the ICIS
China Base Oils report on recent trends and
outlook.
US BD depressed into H2 on expected
slow automotive recovery
By Amanda Hay 2020/05/22 HOUSTON (ICIS)–US
butadiene (BD) markets appear set to remain
depressed into the second half of 2020 as the
automotive sector reels from the economic and
workforce impacts of coronavirus.
After volatility in March and April, US
IPA markets see more
consistency
By Deniz Koray 2020/05/22 HOUSTON
(ICIS)–Isopropanol (IPA) prices skyrocketed in
March and April, as the coronavirus spread
rapidly throughout the US and Western Europe.
Asia
petrochemical shares, oil slump as China sets
no 2020 GDP goal
By Pearl
Bantillo 2020/05/22 SINGAPORE (ICIS)–Shares of
petrochemical firms in Asia slumped along with
oil prices on Friday on heightened concerns
about demand after China skipped setting a GDP
goal for the first time in 30 years.
Consumption of many plastics in the region is
expected to
stay limited, with supply outstripping
demand, as uncertainties cloud global economic
prospects even as more countries are emerging
from pandemic-induced lockdowns.
Asia’s petchem
demand stays bleak in new norm
uncertainty
By Felicia Loo 2020/05/22 SINGAPORE
(ICIS)–Asia’s consumption for many plastics
would be limited even as countries ease their
lockdowns gradually, as the uncertainty
surrounding the new norm in a yet-to-foreseen
success against the coronavirus remains.
In the petrochemical chain, a common trend
emerges, that is, supply is outstripping demand
in general.
Range of IPA
prices narrow as high demand begins to
stabilise
By: Deniz Koray 2020/05/21 HOUSTON
(ICIS)–Although demand for isopropanol (IPA)
remains much higher than pre-coronavirus
levels, it has begun to stabilise, especially
when compared with April.
US chem shares mixed as oil rises,
stock markets fall
By Al Greenwood 2020/05/21 HOUSTON
(ICIS)–US-listed chemical shares were mixed as
oil prices rose while general stock markets
fell.
VIDEO: US PE prices could be nearing a
trough
By Zachary Moore 2020/05/21 HOUSTON
(ICIS)–Watch Deputy Managing Editor Zachary
Moore provide an update on US polyethylene (PE)
markets. PE markets may be nearing a trough as
demand improves and feedstocks move higher.
Sentiment shifting in US PE markets as
export offers rise
By Zachary Moore 2020/05/21 HOUSTON
(ICIS)–Sentiment is showing signs of shifting
in the US polyethylene (PE) market. Export
offers are starting to trend higher while price
increase initiatives have been announced in the
domestic market.
Eurozone collapse
eases as lockdowns lift
By: Tom Brown 2020/05/21 LONDON
(ICIS)–The unprecedented collapse in eurozone
private sector growth seen in April as a result
of the shutdown of non-essential business
across most of the bloc eased slightly in May,
but still remained deep in contraction
territory, according to analyst data.
The composite eurozone purchasing managers’
index (PMI), covering manufacturing and service
sector output growth – rebounded from the
record low of 13.6 recording in April, to 30.5,
as governments moved to gradually ease controls
on populations and allow more of the economy to
reopen.
A PMI level of below 50.0 indicates
contraction, and under more normal economic
circumstances a PMI reading of below 45 would
represent a dramatic contraction for a eurozone
country.
Europe IPA falls
on competition from ethanol in hand-gel
market
By: Anne-Sophie Briant-Vaghela
2020/05/21 LONDON (ICIS)–The European
isopropanol (IPA) market continued to slow from
the high demand seen in March and April. There
was even a degree of length seen this week on
ample imports and increased competition from
ethanol in the hand-gel market.
“There is relief on IPA demand coming from hand
sanitiser manufacture as a number of customers
have jumped on ethanol to produce the gels,”
said a trader.
This week, IPA technical grade was assessed at
€2,200-€2,800/tonne FD NWE, down €300/tonne at
the low end – its sharpest since prices peaked
in April – and €200/tonne at the high end.
Japan April exports
see biggest slump since 2009; chemical
shipments fall 6.3%
By Pearl Bantillo 2020/05/21 SINGAPORE
(ICIS)–Japan’s exports in April posted their
sharpest decline since the global financial
crisis of 2009, with chemical shipments down
6.3% year on year as external demand suffered
ravages from the coronavirus pandemic.
Total exports of the world’s third-biggest
economy shrank 21.9% year on year to yen (Y)
5.20tr ($48.3bn), while imports fell by 7.2% to
Y6.13tr, according to data from Japan’s
Ministry of Finance.
The country posted a trade deficit of Y930.4bn
in April.
Asian petchem shares, oil prices rise on global
recovery hopes
By Nurluqman Suratman 2020/05/21 SINGAPORE
(ICIS)–Asian petrochemical shares rose on
Thursday while crude oil extended recent gains
on hopes of a recovery in global economic
activity in the second half of the year.
US fuel ethanol producers continue to
face margin pressure, some consider the switch
to industrial production
By Alex Snodgrass 2020/05/20 HOUSTON (ICIS)–
US fuel ethanol producers continue to feel
margin pressure, despite indications of demand
recovery, as stocks remain elevated and
consumers remain hesitant to resume their
normal lives.
Europe
benzene-naphtha spread narrows as spot
feedstock cost rises
By: Helena
Strathearn 2020/05/20 LONDON
(ICIS)–The spread between benzene and naphtha
pricing in Europe is narrowing as naphtha spot
values have jumped since April.
The spread is also impacted by benzene in
Europe being priced at around $80/tonne below
Asia, where the spread to naphtha is more
reasonable.
Price recovery so far is most positive in Asia,
as it was hardest hit first by the pandemic.
PODCAST: Can
chemicals sustainability agenda survive the
pandemic?
By: Will Beacham 2020/05/18 BARCELONA
(ICIS)–With economies collapsing around the
world and chemical supply chains under intense
pressure, the circular economy and the
sustainability agenda also faces disruption.
– Recycled polymer markets squeezed as virgin
prices fall
– Bankruptcies and closures possible in
May/June
– Commitments and targets on sustainability
likely to remain in place
– But the crisis may make it more difficult to
meet targets
– Move from global to local supply chains will
support recycling
Listen to this podcast interview with Matt
Tudball, ICIS Senior Editor for recycled
polyethylene terephthalate (R-PET); Mark
Victory, ICIS Senior Editor for recycled
polyethylene (R-PE) and recycled polypropylene
(R-PP); John Richardson, ICIS Senior
Consultant, Asia; and Paul Hodges, chairman at
consultancy International eChem.
Click on the headline or scroll up to hear
the podcast.
Asia
petrochemical markets track recent crude gains
as demand picks up
By Pearl
Bantillo 2020/05/20 SINGAPORE (ICIS)–Asia’s
petrochemical markets are tracking recent gains
in crude oil as demand has picked up as more
economies are gradually re-opening from
pandemic-induced lockdowns, but the overall
outlook is still riddled with uncertainties.
Fears of a second wave of coronavirus
infections keep any market optimism in check.
India’s proposed 15%
‘covid tax’ draws ire from chemical
end-users
By Priya Jestin
2020/05/20 MUMBAI (ICIS)–India is proposing to
impose a 15% tax on all chemical and
petrochemical imports, to protect the domestic
industry in the current fiscal year ending
March 2021 as the south Asian nation battles
the coronavirus pandemic.
Downstream end-users, however, have posed
strong opposition to the measure dubbed as
“covid (coronavirus disease) tax” – which was
supposed to take effect for 11 months from May
2020 – as this will translate to higher cost of
production.
Asian
petchem shares, oil prices mixed amid doubts on
new virus vaccine
By
Nurluqman Suratman 2020/05/20 SINGAPORE
(ICIS)–Asian petrochemical shares and oil
prices were mixed on Wednesday as investors
mulled over fresh doubts cast on a promising
coronavirus vaccine that is currently on trial.
Health-focused media firm STAT on Tuesday
reported that vaccine experts are maintaining
that the drug company running the trial did not
produce the data critical to assess the
vaccine’s success.
US May epoxy soft amid competitive
material, slower demand
By Tarun Raizada 2020/05/19 HOUSTON (ICIS)–US
epoxy is soft in May due to pressure from
imports and headwinds in demand.
In general, downward pressure has been noted
for both domestic and imported material this
month. The recent downward trend has provided
an opportunity for some players to restock.
VIDEO: US IPA eases with improving
supply, but demand remains
strong
By Deniz Koray 2020/05/19 HOUSTON (ICIS)–Watch
Markets Reporter Deniz Koray discuss the supply
and demand dynamics facing US isopropanol (IPA)
markets during the coronavirus.
US chems shares fall with general
market
By Al Greenwood 2020/05/19 HOUSTON (ICIS)–Most
US-listed chemical shares followed by ICIS fell
on Tuesday, following the trend of the general
stock markets.
Asia petrochemical shares, oil gain on
promising results for coronavirus
vaccine
By Nurluqman Suratman 19-May-20 12:15 SINGAPORE
(ICIS)–Asian petrochemical shares and oil
prices rose on Tuesday amid hopes of a quick
economic recovery following positive data from
an early-stage trial for a coronavirus vaccine.
Overnight, shares of US-listed chemical
companies rose sharply after biotech firm
Moderna announced positive phase-one results
for its coronavirus vaccine, boosting hopes
that a vaccine could be available late this
year.
Singapore petchem exports outlook
remains bleak on weak demand
|By Nurluqman Suratman 19-May-20 16:43
SINGAPORE (ICIS)–Singapore’s trade prospects
will continue to be clouded by the uncertainty
surrounding the length and severity of the
coronavirus crisis as major economies grapple
with a sharp recession.
Singapore’s petrochemical exports fell by 24.9%
year on year in April, worsening from the 22.5%
drop in March.
Japan braces for a deeper Q2 downturn;
global recession to hit
exports
By Pearl Bantillo 19-May-20 15:03 SINGAPORE
(ICIS)–Japan is bracing for a steeper downturn
in economic activity after slipping into a
recession, as the full impact of the
coronavirus pandemic on businesses, investments
and consumption will hit the second quarter.
The world’s third-biggest economy has
officially plunged into a recession in the
first quarter, when GDP posted a 3.4%
year-on-year contraction, following on from a
7.3% decline in the preceding quarter, which
was hit by a two-percentage point hike in
consumption tax.
US chem shares soar on oil rally,
coronavirus-vaccine advance
By Al Greenwood 2020/05/18 HOUSTON
(ICIS)–Shares of US-listed chemical companies
rose sharply – many by double digits – on
Monday amid a rally in oil prices and positive
developments in a vaccine against the
coronavirus.
PODCAST: US IPA sees easing but tight
supply, demand remains
strong
By Deniz Koray 2020/05/1 HOUSTON (ICIS)–US
isopropanol (IPA) faces easing supply, although
it remains tight, as demand remains strong.
Markets reporter Deniz Koray discusses IPA and
what is to come in this podcast interview
ICIS WEBINAR: Coronavirus smothers US
PE expansion wave
By Al Greenwood 2020/05/18 HOUSTON (ICIS)–The
coronavirus has smothered the next wave of new
US projects, from ethane extraction all the way
down to polyethylene (PE).
On the one hand, US plants have lost much of
their feedstock advantage against foreign
producers because of the crash in oil prices,
said Joseph Chang, global editor of ICIS
Chemical Business (ICB).
Asia petrochemical shares, oil prices rise on
further easing of lockdowns
By Nurluqman Suratman 18-May-20 12:51 SINGAPORE
(ICIS)–Asian petrochemical shares rose on
Monday in cautious trade, while oil prices
surged by more than $1/bbl as more countries
are gradually lifting coronavirus-related
restrictions on business activity and people
movement.
Japan economy falls into recession; Q1 GDP
contracts 3.4% year on year
By Pearl Bantillo 2020/05/18 SINGAPORE
(ICIS)–Japan has slipped into a recession with
another quarter of GDP contraction as the
coronavirus pandemic continues wreaking havoc
on the world’s third-biggest economy.
It posted an annualized GDP contraction of 3.4%
in the first quarter of 2020, preliminary
government data showed, following on from a
revised steeper contraction of 7.3% in
October-December 2019.
India’s ailing auto industry needs
long-term reforms for
revival
By Priya Jestin 2020/05/18 MUMBAI (ICIS)–While
the Indian government’s recent move to infuse
liquidity into the economy through a $266bn
fiscal stimulus package could help the domestic
auto industry, the sector will require
long-term reforms to revive it, said industry
experts.
Last week, Indian prime minister Narendra Modi
announced a $266bn fiscal stimulus package to
help revive the economy after a nearly
two-month long pandemic-induced lockdown, which
began on 24 March.
On 17 May, India extended its lockdown for two
more weeks until 31 May.
Tightening US styrene supply offset by
demand erosion
By Renato Frimm 2020/05/15 HOUSTON (ICIS)–US
styrene supply tightened slightly this week as
producer INEOS Styrolution kept its Texas City,
Texas plant down since starting a scheduled
maintenance in March.
VIDEO: Upward momentum in US refined vegetable
glycerine market slows as market assesses
easing lockdowns
By Lucas Hall 2020/05/15 HOUSTON (ICIS)–Watch
Markets Editor, Lucas Hall, discuss why the
upward momentum in US refined glycerine markets
has slowed over the past week.
US IPA prices see declines as supply
lengthens, demand stays
strong
By Deniz Koray 2020/05/14 HOUSTON
(ICIS)–Isopropanol (IPA) demand continues to
be very strong in the US, although supply has
increased in recent weeks.
PODCAST: Next steps for
chemicals amid pandemic – ICIS advisory
board
By: Will Beacham 2020/05/15 BARCELONA
(ICIS)–In this special ICIS podcast, the
European customer and editorial advisory board
discuss the challenges their organisations or
sectors have faced because of coronavirus.
The world might look different as we emerge
from the lockdowns, and the chemicals industry
has to prepare for this new post-virus reality.
In this podcast, they discuss:
– Impact of coronavirus through 2020
– Longer-term structural changes to industry
and markets
– Can chemicals emerge stronger from this
unprecedented disruption?
Click on the headline or scroll up to
access the podcast.
Europe
plasticizers players unable to forecast amid
poor demand, volatile market
By: Jane Massingham 2020/05/15 LONDON
(ICIS)–European plasticizers players remain in
the dark about future developments and describe
complexities in a fragile market, with
conditions open to change each day.
– Approaches to lifting restrictions vary
– Different levels of demand depending on
application
– Spot prices under pressure
The complexities between different countries
and customers and applications are making
business decisions increasingly challenging for
plasticizers players.
INSIGHT: Chemical
distributors benefit from diversity through
coronavirus lockdowns
By: Nigel Davis 2020/05/15 LONDON
(ICIS)–Distributors generally had a reasonable
first quarter financially although business in
industrial sectors like automobiles and demand
for products destined for the oil industry were
impacted by at the time impending pandemic.
As with most industrials, the second quarter is
likely to prove to be very different.
Industry leader, Germany’s Brenntag, said that
its oil and gas business has been badly
affected by the oil price collapse and that
anything connected to automotive has taken a
noticeable hit.
Global economic toll of
coronavirus pandemic could hit $8.8tr –
ADB
By Pearl Bantillo
2020/05/15 SINGAPORE (ICIS)–The global
economic toll of the novel coronavirus pandemic
could hit as high as $8.8tr, which represents
about 10% of world GDP, the Asian Development
Bank (ADB) said, as countries adopted prolonged
lockdowns to contain the spread of the deadly
flu-like disease.
Asia
petrochemical shares rise as oil extends gains
on hopes of better demand
By
Pearl Bantillo 2020/05/15 SINGAPORE
(ICIS)–Shares of petrochemical firms in Asia
were mostly trading slightly higher on Friday,
with oil prices extending gains on hopes that
demand will improve as more economies ease
lockdown measures amid the coronavirus
pandemic.
INTERVIEW: NACD prepares US
distributors to emerge from coronavirus
lockdowns
By Joseph Chang 2020/05/14 NEW YORK (ICIS)–The
National Association of Chemical Distributors
(NACD) is guiding its members through the
coronavirus crisis and preparing them to emerge
from the US lockdowns, its president said on
Wednesday.
‘Early signs’ of
crude market rebalancing, petchems to gain long
term – IEA chief
By: Jonathan Lopez 2020/05/14 LONDON
(ICIS)–Crude oil markets are showing “early
signs of rebalancing” as output cuts by OPEC+
countries kick in and some economies move to
reopen, the executive director at the
International Energy Agency (IEA) said on
Thursday.
Some petrochemicals end markets like those for
medical equipment and disinfectants have staged
a revival during the coronavirus pandemic, a
trend that is likely to stay in the long term,
said Fatih Birol.
“I wouldn’t think the petchems industry will be
so badly affected [in the long term] as other
sectors of the oil consuming sectors,” he said,
speaking to reporters in Paris.
VIDEO: Europe
R-PET grapples with virgin pressure, localised
demand, sustainability
By: Matt Tudball 2020/05/14 LONDON
(ICIS)–ICIS Senior Editor for recycled
polyethylene terephthalate (R-PET) Matt Tudball
discusses the main topics in the European
market this week:
– On-going price pressure from virgin PET
– Demand dynamics become more regional
– What is happening with sustainability goals
Click on the headline to see the
video.
INSIGHT: China attracts petrochemical
exports as global demand sags; inventories
rising
By Tahir Ikram 2020/05/14 SINGAPORE
(ICIS)–China’s petrochemical industry faces
yet another challenge – rising inventories and
congestion at ports – as global supply far
exceeds demand with the country’s own exports
hit hard by the fallout of the coronavirus
pandemic.
India offers relief to small enterprises under
massive economic stimulus
By Priya Jestin 2020/05/14 MUMBAI
(ICIS)–The first tranche of India’s massive
economic stimulus package was meant to prop up
the micro, small and medium enterprise (MSME)
sector of the giant emerging market economy
amid the coronavirus pandemic.
Indian finance minister Nirmala Sitharaman
announced on Wednesday evening a rupee (Rs) 3tr
($40bn) collateral-free loan scheme for the
country’s 4.5m MSME units.
Asian petchem shares fall on virus worries, oil
prices higher
By Nurluqman Suratman 2020/05/14 SINGAPORE
(ICIS)–Asian petrochemical shares fell on
Thursday amid fresh fears about a second wave
of coronavirus infections while oil prices were
higher after US crude stockpiles unexpectedly
fell.
US fuel ethanol spot prices widen as
inventories fall, demand
rises
By Alex Snodgrass 2020/05/13 HOUSTON (ICIS)–US
fuel ethanol prices widened this week, as fuel
demand continues to rise. The US Department of
Agriculture’s (USDA) outlook for the current
corn crop is for record high production,
greater exports and larger ending stocks.
PODCAST: NACD President discusses how
the industry is shifting to meet customer needs
amid coronavirus
By Alex Snodgrass 2020/05/13 HOUSTON (ICIS)—As
the coronavirus continues to hamper business,
the president of the National Association of
Chemical Distributors (NACD), Eric Byer,
discusses the impact of the coronavirus and how
the industry is shifting to meet needs and help
the community, as well as the hurdles that
remain.
US House reps introduce relief package
that includes biofuels aid
By Alex Snodgrass 2020/05/13 HOUSTON (ICIS)–
Four members of the US House of Representatives
introduced a coronavirus relief package that
includes aid for the biofuels industry.
The Health and Economic Recovery Omnibus
Emergency Solutions Act (HEROES Act) includes a
Renewable Fuel Reimbursement Program wherein
the US Department of Agriculture is authorised
to provide 45 cents/gal of qualifying ethanol
produced from 1 January through 1 May 2020.
US Q2 industrial ethanol contracts rise
on booming demand, short
supply
ByAlex Snodgrass 2020/05/13 HOUSTON (ICIS)–US
Q2 industrial ethanol contract prices were
assessed at a increase on Wednesday, amid
booming demand and short supply.
US ABS demand to improve as automakers
restart idled plants
By Adam Yanelli 2020/05/13 HOUSTON
(ICIS)–Demand for US
acrylonitrile-butadiene-styrene (ABS) is poised
to improve now that North American automakers
are restarting idled plants that were shuttered
because of the coronavirus, but lower-priced
imports continue to influence domestic prices.
Asia
petchem shares mixed; oil falls amid worries
over second wave of
infections
By Nurluqman
Suratman 2020/05/13 SINGAPORE (ICIS)–Asian
petrochemical shares were mixed while oil
prices fell on Wednesday as worries about a new
wave of coronavirus infections amid re-opening
of economies continued to weigh on investor
sentiment.
Philippines economy to
contract 2.0-3.4% in 2020 amid
pandemic
By Pearl Bantillo
2020/05/13 SINGAPORE (ICIS)–The Philippine
economy is expected to contract by 2.0-3.4%
this year, reversing a 6.0% growth in 2019, as
the economic toll from the coronavirus pandemic
could be as high as peso (Ps) 2.0tr
($40bn).
The cost of the pandemic on the southeast Asian
economy is expected to be about 9.4% of 2020
GDP.
Malaysia’s economy set to
contract after 0.7% expansion in
Q1
By Nurluqman Suratman
2020/05/13 SINGAPORE (ICIS)–Malaysia’s economy
is expected to contract in the second quarter
after growing by 0.7% year on year in first
three months of 2020, reflecting the longer
duration of coronavirus containment measures
both globally and domestically.
The slowdown in the first quarter also sharply
reverses the 3.6% year-on-year expansion in the
fourth quarter of 2019, Bank Negara Malaysia
said in a statement.
US chem shares
fall despite rally in oil
prices
By: Juhi Varma 2020/05/12 HOUSTON
(ICIS)–US-listed shares of chemical companies
fell on Tuesday despite a rise in oil prices
amid Saudi Arabia’s decision to exercise deeper
production cuts.
US jet fuel
recovery uncertain as demand hits unprecedented
lows
By: Alex Snodgrass 2020/05/12 HOUSTON (ICIS)–
US jet fuel demand is facing an uncertain
recovery as the coronavirus has halted
passenger demand around the world and
passengers remain hesitant to fly until a
vaccine is made, resulting in less travellers
and sending financial pain to the airline
industry.
Q2 will see worst
impact on liquid fuels, effects will dissipate
over next 18 months – EIA
By: Juhi Varma 2020/05/12 HOUSTON
(ICIS)–Reduced economic activity due to the
coronavirus has significantly altered supply
and demand patterns, with crude prices at their
lowest levels in 20 years, the US Energy
Information Administration said in its latest
short-term energy outlook on Tuesday.
North America,
EMEA chemicals average earnings could fall 20%
in 2020 – Moody’s
By: Tom Brown 2020/05/12 LONDON
(ICIS)–Average chemicals sector earnings in
North America and Europe, the Middle East and
Africa (EMEA) could fall by around a fifth year
on year in 2020 as a result of coronavirus
disruption and the severe downturn expected for
May and June, according to US ratings agency
Moody’s on Tuesday.
The financial results season for the first
quarter has revealed that demand for many
producers in the two regions held up relatively
well in the first quarter despite disruption in
Asia Pacific at the start of the year and
widespread lockdown measures in home markets in
March.
The downturn projected by Moody’s for the next
two months is likely to be most keenly felt by
commodity chemicals and producers of plastics
for industrial applications, with capacity
utilisation reductions or idled facilities
expected to reduce excess supply and inventory
levels.
Poland’s Orlen
purchases IPA licence and basic
design
By: Will Conroy 2020/05/12 LONDON
(ICIS)–Poland’s PKN Orlen said on Tuesday it
has purchased a licence and basic design from
Badger Licensing for an isopropanol (IPA)
installation.
If Orlen decides to go ahead with the
construction of the installation it would
become only the fifth company in the world to
boast innovative IPA production technology, it
added.
Applications in the packaging, medical and
hygiene sectors – including for hand sanitizers
– have seen strong demand for IPA amid the
coronavirus pandemic, which has taken its price
to a record high.
Europe PE margins
drop week on week on higher feedstock
costs
By: Miguel Rodriguez Fernandez
2020/05/12 LONDON (ICIS)–European plants
producing polyethylene (PE) have seen their
margins fall week on week due to higher
feedstock costs, ICIS margin analysis showed on
Tuesday.
In the week to 8 May:
– Naphtha values rose by more than 32%
– LPG values increased by 13%
High density polyethylene (HDPE) contract
margins fell by more than 19%, co-product
credits rose slightly:
LPG-based HDPE
contract margins fell by 14%.
Low density polyethylene (LDPE) contract
margins dropped by 14%, co-product credits
increased slightly:
LPG-based LDPE
contract margins fell by nearly 9%.
Europe naphtha
prices rebound on Asia demand pull, crude but
glut looms large
By: Shruti Salwan 2020/05/12
LONDON(ICIS)–European naphtha spot prices have
revived from April lows on the back of
improving crude oil futures, falling refinery
run rates, certain demand pull from Asia, and
feedstock economics favouring consumption rates
at crackers.
However, price downward pressure persists as
deals are being concluded at double-digit
discounts for early June deliveries amid
ongoing supply glut and limited demand.
That pressure was felt on Monday, with spot
prices closing at $208/tonne CIF (cost,
insurance, freight) NWE (northwest Europe) for
H1 June deliveries, down from last week’s close
at $214-215/tonne CIF NWE.
China to waive additional tariff on 79 US
products
By Fanny Zhang 2020/05/12 SINGAPORE
(ICIS)–China’s Finance Ministry announced on
Tuesday that it would exempt retaliatory
tariffs imposed in the trade war on 79 US
products for one year from 19 May 2020.
Importers can apply for refunding on tariffs
already paid.
Asia petchem shares tumble on virus fears; oil
up on Saudi output cut
By Nurluqman Suratman 2020/05/12 SINGAPORE
(ICIS)–Asian petrochemical shares fell on
Tuesday on fears over a second wave of
coronavirus infections, while oil prices rose
on Saudi Arabia’s surprise announcement of a
further cut in production.
Spikes in coronavirus cases in China and South
Korea after easing restrictions on people
movement, are weighing on investor sentiment.
ANALYSIS AND RESOURCES
