Asian petrochemical shares traded mostly higher
on Tuesday on hopes of economic recovery as
more countries slowly emerge from
pandemic-induced lockdowns, with crude prices
up on expectations that huge output cuts by oil
majors would be extended.
Manufacturing in the region has remained in
contraction mode in May, except in China, and
any future improvement is projected to be
gradual, while demand could take longer to
recover.
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
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LATEST HEADLINES
Asia
petrochemical shares mostly higher on recovery
hopes
By Nurluqman Suratman
2020/06/02 SINGAPORE (ICIS)–Asian
petrochemical shares were mostly higher on
Tuesday as muted action from US President
Donald Trump on the dispute with China over
Hong Kong raised further hopes of a global
economic recovery.
Risk appetite in equity markets remained
supported after global manufacturing data in
May signaled some stabilisation from April lows
as economies re-open.
Asia
manufacturing remains weak; supply to recover
faster than demand
By
Nurluqman Suratman 2020/06/02 SINGAPORE
(ICIS)–Asia’s manufacturing sector outside of
China remained in contraction mode in May
despite re-opening of more economies from
coronavirus-related lockdowns, with
expectations that production will outpace
demand in the near term.
The pace of pick-up in activity for the rest of
Asia appears to be more gradual in contrast to
China’s sharp rebound in March from
a record
low in February, when the country placed
various cities under lockdown to contain the
novel coronavirus outbreak.
Braskem expects to start-up new US PP
plant in Q3 2020
By Zachary Moore 2020/06/01 HOUSTON
(ICIS)–Braskem is continuing with construction
activities and plans to start-up its new
450,000 tonnes/year polypropylene (PP) plant in
La Porte, Texas, by Q3, a company spokesperson
said on Monday.
US chem stocks rise with general
market
By Al Greenwood 2020/06/01 HOUSTON
(ICIS)–US-listed shares of chemical companies
rose on Monday as the major indices also
increased.
PODCAST: US BD demand challenges to
continue in 2020 on coronavirus
impact
By Amanda Hay 2020/06/01 HOUSTON (ICIS)–Demand
challenges will be the biggest factor for the
US butadiene (BD) market for the remainder of
2020.
PODCAST: Optimism
for June/July may be misplaced, focus on
remodelling business
By: Will Beacham 2020/06/01 BARCELONA
(ICIS)–Hopes of a recovery in demand in June
and July may not be realistic and the chemical
industry should focus on steps to retool for
different future market needs, senior chemicals
commentators said on Monday.
- Set realistic expectations for June/July
and rest of 2020 - Long term, global economy could be at
70-90% of previous levels - EU’s €750bn rescue package and what that
could mean for chemicals - How a move to local supply chains could
transform the chemical industry - Revolution in Europe’s PMMA sheet market –
from doldrums to new investments - Fears about increasing social unrest in the
US and globally
Click on the headline or scroll up to hear
the podcast
Oil prices swept
up in the risk-on rally
By: Richard Price 2020/06/01 LONDON
(ICIS)–Investors have regained faith in
riskier asset classes, pushing their money into
commodities and stocks – liquidating positions
in perceived safe havens.
The MSCI All-Country Global Equity Index (an
index of small-to large-cap stocks from 23
developed and 24 emerging markets) is just 12%
off pre-coronavirus levels, having collapsed by
almost 35% in March.
Global oil markets are also basking in the glow
of improved demand sentiment, with Brent up by
75% since April. However, with global daily new
coronavirus cases hitting a record 135,000 on
30 May, is this meteoric rise stoked by sound
fundamentals, or are investors getting ahead of
themselves?
PHYSICAL MARKET
After a torrid April, the crude oil price
recovery appears well under way. The supply
cuts spearheaded by OPEC have improved
fundamentals in the physical market. The
discount of the Dated BFOE physical benchmark
to ICE Brent futures has declined from almost
$10.00/bbl in April, to below $2.00/bbl.
Asia petrochemical shares rise; crude
oil slips on demand worries
By Nurluqman Suratman 01-Jun-20 12:24 SINGAPORE
(ICIS)–Asian petrochemical shares rose on
Monday after US President Donald Trump stopped
short of introducing new sanctions on China
over its new security law in Hong Kong.
Gains were capped by fresh data showing a
further slowdown in factory activity across
most of Asia in May as well as concerns over
the riots happening in major cities in the US
over the weekend.
Asia’s naphtha prices at over two-month
high on steady demand
1 June 2020 10:11 am SINGAPORE (ICIS)–Asia’s
naphtha prices are finding support from
regional buying, which is anticipated to hold
steady in the near term, keeping market
fundamentals buoyant.
Naphtha prices tracked earlier gains in global
crude oil futures amid reduced production and
expectations of demand growth as countries
emerge from coronavirus lockdowns.
India GDP growth slows to 4.2%;
lockdown stays at manufacturing
hubs
By Pearl Bantillo 01-Jun-20 15:48 SINGAPORE
(ICIS)–India, an emerging market giant, posted
its slowest growth in more than a decade, while
yet to show the full impact of a nationwide
lockdown that brought economic activity to a
standstill for more than two months.
The nationwide lockdown was due to be lifted
this week, but restrictions will remain in
place until the end of June for areas
considered as high risk – referring to those
with elevated number of novel coronavirus
infections.
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.
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