Asian petrochemical shares were mostly higher
on Friday on growing hopes of a global economic
recovery as massive additional stimulus
packages were introduced.
Crude prices were mixed amid uncertainty over
the extension of massive output cuts by oil
majors into July. Previous expectations of an
extension had buoyed up prices.
In the butadiene (BD) market, an influx of
deep-sea cargoes from Europe and the US is
causing a supply glut in Asia. Huge volumes are
due to arrive in the region in the second
quarter through to July and August.
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.
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videos.
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LATEST HEADLINES
Asia
petrochemical shares mostly higher; oil mixed
on supply concerns
By Nurluqman Suratman 2020/06/05 SINGAPORE
(ICIS)–Asian petrochemical shares were mostly
higher on Friday after the European Central
Bank (ECB) unexpectedly opted to increase its
stimulus package, boosting hopes for a global
economic recovery.
Influx of deep-sea
cargoes to weigh on Asian BD market in the near
term
By Helen Yan 2020/06/05
SINGAPORE (ICIS)–A supply glut caused by an
influx of deep-sea butadiene (BD) supply from
Europe and the US is expected to weigh on the
Asian BD market in the near term.
US chem shares
rise, breaking from oil, general
market
By Al Greenwood 2020/06/04 HOUSTON (ICIS)–Many
US-listed shares of chemical companies rose on
Thursday, even as the general stock market was
mixed and oil prices rose slightly.
ICIS WEBINAR: PE
demand surprisingly strong
By Stefan Baumgarten 2020/06/04 HOUSTON
(ICIS)–North American polyethylene (PE)
producers saw stronger demand amid the
coronavirus crisis than producers of many other
chemicals and resins, Zachary Moore, ICIS
deputy managing editor, said on Thursday.
ICIS Top 100
Chemical Distributors
By Joseph Chang 2020/06/04 NEW YORK (ICIS)–In
the 22 May issue of ICIS Chemical Business
which contained the ICIS Top 100 Chemical
Distributors, we mistakenly omitted OQEMA, with
$881.3m (€875m) in sales in 2019.
UK May car sales
collapse by 89% to 1952 levels as lockdown
devastates industry
By: Will Beacham 2020/06/04 BARCELONA
(ICIS)–UK new car sales collapsed by 89% year
on year in May to levels not seen since 1952 as
the coronavirus shutdowns and closure of most
automotive production devastated the country’s
market.Figures published on
Thursday by the Society of Motor Manufacturers
show that just 20, 247 vehicles were sold in
May 2020 compared with 183,724 a year earlier.
The fleet business fared worst, falling by 93%
whilst private sales dropped by 84%. Sales of
all types of cars fell except for battery
electric vehicles which grew by 21.5% to 2,424.
The Tesla Model 3 electric vehicle was the
top-selling car in the UK in May 2020,
demonstrating how quickly consumers are
shifting away from conventional vehicles.
Europe chemicals
to gain from EU green deal spending plans –
bank
By: Tom Brown 2020/06/04 LONDON
(ICIS)–European chemicals players are
expecting to see increased business momentum on
the back of the EU’s green deal expected to
unlock hundreds of billions of euros of
investment in sustainability projects,
according to Credit Suisse.
A virtual conference organised by the bank
hosted management teams from 20 chemicals,
agriculture, packaging and cement firms address
investors, with all chemicals firms present
noting expectations for an increase in sales on
the back of the mooted EU green investment
plan.
However, little visibility on uplift from the
measures is expected over the next 12-18
months.
The European Commission – the EU’s executive
body – has proposed a raft of green investment
measures at the heart of a €750bn coronavirus
recovery stimulus package.
Asia petrochemical shares mixed; oil
falls on output cut extension
doubts
By Nurluqman Suratman 04-Jun-20 12:44 SINGAPORE
(ICIS)–Asia’s petrochemical shares were mixed
on Thursday on fresh tensions between the US
and China, while oil prices fell on worries
about growing global oil supply amid weak
demand if major producers fail to extend
production cuts.
At 03:10 GMT, Asahi Kasei was up by more than
2% in Tokyo, PetroChina was down by more than
1% in Hong Kong and LG Chem rose by close to 3%
in Seoul.
Singapore manufacturing headwinds set
to continue after May
contraction
By Nurluqman Suratman 04-Jun-20 14:41 SINGAPORE
(ICIS)–Singapore’s manufacturing sector will
likely remain in the doldrums for the rest of
the year following another month of contraction
in May as the coronavirus pandemic wears on the
economy.
The city-state’s manufacturing purchasing
manager’ index (PMI) for May rose by 2.1 points
from the previous month to 46.8, according to
data from the Singapore Institute of Purchasing
& Materials Management (SIPMM).
INSIGHT: Global methanol operating rate
cuts expected in second half
By Rachel Qian 04-Jun-20 11:14 SINGAPORE
(ICIS)–Although demand is slowly picking up,
the global methanol market will remain soft in
the second half of the year with operating rate
cuts expected globally. This is predominantly
driven by oversupply, a weakened futures market
in China, and lack of storage which puts
pressure on second half prices.
INSIGHT:
Chemicals industry faces volatile backdrop on
road to recovery
By Joseph Chang 2020/06/03 NEW YORK (ICIS)–The
coronavirus crisis may simply accelerate key
macro trends already underway, creating a
volatile backdrop for chemical companies to
navigate on the road to recovery.
ICIS WEBINAR: Chinese coal-based PVC,
MEG losing competitiveness to ethylene-based
routes
By Zachary Moore 2020/06/03 HOUSTON
(ICIS)–Chinese coal-based capacities for
polyvinyl chloride (PVC) and monoethylene
glycol (MEG) are losing competitiveness
relative to ethylene-based alternatives in a
lower priced ethylene environment.
ICIS WEBINAR:
Pandemic to accelerate US chem
differentiation
By Stefan Baumgarten 2020/06/03 HOUSTON
(ICIS)–The coronavirus pandemic is set to
accelerate the US chemical industry’s
differentiation into specialties.
ICIS WEBINAR:
Ethane remains the most favoured cracker
feedstock
By Zachary Moore 2020/06/03 HOUSTON
(ICIS)–Although the global ethylene cash cost
curve has been flattened in recent weeks due to
the impacts of the coronavirus outbreak, ethane
remains the most favoured cracker feedstock.
ICIS WEBINAR: BD
demand remains weak but markets to
rebalance
By Juhi Varma 2020/06/03 HOUSTON (ICIS)–Demand
weakness for butadiene (BD) will linger, but
the changes experienced by the market are not
structural in the long term. Much of the BD
demand weakness is linked to the
coronavirus, which created a drop-off in demand
for automobiles, the main demand outlet for BD.
Eurozone economy
starts to rebound in May from record
contraction, years to full
recovery
By: Will Beacham 2020/06/03 BARCELONA
(ICIS)–The eurozone’s economy is slowly
bouncing back from the most severe contraction
on record, according to final purchasing
manager index (PMI) numbers for May, published
on Wednesday.
The IHS Markit
composite index, which covers manufacturing and
services, rose to 31.9 in May, up from 13.6 in
April as coronavirus lockdowns were gradually
eased and the region’s economy started to pick
up. The figures show the eurozone’s economy is
still contracting, but at a slower pace as a
reading below 50.0 signifies shrinkage of
economic activity.
There was an unusually large upwards revision
from flash PMI numbers published in May.
The four largest euro area economies registered
slower – albeit still severe – contractions in
activity. Italy was the best-performing,
followed by Germany and France. Spain remained
the weakest-performing nation.
May Global IPEX
flat from April but 37% lower year on
year
By: Nigel Davis 2020/06/03 LONDON
(ICIS)–A rebound in ethylene and propylene
prices in northeast Asia and the much higher
Europe May benzene contract price helped
stabilise the global ICIS Petrochemical Index
(IPEX) for the month.
The regional and global index values, however,
remain sharply down compared to May 2019 as
large parts of the world continue to suffer
from the negative economic impact of lockdowns
in the midst of the coranavirus pandemic.
Ethylene demand is stronger in China while
supply has been tight for June cargoes.
Downstream markets in China are performing
better and higher naphtha costs, on the back of
the rising crude oil price, helped drive market
dynamics.
In Europe, the May benzene contract reacted to
the upward push in crude.
Click on the
headline or scroll down to see the interactive
version.
VIDEO: June R-PET
prices under downward pressure
By: ICIS Editorial 2020/06/03 LONDON
(ICIS)– European recycled polyethylene
terephthalate (R-PET) senior editor Matt
Tudball discusses what June may have in store
for the R-PET market, including:
- Bearish sentiment across all grades
- Price discussions indicating reductions
from May - Low demand, increasing availability
Click on the headline to view the
video.
Asia petrochemical shares up on recovery hopes;
oil nears 3-month highs
Asian petrochemical shares were higher on
Wednesday on hopes of a quick recovery in the
world economy as coronavirus containment
measures are eased further.
Expectations of extended cut in oil output sent
crude prices to their highs in nearly three
months, with Brent trading above $40/bbl.
Easing lockdown measures revs up Asia
petrochemical markets
Petrochemical markets in Asia are coming back
to life after about two months of general
weakness as pandemic-induced lockdowns in most
countries in the region are being lifted,
boding well for demand from June onward.
ICIS WEBINAR: New
trends show companies reshoring supply chains,
sustainability on hold
By Juhi Varma 2020/06/02 HOUSTON (ICIS)–Recent
supply chain disruptions have prompted
companies to seek out raw material providers
closer to home, said ICIS lead analyst Rhian
O’Conner.
Most US chem
shares rise amid easing lockdown measures, news
of reopenings
By Juhi Varma 2020/06/02 HOUSTON (ICIS)–Most
US-listed shares of chemical companies rose on
Tuesday with the general stock market. Despite
social unrest and race protests in many US
states, the market found optimism in news of
lockdown rollbacks and economies reopening.
ICIS Webinar:
Improved margins for heavy cracking, weak
demand pressure US BD prices
lower
Author: Zachary Moore 2020/06/02 HOUSTON
(ICIS)–Improved margins for cracking heavier
feedstocks such as naphtha and liquefied
petroleum gas (LPG) along with weaker demand
have pressured prices for US butadiene (BD),
ICIS Analyst Ciaran Healy said. He gave his
remarks in a webinar, part of a series hosted
by ICIS.
US May ethylene
contracts settle up after six-month
decline
By Michael Sims 2020/06/02 HOUSTON (ICIS)–US
May ethylene contracts settled for the majority
of participants at an increase of 3.5 cents/lb
on higher spot prices and cash costs.The
settlement puts May contracts at 24.0 cents/lb
($529/tonne), up from 20.5 cents/lb in April.
ICIS WEBINAR:
Weak chem demand through 2020, but 2021 will be
better
By Stefan Baumgarten 2020/06/02 HOUSTON
(ICIS)–This year will be “a bit of a
write-off” in terms of global chemical demand
but 2021 should see a pickup – assuming there
are no second waves of coronavirus (Covid-19)
infections, Rhian O’Connor, ICIS senior
analyst, said.
Europe chems
stocks rally as lockdown easing trumps
political tensions
By Tom Brown 02-Jun-20 18:54 LONDON
(ICIS)–European chemicals stocks rallied on
Tuesday amid jumps of nearly 4% for Germany’s
DAX index and strong bumps for other bourses in
the region as gathering economic momentum
overpowered geopolitical unease and a week of
protests in the US.
While economic activity across much of the
world’s key economies with the exception of
China remains in contraction, the easing of
conditions compared to the lows seen in April
and May are fuelling more bullish investor
sentiment than has been seen in several months.
Germany’s DAX index closed up up 3.75% and
France’s CAC 40 rallied over 2%, while gains
for the UK’s FTSE 100 were trimmed by the
impact of Brexit negotiation tensions weighing
on the pound, standing at 0.87%.
Europe MEG
contract sees first increase of 2020 for
June
By: Melissa Hurley 2020/06/02 LONDON
(ICIS)–The June monoethylene glycol (MEG)
contract has been fully confirmed at
€455/tonne, a €7/tonne increase from May.
An agreement between a buyer and seller emerged
at the end of last week, shortly after the
ethylene contract price was fully confirmed at
a €60/tonne from May.
Crude oil and naphtha values were on the
uptrend last month on the back of oil
production cuts.
A minimum 2+2 producer-consumer configuration
is required to consider the MEG contract
agreements fully confirmed.
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.
ANALYSIS AND RESOURCES
June 2020 Coronavirus presentation given by
ICIS Analytics experts.
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