Lanxess reported and quickly contained a leak from the halo butyl 2 unit at its Sarnia, Ontario, synthetic rubber plant.
The 150,000 t/yr plant produces butyl, chlorobutyl, and bromobutyl. It is unclear whether there was any impact to production.
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US homes more affordable as incomes rise: NAR
US homes more affordable as incomes rise: NAR
Houston, 4 February (Argus) — US housing affordability improved in the fourth quarter, extending a trend that emerged during the second half of 2025 after a fourth-month skid earlier in the year. Growth in personal income outpaced rising home prices in the US during the fourth quarter, improving affordability to the highest levels in more more than a year, new data from the National Association of Realtors (NAR) show. The NAR's quarterly affordability index rose to 109.1 in the fourth quarter of 2025,its preliminary Housing Affordability Index (HAI) shows. HAI values of 100 show that a family with the median US income has enough to qualify for a mortgage on a median-priced home. An index above 100 signals increasing affordability of a median family income. Median preexisting single-family home prices rose to $414,900 during the fourth quarter, up by 1.2pc from the same three-month period in 2024. The median family income rose by 4.7pc during the same period. Additionally, the average mortgage interest rate fell to 6.31pc from 6.74pc in the fourth quarter the prior year. NAR's affordability index remained below 100 in 2023 and 2024, contributing to slower housing demand during the two-year period. But affordability rebounded into the third quarter of 2025 from the prior quarter and continued to improve through the end of the year. Increasing housing affordability in the US is a bullish demand signal for polyvinyl chloride (PVC) producers and distributors. PVC is widely used in housing construction, and improved home affordability could spur new construction and strengthen PVC demand after two years of lagging consumption. Housing starts fell to a five-year low in October 2025, the most recent data point, indicating that a recovery in 2026 is unlikely. Mortgage rates need to fall further to induce demand as many would-be buyers remain locked into their current homes with previously-low mortgage rates, sources said. Rising incomes could alleviate otherwise low consumer sentiment and spur buying interest, while strong home prices coupled with lower borrowing rates could increase interest for new building projects. But signs currently point to the 2026 building season being a replay of 2025. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil’s Dec industrial output lowest since mid-2024
Brazil’s Dec industrial output lowest since mid-2024
Sao Paulo, 3 February (Argus) — Brazil's industrial output fell by 1.2pc in December from a month prior, marking the steepest decline since July 2024, according to national statistics agency IBGE. All four major categories showed declines, with capital goods and durable consumer goods output down by 8.3pc and 4.4pc, respectively, from November 2025 . Auto, chemicals and metallurgy were among the largest negative contributors, down by 8.7pc, by 6.2pc and by 5.4pc, respectively, from November, IBGE said. Output of petroleum coke, oil products and biofuels increased by 5.4pc in December from the previous month, after three consecutive monthly drops, while the extraction industries pushed up output by nearly 1pc. Transformative industry ended the year at 1.9pc below November 2025. IBGE data show. Despite month-to-month decreases, December's industrial output rose by 0.4pc from a year earlier. Plastic materials and machinery and equipment represented the largest contributors to the increase, which is also due to an additional workdays this year, IBGE said. 2025 output ticks up Brazil's 2025 industrial output reached a third increase in a row at 0.6pc above a year earlier and pre-pandemic levels, following a 3.1pc rise in 2024, IBGE said. Extraction and food industries were among the largest contributors to the increase, up by 4.9pc and 1.5pc, respectively. Machinery and equipment, metallurgy, chemicals and pharmacy products pushed up the Brazilian industry in 2025, despite a 5.3pc slump in the production of oil products and biofuels. Production of durable and intermediate goods — feedstocks for industries that do not directly reach the final consumer — rose by 2.5pc and 1.5pc in 2025, respectively, from a year earlier. Brazilian auto industry, crude and natural gas production helped lead gains, IBGE said. Brazil's central bank has kept its target interest rate stable at 15pc since June 2025. Brazil's headline inflation decelerated to an annual 4.26pc in December . By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil petchem industry flags Reiq 2026 gap
Brazil petchem industry flags Reiq 2026 gap
Sao Paulo, 2 February (Argus) — Brazilian chemical and petrochemical industry associations are urging the federal government to deliver a rapidfix for the 2026 gap in the Special Chemical Industry Regime (Reiq), warning that regulatory uncertainty is accelerating plant shutdowns and job losses across key production hubs. In a joint letter sent on 26 January to vice-president and industry minister Geraldo Alckmin, labor unions and industry groups — including Abiquim — said presidential vetoes affecting Reiq in December by removing key tax-relief provisions and carried into the newly enacted Special Sustainability Program for the Chemical Industry (Presiq), which focuses on the national petrochemical chain modernization,have created an "immediate and severe" impact on domestic producers, mainly due to the sudden loss of a long-standing cost-reduction tool with no transitional safeguards. Companies in Sao Paulo state have already closed units and cut shifts in Cubatao and Guaruja, according to the groups. Industry groups argue that without the Reiq tax relief, historically centered on PIS/Cofins reductions for feedstocks such as naphtha and natural gas and effectively revoked by the presidential vetoes — Brazil's chemical chain faces intensified competitive pressure from global oversupply, foreign subsidy schemes and aggressive pricing from Asian and Middle Eastern exporters. The regulatory gap is prompting irreversible divestment decisions, threatening the core of Brazil's petrochemical complex, they say. The entities called on the Ministry of Development, Industry, Trade and Services (Mdic) to restore predictability for 2026, saying the issue is no longer a tax debate but a strategic decision for Brazil's industrial competitiveness and employment base. The government has recently highlighted industrial policy priorities through its New Brazil Industry program and strengthened trade-defense tools, but the signatories said action on the Reiq must come "urgently, preferably in January," to avoid further disruption. History President Luiz Inacio Lula da Silva vetoed provisions in December 2025 that would have extended Reiq benefits into 2026 or ensured an automatic transition to the Presiq framework. The administration cited fiscal responsibility and the absence of compensatory budget measures. With Presiq scheduled to begin only in 2027, the vetoes leave a regulatory gap in 2026. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European PVC sector warns of closures, rationalisation
European PVC sector warns of closures, rationalisation
London, 2 February (Argus) — Closures and rationalisations in the European polyvinyl chloride (PVC) and chlor-vinyls chain are likely without more protection from imports and support from government to reduce energy costs, according to European producers . High feedstock costs put European chemical producers at a structural disadvantage compared with other producing regions, and this is coupled with weak domestic demand from outlets such as the construction and automotive sectors. PVC is particularly exposed to the high cost of energy because of the electrolysis process used to produce chlorine. Natural gas costs averaged $12.46/mnBtu on the European TTF day-ahead index over the past year, while US natural gas costs at the Henry Hub averaged $3.76/mnBtu over the same period. Asian gas costs are closer in scope to Europe but lighter environmental regulation and emissions costs compared to Europe mean chemicals firm there operate with a cost advantage. European demand for PVC was largely flat in 2025, with domestic producers operating at low rates, participants said. Chemical company Ineos' chlor-vinyl subsidiary Inovyn has called on the EU to use anti-dumping duties to combat "low-cost, high-carbon imports" flowing into Europe from China, South Korea and Taiwan. The bloc placed anti-dumping duties on US and Egyptian origin product in 2024, at between 63.7-100.1pc for PVC resins, effectively cutting of supply from these countries. But these have now largely been replaced by imports from Asia-Pacific. Total imports of PVC resin into Europe from China, Taiwan, Mexico and South Korea were roughly 410,300t in the first 11 months of 2025, according to Global Trade Tracker, more than double the same period a year earlier. Total imports into Europe rose to 540,000t from 469,000t in that time. Extension of duties would further cut European imports, as could the scheduled cancellation of a 13pc Chinese export tax rebate for PVC on 1 April. This is likely to raise Chinese export prices, making the east-to-west flow for PVC less favourable. Some European producers welcomed this news, noting that Chinese material was often the cheapest on the import market and the change may help raise the price floor for the whole market, supporting European producer margins. Imported spot material from South Korea is closer in price to European domestic contracted material, and Chinese and Taiwanese resin has consistently been cheaper. The Argus cif Europe import price for PVC resin hit a recent low of $715/t because of these cheaper imports, although it has ticked back up marginally as of last week. Inovyn's call for wider duties has been echoed by Vynova, whose Belgium subsidiary Tessenderlo is operating under a supervisory order until April after financial constraints emerged in December. A wider financial restructuring of the group is being worked on. Vynova companies in England and Germany have entered insolvency proceedings and may or may not emerge as part of the restructured entity. The company closed its 225,000 t/yr PVC-producing asset in Beek, the Netherlands, in 2025 citing pressure from "global overcapacity, persistently weak demand and increased competition from regions with lower production costs and less stringent regulations". Vynova's struggles are not unique. Spolana shut a 135,000 t/yr capacity site in the Czech Republic, and Fortischem closed a smaller site in Slovakia. Inovyn shut half of its PVC capacity at its Martorell, Spain, site before December 2025. The site was allocating fewer volumes to the export market, particularly Turkey, people with knowledge of the matter said. By George Barsted Monthly imports of PVC into Europe from China, Mexico, South Korea and Taiwan '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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