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Korea's Hanwha Total to load down butadiene production

  • Market: Petrochemicals
  • 04/03/24

South Korea's Hanwha Total will be loading down butadiene production from 5-13 March after detecting a technical issue at its 150,000 t/yr compressor unit at Daesan.

The company does not expect to require a complete shutdown to resolve the technical issue but anticipates production losses of around 3,200t.

March contract deliveries to off-takers will be reduced by up to 1,400t, and the company has now shelved a previous plan to sell an 1,800t spot cargo for April.

This means that South Korean butadiene consumers such as Kumho Petrochemical and LG Chemicals could have to seek imports to plug the shortfall in production.

Hanwha Total's announcement also comes on the heels of butadiene prices hitting 20-month highs of $1,300-1,340/t cfr northeast Asia in the week of 23 February because of tight supply.


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03/12/24

Mexico factory contraction eases in November

Mexico factory contraction eases in November

Mexico City, 3 December (Argus) — Mexico's manufacturing sector contracted again in November, but at a slower pace than the previous month, according to the Mexican finance executive association's (IMEF) latest purchasing managers index (PMI) surveys. The manufacturing PMI rose to 48.3 from 47.2 in October, inching closer to the 50-point threshold that signals expansion. Still, the index remained in contraction territory for an eighth consecutive month. "There is some stabilization in the loss of economic momentum recorded in previous months," IMEF noted, but the overall trend reflects "stagnation or the absence of solid expansion in both manufacturing and non-manufacturing sectors." Manufacturing accounts for about a fifth of Mexico's economy. Within the manufacturing PMI, the new order index increased by 1.3 points to 47.3 but stayed in contraction. Production fell by 0.5 points to 46.1, with both sub-indicators in contraction for an eighth month. In contrast, non-manufacturing industries—including services and commerce—moved into expansion territory, rising to 50.5 in November from 49.3 in October. New orders in this sector climbed 2.1 points to 51.5, production rose 1.8 points to 50.5 and employment rose by 1.2 points to 49.1, though it remained in contraction for a fifth consecutive month. Inflation concerns raised Looking ahead, IMEF highlighted potential inflationary pressures tied to US President-elect Donald Trump's policies. These include possible supply chain disruptions driven by escalating conflicts with Russia and in the Middle East as Trump shifts toward a more transactional approach with traditional allies. IMEF also warned that Trump may seek to influence the US Federal Reserve to accelerate rate cuts, further fueling inflation. Domestically, deregulation and tighter migration constraints may fail to ease trade bottlenecks. Meanwhile, tax cuts without corresponding spending reductions could add significant upward pressure on prices, IMEF said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Countries diverge on plastic production in global talks


02/12/24
News
02/12/24

Countries diverge on plastic production in global talks

Singapore, 2 December (Argus) — Countries have failed to reach a consensus in negotiations for a global treaty to tackle plastic pollution, partly because of disagreements about whether its scope should include plastic production. The fifth session of the UN's Intergovernmental Negotiating Committee (INC) which took place over 25 November-1 December was supposed to result in an international, legally binding instrument to tackle plastic pollution. But negotiations ultimately ended without an agreement in South Korea on 1 December. The UN Environment Programme's (UNEP's) executive director Inger Andersen acknowledged on 1 December that the session did "not quite" achieve consensus, but added that it is "not for want of trying". Countries instead agreed on a draft text, which will "serve as the starting point for negotiations" next year, the UNEP said on 2 December. Plastic production A key point of disagreement was regarding the inclusion of a legally-binding pledge to cut plastic production, echoing the discussions during a preliminary meeting in September when plastic production limits also emerged as a major sticking point. Many countries want the treaty to tackle the entire plastic value chain, including production, but this met resistance from oil-producing countries. Panama on 28 November put forth a proposal, backed by over 100 countries, to adopt a global target to "reduce the production of primary plastic polymers to sustainable levels" under article 6 of the draft text. It also suggested that countries must report their production, imports and exports of primary plastic polymers and measures taken to achieve the global target. But Kuwait, on behalf of like-minded countries, reiterated on 1 December that "the objective of this treaty is to end plastic pollution — not plastic itself." Kuwait hopes that the treaty will address the "core issue" of plastic pollution through "improved waste management systems, recycling infrastructure, and innovations in material design", as opposed to plastic production cuts. "Attempting to phase out plastic as a material, rather than addressing the issue of plastic pollution, risks undermining global progress and exacerbating economic inequalities," Kuwait added, noting that there has been no solution offered on what can replace plastic across its applications. By Tng Yong Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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PPO producer Pryme raises capex forecast


29/11/24
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29/11/24

PPO producer Pryme raises capex forecast

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EU recyclers need support: Sustainable Packaging Summit


29/11/24
News
29/11/24

EU recyclers need support: Sustainable Packaging Summit

Future regulations give certainty to the recycling industry for the long term, but prompt support is needed to ensure the industry continues to develop London, 29 November (Argus) — Recyclers warned the packaging industry that they needs support now to ensure enough supply will be available for future pledges and legislative targets at Packaging Europe's recent Sustainable Packaging Summit in Amsterdam. Mapping the sustainability challenge Delegates at the summit heard there is growing concern across the value chain around how to bridge the gap between now and 2030 to ensure the recycling industry can survive and continue necessary growth. In the interim years there are significant challenges in the market for recyclers which risk the secure availability of supply that brands and packaging companies need to reach desired recycled content goals in the future. Recyclers stated the industry in Europe is currently in decline, with a swathe of closures recently announced across the region and a lack of investment. Higher fixed costs in Europe, such as the price of electricity, hamper recyclers' ability to remain competitive on world scale, along with subdued demand for recyclates, exacerbated by low cost virgin material and rising imports. Brands noted less focus on sustainability from consumers and companies impacted by reduced consumer confidence and spending. Combined with the availability of lower cost virgin alternatives, this is said to be weighing on the urgency to increase recycled content as companies focus on the bottom line to manage the wider economic challenges the industry is facing. The industry must maintain sustainability momentum, and that sustainability must remain an advantage for companies for the recycling industry to continue to develop, delegates said. Navigating regulatory landscape Uncertainty in the market is hitting investment hard, and regulation is a fundamental step to providing clarity and stability for the European industry, but comes with its own challenges. The Packaging and Packaging Waste Regulation (PPWR) — which passed through the corrigendum procedure at this week's EU plenary and is now expected to be adopted by ministers on 16 December — is the first time that the waste hierarchy will be regulated consistently across EU member states. This is expected to ease uncertainties in the industry and add confidence in investments and further business planning as and when confirmed. The regulation is the most wide-reaching and ‘most challenging', due to the divergence of industries and interests across the value chain, Wolfgang Trunk, policy officer for the European Commission, said. "It is not perfect" he said, but considering the complexities "we can be content with what is now in the text. 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But the secretary-general of packaging organisation Europen Francesca Siciliano Stevens reaffirmed that the regulation does not go far enough in securing the single EU market and safeguarding European competitiveness on the global level. The drawbacks of a fragmented market, with varying national regulation and extended producers responsibility (EPR) schemes, were also highlighted, with delegates calling for a singular circular market. Some participants feel that harmonisation remains the weakest part of the regulation, and that political agendas have remained a barrier to overcome these difficulties. It is hoped that swift adoption of secondary legalisation, harmonised standards and the issue of necessary guidance will smooth the adoption of the PPWR. 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For global brands there could be upwards of 25 different policies with varying implications to adhere to in Europe alone. Participants called for clear standards and guidelines, as well as and harmonisation in data collection and reporting methodologies across the region in order to navigate the forthcoming headwinds. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s Oct naphtha imports fall on weak petchem demand


28/11/24
News
28/11/24

Japan’s Oct naphtha imports fall on weak petchem demand

Tokyo, 28 November (Argus) — Japan's naphtha imports totalled 1.18mn t in October, down by 10pc on the year but up by 5pc on the month, according to the country's finance ministry. Naphtha imports were lower on the year, given the continuous weakness in domestic petrochemical demand. This lowered cracker operating rates, which have been weakening since July, by 5.2 percentage points from a year earlier to 77.4pc in October, according to Japan Petrochemical Industry Association (JPCA). Cracker operating rates below 90pc indicate weakness in petrochemical consumption and the Japanese economy, JPCA said. The rates have been below 90pc since August 2022. Against a backdrop of weaker petrochemical consumption, ethylene production by domestic crackers in October fell by 7.4pc on the year to 414,500t. On a year-on-year basis, polypropylene and polyvinyl chloride output dropped by 5pc and by 12pc to 174,000t to 121,100t, respectively. Acrylonitrile output fell by 32pc to 21,300t, while styrene-butadiene rubber production stood at 15,600t, down by 25pc on the year. Aromatics xylene and benzene output fell by 2.6pc to 328,200t and by 1.5pc to 232,500t, respectively. By Nanami Oki Japan naphtha imports (t) Oct-24 Oct-23 Sep-24 y-o-y % ± m-o-m % ± Saudi Arabia 40,663 82,359 137,722 -70 -51 UAE 414,109 306,886 564,083 -27 35 Kuwait 205,941 284,441 109,249 89 -28 Qatar 148,927 147,786 195,703 -24 1 Bahrain 0 55,054 24,632 -100 -100 South Korea 179,544 92,986 89,023 102 93 Malaysia 0 0 0 - - India 38,742 0 8,516 355 - China 0 0 0 - - Indonesia 0 0 0 - - Singapore 0 0 0 - - Thailand 0 28,421 27,165 -100 -100 Russia 0 0 0 - - Australia 0 0 66,854 -100 - US 70,425 54,440 26,448 166 29 Others 79,178 69,289 60,090 32 14 Total 1,177,530 1,121,663 1,309,486 -10 5 Source: Finance ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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