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Covestro reports higher Q3 sales, chemical volumes

  • Market: Petrochemicals
  • 29/10/24

German chemical firm Covestro reported an increase in both group sales and volumes sold in the third quarter on improving global demand.

Group sales rose by 1pc to €3.6mn ($3.88mn) in the third quarter, despite lower selling price levels across all regions, Covestro said in an earnings call on Tuesday.

An increase in volumes across the Asia-Pacific and Europe, Middle East, Africa and Latin America (EMLA) regions buoyed sales and offset declining prices. Total product volumes rose by 6.1pc year over year, driven by higher demand and improved internal ability. Product volume numbers by region were not provided.

Sales in the performance materials segment, which includes standard MDI, TDI, long chain polyols, standard polycarbonate resins and basic chemicals, rose by 4.1pc from the prior year to €1.77mn driven by an increase in volumes sold. Performance materials volumes increased by 8.6pc in the third quarter, led by the EMLA region.

Abu Dhabi's state-owned Adnoc agreed to buy Covestro on 1 October for €62/share. Adnoc published its offer document on 25 October, marking the start of the initial acceptance period that will last until 27 November. There is also the possibility of an additional acceptance period, the company said, which would last through the middle of December.

For 2024, Covestro is forecasting declines in all major regions across industries that drive customer demand, except for the electrical, electronics and household appliances industry in which it expects 4.2pc growth. The company also narrowed full-year sales expectations from €14-15bn to €14-14.5bn.


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02/12/24

Countries diverge on plastic production in global talks

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
News
29/11/24

PPO producer Pryme raises capex forecast

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EU recyclers need support: Sustainable Packaging Summit


29/11/24
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29/11/24

EU recyclers need support: Sustainable Packaging Summit

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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. 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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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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

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EU parliament pushes through packaging law


26/11/24
News
26/11/24

EU parliament pushes through packaging law

Brussels, 26 November (Argus) — EU ministers are likely to approve the bloc's Packaging and Packaging Waste Regulation (PPWR) in December, allowing for its entry into force early in 2025. This follows the European Parliament today signalling the end to its so-called corrigendum procedure. No substantive changes to the legal text were made to the PPWR during the procedure. Martin Engelmann, director-general of German plastic packaging association IK, along with 20 German industry associations, had urged European Commission president Ursula von der Leyen to remove the "failed" reusable packaging requirements for industrial and commercial packaging. The PPWR will oblige packaging reductions of 5pc by 2030, 10pc by 2035 and 15pc by 2040 . The rules state all packaging placed on the EU market shall be recyclable. The legal text defines 'recyclability' as packaging's compatibility with waste management and processing using separate collection and sorting, recycling at scale and use of recycled materials to replace primary raw materials. The regulation specifies that end-of-waste materials used as fuels or to generate energy shall not be counted as recycled. The commission originally proposed the regulation in November 2022. EU elections in June 2024 held up formal adoption. EU ministers still have to formally approve the legal text, which should take place on 16 December. That would allow entry into force early in 2025. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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