Latest Market News

Nova Chemicals preps for potential Canadian rail strike

  • Spanish Market: Petrochemicals
  • 18/04/24

Nova Chemicals is taking certain precautions such as making early shipments and forward placement of inventory at US storage locations to mitigate against potential polyethylene (PE) supply disruptions caused by a possible Canadian rail strike that could take place as early as 22 May, the company said in a letter to customers.

The Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railroads are (currently negotiating contracts)[https://direct.argusmedia.com/newsandanalysis/article/2553764] with the Teamsters Canada Rail Conference, which represents 9,300 employees across both railroads. The earliest a strike could begin is 12:01am ET on 22 May, but any work stoppage at either railroad could cause widespread disruption to rail traffic across Canada.

"NOVA Chemicals utilizes CN and CPKC to serve our manufacturing facilities and delivery polyethylene products and co-products to our customers," the company said in a 15 April letter to customers. "A labor strike within the Canadian railroad industry will result in disruptions and delays, impacting the timely delivery of these products."

Where practical, the company said it will ship product early prior to any strike, it said in the letter. It will also attempt to place some inventory at US off-site storage locations before the strike takes place, which will allow it to continue to serve US customers during a strike. Additionally, Nova said it is maintaining a direct line of communication with rail officials, and creating contingency plans for raw materials supply.

"Despite our best efforts to mitigate these challenges, there may be instances where shipments are delayed or rerouted due to the strike action," the letter says.

If a strike takes place, market participants said it would likely last around 3-4 days, but could cause delays to shipments for up to two weeks. However, the overall US/Canada market is well-supplied, so any shipment delays should not create significant tightness in the market, sources said.

Union employees at each railroad will vote electronically from 8 April to 1 May on whether to approve a strike.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

04/10/24

RECOUP 2024: Carbon the topic for the future

RECOUP 2024: Carbon the topic for the future

Carbon emissions, UK legislation and the role of industry in helping consumers to choose correctly were front of mind at last week's RECOUP conference, write Will Collins and Chloe Kinner London, 4 October (Argus) — The plastic supply chain needs to become less carbon intensive to preserve its environmental advantage compared with other materials, and supporting the recycling industry through a challenging period will play a central role, delegates heard at last week's RECOUP conference in Peterborough, UK. Plastic currently has a competitive advantage compared with many competing packaging materials when viewed through life cycle analysis of carbon emissions, particularly because its light weight reduces pollution during transport and its barrier properties lessen wastage. But this may not last forever, said Kinza Sutton from sustainable packaging organisation Plastipak, and with carbon set to be "the big topic of the future" the industry needs to focus today on reducing emissions linked to production, which she said are responsible for around two thirds of those generated over the whole lifecycle. But several speakers also emphasised the need to consider environmental gains in the context of the UK and Europe's competitiveness on the global stage. Stuart Hayward-Higham, innovation officer of waste management firm Suez, said "governments in the UK and Europe need to be conscious of the administrative burden on businesses", and called for regulators to align standards with neighbouring countries to boost efficiency and ensure a level playing field. Ermis Panagiotopoulos of global PET producer and recycler Indorama added environmental legislation has contributed to uncompetitive energy and raw materials prices in Europe, which make other regions more attractive to international companies as an investment. Participants suggested combining regulations with protective measures such as extending the carbon border adjustment mechanism (CBAM) to include plastics, could help to ensure Europe's competitiveness. Recycling to reduce emissions Increasing recycling and the uptake of recyclates in plastic products is one of the most effective ways to reduce carbon emissions linked to plastic raw materials. But Recoup chairman Jim Armstrong highlighted the need to support the UK recycling industry. "We need infrastructure to convert the materials that we will collect, that is part of the circle. The UK recycling industry is really under pressure at the moment. The idea there's a whole queue of financial investors waiting to invest in UK recycling, that's just not true at the moment", he said. The price of plastic waste bales in the UK has fallen incrementally throughout the year, amid slow demand for domestic and export sales and a drop in the value of Packaging Recovery Notices (PRNs), which recyclers generate by processing packaging waste and which are intended to contribute to investment. And on the downstream side of the recycling industry, Biffa Polymers mothballed a 25,000t/yr mechanical recycling plant in northeast England in June owing to "extremely challenging market conditions", while Viridor announced in August it would not proceed with plans to build a chemical recycling plant in Sunderland, citing delays to UK legislation . Robbie Staniforth from packaging compliance scheme Ecosurety noted a number of incoming measures that should help UK plastic recyclers, including extended producer responsibility (EPR) and a deposit return scheme (DRS) for PET bottles. But he said the UK's plastic packaging tax (PPT), which is intended to support demand for recyclates, needs improvement. Regarding PPT, Kinza Sutton said Plastipak had expected it to drive more use of recycled material, but in fact its recycled content had dropped by 5pc since 2022. "The plastics tax [has] driven cost increases, and we've seen the average recycled content come down. We were seeing high levels of 51pc or 100pc, we're seeing a lot less of that now, companies are just reverting back down to 30pc [the minimum threshold to avoid paying PPT]". Engaging the customer Customers may support more re-use and recycling, but it is the industry's responsibility to help them make the right choices and minimise the necessary sacrifice to convenience and the cost burden, delegates heard. Gavin Ellis, co-founder of environmental organisation Hubbub, said research had shown consumers spend just two seconds on average deciding which bin to use for items of waste packaging, making clear labelling vital. A consistent approach between brands, outlets and collection systems is also important, he said. James Bull, head of packaging at Tesco, said retailers need to change products carefully, with an awareness that people have grown to rely on convenience and may be resistant to changes such as a move to a more reuse-based system. And Andrew Murray from appliance manufacturer Beko said new regulations should take into account the financial capabilities of consumers. Many households already cannot afford essential appliances, he said, making any measures that would increase the cost of the cheapest models potentially problematic. Despite the short-term challenges the industry is facing the sentiment at the event was optimistic for plastics recycling in the UK and Europe. Participants see the opportunity the industry has to lead consumers along the path to a more sustainable packaging supply chain model of reduced consumption and systems with more focus on reuse and recycling with the support of legalisation. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Dockworkers end US port strike


03/10/24
03/10/24

Dockworkers end US port strike

Houston, 3 October (Argus) — US dockworkers have ended a port strike that had shut container terminals from Maine to Texas, after their union late Thursday struck a tentative agreement on wages. The International Longshoremen's Association (ILA) has agreed to extend its contract with the United States Maritime Alliance (USMX) until 15 January to provide time for negotiating the remaining outstanding issues, the ILA said in a statement. The USMX includes containership owners, terminal operators and port associations. "Effective immediately, all current job actions will cease and all work covered by the master contract will resume," the ILA said. The strike, which started on 1 October, had forced containership operators to queue up outside US east coast ports. Major container shipping agencies such as Maersk had initiated surcharges for US east coast and Gulf coast-bound containers later in October. By Jack Kaskey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Argent to start production at new glycerine refinery


03/10/24
03/10/24

Argent to start production at new glycerine refinery

London, 3 October (Argus) — Biofuels producer Argent Energy is expected to commence production at its new glycerine refinery in early October, a source told Argus . The new Argent refinery, which is located at its Port of Amsterdam site, is Europe's largest facility dedicated to producing bio-based, technical-grade refined glycerine. The facility has a production capacity of 50,000 t/yr and will upgrade crude glycerine into 99.7pc technical-grade glycerine to supply the European chemical market, the company said. Technical-grade refined glycerine can be used in the production of epichlorohydrin, polyether polyol and anti-freeze, among other applications. Additionally, its use as a feedstock for biofuels generation, such as marine fuels, is being studied as it could offer a cheaper alternative to LNG and distillates. The Netherlands has the largest marine fuel sector in the EU. "Our entrance into the chemical market is driven by our goal to maximise product value and support the circular economy. By upgrading glycerine from our processes into a technical-grade product, we're giving the chemical industry a bio-based option they can confidently use in their own products," Argent Energy chief executive Louise Calviou said. The glycerine produced in Argent's new facility will be made via the biodiesel production route, with the product being certified under International Sustainability and Carbon Certification (ISCC) guidelines. Argent Energy currently has a capacity of 190,000 t/yr for waste-based biodiesel, with sites in Amsterdam and northwest England. The company plans to soon triple biofuel production at its Amsterdam site alone. By George Barsted and Carolina A. Palma Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California textile recovery bill signed into law


02/10/24
02/10/24

California textile recovery bill signed into law

Houston, 2 October (Argus) — California governor Gavin Newsom (D) signed a bill into law on 28 September that will establish the US's first extended producer responsibility (EPR) textile recycling program. The law (SB 707) requires producers of apparel or textile articles in California to create a producer responsibility organization (PRO) that will handle and recycle textiles and apparel across the state, under the supervision of California's Department of Resources Recycling and Recovery (CalRecycle). SB 707 is the first EPR system for clothing that has passed in the US and leaves a lot of leeway to the PRO and CalRecycle in implementing the law. It provides relatively few details about how the EPR program will work and does not set any minimum recycled targets. The law was written by California State Senator Josh Newman (D) and was supported by textile industry participants and recyclers. "To achieve (our corporate goal of becoming a circular business by 2030), we must partner with policymakers to support efforts in creating more circular systems for textiles and other products," IKEA US Sustainability Manager Mardi Ditze said following the bill's passage. "We applaud Senator Newman for leading a collaborative process with industry stakeholders on SB 707 and support efforts to increase textile circularity in California and across the US." The PRO is required to provide free textile recycling drop-off centers for residents of California, and CalRecycle is authorized to impose monetary penalties against producers for violations of the program's requirements under the bill. Producers will be expected to join an approved PRO by 1 July 2026, and the EPR system is planned to begin enforcement on 1 July 2030. By Hadley Medlock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Unilateral action can tackle plastic waste: OECD


02/10/24
02/10/24

Unilateral action can tackle plastic waste: OECD

London, 2 October (Argus) — Only stringent global measures addressing production and waste management combined can come close to eliminating plastic leakage into the environment by 2040, a new OECD report says. The report — Policy Scenarios for Eliminating Plastic Pollution by 2040 — projects the impact of different policy measures, ranging from business as usual, through measures only aimed at boosting collection and recycling or only enacted in developed countries, up to global measures targeting both upstream production and downstream waste management. It concludes that global plastic production will grow by 69pc by 2040 — versus a 2020 baseline — if the current policy environment is maintained, whereas the recycling rate would only increase by around 5pc, resulting in a 50pc increase in the leakage of plastic into the environment. Combining measures aimed at curbing plastic demand — including production caps, development of re-use systems and increased design-for-recycling — with policies aimed at boosting collection and recycling of plastic waste could reduce virgin plastic production, boost recycling rates above 40pc and reduce leakage to near zero. In a scenario where OECD members enact measures across the supply chain while non-OECD nations focus on downstream measures, virgin plastic production would rise only slightly by 2040, from 2020, the report says. But it projects that there would still be more than 10mn t/yr of plastic waste leaking into the environment, compared with 20mn t in 2020. Furthermore, the report concludes that enacting measures across the supply chain will be the most cost-effective way of limiting the environmental impact of plastic waste. This is because upstream measures such as design-for-recycling will reduce the cost of improving collection and recycling, which will be higher in many non-OECD countries where existing waste management infrastructure is more limited. Global measures across the supply chain would cost 0.37pc of gross domestic product (GDP) in OECD countries and 0.62pc of GDP in non-OECD economies by 2040, the report projects, compared with over 0.5pc and nearly 1pc, respectively, if only downstream measures were implemented. "These costs exclude the avoided costs of inaction and should be considered in the context of vastly improved environmental outcomes", the report notes. Shaping the debate The release of the report comes ahead of the fifth and final scheduled round of UN negotiations to develop a binding global treaty to tackle plastic waste, which will begin in South Korea in November. In past sessions, there has been ongoing debate about the scope that the treaty should take. Some delegates, especially from countries with a reliance on plastic-producing industries, have so far favoured a focus on downstream measures and opposed caps on virgin plastic production. A recent change of tack from the US in support of production caps surprised many observers, but its impact on discussions will depend on how much leverage it is willing to use to convince others to follow suit. Discussions during the Intergovernmental Negotiating Committee on Plastic Pollution on 25 September in New York showed member countries are still far apart in terms of policy agreements, with frustration sometimes visible from a few diplomats about the lack of progress in certain areas. Negotiations up to this point indicate that achieving the OECD's ideal scenario for tackling plastic waste will be extremely challenging. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more