Unipar sees lower 3Q profit on sluggish petchem cycle

: Petrochemicals
25/11/14

Brazilian company Unipar Carbocloro, South America's largest producer of polyvinyl chloride (PVC), reported a net profit of R107mn ($20.2mn) in the third quarter of 2025, 9pc below the same period last year.

The results were primarily driven by a downturn in the petrochemical cycle and a persistent imbalance between global supply and demand.

Unipar's average plant utilization rate remained at 80pc in Brazil and reached 67pc in Argentina, both impacted by temporary reductions in operations due to weak demand at certain times during the quarter.

Chief executive Rodrigo Cannaval noted mounting pressure on Brazil's domestic PVC market from imports, particularly from Colombia and Egypt, alongside weak demand in Argentina amid President Javier Milei's macroeconomic reforms.

International caustic soda and PVC prices decreased 11pc and 5pc, respectively, compared to the second quarter, curtailing Unipar's adjusted recurring earnings before interest, taxes, depreciation and amortization (EBITDA) of R266mn, which also suffered negative effects from currency appreciation in Brazil, even though the company's cash flow is mostly tied to the US dollar.

Annually, adjusted recurring EBITDA increased 14pc, from R233mn, mostly due to higher volumes of caustic soda and chlorinated products, offsetting 15pc lower sales of PVC.

PVC accounted for 40pc of the company's revenue in the quarter, followed by caustic soda (39pc) and chlorinated products (21pc).

Additionally, Unipar's Capex should be significantly smaller next year, Cannaval said during the company's third-quarter earnings conference call, given that the modernization of the Cubatao plant is nearing completion. It is the company's most relevant ongoing project, he said, and affected both gross and net debt in the quarter. The Cubatao plant has production capacity of 355,000 metric tonnes (t)/yr of chlorine and 400,000 t/yr of caustic soda.

Unipar introduced new PVC pricing after Brazil increased antidumping duties on US imports to 43.7pc from 8.2pc. But Cannaval said PVC demand in Brazil continues to lag amid elevated interest rates.

The petrochemical firm posted net revenue of R1.2bn, 8pc below the same quarter the previous year. Unipar's net debt hit R1.5bn, 275pc above R459mn reported a year ago.

By Isabela Mendes

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25/12/03

Global bioplastics production set to rise: Correction

Corrects name of EUBP secretary general in final paragraph. This story was originally published on 2 December London, 3 December (Argus) — Global bio-based plastic production capacity is set to double to 4.7mn t by 2030, according to the latest report from the industry association European Bioplastics (EUBP). The organisation published a report with the Nova Institute, which estimated that current production capacity is roughly 2.31mn t and represents 0.5pc of the total plastic production capacity worldwide. The bioplastics industry in 2025 operated at an overall production utilisation rate of 72pc up from 63pc reported in 2024, meaning that roughly 1.67mn t of bioplastics were produced in 2025. The association noted that depending on the bio-polymer and production region in question utilisation rates varied massively. In 2025, polylactic acid (PLA) production capacity represented 26.4pc of the total production followed by bio-polyamide production (bio-PA). Bio-polyethylene (bio-PE) production capacity stood at 12.7pc, while bio-polypropylene production capacity stood at 1pc of total global bioplastic production capacity. The report expects bio-PE production capacity to rise to 13.5pc of the total production capacity or roughly 633,000 t/yr with similar figures expected for bio-PP at 13.6pc. In Europe, the report expected stated that current bio-based production capacity in 2025 was 330,000 t/yr with 28.1pc of this coming from bio-PA, 30.3pc coming from PBAT, 5.2pc coming from bio-PE and 6.7pc coming from bio-PE. At the EUBP, conference taking place in Berlin on 2-3 December, the report's authors mentioned that they have not included mass-balanced capacities in their figures, preferring to mention only biomass feedstock-only pathways. Currently, EUBP does not recognise the mass-balanced approach as set out in a position paper but it remains under discussion, with differing opinions about the adoption of the definition counting towards bio-based material heard today at the conference. The figures also do not include bio-degradable materials that are produced from fossil fuels. By 2030, total production capacity of biobased plastics in Europe is set to rise to 800,000 t/yr. This is largely being driven by increases in bio-PE and bio-PP production. Bio-PE capacity is set to rise to 138,400 t/yr in five years time from 22,110 t/yr, while bio-PP production capacity will rise to 238,400 t/yr by 2030, up from 17,316 t/yr in 2025. This is largely set to be driven in Europe by methanol-to-polymers (MTP). The bio-plastics and chemicals industry in Europe last week reacted to the European Bioeconomy strategy . The latest version of the strategy released indicated that the European Commission would look to introduce bio-plastics as being able to count towards some content requirements. At the Berlin conference today, EUBP Secretary General, Lorenza Romanese, described the strategy as the "the best news" for the industry in Europe in recent years. By George Barsted Global bioplastics production capacity forecast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU readies new bioenergy strategy

25/11/26

EU readies new bioenergy strategy

Brussels, 26 November (Argus) — The European Commission is today expected to adopt a new strategy aimed at boosting "nature-positive" investment and making better use of biomass. The latest version of the strategy seen by Argus deleted wording from a previous leaked draft that mentioned disincentivising "inefficient" biomass combustion, including changes to EU and national subsidies to avoid prioritising combustion over material use. Industry groups last month had criticised the previous draft strategy for "punishing" biomass combustion and ignoring the role of sustainable biofuels. The commission may still amend the current strategy document, which sets out a direction for policies but is not itself a legal proposal. Demand for biofuels will likely rise from 2025, in part thanks to the bloc's ReFuelEU Aviation and FuelEU initiatives, but sustainable biomass remains finite and its use is most effective in hard-to-abate sectors, the commission said in the document. The commission wants to add value to energy, industry, food, health and other sectors through biomass processing and biotechnology. The body said it would, for example, support uptake of bio-based plastics and novel materials by 2027 alongside recycling. Officials could also assess whether EU-wide definitions could support certification and scaling of bio-based polymers. And an EU methodology could certify long-lasting biogenic carbon storage in buildings under the carbon removal and carbon farming certification framework. The commission will issue legislation such as the upcoming BioTech Acts to bolster industrial production of bio-based chemicals and may target bio-based content requirements in some products. In the strategy, the commission and the European Investment Bank will use finance instruments to support biorefineries that incorporate new technologies. And a forthcoming Circular Economy Act aims to support biogas and biomethane production as well as using digestate as a fertiliser. A review next year of the bloc's emissions trading system will also explore potential for scalable biogenic carbon, capture, use and storage projects. The EU is also scheduled to review its Renewable Energy Directive by 2027 and assess how national biomass support schemes affect biodiversity. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: European Bioplastics wants more EU policy support

25/11/26

Q&A: European Bioplastics wants more EU policy support

London, 26 November (Argus) — The bioplastics industry in Europe hopes to see more policy support for the sector from the EU, as costs and investments remain a concern even though demand from the packaging sector is growing, European Bioplastics' EU Policy Affairs manager, Julie Pieters told Argus. We have seen some regulatory support from the EU for the recycling industry with content targets, particularly in the Single Use Plastics Directive (SUPD) and the Packaging and Packaging Waste Regulations (PPWR), but is there any legislation that is in the works to support bio-attributed and bio-based plastics? At the moment the only thing we have in place is a communication from the European commission in 2022 on bio-based, biodegradable and compostable plastics. But this is only a communication. In the Packaging and Packaging Plastic Waste Regulation (PPWR) there is a legislative hook for bio-based plastics. In principle, the review needs to be done by 2028 but the European Commission told us that it would like to do it before 2027. They would need to do a review of where the bio-based plastics market is today, and based on that they could begin a legislative proposal for bio-based content in plastic packaging, setting targets and seeing if bio-based content can be used to count towards recycled content targets that are already in place. Some applications of plastic packaging will also be marked as having to be made compostable. EU member states can also make this list of products longer if they wish to, so some bioplastic examples are also showing real opportunities in the field. There has also been some talk from people about having bio-based targets in other sectors like the automotive or construction field. A great example of this would be in the end-of-life vehicle regulation (ELV) proposed by the EU. 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I don't think the support mandated from the EU and the clarity for producers in Europe is not quite there yet, especially when it comes to encouragement in developing the market. What parts of the bioplastics space in Europe are currently faring well commercially, are there any products or projects that are doing particularly well? Or are there any end-use sectors that are seeing uptake? Currently, the most success we are seeing is in the packaging sector, mainly related to food packaging at the moment. Around 50pc of the bioplastics demand comes from packaging. Things like fruit and vegetable bags and compostable bin liners are doing well in terms of end-use. Polylactic Acid (PLA) is seeing some growth potential in some market segments as well with uptake. Some drop in polymers are also seeing movement for more durable goods, cosmetic packaging, automotive components as well especially if they allow for rapid substitution of fossil based carbon. 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It is also important to note that some material that can be biobased but not bio-degradable, some can be biodegradable but not bio-based and some can be both bio-based and bio-degradable. The European Bioplastics Conference is taking place in Berlin on 2-3 December. What are some of the key themes that will be discussed there? It's the 20th anniversary of the conference so it will look back at the last 20 years of the bioplastic industry in Europe and try to provide a snapshot of where the bioplastics market in Europe is at currently. The bioeconomy strategy report published by the European Commission just before the conference will also play a role in discussions. In the bioplastics sphere, the industry is struggling with the same kind of difficulties as the petrochemical sector in Europe, which we know is not doing well at the moment. But as it is more of an innovative sector this can provide an additional burden, especially when it comes to feedstocks and feedstock pricing. The conference is timely in the sense we see some positive policy developments coming out of Brussels and we hope they come in time to support the sector. Otherwise, the conference always provides the opportunity to discuss the latest innovations in the biobased and compostable plastics sphere and to go deeper into their functionalities. By George Barsted Argus recently launched the industry's first biochemical reference prices, built on Argus methodology and derived from ISCC-certified bio-naphtha. Published monthly and calculated from daily bionaphtha and biopropane premiums, these references cover bio-attributed ethylene, propylene, butadiene and benzene. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: Marine decarbonisation to continue despite delay

25/11/24

Q&A: Marine decarbonisation to continue despite delay

Sao Paulo, 24 November (Argus) — The maritime sector is staying on course towards decarbonisation, with marine biofuels and LNG gaining traction in the short term, despite the IMO postponing its net-zero framework vote until October 2026, DNV global decarbonisation director Jason Stefanatos said. No single fuel is likely to be adopted at scale in the medium to long term, and alternative marine fuels will coexist as part of the path to net zero, he said. Edited highlights follow. IMO delegates have postponed a vote on the net-zero framework until next year. What's your view on the delay, and how might it impact the adoption of alternative bunker fuels? The postponement of the IMO net-zero framework highlights the need for greater clarity on its practical implementation. But while the delay creates some uncertainty, the industry's decarbonisation targets remain unchanged. DNV's October 2025 AFI data confirms that the industry's commitment to alternative fuels remains strong Which fuels are the leading trend in maritime decarbonisation in the short and long term? In the short term, both LNG and biofuels are leading trends in maritime decarbonisation because of LNG bunkering infrastructure and because biofuels are drop-in. Over the longer term, the transition will diversify, adding more fuels in the mix, with methanol, ammonia, hydrogen and e-fuels expected to play roles as technology, supply and regulatory frameworks mature. There is no trend in the long term. The most suitable fuel and technology will be determined by each operator's specific fleet characteristics, operational requirements, overall commercial objectives, as well as global and regional geopolitical decisions and developments. With the energy transition underway in the maritime sector, is ethanol an option for mid- and long-term decarbonisation? Ethanol is technically feasible as a marine fuel, and has gained more popularity in the past months due to technical developments by engine makers and developments on the supply side. Although the vast majority today does not come from sustainable biomass, it is a promising new fuel that could play a role in the future. Its similarities with methanol enable methanol-fuelled vessels to easily switch to ethanol if needed, providing further fuel flexibility, which is important during high uncertainty times. E-fuels have been identified as a potential net-zero fuel. How do you see their development as a marine fuel, considering they are not currently available at commercial scale? E-fuels are presented as a long-term solution for maritime decarbonisation, but their commercial availability and cost competitiveness remain challenges for widespread adoption. Demand is expected to grow as regulatory requirements tighten, but supply will depend on large-scale investments in renewable energy and production capacity. Ammonia is a possible alternative fuel for the future, but barriers to its adoption remain, DNV said in a recent publication. Why does it make sense to invest in ammonia as a bunker fuel when other fuels are more established and safer? Ammonia has benefits and barriers on its adoption. On the benefits side, ammonia is a fuel without carbon content, can act as a hydrogen carrier, and has some basic infrastructure and technology in place, as there are already vessels operating with ammonia. On the other hand, safety and technical issues will require a lot of industry effort to be overcome. The FuelEU Maritime regulation introduced a 2pc reduction target for GHG emissions from vessels in 2025. Individual EU countries are implementing their own RED III regulations this year. Are these emission policies driving demand for alternative fuels, or should the EU consider tightening its restrictions? And what do these regulations mean for the wider global market? These regulations are drivers for alternative fuel demand in shipping and have contributed to accelerating investment in low-GHG fuels and technologies. However, the global impact will depend on how IMO regulations will be agreed and defined by the delegates. Some uncertainty remains as further regional regulations could lead to uneven competition and increased complexity for international operators. By Natália Coelho and Gabriel Tassi Lara Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Singapore issues three methanol bunkering licences

25/11/24

Singapore issues three methanol bunkering licences

Shanghai, 24 November (Argus) — Singapore's Maritime and Port Authority (MPA) has issued a first batch of methanol bunkering licences to three bunkering suppliers, the authority announced today. Singapore-based Golden Island and Global Energy, as well as Chinese state-controlled PetroChina International were awarded the licences, following an application process involving 13 prospective licensees that began in March. MPA held meetings with the three bunker suppliers last week to inform them of the upcoming result . The licences will be valid for a five-year period over 1 January 2026-31 December 2030. Singapore has already conducted three green methanol bunkering operations. Singaporean shipowner Hong Lam bunkered 300t of biomethanol to fellow shipowner Maersk's first methanol dual-fuel vessel Laura Maersk in July 2023. Global Energy carried out two separate biomethanol bunkering operations for Singaporean container shipping group X-Press Feeders and Swiss methanol producer Proman in 2024. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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