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LONDON (ICIS)–September’s hoped-for post-summer revival has been a washout for Europe’s polyethylene (PE) and polypropylene (PP) markets, and this upturning of what used to be a surefire seasonal trend is typical of 2024. In this latest podcast, European PE and PP editors Vicky Ellis and Ben Lake take stock of the year so far and are joined by ICIS senior polymer analysts Lorenzo Meazza and Umberto Torresan to pick out key themes for the rest of 2024 and 2025. They touch on the challenge of unpredictable events, changing demand trends, unplanned disruption, as well as the huge number of plants coming online around the world. Edited by Zubair Adam

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LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 20 September. Sluggish demand keeps Europe oxo-alcohols prices stable despite some constraints Prices in the European oxo-alcohols spot market held steady for all grades this week, although some producers had supply constraints, as demand remained underwhelming. Africa PE/PP prices tumble on high stocks, fierce competition among sellers African polyethylene (PE) and polypropylene (PP) prices are stable to down this week, as buyers increasingly find themselves in a strong position. Europe BD supply likely to stay tight until year-end Several production events have shaped the European butadiene (BD) market in 2024, and this looks set to continue through the fourth quarter. Europe MA spot prices stable, but offers for October firming on reduced local output European maleic anhydride (MA) spot prices were stable last week, but offers for October delivery were firming. Urea short-term trend firms after India tender, but global demand still lacking A lack of buying interest at all import hubs except for India will keep any upside capped for urea, but the short-term trend has stabilized after National Fertilizers Limited (NFL) bought over a million tonnes.

Buy, plan and negotiate more effectively with 18-month price forecasts and analytics. Monitor cost pressures and identify early signs of production shifts.

In H2 2024, The Asian PP, PE and PET markets are all set to face unique challenges. Modest recovery is expected for PE, PP markets struggle with high costs and trade barriers, while PET grapples with supply cuts and demand slowdowns.

SINGAPORE (ICIS)–China’s petrochemical futures markets surged on Tuesday following announcement of fresh measures to rev up activity in the world’s second-biggest economy. As the close of trade on Tuesday, polyvinyl chloride (PVC) was leading the charge in China’s domestic futures market, with a 3.3% increase, with seven others also posting strong gains. Product Prices at close of trade (CNY/tonne) % change from 23 Sept Linear low density polyethylene (LLDPE)                                   7,969 1.2% Polyvinyl chloride (PVC)                                   5,388 3.3% Ethylene glycol (EG)                                   4,459 1.9% Polypropylene (PP)                                   7,360 1.4% Styrene monomer (SM)                                   8,559 0.7% Paraxylene *                                   7,012 2.4% Purified terephthalic acid (PTA)*                                   4,930 2.2% Methanol*                                   2,396 1.6% Sources: Dalian Commodity Exchange, *Zhengzhou Commodity Exchange Shares of major Chinese chemical producers traded in Shanghai and Shenzhen bourses also increased, welcoming the central bank’s economic measures. Company  Closing prices on 24 September (CNY/share) % change from 23 Sept Hengli Petrochemical 13.12 5.4% PetroChina 8.36 4.4% Rongsheng* Petrochemical 8.84 4.1% Satellite Chemical* 16.08 7.7% Sinopec 6.76 4.3% Wanhua Chemical 78.96 4.4% Sources: Shanghai and *Shenzhen bourses The Shanghai composite index surged by 4.15% to close at 2,863 on Tuesday. It was the index’s biggest single-day rally since 6 July 2020. People’s Bank of China (PBoC) governor Pan Gongsheng announced in a press conference the new economic measures, which include cuts on banks’ reserve requirement ratio (RRR), key policy rate and mortgage rates to revive the economy. China's economic weakness has been a major drag on overall sentiment across the equities and commodities markets this year. “The move [basket of stimulus by China’s central bank] is bold by historical standards and came earlier than we had expected,” said Betty Wang, lead economist at UK-based Oxford Economics, in a research note on Tuesday. “The policy measures include cuts to the policy rate and reserve requirement ratio (RRR), adjustment to mortgage lending and policy support to stock market,” Wang said. “The continuous weakness in domestic economy and the outsized rate cut from the [US] Federal Reserve were the likely catalysts behind the PBoC's latest move,” the economist said. This is the first time since the COVID-19 pandemic that the central bank offered a combination of rate cuts, RRR cuts, and structural monetary policies as stimulus measures. A 20-basis point (bps) interest rate cut in the 7-day reverse repurchase (repo) rate and a broad-based 50bps RRR cut are also rare, Oxford Economics noted. Focus article by Fanny Zhang ($1 = CNY7.04) Thumbnail image: At a container terminal at Lianyungang Port in east China's Jiangsu Province, 18 September 2024. (Shutterstock)

With its unique properties and versatility, polypropylene (PP) is an invaluable global commodity, influencing key industries from packaging and automotive to electrical and household. Its ability to be manufactured into various end-uses such as plastic car parts and textiles has made PP an essential market to understand and navigate. Even the slightest change can have the most significant impact. This is why our experts are embedded in markets across the globe, monitoring, tracking and understanding developments affecting PP so you can make the best decisions with the right information.At ICIS, we uncover what exactly is driving PP markets, bringing data and intelligence to the next level to enable you to better react with insight. We exist to bring you market clarity and transparency, delivering world-class intelligence on the marketplace from our unparalleled network of global experts.

Maximise profitability in uncertain markets with ICIS’ full range of solutions for PP, including current and historic pricing, forecasts, supply and demand data, news and analysis.

HOUSTON (ICIS)–Average global rates for shipping containers fell significantly this week, including a 21% decrease from Shanghai to New York, as shippers are shifting cargo deliveries to the US West Coast to avoid the planned strike on 1 October. A strike by union dock workers at East Coast and US Gulf ports seems more likely after International Longshoremen’s Association (ILA) Wage Scale Delegates voted unanimously last week to support leadership’s intentions to walk off the job if a new labor deal is not agreed to when the contract expires on 30 September. Supply chain advisors Drewry said the shift has led to a decrease in demand that has pressured prices lower. Average global rates for 40-foot containers fell b y13% as shown in the following chart. As much of the peak-season demand has been pulled forward either to avoid tariffs or the labor issues, Drewry expects east-west rates to fall further in the upcoming weeks. The following chart from Drewry shows the decrease from Shanghai to both US coasts, as well as from Shanghai to Rotterdam and Genoa which have also fallen significantly. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said rates from Asia to the US West could face upward pressure the deadline to make the decision to shift coasts has about passed. “Transatlantic shippers still have a little time left to move containers, and the approaching cutoff may be supporting the $300/FEU (40-foot equivalent units) increase in daily rates so far this week,” Levine said. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES STEADY Rates for liquid chemical tankers ex-US Gulf were unchanged this week. On the transatlantic eastbound trade lane contract cargoes are keeping things steady with owners looking to fill holes of open space. October contract volumes on the transpacific route remain tentative but a shipping broker expects part cargo space to be available across the regular players. The USG-South America east coast trade lane was quiet this week, but the regular owners have space for prompt loading. Thumbnail photo: A container ship carrying cargo on its way to Antwerp Harbour. (By OLIVIER HOSLET/EPA-EFE/Shutterstock)

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The IML cell will produce a round container in an eight-cavity mold with vision inspection and downstream automation. The IML innovation represents the latest in modular, high-output systems, said Thomas Federer, Muller Group CEO. “It meets the needs of today’s brand owners and processors who seek outstanding appearance, high production flexibility and productivity, and enhanced user interaction and Industry 4.0 data exchange capabilities,” said Federer. The first IML production system has already been sold to a leading European packaging manufacturer, said Muller Technology.

You can see it in action at the BMB S.p.A. booth (A33) in hall 13 at K 2022. The event at Messe Düsseldorf in Düsseldorf, Germany, runs from Oct. 19 to 26.

Muller Technology will unveil its latest in-mold labeling system producing a mono-material container with a fully recyclable polypropylene structure and label.

Muller’s mold design minimizes maintenance and increases mold life. It provides quick changeout capability, allowing for product changeovers that are fast, safe, and damage-free.

Support your strategic planning with expert insight on the wider trends impacting markets, from the circular economy and the energy transition to global macroeconomics and chemical overcapacity in China.

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 6 September 2024. Strong regional currencies weigh on Asia recycling exports The weakening of the US dollar against major currencies in Asia since August will continue to strain exports of recycled polyethylene terephthalate (R-PET), recycled polyethylene (R-PE), and recycled polypropylene (R-PP). Asia refined glycerine market stagnates on stand-off between buyers and sellers Asia’s refined glycerine market may likely continue to remain tepid in the near term due to a persistent stand-off between buyers and sellers. UPDATE: Oil falls by $1/bbl, Asia petrochemical shares tumble on global growth worries Asian petrochemical shares slumped on Wednesday as regional bourses tracked Wall Street’s rout overnight on poor data from both the US and China, with crude prices shedding more than $1/bbl in late Asian trade. At the close of trade in Tokyo, Mitsui Chemicals fell 3.07% and Sumitomo Chemical tumbled by more than 4%, with the Nikkei 225 index down 4.24% at 37,047.61. Asian PX hits fresh year low, levels last seen in December 2022 Asian paraxylene (PX) prices hit a fresh year low, amid a lack of buyers' confidence and overnight losses seen in upstream crude markets. INSIGHT: China-Canada trade frictions may affect MEG trade flows Trade frictions between China and Canada have intensified recently following the Canadian government’s decision to impose tariffs on imports of electric vehicles (EVs) as well as steel and aluminum from China starting 1 October. INSIGHT: Qatar to emerge as PVC exporter next year when $279 million plant comes online Qatar will become an exporter of polyvinyl chloride (PVC) as early as next year when commercial operations start at its first plant, because its 350,000 tonne/year capacity will be more than 10 times the state's annual imports. Asia titanium dioxide Sept key drivers to be stock levels, exchange rates While the titanium dioxide (TiO2) spot price in Asia is likely to find support with the start of the traditional demand season in September, a large-scale revival now seems unlikely.

SAO PAULO (ICIS)–The Brazilian government’s committee on foreign trade Gecex-Camex approved late on Wednesday an increase in import taxes on more than 80 chemical and fertilizers products, with the new rate up to 20% for most materials. Among some of the products affected are widely used chemicals such polypropylene (PP), polyethylene, (PE), polyvinyl chloride (PVC), polystyrene (PS), and polyethylene terephthalate (PET). See bottom list for details. Previous rates stood between 7.6% and 12.6%. The new rates will apply from October and are valid for one year. The decision is yet to be approved by Mercosur, the trading common area formed by Argentina, Paraguay, and Uruguay, as well as Brazil, which is the dominant economy in Mercosur. The cabinet, thus, gave in partly to the pressure by chemical producers in Brazil. Earlier this year, individual companies as well as the trade group representing producers, Abiquim, had proposed to increase tariffs in more than 100 chemicals. The decision was widely anticipated by analysts, and it is expected to immediately prop up earnings for some of Brazil’s largest producers such polymers major Braskem or chlor-alkali major Unipar. Brazil has been the recipient of large amounts of imports from Asia and, to a lesser extent, the US which have greatly dented domestic producers’ market share. Sectors that opposed increasing tariffs, including plastic transformers represented by Abiplast, expressed their disappointment after Wednesday’s measure by Gecex-Camex. “[The decision was taken even though] Abiplast and other trade groups have exhaustively demonstrated to the government the harmful impacts of increases in import tariffs on raw materials,” said Jose Ricardo Roriz Coelho, president of Abiplast, in a letter to the trade group’s members seen by ICIS. “We will continue to fight to ensure that these unreasonable measures are reversed.” Product Current Tax Rate Proposed Tax Rate Plaintiff Phosphoric acid with iron content less than 750 ppm 9% 17.5% Abiquim Sodium hydrogen carbonate (bicarbonate) 9% 20%* Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Abiquim Isobutyl alcohol (2-methyl-1-propanol) 10.80% 20% Elekeiroz Inc. Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Abiquim Phenol (hydroxybenzene) and its salts 7.20% 12.6%* Rhodia Brasil SA Butanone (methyl ethyl ketone) 10.80% 20% Abiquim Ethyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Abiquim n-butyl acetate 10.80% 20% Rhodia Brasil SA Other saturated acyclic monoalcohol acetates, c atom <= 8 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Abiquim Methacrylic acid methyl esters 10.80% 20% Unigel Holdings Inc. Adipic acid 9% 20% Abiquim Adipic acid 9% 20% Rhodia Brasil SA Maleic anhydride 10.80% 20% Abiquim Maleic anhydride 10.80% 20% Elekeiroz Inc. Fumaric acid, its salts and esters 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Abiquim Dioctyl orthophthalates 10.80% 20% Elekeiroz Inc. Dinonyl or didecyl orthophthalates 10.80% 20% Abiquim Hexamethylenediamine and its salts 10.80% 20% Abiquim Monoethanolamine and its salts 12.60% 20% Abiquim Other anionic organic surface-active agents, whether or not put up for retail sale, not classified under previous codes 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, with filler 12.60% 20% Abiquim Polyethylene with a density of less than 0.94, without filler 12.60% 20% Abiquim Other unfilled polyethylenes, density >= 0.94, in primary forms 12.60% 20% Abiquim Other copolymers of ethylene and vinyl acetate, in primary forms 12.60% 20% Abiquim Copolymers of ethylene and alpha-olefin, with a specific gravity of less than 0.94 12.60% 20% Abiquim Unfilled polypropylene in primary form 12.60% 20% Abiquim Propylene copolymers, in primary forms 12.60% 20% Abiquim Expandable polystyrene, unfilled, in primary form 12.60% 18% Abiquim Other styrene polymers, in primary forms 12.60% 20% Abiquim Other styrene polymers, in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by suspension process 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Abiquim Polyethylene terephthalate of a viscosity index of 78 ml/g or more 12.60% 20% Alpek Polyester Pernambuco SA Other unsaturated polyethers, in primary forms 12.60% 20% Abiquim Ex – Surfactant polymer class preparation, silicone free 12.60% 12.60% Abiquim Ex – Solvent-free modified polyester class preparation 12.60% 12.60% Abiquim White mineral oils (vaseline or paraffin oils) 3.60% 35% Abiquim Silicon dioxide obtained by chemical precipitation 9% 18% Abiquim Silicon dioxide obtained by chemical precipitation 9% 17% Rhodia Brasil SA Other silicon dioxides 0% 18% Abiquim Commercial ammonium carbonates and other ammonium carbonates 9% 18% Abiquim Styrene 9% 18% Abiquim Styrene 9% 18% Unigel Holdings Inc. Butan-1-ol (n-butyl alcohol) 10.80% 20% Abiquim Butan-1-ol (n-butyl alcohol) 10.80% 20% Elekeiroz Inc. Propylene glycol (propane-1, 2-diol) 10.80% 20% Abiquim Dipropylene glycol 12.60% 20% Abiquim Triacetin 10.80% 20% Abiquim Triacetin 10.80% 20% Denver Specialty Chemicals 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Abiquim 2-Ethylexanoic acid (2-ethylexoic acid) 10.80% 20% Elekeiroz Inc. Salts and esters of adipic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Abiquim Other esters of orthophthalic acid 10.80% 20% Elekeiroz Inc. Phthalic anhydride 10.80% 20% Abiquim Phthalic anhydride 10.80% 20% Petrom Petrochemicals Mogi das Cruzes S/A Ammonium nitrate, even in aqueous solution 0% 15% Abiquim Pigments and preparations based on these pigments 12.60% 20% Abiquim Linear alkylbenzene sulfonic acids and their salts 12.60% 23% Abiquim Organic surface-active agents, non-ionic 12.60% 23% Abiquim Alkylbenzene mixtures 10.80% 20% Abiquim Stearic acid (industrial monocarboxylic fatty acid) 5.40% 35% Abiquim Stearic alcohol (industrial fatty alcohol) 12.60% 20% Abiquim Sodium methylate in methanol 12.60% 20% Abiquim Other ethylene polymers, in primary forms 12.60% 20% Abiquim Filled polypropylene, in primary form 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Abiquim Other polystyrenes in primary forms 12.60% 20% Unigel Holdings Inc. Polyvinyl chloride, unmixed with other substances, obtained by emulsion process 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Abiquim Polymethyl methacrylate, in primary form 12.60% 20% Unigel Holdings Inc. Other polyether polyols, in primary forms 12.60% 20% Abiquim Other polyesters in liquids and pastes 12.60% 20% Abiquim Other polyurethanes in liquids and pastes 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Abiquim Carboxymethyl cellulose with content >=75%, in primary forms 12.60% 20% Denver Specialty Chemicals Styrene-butadiene rubber (SBR), food grade according to the Food Chemical Codex, in primary forms 10.80% 22% Abiquim Acrylonitrile-butadiene rubber in sheets, plates, etc. 10.80% 35% Abiquim Latex of other synthetic or artificial rubbers 10.80% 35% Abiquim

Muller’s IML unit features a modular design for flexibility and versatility and can be enhanced with a case packaging system. The automation module consumes less energy than standard systems thanks to a unique energy recovery technology. A dynamic entry feature uses artificial intelligence (AI) programming for self-optimization of the robot and total cycle time. The advanced vision system is designed for IML applications.

HOUSTON (ICIS)–The Federal Reserve lowered its benchmark interest rate by a half point to 4.75-5.00% on Wednesday, and the central bank could lower it by an additional half point by the end of the year. The following table summarizes the current and past forecasts for rates, inflation and GDP by members of the Federal Reserve. 2024 2025 2026 Fed funds 4.4% 3.4% 2.9% June forecast 5.1% 4.1% 3.1% GDP 2.0% 2.0% 2.0% June forecast 2.1% 2.0% 2.0% Core PCE Inflation 2.6% 2.2% 2.0% June forecast 2.8% 2.3% 2.0% Source: Fed If the forecasts hold true, the US economy will achieve a soft landing, with inflation falling to the Fed's long-term goal of 2% without triggering a recession. FED NOTES WEAKER JOB MARKET, INFLATIONThe Fed said that the job market had slowed since the last time it voted on rates at the end of July. Inflation has moved closer to the Fed's goal but remains somewhat elevated. Unlike its previous statement in July, the Fed said it "has gained greater confidence that inflation is moving sustainably toward 2%". In addition, the Fed stressed its commitment to support maximum employment. Its last statement in July lacked such a statement. CHEMS WILL WAIT BEFORE RATES TRIGGER RECOVERY IN DURABLESChemical producers will have to wait before lower rates cause a recovery for demand in durable goods and housing. Both are key end markets for polymers such as polypropylene (PP), nylon, acrylonitrile butadiene styrene (ABS) as well as chemicals used to make polyurethanes, such as isocyanates, polyols and propylene oxide (PO). Huntsman said the lag is typically about two quarters. Ultimately, mortgage rates will need to approach 5% before markets for homes and durable goods can recover, according to Dow. Higher rates had made housing and durable goods like furniture and appliances less affordable. Because fewer consumers are buying homes and moving, they are purchasing fewer durable goods. LOWER RATES TEND TO BOOST OIL, CHEM PRICESTypically, prices for oil and other dollar-denominated commodities tend to rise as US interest rates fall. A rise in oil prices typically causes those for petrochemicals to increase. Margins for US-based producers benefit from higher oil prices because their plants predominantly rely on gas-based feedstock. By contrast, much of the world relies on oil-based naphtha, giving US producers a cost advantage. FIRST CUT IN MORE THAN FOUR YEARSThe last time the Federal Reserve lowered interest rates was in March 2020, during the COVID-19 pandemic. Lockdowns, government stimulus and recovery caused a surge in inflation, which led the Federal Reserve to begin raising the benchmark rate two years later in what became the most aggressive tightening campaign in more than 40 years. The Fed stopped raising the rate in July 2023. A year later, inflation started showing signs of approaching the Fed's target of 2%. At the same time, the labor market began cooling off and returning to more normal levels. Focus article by Al Greenwood Thumbnail shows money. Image by ICIS.

SINGAPORE (ICIS)–Thai conglomerate Siam Cement Group (SCG) plans to use ethane imported from the US as feedstock for its Long Son Petrochemical (LSP) complex in Vietnam to boost the project’s long-term competitiveness. Storage, supporting facilities for ethane to be built on site Ethane targeted as major feedstock for LSP cracker; C2 market “turbulence” expected LSP commercial operations start October SCG is in talks with a contractor for the new ethane storage project, with construction of the facilities expected to take about three years to complete, the company said in roadshow presentation on 16 September. “The site is equipped with a central utility system, ready for the installation of ethane gas storage tanks and pipelines,” the company said in a separate statement on 16 September. SCG has yet to finalize the capital expenditure for the project, and the prospective US ethane supplier for LSP was not disclosed. The $5.4bn LSP project in Ba Ria-Vung Tao province is Vietnam’s first integrated petrochemical complex and is 100%-owned by Thai conglomerate SCG. The mixed-feed cracker at the site currently uses propane and naphtha feedstocks imported from Qatar under a long-term supply deal. The cracker can produce 950,000 tonnes/year of ethylene; 400,000 tonnes/year of propylene; and 100,000 tonnes/year of butadiene (BD). SCG said that LSP is already operating flexible gas cracker which can use a variety of feedstocks, including ethane, propane, and naphtha. Ethane imported from the US is currently cheaper by $200-400/tonne than existing feedstock, SCG said, noting that the average price of ethane has been around 40% lower than that of naphtha and propane over the past three years. The feedstock derived from shale gas also provides greater price stability as it is linked to US natural gas prices, unlike naphtha, which is influenced by oil price fluctuations. FEEDSTOCK DIVERSIFICATION The enhancement to LSP's feedstock flexibility is part of SCG's efforts to bolster its chemicals business in the face of global oversupply, low demand and oil price volatility, SCG said. For ethylene (C2), the company expects "future turbulence" in the market, especially in 2027-2028 amid a wave of new global cracker additions, especially in China. Global ethylene supply is projected by SCG to grow at a slower average rate of around 3-4% in 2025-2030, compared with 5% in 2019-2024. China will comprise around 53% of new ethylene supply additions in 2025-2030, it noted. SCG expects an "extended chemicals trough with low margin" in 2025-2030 amid continued naphtha price volatility. “The current global situation and the future outlook over the next 2-5 years will be marked by increased volatility,” SCG CEO and president Thammasak Sethaudom said on 16 September. “All SCG businesses are moving forward with strategies that align with these dynamics while also reducing carbon dioxide emissions…to ensure long-term competitiveness.” LSP COMMERCIAL OPERATIONS START OCTOBER The LSP complex has completed performance test runs in September and is on track to start commercial operations next month, according to SCG. Its utilization rate following start-up will be "determined by global demand dynamics", it said. LSP’s downstream plants include a 500,000 tonne/year high density polyethylene (HDPE) unit; a linear low density PE (LLDPE) unit of the same capacity; and a 400,000 tonne/year polypropylene (PP) unit. The cracker had an outage in February due to a technical issue and resumed normal operations in August. It had declared a force majeure in February due to issues at the cracker that also shut its downstream PE and PP units. Credit ratings agency Fitch Ratings in a note on 17 September said that it expects LSP to ramp up its utilization rate to 70-80% in 2025, “supported by its cost competitiveness versus imports and the flexibility to use both propane and naphtha as feedstock”. Imports currently fulfil nearly all of Vietnam's petrochemical requirements. Focus article by Nurluqman Suratman Thumbnail photo: Aerial view of SCG's Long Son Petrochemical Complex in Vietnam (Source: SCG)

The IML production cell will produce a 100% mono-material container consisting of a fully recyclable polypropylene (PP) structure and wrap-around and bottom PP label from label maker MCC Verstraete. The high-volume manufacturing cell can produce more than 40 million containers per year for food, dairy, and other consumer packaging.

HOUSTON (ICIS)–Rates for shipping containers from Asia to the US fell again this week, but carriers are warning customers that they will stop accepting export bookings from unionized US Gulf and East Coast ports ahead of a looming 1 October strike deadline. Earlier this week the International Longshoremen’s Association (ILA), which represents about 25,000 port workers employed in container and roll-on/roll-off operations at ports on the US East and Gulf coasts, reiterated that it will strike without a new collective master contract agreement. At the same time, unions in the Netherlands and Bermuda – as well as other worldwide unions – have pledged solidarity with the ILA. The United States Maritime Alliance (USMX) is representing the ports and is urging the ILA to resume negotiations. A market participant told ICIS this week that it anticipates a work stoppage. Robert Khachatryan, founder and CEO of Freight Right Logistics said the strike looks like a certainty. “Even if the president gets involved, the ILA president said they will do slowdowns (an action where employees intentionally reduce their productivity to show dissatisfaction with their employer and gain leverage),” Khachatryan said. Khachatryan said cargoes are already being diverted to the US West Coast, which is likely to contribute to longer delivery times and could create congestion and backlogs at the West Coast ports. “If a strike was to stretch into weeks, that would certainly be enough time to overwhelm other ports,” Khachatryan said. Khachatryan said the fact that much of the typical peak season cargo has been pulled forward amid efforts to beat the work stoppage may ease some of the strain on supply chains. “Product for Black Friday and Cyber Monday (two of the busiest shopping days ahead of the Christmas holidays) should already be in the country now,” he said, adding that volumes have been tame this year compared with busier years. “The big retailers are not expecting a massive season, and the orders reflect that,” he said. CONTAINER RATES Global average rates for shipping containers fell by 5% this week, according to supply chain advisors Drewry and as shown in the following chart. Rates from Asia to both US coasts fell at a slower rate, with Shanghai to New York down by 4.5% and rates from Shanghai to Los Angeles down by less than 1%, as shown in the following chart. Drewry said that while the looming port strike casts a shadow, weak demand is expected to drive further decreases in east-west spot rates in the coming weeks. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, thinks the federal government will act before a strike stretched into a second week. “Especially in an election year, the vocally pro-labor administration may be hesitant to end a strike via the Taft-Hartley Act,” Levine said. “But the economic impact of a prolonged shutdown is something the White House likely also wants to avoid, leading many to imagine that an ILA strike would, one way or another, not be allowed to last more than a week.” Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES STEADY US chemical tanker rates held steady this week. Most trade lanes had limited activity due to lack of interest for spot tonnage. On the transatlantic route things were steady this week. An outsider is going on berth for end of September dates. However, contract volumes have been steady with regular owners. Space for this trade lane does seem to remain available among the regulars. Otherwise, this route has been mostly quiet, and most owners still have pockets of space left on their vessels for October. While rates for chemical tankers ex-USG remain firm this week, as the USG to Mediterranean, and EC Mexico are steady. The firming is due to a lack of available tonnage amid more inquiries and fixtures in this trade lanes. However, rates to both Asia and India have been soft, especially for stainless steel vessels. It is very possible there is another rate decrease next week should this trend continue. Overall, throughout the month the spot market should remain soft as there is open partial space in the US Gulf and as most owners continue to depend on contract tonnage. Focus article by Adam Yanelli Additional reporting by Stefan Baumgarten, Kevin Callahan Thumbnail image shows a container ship carrying cargo on its way to Antwerp Harbour. (OLIVIER HOSLET/EPA-EFE/Shutterstock).

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the week ended on 13 September. NEWS Argentina chemicals, industrial July output falls as industry bears brunt of recession Argentina’s chemicals and manufacturing outputs fell in July by 5.4% and 2.6% year on year, respectively, as the industrial sectors remain the most affected by consumers’ squeezed budgets. Argentina’s progress on fiscal consolidation still challenged by inflation – economist The Argentinian’s government attempt to turn the economy around has had certain successes in the fiscal front, but high inflation is still challenging the outlook as it continues to eat up on gains elsewhere, according to an economist at Buenos Aires-based Fundacion Capital. Brazil's Petrobras launches natural gas processing unit in Rio de Janeiro Petrobras has begun start-up procedures for Brazil's largest natural gas processing unit (UPGN) in Itaborai, near Rio de Janeiro, the state-owned energy major said on Wednesday. Brazil’s inflation breaks upward trend in August, but some subsectors keep rising Brazil’s annual rate of inflation fell to 4.24% in August, down from 4.50% in July, but analysts pointed to how some price rises in certain sectors continue unabated. Mexico inflation falls below 5% in August, paves way for more interest rate cuts Mexico's annual rate of inflation fell quite considerably in August to 4.99%, down from July’s 5.57%, a development which is to reinforce the next cut to interest rates later this month, according to analysts. Argentina’s August inflation falls below 240% but monthly price increases remain over 4% Argentina’s annual rate of inflation fell in August to 237%, down from July’s 263%, but monthly price rises stood over the 4% mark, the country’s statistical office Indec said this week. Dutch Nouryon expands sodium chlorate capacity in Brazil, starts up new site Nouryon has expanded its sodium chlorate capacity in Brazil by starting up a new manufacturing site in Ribas do Rio Pardo, state of Mato Grosso do Sul, the Dutch chemicals producer said on Tuesday. Petrobras, Gerdau sign MoU for decarbonization projects Brazil’s Petrobras and steelmaker Gerdau have signed a non-binding Memorandum of Understanding (MoU) to evaluate commercial opportunities in decarbonization initiatives, the Brazilian energy major said this week. PRICING LatAm PP international prices steady to lower on cheaper imports International polypropylene (PP) prices were assessed as steady to lower across Latin American countries due to competitive offers from abroad and lower US propylene spot prices. LatAm international PE prices steady to lower on cheaper offers from abroad International polyethylene (PE) prices were assessed as steady to lower across Latin American countries due to cheaper offers from abroad. Latin America PVC business monitors potential supply tightening due to maintenance in Q3 Polyvinyl chloride (PVC) prices in Latin America remained steady this week, with the market closely watching US Gulf prices for potential changes in pricing strategies.

A supplier of thin-wall-packaging molds and automation systems, Muller Technology will unveil its latest in-mold labeling (IML) automation technology at K 2022. The turnkey system will run on a 700-ton injection molding machine at the BMB S.p.A. booth (A33) in hall 13.

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The IML automation system is also compatible with the Holy Grail 2.0 intelligent sorting system, which ensures label identification and meets  circular economy requirements.

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