Asian Markets

June 20, 2018

Chinese TDI Update from March

TDI Market Keeps Firm in March

Updated: 2018-03-02 14:43 Source: PUWORLD share:

Graph 1: 2016-2018.2 Market Prices of TDI in East China (unit: RMB/ton)

Graph 2: List Prices and Settlement Prices of Some TDI Enterprises during Q1 in 2016-2018

Covestro

(Fixed Pprice)

BASF
List Price Settlement Price
2016 Jan 11,600-11,700 12,500 11,700-11,800
Feb 11,700 12,500 11,700-11,800
Mar 12,300 12,800 12,200-12,300
2017 Jan 28,000 30,000 28,000
Feb 28,000-33,000 32,000 31,000
Mar 30,500-33,650 36,000 32,000
2018 Jan 38,800 45,000 38,600
Feb 38,800-39,800 45,000 38,800
Mar 46,000

TDI Market Generally Goes Upward during Q1

With the Spring Festival coming to an end, new changes are arising in TDI market. Recently, major TDI factories have announced an rise in the price:

On February.25th, Covestro increases the fixed price by RMB 1,000 /ton to RMB 39,800 ton.

The settlement price for February announced by BASF is at RMB 38,800/ton, RMB 200/ton higher than last month whilst the list price for March at RMB 46,000/ton, RMB 1,000/ton higher than last month.Cangzhou Dahua increases the fixed price by RMB 500 to RMB 39,000/ton.

According to the analysis result of Orisage Consulting, TDI prices have kept escalating during Q1 in 3 years, for both market prices and major enterprises’ fixed prices. The downward trend presenting at the end of 2015 continued next year, resulting in low prices during Q1 in 2016. Hitting the bottom, prices turned upward as downstream demand recovered. TDI prices came back to a reasonable level at the end of 2016. Since a small production season approached after the Spring Festival, prices slightly improved during Q1 in 2017.

Affected by Tight Supply, TDI Prices Shift on High Level in Early 2018

Gansu Yinguang’s unit fault and BASF’s limited supply together result in tight supply and elevated prices in the overall market before the Spring Festival in early 2018. Due to high prices, some downstream foam factories fail to stock up. After the festival, recovering capacity frees up the demand of stocking up, exerting an active impact on prices. Meanwhile, according to some TDI factories, downstream demand maintains great growth in 2018 compared with 2017.

TDI Prices for March 2018 Are Likely to Stay Elevated

Major TDI factories’ increasing quotations after the festival indicate that factories are still positive about the market. Though downstream foam factories gradually ramp up production with improving demand side, the supply condition of the market remains tight.

According to some TDI factories, the current inventory level remains low, with production plans still aiming at deliveries of earlier orders. Since factories have no downward pressure in prices in short time, TDI prices are unlikely to drop in the near future. It is expected that TDI prices for March will keep stable on high level. In the medium term, TDI prices perhaps will not fall back until the approach of a slack season in Q2.

http://en.puworld.com/html/20180302/394777825.html

June 20, 2018

TDI Update

Mitsui anticipates TDI demand-supply will move closer to balance outlook in 2018
Updated: 2018-06-20 17:19 Source: Utech-Polyurethane share:

PUWORLD–Tokyo – Japanese chemical company Mitsui Chemicals anticipates that the TDI demand-supply outlook will ease in 2018 compared to 2017.

In an internet investor briefing, the company said that in 2017 the market behaved positively.

‘In 2018, the demand-supply scenario expected to be relaxed due to full-fledged operation of new and expanded plants. We expect that the market conditions will weaken in association with this,’ observed Osamu Yoshida, deputy GM, corporate communications, Mitsui Chemicals.

Diisocyanate prices remained high in 2017.  This was owing to delays in operation of new and expanded plants and effects of forces majeure.

Away from polyurethane raw materials, Mitsui said it expects operating income to decline between the second half of 2017 and the first half of 2018. This is due to large-scale regular maintenance of crackers at Osaka and maintenance of other products.

Operating income from the company’s Basic Material sector grew marginally by 0.4% between 2016 and 2017. It reached JPY 38.9bn ($354 m) in 2017. Net sales grew by 72.1% to JPY 637.7bn in FY 2017.

Mitsui Chemicals was established 20 years ago. It is aiming for targeting sales of JP¥ 2,000 bn and operating income of JPY 200 bn by 2025 in its Long-Term Business Plan.

http://en.puworld.com/html/20180620/394782043.html

June 20, 2018

TDI Update

Mitsui anticipates TDI demand-supply will move closer to balance outlook in 2018
Updated: 2018-06-20 17:19 Source: Utech-Polyurethane share:

PUWORLD–Tokyo – Japanese chemical company Mitsui Chemicals anticipates that the TDI demand-supply outlook will ease in 2018 compared to 2017.

In an internet investor briefing, the company said that in 2017 the market behaved positively.

‘In 2018, the demand-supply scenario expected to be relaxed due to full-fledged operation of new and expanded plants. We expect that the market conditions will weaken in association with this,’ observed Osamu Yoshida, deputy GM, corporate communications, Mitsui Chemicals.

Diisocyanate prices remained high in 2017.  This was owing to delays in operation of new and expanded plants and effects of forces majeure.

Away from polyurethane raw materials, Mitsui said it expects operating income to decline between the second half of 2017 and the first half of 2018. This is due to large-scale regular maintenance of crackers at Osaka and maintenance of other products.

Operating income from the company’s Basic Material sector grew marginally by 0.4% between 2016 and 2017. It reached JPY 38.9bn ($354 m) in 2017. Net sales grew by 72.1% to JPY 637.7bn in FY 2017.

Mitsui Chemicals was established 20 years ago. It is aiming for targeting sales of JP¥ 2,000 bn and operating income of JPY 200 bn by 2025 in its Long-Term Business Plan.

http://en.puworld.com/html/20180620/394782043.html

June 19, 2018

Potential Chemical Raw Materials from China That May See Higher Tariffs

USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices

Washington, DC – The Office of the United States Trade Representative (USTR) today released alist of products imported from China that will be subject to additional tariffs as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.

On May 29, 2018, President Trump stated that USTR shall announce by June 15 the imposition of an additional duty of 25 percent on approximately $50 billion worth of Chinese imports containing industrially significant technologies, including those related to China’s “Made in China 2025” industrial policy.  Today’s action comes after an exhaustive Section 301 investigation in which USTR found that China’s acts, policies and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory, and burden U.S. commerce.

“We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks,” said Ambassador Robert Lighthizer.  “China’s government is aggressively working to undermine America’s high-tech industries and our economic leadership through unfair trade practices and industrial policies like ‘Made in China 2025.’  Technology and innovation are America’s greatest economic assets and President Trump rightfully recognizes that if we want our country to have a prosperous future, we must take a stand now to uphold fair trade and protect American competitiveness.”

The list of products issued today covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values.  This list was compiled based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties.  It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles.  The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions.

This list of products consists of two sets of U.S tariff lines.  The first set contains 818 lines of the original 1,333 lines that were included on the proposed list published on April 6.  These lines cover approximately $34 billion worth of imports from China.  USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees.  Customs and Border Protection will begin to collect the additional duties on July 6, 2018.

The second set contains 284 proposed tariff lines identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the “Made in China 2025” industrial policy.  These 284 lines, which cover approximately $16 billion worth of imports from China, will undergo further review in a public notice and comment process, including a public hearing.  After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.

USTR recognizes that some U.S. companies may have an interest in importing items from China that are covered by the additional duties. Accordingly, USTR will soon provide an opportunity for the public to request the exclusion of particular products from the additional duties subject to this action.  USTR will issue a notice in the Federal Register with details regarding this process within the next few weeks.

 

Background

President Trump announced on March 22, 2018, that USTR shall publish a proposed list of products and any intended tariff increases in order to address the acts, policies, and practices of China that are unreasonable or discriminatory and that burden or restrict U.S. commerce.

These acts, policies and practices of China include those that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises.  They bolster China’s stated intention of seizing economic dominance of certain advanced technology sectors as set forth in its industrial plans, such as “Made in China 2025.”  (See USTR Section 301 Report here.)

On April 3, USTR announced a proposed list of 1,333 products that may be subject to an additional duty of 25 percent, and sought comments from interested persons and the appropriate trade advisory committees.

Interested persons filed approximately 3,200 written submissions.  In addition, USTR and the Section 301 Committee convened a three-day public hearing from May 15-17, 2018, during which 121 witnesses provided testimony and responded to questions. The public submissions and a transcript of the hearing are available on www.regulations.gov in docket number USTR-2018-0005.

Click here to view a fact sheet on the Section 301 product list.

Click here to view a fact sheet on the Section 301 investigation.

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/june/ustr-issues-tariffs-chinese-products

June 19, 2018

Potential Chemical Raw Materials from China That May See Higher Tariffs

USTR Issues Tariffs on Chinese Products in Response to Unfair Trade Practices

Washington, DC – The Office of the United States Trade Representative (USTR) today released alist of products imported from China that will be subject to additional tariffs as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.

On May 29, 2018, President Trump stated that USTR shall announce by June 15 the imposition of an additional duty of 25 percent on approximately $50 billion worth of Chinese imports containing industrially significant technologies, including those related to China’s “Made in China 2025” industrial policy.  Today’s action comes after an exhaustive Section 301 investigation in which USTR found that China’s acts, policies and practices related to technology transfer, intellectual property, and innovation are unreasonable and discriminatory, and burden U.S. commerce.

“We must take strong defensive actions to protect America’s leadership in technology and innovation against the unprecedented threat posed by China’s theft of our intellectual property, the forced transfer of American technology, and its cyber attacks on our computer networks,” said Ambassador Robert Lighthizer.  “China’s government is aggressively working to undermine America’s high-tech industries and our economic leadership through unfair trade practices and industrial policies like ‘Made in China 2025.’  Technology and innovation are America’s greatest economic assets and President Trump rightfully recognizes that if we want our country to have a prosperous future, we must take a stand now to uphold fair trade and protect American competitiveness.”

The list of products issued today covers 1,102 separate U.S. tariff lines valued at approximately $50 billion in 2018 trade values.  This list was compiled based on extensive interagency analysis and a thorough examination of comments and testimony from interested parties.  It generally focuses on products from industrial sectors that contribute to or benefit from the “Made in China 2025” industrial policy, which include industries such as aerospace, information and communications technology, robotics, industrial machinery, new materials, and automobiles.  The list does not include goods commonly purchased by American consumers such as cellular telephones or televisions.

This list of products consists of two sets of U.S tariff lines.  The first set contains 818 lines of the original 1,333 lines that were included on the proposed list published on April 6.  These lines cover approximately $34 billion worth of imports from China.  USTR has determined to impose an additional duty of 25 percent on these 818 product lines after having sought and received views from the public and advice from the appropriate trade advisory committees.  Customs and Border Protection will begin to collect the additional duties on July 6, 2018.

The second set contains 284 proposed tariff lines identified by the interagency Section 301 Committee as benefiting from Chinese industrial policies, including the “Made in China 2025” industrial policy.  These 284 lines, which cover approximately $16 billion worth of imports from China, will undergo further review in a public notice and comment process, including a public hearing.  After completion of this process, USTR will issue a final determination on the products from this list that would be subject to the additional duties.

USTR recognizes that some U.S. companies may have an interest in importing items from China that are covered by the additional duties. Accordingly, USTR will soon provide an opportunity for the public to request the exclusion of particular products from the additional duties subject to this action.  USTR will issue a notice in the Federal Register with details regarding this process within the next few weeks.

 

Background

President Trump announced on March 22, 2018, that USTR shall publish a proposed list of products and any intended tariff increases in order to address the acts, policies, and practices of China that are unreasonable or discriminatory and that burden or restrict U.S. commerce.

These acts, policies and practices of China include those that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises.  They bolster China’s stated intention of seizing economic dominance of certain advanced technology sectors as set forth in its industrial plans, such as “Made in China 2025.”  (See USTR Section 301 Report here.)

On April 3, USTR announced a proposed list of 1,333 products that may be subject to an additional duty of 25 percent, and sought comments from interested persons and the appropriate trade advisory committees.

Interested persons filed approximately 3,200 written submissions.  In addition, USTR and the Section 301 Committee convened a three-day public hearing from May 15-17, 2018, during which 121 witnesses provided testimony and responded to questions. The public submissions and a transcript of the hearing are available on www.regulations.gov in docket number USTR-2018-0005.

Click here to view a fact sheet on the Section 301 product list.

Click here to view a fact sheet on the Section 301 investigation.

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2018/june/ustr-issues-tariffs-chinese-products