Asian Markets

November 23, 2018

Chinese TDI Update

China TDI to stay weak as supplies build; demand remains sluggish

Source: ICIS News

2018/11/08

SINGAPORE (ICIS)–China’s toluene di-isocyanate (TDI) domestic prices continued to spiral downwards with no end in sight for the near term as supply is poised to grow at a time when downstream demand remains far from satisfactory.

 – US-China trade war weighs in on downstream foam makers

 – Supply gains as plants complete turnaround

 – New capacity to add to supply overhang

On 7 November, TDI traded in the Chinese domestic market at an average of yuan (CNY) 18,000/tonne DEL (delivered) east China, very different from the situation just two months ago.

According to ICIS data, TDI cargoes changed hands at well past CNY 30,000/tonne DEL east China at the end of August.

Usually, TDI off take surges in the third and fourth quarter as downstream foam factories ramp up production to be ready for typical year-end festive shopping season.

However, this year, such anticipations have thus far fallen flat as consumption slowed down amidst trepidations about potential impact of the ongoing US-China trade war.

The trade war has put an additional damper on global economic growth prospects.

The US has already put $250bn in Chinese imports under tariff, and China has retaliated with tariffs on $110bn in US imports.

Protractedly weaker-than-expected downstream off take is one key downside for TDI pricing, most China-based traders agreed, but what sparked a recent wave of frenzied selling was mounting apprehensions about “a supply overhang”, a trader said.

Several TDI plants in China, including the 100,000 tonne/year Gansu Yinguang line and the 80,000 tonne/year Yantai Juli facility, involving some 180,000 tonne/year of total production capacity, returned to full operations in the second half of October-early November, following respective month-long maintenance closures.

In addition, the market is bracing for potential fresh supply injections from new plants that could come on stream within the month or next.

https://www.icis.com/explore/resources/news/2018/11/08/10278692/china-tdi-to-stay-weak-as-supplies-build-demand-remains-sluggish/?cmpid=SOC%257CRSS%257Ctwitter%257CFreeNewsFeed

November 12, 2018

FR Issues in New Zealand

Furnishings {industry} shake-up over flammable foam issues

0

The furniture industry is in for a massive shake up with the government looking at whether it should ban a widely-used highly flammable foam filling.

Most modern furniture, such as couches and mattresses, are made using polyurethane foam, which ignites quickly and burns off toxic fumes.

Consumer Affairs Minister Kris Faafoi said after seeing a fire demonstration showing how quickly the foam went up, leaving things as they were would be unlikely.

“Certainly something needs to change, it just took off so quickly and doesn’t leave a lot of time for a family to respond and certainly doesn’t leave a lot of time for Fire and Emergency to respond as well.”

In the last 10 years, 180 people have died in avoidable house fires.

Fire and Emergency fire investigations manager Peter Wilding said foam-filled furniture ignited rapidly and burned hot and fast while emitting toxic fumes.

“Primarily the biggest contributor of heat and toxic smoke is the polyurethane foam furnishing – the padding that you find in seats and thing like that.

“There’s other things in a room that will burn but nothing burns and gives off as much heat as quickly as that.”

One suggestion to make the furniture safer was to mix it with flame retardant.

But there are concerns adding more chemicals to households would have unintended consequences.

Four furniture manufacturers RNZ spoke to expressed concern that flame retardants are known carcinogens.

But Mr Wilding said while older-style retardants were concerning, modern ones were safe.

“Chemical technology has moved on light years over the last few decades. There’s much safer things that are being used now than what used to be used.

“Some of the retardants that were used back in the ’50s and ’60s are no longer even allowed to be produced.”

Another option was to add a barrier lining to the outside of furniture or to phase out the polyurethane foam altogether.

The government has proposed setting up a Product Safety Policy Statement which means that whatever changes are decided on would be industry-led.

However, this type of policy would only work if everyone was onboard.

One concern about a policy statement was the monitoring of overseas imports of foam and pre-made furniture.

Daryl McLaren who works for New Zealand foam making company Dunlop Foams said they know exactly what went into their foam and label accordingly, but imported products were not as transparent.

“We’ve had a customer that was about to lose a job to imported foams and they said ‘can we have a sample of it’, all the paperwork all matched up to say what the grade was, the fact that it was FR [flame retardant]. They put a match to it and it burnt away – there was no fire retardant in it at all,” Mr McLaren said.

“You just don’t know that it’s happening. It was just fortunate that the company which is our customer, had a close relationship with their customer and was able to do that sort of thing. But nine times out of 10, in fact I would say 99 times out of 100 more like, nobody’s gonna know.”

Mr Faafoi said monitoring imports to make sure they were up to code and labelled correctly would require significant resourcing, and changes like phasing out the use of the foam could take years to be fully in effect.

However, he said the sooner work started the sooner it could be completed.

http://infosurhoy.com/cocoon/saii/xhtml/en_GB/news/furnishings-industry-shake-up-over-flammable-foam-issues/

November 12, 2018

FR Issues in New Zealand

Furnishings {industry} shake-up over flammable foam issues

0

The furniture industry is in for a massive shake up with the government looking at whether it should ban a widely-used highly flammable foam filling.

Most modern furniture, such as couches and mattresses, are made using polyurethane foam, which ignites quickly and burns off toxic fumes.

Consumer Affairs Minister Kris Faafoi said after seeing a fire demonstration showing how quickly the foam went up, leaving things as they were would be unlikely.

“Certainly something needs to change, it just took off so quickly and doesn’t leave a lot of time for a family to respond and certainly doesn’t leave a lot of time for Fire and Emergency to respond as well.”

In the last 10 years, 180 people have died in avoidable house fires.

Fire and Emergency fire investigations manager Peter Wilding said foam-filled furniture ignited rapidly and burned hot and fast while emitting toxic fumes.

“Primarily the biggest contributor of heat and toxic smoke is the polyurethane foam furnishing – the padding that you find in seats and thing like that.

“There’s other things in a room that will burn but nothing burns and gives off as much heat as quickly as that.”

One suggestion to make the furniture safer was to mix it with flame retardant.

But there are concerns adding more chemicals to households would have unintended consequences.

Four furniture manufacturers RNZ spoke to expressed concern that flame retardants are known carcinogens.

But Mr Wilding said while older-style retardants were concerning, modern ones were safe.

“Chemical technology has moved on light years over the last few decades. There’s much safer things that are being used now than what used to be used.

“Some of the retardants that were used back in the ’50s and ’60s are no longer even allowed to be produced.”

Another option was to add a barrier lining to the outside of furniture or to phase out the polyurethane foam altogether.

The government has proposed setting up a Product Safety Policy Statement which means that whatever changes are decided on would be industry-led.

However, this type of policy would only work if everyone was onboard.

One concern about a policy statement was the monitoring of overseas imports of foam and pre-made furniture.

Daryl McLaren who works for New Zealand foam making company Dunlop Foams said they know exactly what went into their foam and label accordingly, but imported products were not as transparent.

“We’ve had a customer that was about to lose a job to imported foams and they said ‘can we have a sample of it’, all the paperwork all matched up to say what the grade was, the fact that it was FR [flame retardant]. They put a match to it and it burnt away – there was no fire retardant in it at all,” Mr McLaren said.

“You just don’t know that it’s happening. It was just fortunate that the company which is our customer, had a close relationship with their customer and was able to do that sort of thing. But nine times out of 10, in fact I would say 99 times out of 100 more like, nobody’s gonna know.”

Mr Faafoi said monitoring imports to make sure they were up to code and labelled correctly would require significant resourcing, and changes like phasing out the use of the foam could take years to be fully in effect.

However, he said the sooner work started the sooner it could be completed.

http://infosurhoy.com/cocoon/saii/xhtml/en_GB/news/furnishings-industry-shake-up-over-flammable-foam-issues/

November 11, 2018

Wanhua Locks in LPG Supply

Adnoc signs 10-year contract for LPG supply with China’s Wanhua Group

The agreement is in line with recent trends towards locking in longer-term supply of products in Asia

Adnoc is expanding refining and chemicals capabilities in Ruwais to sell more products to Asia. Ravindranath K / The National

State-owned Abu Dhabi National Oil Company (Adnoc) has signed a 10-year sales agreement for liquefied natural gas (LPG) with China’s Wanhua Chemical Group as the Arabian Gulf firm locks in longer-term supply deals with Asian buyers.

Under the terms of the contract, whose value was not disclosed, Wanhua will purchase up to a million tonnes of LPG annually, Adnoc said.

LPG, a refined product, is in high demand in Asia, mainly as a cooking fuel stored in cylinders for stoves as well as a propellant, refrigerant, vehicle fuel and as a feedstock for the petrochemicals industry.

National oil companies such as Adnoc have begun negotiating and signing long-term contracts for products with buyers in East Asia as they look to secure market share and pivot business strategies to focus more downstream. Adnoc currently produces 10.5 million tonnes of LPG per year. The firm is expanding its refining and chemical capabilities through investments of up to $45 billion with partners over the next five years, including plans to build the world’s largest integrated refinery by 2025.

The latest agreement was in line with the expansion of Adnoc’s “client base and penetrating new markets, through a combination of both short and long-term sales and trading opportunities,” Abdulla Salem Al Dhaheri, the company’s marketing, sales and trading director, said on Saturday.

Wanhua is one of the world’s leading producers for methylene diphenyl diisocyanate, often abbreviated as MDI – a key ingredient in the manufacture of high-performance adhesives and synthetic fibres. The company is also a lead producer of toluene diisocyanate, abbreviated as TDI, which finds uses in the manufacture of flexible polyurethane foams used as support in car seats and upholstery. LPG is the key feedstock for the manufacture of both commodities, with the collective demand for the refined products set to exceed six million tonnes annually by 2021.

Wanhua owns the largest underground storage cavern for LPG with a total capacity of 2.4 million cubic metres as well as adjacent port facilities and berths.

The agreement with Wanhua follows several other long-term supply agreements with Japanese and Malaysian firms earlier this year. In March, Adnoc signed two three-year agreements to sell a combined supply of up to 1.5 million tonnes of the oil product naphtha to Idemitsu Kosan of Japan and SCG Chemicals of Thailand.

https://www.thenational.ae/business/energy/adnoc-signs-10-year-contract-for-lpg-supply-with-china-s-wanhua-group-1.790147

November 11, 2018

Wanhua Locks in LPG Supply

Adnoc signs 10-year contract for LPG supply with China’s Wanhua Group

The agreement is in line with recent trends towards locking in longer-term supply of products in Asia

Adnoc is expanding refining and chemicals capabilities in Ruwais to sell more products to Asia. Ravindranath K / The National

State-owned Abu Dhabi National Oil Company (Adnoc) has signed a 10-year sales agreement for liquefied natural gas (LPG) with China’s Wanhua Chemical Group as the Arabian Gulf firm locks in longer-term supply deals with Asian buyers.

Under the terms of the contract, whose value was not disclosed, Wanhua will purchase up to a million tonnes of LPG annually, Adnoc said.

LPG, a refined product, is in high demand in Asia, mainly as a cooking fuel stored in cylinders for stoves as well as a propellant, refrigerant, vehicle fuel and as a feedstock for the petrochemicals industry.

National oil companies such as Adnoc have begun negotiating and signing long-term contracts for products with buyers in East Asia as they look to secure market share and pivot business strategies to focus more downstream. Adnoc currently produces 10.5 million tonnes of LPG per year. The firm is expanding its refining and chemical capabilities through investments of up to $45 billion with partners over the next five years, including plans to build the world’s largest integrated refinery by 2025.

The latest agreement was in line with the expansion of Adnoc’s “client base and penetrating new markets, through a combination of both short and long-term sales and trading opportunities,” Abdulla Salem Al Dhaheri, the company’s marketing, sales and trading director, said on Saturday.

Wanhua is one of the world’s leading producers for methylene diphenyl diisocyanate, often abbreviated as MDI – a key ingredient in the manufacture of high-performance adhesives and synthetic fibres. The company is also a lead producer of toluene diisocyanate, abbreviated as TDI, which finds uses in the manufacture of flexible polyurethane foams used as support in car seats and upholstery. LPG is the key feedstock for the manufacture of both commodities, with the collective demand for the refined products set to exceed six million tonnes annually by 2021.

Wanhua owns the largest underground storage cavern for LPG with a total capacity of 2.4 million cubic metres as well as adjacent port facilities and berths.

The agreement with Wanhua follows several other long-term supply agreements with Japanese and Malaysian firms earlier this year. In March, Adnoc signed two three-year agreements to sell a combined supply of up to 1.5 million tonnes of the oil product naphtha to Idemitsu Kosan of Japan and SCG Chemicals of Thailand.

https://www.thenational.ae/business/energy/adnoc-signs-10-year-contract-for-lpg-supply-with-china-s-wanhua-group-1.790147