Company News
August 17, 2020
Iranian Isocyanate Production
Karoon Co Exporting Isocyanates to Companies in Asia and Europe
EghtesadOnline: Karoon Petrochemical Company, in the southwestern port city of Mahshahr in Khuzestan Province, is the only producer of isocyanates in Iran. Half the output is for domestic use and the rest is exported, managing director of the company said.
“Isocyanates are important chemicals that are difficult to store and transport. Globally about 8 million tons of isocyanates are produced annually. Only nine companies in the world produce it and Karoon is one. We currently export to Europe and Asia,” ILNA quoted Alireza Sediqizadeh as saying.
“Our products are competitive with European and East Asian products both in price and quality,” he noted.
Isocyanates are a family of highly reactive, low molecular weight chemicals widely used in the manufacture of polyurethane foams, insulation, household refrigerators and board or laminate form, residential sheathing or commercial roofing, floor finishes, wood finishes and paint, adhesive and sealant compounds, automobile parts, shoe soles, roller skate wheels, pond liners and blood bags.
Karoon Plant is also the first producer of isocyanates in the Middle East. Its production of toluene diisocyanate (TDI), which is its main product, amounts to 40,000 tons a year.
The company also produces other petrochemicals such as methylene diphenyl diisocyanate (MDI) (40,000 tons) acid clorhidric (116,000 tons), nitric acid (92,000 tons), ortho toluenediamine (11,000 tons), Meta toluenediamine (31,000 tons), nitrobenzene (40,000 tons) and aniline (30,000 tons).
Companies in Iraq, Turkey, India, Russia, Azerbaijan, Albania, Greece, Sweden, Peru, Kenya, Nigeria and Italy are the main foreign buyers.
“In 2017 we imported about $60 million worth of raw materials to produce isocyanates. This declined to $9 million in 2019 with the efforts of domestic experts and engineers who were able to manufacture the essential raw materials. This saved $51 million that was spent on importing other materials,” Sediqizadeh said.
Iran was a large importer of polyols, which are co-components of isocyanates and used together in the production of PU foam products. It mainly imported polyols from northeast Asia, where most producers are based.
Although Iran still imports the material, the CEO hopes that next year (starting March 2021), “we will no longer need to import in this sector and celebrate the self-sufficiency of this product.”
“Karoon Petrochemical Company started producing isocyanates through a joint venture with Chematur Engineering AB of Sweden. However, the foreign company walked away,” he added. “This did not discourage us and we focused on domestic experts and engineers and wrapped up the project”.
August 17, 2020
Iranian Isocyanate Production
Karoon Co Exporting Isocyanates to Companies in Asia and Europe
EghtesadOnline: Karoon Petrochemical Company, in the southwestern port city of Mahshahr in Khuzestan Province, is the only producer of isocyanates in Iran. Half the output is for domestic use and the rest is exported, managing director of the company said.
“Isocyanates are important chemicals that are difficult to store and transport. Globally about 8 million tons of isocyanates are produced annually. Only nine companies in the world produce it and Karoon is one. We currently export to Europe and Asia,” ILNA quoted Alireza Sediqizadeh as saying.
“Our products are competitive with European and East Asian products both in price and quality,” he noted.
Isocyanates are a family of highly reactive, low molecular weight chemicals widely used in the manufacture of polyurethane foams, insulation, household refrigerators and board or laminate form, residential sheathing or commercial roofing, floor finishes, wood finishes and paint, adhesive and sealant compounds, automobile parts, shoe soles, roller skate wheels, pond liners and blood bags.
Karoon Plant is also the first producer of isocyanates in the Middle East. Its production of toluene diisocyanate (TDI), which is its main product, amounts to 40,000 tons a year.
The company also produces other petrochemicals such as methylene diphenyl diisocyanate (MDI) (40,000 tons) acid clorhidric (116,000 tons), nitric acid (92,000 tons), ortho toluenediamine (11,000 tons), Meta toluenediamine (31,000 tons), nitrobenzene (40,000 tons) and aniline (30,000 tons).
Companies in Iraq, Turkey, India, Russia, Azerbaijan, Albania, Greece, Sweden, Peru, Kenya, Nigeria and Italy are the main foreign buyers.
“In 2017 we imported about $60 million worth of raw materials to produce isocyanates. This declined to $9 million in 2019 with the efforts of domestic experts and engineers who were able to manufacture the essential raw materials. This saved $51 million that was spent on importing other materials,” Sediqizadeh said.
Iran was a large importer of polyols, which are co-components of isocyanates and used together in the production of PU foam products. It mainly imported polyols from northeast Asia, where most producers are based.
Although Iran still imports the material, the CEO hopes that next year (starting March 2021), “we will no longer need to import in this sector and celebrate the self-sufficiency of this product.”
“Karoon Petrochemical Company started producing isocyanates through a joint venture with Chematur Engineering AB of Sweden. However, the foreign company walked away,” he added. “This did not discourage us and we focused on domestic experts and engineers and wrapped up the project”.
August 14, 2020
BASF Increasing MDI Prices
August 14, 2020
Dear Valued Customer,
Effective September 1, 2020 or as contracts allow, BASF Corporation is raising the price for all Lupranate MDI products by $ 0.12 per pound.
Your BASF Account Manager will provide details of this announced increase and is available to answer any questions you may have. We appreciate your continued support of BASF Urethane Chemicals.
August 14, 2020
BASF Increasing MDI Prices
August 14, 2020
Dear Valued Customer,
Effective September 1, 2020 or as contracts allow, BASF Corporation is raising the price for all Lupranate MDI products by $ 0.12 per pound.
Your BASF Account Manager will provide details of this announced increase and is available to answer any questions you may have. We appreciate your continued support of BASF Urethane Chemicals.
August 10, 2020
Olin Update
US Olin to continue idling capacities, Texas closure on track for end 2020
Author: Stefan Baumgarten
2020/08/06
HOUSTON (ICIS)–Olin will continue idling plants as it adapts to weakness in demand, the CEO of the US-based producer of chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid said in an update on Thursday.
“We plan to continue to temporarily idle plants to minimise operating costs,” John Fischer told analysts during Olin’s Q2 earnings call.
Olin’s chlor alkali products and vinyls and epoxy businesses remain “challenged” amid the current coronavirus-impacted economic conditions, Fischer said.
Visibility around future demand continues to be limited and customer order patterns remain volatile, he said.
Fischer would not disclose which plants specifically are currently down or may be idled.
However, he said that of the seven different Olin sites that have chlor-alkali plants, “we have had some kind of shutdown at at least five of them over the last four months”.
The company currently has one chlor-alkali plant undergoing an extended turnaround, he added.
Fischer also confirmed that plans to permanently close a chlor-alkali plant and accompanying vinylidene chloride (VDC) facility at Freeport, Texas, remain on track for completion by around end 2020.
The company announced plans to close the Freeport facilities in December 2019.
Q3 OUTLOOK
The end-use markets for Olin’s products that are most impacted by the demand weakness include automotive, aerospace, construction and oil and gas.
Chlorine demand from the urethane and isocyanate sector represented the largest sales volume decline in Q2, “and that demand outlook still remains challenged,” Fischer said.
Despite the continued demand weakness, Olin expects Q3 adjusted EBITDA to more than double from Q2 adjusted EBITDA of $71.5m. For comparison, Q2 2019 adjusted EBITDA was $204.6m.
After April’s low, sales volumes were rising month to month in Q2, and July volumes improved from June, he said.
Improved volumes and higher product pricing are expected to drive the sequential earnings improvement.
In addition, maintenance turnaround costs will be down from Q2 when the company undertook two large turnarounds – for vinyl chloride monomer (VCM) and for epichlorohydrin (ECH).
Olin expects sequential improvement in both caustic soda and ethylene dichloride (EDC) pricing, Fischer said.
Q2 caustic soda pricing in Olin’s system increased about 8% from Q1 amid tighter industry availability, “and this trend is expected to continue in the third quarter as Olin’s July price was the highest of the year,” Fischer said.
Fischer is due to step down as CEO next month. He will then become Olin’s executive chairman.
Everchem Updates Archive 
Sign Up for Email Updates