Epoxy
January 13, 2021
Asian Propylene Update
Asian propylene-naphtha spread crunches to 4-month low on naphtha upswing
Highlights
Naphtha prices rise on robust demand, crude uptick
Propylene prices weaken as buyers retreat
- Author
- Wanda Wang Melvin Yeo
- Editor
- Wendy Wells
Singapore — Asian naphtha prices strengthening to an almost 12-month high as propylene prices weaken has narrowed the propylene-naphtha spread to a four-month low, S&P Global Platts data showed Jan. 13.
The spread between FOB Korea propylene and naphtha C+F Japan cargo assessments narrowed $7.75/mt day on day to $424.25/mt at the Jan. 12 Asian close. The spread was lower on Sept. 4, 2020, at $420/mt, Platts data showed.
The typical breakeven level for propylene production is around $250/mt, and the Asian propylene-naphtha spread has remained above this level since Jan. 9, 2020, Platts data showed.
Feedstock naphtha, used by steam crackers to produce propylene has been on a crude-driven price uptrend, which pushed benchmark naphtha C+F Japan cargo up $7.75/mt day on day to $525.75/mt at the Asian close Jan. 12, a level last higher on Jan. 24, 2020, at $531.75/mt, Platts data showed.
Crude prices have firmed in response to the recent production cut by Saudi Arabia, vaccine rollouts and stimulus hopes.
Front month March Brent crude futures were assessed at $55.98/b at the Asian close Jan. 12, up $2.05/b week on week, Platts data showed. Front month Brent crude at the Asian close had averaged $50.11/b in December and $43.62/b in November, Platts data showed.
In addition, naphtha demand is robust as petrochemical makers are keen to run their naphtha-fed steam crackers at full or close to full capacity on positive olefin margins. Moreover, winter demand has boosted LPG to a premium to naphtha, making it uneconomical as an alternative cracker feedstock, sources said.
PROPYLENE UNDER PRESSURE
Propylene prices have been weighed down by thin trading activity, the availability of cheaper domestic cargoes in China, and weakness in polypropylene, sources said.
The CFR China propylene price was assessed steady day on day at $975/mt Jan. 12 and down $40/mt month on month, while the FOB Korea marker was unchanged day on day at $950/mt and down $20/mt month on month, Platts data showed.
Chinese buyers were putting import spot purchases on hold as they were expecting prices to soften when South Korean majors YNCC and LG Chemical restart cracker operations later this week. Weaker downstream polypropylene futures were also impacting their buying interest.
The planned restarts of naphtha-fed steam crackers in January and February are slated to increase propylene supply, sources said.
China’s Fujian Meide is also expected to produce on-spec propylene from its new PDH plant in Fujian province this month, and this is expected to add further pressure on import prices, sources said.
January 13, 2021
PPG to Acquire Versaflex
PPG to Acquire Coatings Manufacturer VersaFlex
January 05, 2021
PITTSBURGH–(BUSINESS WIRE)– PPG (NYSE:PPG) today announced that it has reached a definitive agreement to acquire VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications. VersaFlex is a portfolio company of DalFort Capital Partners. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions. Financial terms were not disclosed.
“VersaFlex’s attractive segment mix with strong growth outlook, unique product offering, broad expertise, and manufacturing capabilities in polyurea and flooring coatings will complement and expand upon PPG’s current product offering,” said Ram Vadlamannati, PPG senior vice president, protective and marine coatings (PMC) and president, Europe, Middle East and Africa. “This acquisition supports PPG’s commitment to growing our industry-leading technology portfolio and customer touchpoints.”
VersaFlex is an aggregation of four U.S.-based protective coatings companies, consisting of legacy VersaFlex, Raven Lining Systems, Milamar Coatings and Specialty Products, Inc., which were acquired by DalFort Capital from 2017-2019. VersaFlex has approximately 130 employees and its full year 2020 revenue is expected to be approximately $70 million. The company operates three manufacturing sites located in Kansas, Oklahoma and Washington.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.1 billion in 2019. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
About DalFort Capital Partners
DalFort Capital Partners is a sector-focused investment firm based in Dallas, Texas, specializing in partnering with entrepreneurs and management teams in the lower middle market. The company works collaboratively to strengthen a company’s strategic and financial position through operational improvements and acquisitions of complementary businesses. DalFort specialize in identifying and executing strategic add-on acquisitions for our portfolio companies that enhance the company’s relationship with existing customers and expand its reach into new geographies or market niches.
January 13, 2021
PPG to Acquire Versaflex
PPG to Acquire Coatings Manufacturer VersaFlex
January 05, 2021
PITTSBURGH–(BUSINESS WIRE)– PPG (NYSE:PPG) today announced that it has reached a definitive agreement to acquire VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications. VersaFlex is a portfolio company of DalFort Capital Partners. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions. Financial terms were not disclosed.
“VersaFlex’s attractive segment mix with strong growth outlook, unique product offering, broad expertise, and manufacturing capabilities in polyurea and flooring coatings will complement and expand upon PPG’s current product offering,” said Ram Vadlamannati, PPG senior vice president, protective and marine coatings (PMC) and president, Europe, Middle East and Africa. “This acquisition supports PPG’s commitment to growing our industry-leading technology portfolio and customer touchpoints.”
VersaFlex is an aggregation of four U.S.-based protective coatings companies, consisting of legacy VersaFlex, Raven Lining Systems, Milamar Coatings and Specialty Products, Inc., which were acquired by DalFort Capital from 2017-2019. VersaFlex has approximately 130 employees and its full year 2020 revenue is expected to be approximately $70 million. The company operates three manufacturing sites located in Kansas, Oklahoma and Washington.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.1 billion in 2019. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
About DalFort Capital Partners
DalFort Capital Partners is a sector-focused investment firm based in Dallas, Texas, specializing in partnering with entrepreneurs and management teams in the lower middle market. The company works collaboratively to strengthen a company’s strategic and financial position through operational improvements and acquisitions of complementary businesses. DalFort specialize in identifying and executing strategic add-on acquisitions for our portfolio companies that enhance the company’s relationship with existing customers and expand its reach into new geographies or market niches.
January 7, 2021
Back to Normalcy
American Airlines Is Ending Support For Emotional Support Animals
by Tyler DurdenWednesday, Jan 06, 2021 – 23:50
American Airlines is finally ending the literal circus that was becoming “emotional support animals” at airports and in airplanes nationwide. Hopefully, other airlines will follow suit.
Back in the day, there were seeing eye dogs, sheep herding dogs and cadaver dogs that were specially trained and that was it. Every good doggo was an “emotional support animal” for its owner, which is one of the best parts of having a pet: they can calm you down, they can bring joy into your life and they can be your best friend.
But if you don’t know someone that has wrapped their dog up in a military style pet-vest with the words “emotional support animal” written on it lately – as if their “specially trained” dog’s key goal is to somehow psychoanalyze you and offer you written notes on the “anxiety” you feel from capitalism or the patriarchy, versus simply eating, sleeping, farting and crapping – then you haven’t been paying attention.
It has become an epidemic across the U.S. – people using the “emotional support” excuse to gain access for their pets on flights and in airports – where they would usually not be welcome. And once the floodgates for emotional support dogs opened up, Americans starting carting around emotional support squirrels, emotional support clowns, emotional support peacocks and entire emotional support zoos with them as they traveled.
But American Airlines appears to have finally seen enough. The airline has made a policy change that “matches a new Department of Transportation regulation that says airlines aren’t required to treat emotional support animals as service animals,” according to CNN. The rules come into effect on January 11.
At that point, American Airlines says it will “will no longer authorize new travel for animals that do not meet that definition, such as emotional support animals.”
Emotional support animals are supposed to be “prescribed by mental health professionals to provide comfort and support, but unlike service animals, they are not required to have training in specific tasks.”
Jessica Tyler, president of cargo and vice president of airport excellence for American said: “We’re confident this approach will enable us to better serve our customers, particularly those with disabilities who travel with service animals, and better protect our team members at the airport and on the aircraft.”
Among the airline’s concerns was that “passengers were fraudulently passing off their pets as the more loosely defined and fee-free category of emotional support animals”.
What gave it away, guys? Was it the peacock?
https://www.zerohedge.com/markets/american-airlines-ending-support-emotional-support-animals
January 7, 2021
Back to Normalcy
American Airlines Is Ending Support For Emotional Support Animals
by Tyler DurdenWednesday, Jan 06, 2021 – 23:50
American Airlines is finally ending the literal circus that was becoming “emotional support animals” at airports and in airplanes nationwide. Hopefully, other airlines will follow suit.
Back in the day, there were seeing eye dogs, sheep herding dogs and cadaver dogs that were specially trained and that was it. Every good doggo was an “emotional support animal” for its owner, which is one of the best parts of having a pet: they can calm you down, they can bring joy into your life and they can be your best friend.
But if you don’t know someone that has wrapped their dog up in a military style pet-vest with the words “emotional support animal” written on it lately – as if their “specially trained” dog’s key goal is to somehow psychoanalyze you and offer you written notes on the “anxiety” you feel from capitalism or the patriarchy, versus simply eating, sleeping, farting and crapping – then you haven’t been paying attention.
It has become an epidemic across the U.S. – people using the “emotional support” excuse to gain access for their pets on flights and in airports – where they would usually not be welcome. And once the floodgates for emotional support dogs opened up, Americans starting carting around emotional support squirrels, emotional support clowns, emotional support peacocks and entire emotional support zoos with them as they traveled.
But American Airlines appears to have finally seen enough. The airline has made a policy change that “matches a new Department of Transportation regulation that says airlines aren’t required to treat emotional support animals as service animals,” according to CNN. The rules come into effect on January 11.
At that point, American Airlines says it will “will no longer authorize new travel for animals that do not meet that definition, such as emotional support animals.”
Emotional support animals are supposed to be “prescribed by mental health professionals to provide comfort and support, but unlike service animals, they are not required to have training in specific tasks.”
Jessica Tyler, president of cargo and vice president of airport excellence for American said: “We’re confident this approach will enable us to better serve our customers, particularly those with disabilities who travel with service animals, and better protect our team members at the airport and on the aircraft.”
Among the airline’s concerns was that “passengers were fraudulently passing off their pets as the more loosely defined and fee-free category of emotional support animals”.
What gave it away, guys? Was it the peacock?
https://www.zerohedge.com/markets/american-airlines-ending-support-emotional-support-animals
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