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VOLUME XXI
September 14, 2023
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May 16, 2022
The Aggregated MDI Market Fell First and Then Rose in April
ECHEMI 2022-05-06
At the beginning of the month, the domestic market price of aggregated MDI was 19,316 yuan/ton, and the price at the end of the month was 18,800 yuan/ton, a decrease of 2.67% during the month and a year-on-year decrease of 0.40%.
In April 2022, there are 41 commodities in the chemical sector that have increased month-on-month in the commodity price change list, of which 9 commodities have increased by more than 5%, accounting for 8.2% of the monitored commodities in this sector; the top 3 commodities are Formic acid (36.15%), caustic soda (13.35%), flake alkali (9.32%). A total of 66 commodities decreased month-on-month, and 29 commodities decreased by more than 5%, accounting for 26.4% of the monitored commodities in this sector; the top 3 products with a decrease were propylene glycol (-20.05%) and acetic acid (-18.39%). , Glycine (-16.77%). The average change this month was -1.87%.
At the beginning of the month, the domestic aggregated MDI market rose in a narrow range. One of the main reasons is that the logistics and transportation are severely restricted, the traffic at the expressway is congested, and the logistics and transportation costs are soaring. On the other hand, the spot supply in some areas is tight, especially in East China, and the quotations of mainstream traders are gradually rising.
In the first ten days of the month, the domestic aggregated MDI market declined in a narrow range. Traders offer scarce, more bearish outlook. The downstream sees the downturn in the market and increases the inquiring atmosphere, but transactions are rare.
In the middle of the month, the domestic aggregated MDI market continued to decline, mainly due to the low start of terminal enterprises and sluggish demand. Coupled with the high transportation costs, it is difficult to find a car, the regional control is strict, and the transportation is not smooth. Mainstream traders ship with them and talk about it one by one.
At the end of the month, the domestic aggregated MDI market stopped falling and rose, showing signs of recovery. Compared with East China, the logistics and transportation are relatively smooth, and some downstream customers who just need it are active in inquiries, and the demand has increased slightly. Traders are more reluctant to sell and negotiate. As the May Day holiday is approaching, some downstream companies have the intention to stock up, which has contributed to the recovery of the aggregated MDI price.
In terms of raw materials, pure benzene: styrene, caprolactam and other long-term losses, the price of pure benzene continues to rise and lack of motivation. However, new units such as Tianjin Dagu and Maoming Petrochemical styrene entered the market in May, and under the background of the gradual fading of the impact of the health incident and the recovery of the overall downstream consumption, the demand in May is expected to be stronger than that in April.
In terms of aniline, the aniline market fell sharply in April. The main reasons for the downturn of the aniline market are the obvious increase in the supply side, and the continued weakness of the demand side. The cost-side support remains strong, and it is difficult for aniline to fall below the “10,000 yuan throne”.
In terms of enterprises, Yantai Wanhua’s 1.1 million tons/year plant is operating normally; Ningbo Wanhua’s 1.2 million tons/year plant is operating normally; Shanghai Covestro’s 600,000 tons/year plant is operating normally; Shanghai Huntsman’s 380,000 tons/year plant is operating normally Normal operation; Shanghai BASF’s 220,000-ton/year plant is operating normally; Chongqing BASF’s 400,000-ton/year unit is operating normally; Tosoh Ruian’s 80,000-ton/year unit is operating normally.
Looking at the market outlook, it is still difficult for the market to fluctuate greatly after the May Day, and traders may lower their offers due to the large supply of goods at the beginning of the month. Analysts of the aggregated MDI of the business community predict that the domestic aggregated MDI market may enter the sorting stage.
May 16, 2022
The Aggregated MDI Market Fell First and Then Rose in April
ECHEMI 2022-05-06
At the beginning of the month, the domestic market price of aggregated MDI was 19,316 yuan/ton, and the price at the end of the month was 18,800 yuan/ton, a decrease of 2.67% during the month and a year-on-year decrease of 0.40%.
In April 2022, there are 41 commodities in the chemical sector that have increased month-on-month in the commodity price change list, of which 9 commodities have increased by more than 5%, accounting for 8.2% of the monitored commodities in this sector; the top 3 commodities are Formic acid (36.15%), caustic soda (13.35%), flake alkali (9.32%). A total of 66 commodities decreased month-on-month, and 29 commodities decreased by more than 5%, accounting for 26.4% of the monitored commodities in this sector; the top 3 products with a decrease were propylene glycol (-20.05%) and acetic acid (-18.39%). , Glycine (-16.77%). The average change this month was -1.87%.
At the beginning of the month, the domestic aggregated MDI market rose in a narrow range. One of the main reasons is that the logistics and transportation are severely restricted, the traffic at the expressway is congested, and the logistics and transportation costs are soaring. On the other hand, the spot supply in some areas is tight, especially in East China, and the quotations of mainstream traders are gradually rising.
In the first ten days of the month, the domestic aggregated MDI market declined in a narrow range. Traders offer scarce, more bearish outlook. The downstream sees the downturn in the market and increases the inquiring atmosphere, but transactions are rare.
In the middle of the month, the domestic aggregated MDI market continued to decline, mainly due to the low start of terminal enterprises and sluggish demand. Coupled with the high transportation costs, it is difficult to find a car, the regional control is strict, and the transportation is not smooth. Mainstream traders ship with them and talk about it one by one.
At the end of the month, the domestic aggregated MDI market stopped falling and rose, showing signs of recovery. Compared with East China, the logistics and transportation are relatively smooth, and some downstream customers who just need it are active in inquiries, and the demand has increased slightly. Traders are more reluctant to sell and negotiate. As the May Day holiday is approaching, some downstream companies have the intention to stock up, which has contributed to the recovery of the aggregated MDI price.
In terms of raw materials, pure benzene: styrene, caprolactam and other long-term losses, the price of pure benzene continues to rise and lack of motivation. However, new units such as Tianjin Dagu and Maoming Petrochemical styrene entered the market in May, and under the background of the gradual fading of the impact of the health incident and the recovery of the overall downstream consumption, the demand in May is expected to be stronger than that in April.
In terms of aniline, the aniline market fell sharply in April. The main reasons for the downturn of the aniline market are the obvious increase in the supply side, and the continued weakness of the demand side. The cost-side support remains strong, and it is difficult for aniline to fall below the “10,000 yuan throne”.
In terms of enterprises, Yantai Wanhua’s 1.1 million tons/year plant is operating normally; Ningbo Wanhua’s 1.2 million tons/year plant is operating normally; Shanghai Covestro’s 600,000 tons/year plant is operating normally; Shanghai Huntsman’s 380,000 tons/year plant is operating normally Normal operation; Shanghai BASF’s 220,000-ton/year plant is operating normally; Chongqing BASF’s 400,000-ton/year unit is operating normally; Tosoh Ruian’s 80,000-ton/year unit is operating normally.
Looking at the market outlook, it is still difficult for the market to fluctuate greatly after the May Day, and traders may lower their offers due to the large supply of goods at the beginning of the month. Analysts of the aggregated MDI of the business community predict that the domestic aggregated MDI market may enter the sorting stage.
May 16, 2022
BASF to increase prices for select polyalcohols in North and South America
FLORHAM PARK, NJ, May 16, 2022 – Effective June 1, 2022, or as existing contracts permit, BASF will increase prices in North and South America for select polyalcohols.
| Product | Price Increase | |
| Neopentylglycol (NEOL®/NPG) | $0.05/lb | $110/mt |
| 1,6 Hexanediol Flake (HDO®) | $0.20/lb | $441/mt |
| 1,6 Hexanediol Molten (HDO®) | $0.20/lb | $441/mt |
| Polycaprolactone (Capromer®) | $0.20/lb | $441/mt |
| epsilon-Caprolactone (CLO) | $0.20/lb | $441/mt |
| 1,5-Pentanediol (PDO) | $0.20/lb | $441/mt |
Neopentylglycol (NPG) is a unique polyalcohol offering superior performance in many end-use applications. Due to its high chemical and thermal stability, NPG has proven itself in many applications, especially as a building block for the production of polyester and alkyd resins for various coatings and plastics. An essential field of NPG application is powder coatings, which prove particularly successful in the construction industry as well as in the coating of household appliances. Other areas of application for NPG include the manufacture of lubricants, plasticizers and pharmaceuticals: It is used as a building block in the synthesis of for example hormones, cardiovascular drugs and painkillers. BASF markets NPG under its NEOL® brand.
Hexanediol (HDO) is used to manufacture industrial coatings including lower volatile organic compound formulations, polyurethanes, adhesives, and cosmetics. HDO also serves as a reactive thinner in the formulation of epoxy systems, which for example are used for the efficient production of rotor blades for modern wind turbines, as well as construction components for automotive lightweight applications.
1,5-Pentanediol (PDO) is used as a linear diol to produce various resin types like polyester and polyurethane (polyester polyol and polycarbonate diol) resins. These resins are used for example in the production of adhesives and sealants. PDO is also used in the production of coatings where PDO contributes to a good balance between hardness and flexibility, adhesion, weatherability and hydrolysis resistance.
Capromer® polycaprolactone is a specialty polyol for high performance polyurethane applications for example thermoplastic elastomers used in technical applications and coatings.
NEOL®, HDO® and Capromer® are registered trademarks of BASF Corporation.
May 16, 2022
BASF to increase prices for select polyalcohols in North and South America
FLORHAM PARK, NJ, May 16, 2022 – Effective June 1, 2022, or as existing contracts permit, BASF will increase prices in North and South America for select polyalcohols.
| Product | Price Increase | |
| Neopentylglycol (NEOL®/NPG) | $0.05/lb | $110/mt |
| 1,6 Hexanediol Flake (HDO®) | $0.20/lb | $441/mt |
| 1,6 Hexanediol Molten (HDO®) | $0.20/lb | $441/mt |
| Polycaprolactone (Capromer®) | $0.20/lb | $441/mt |
| epsilon-Caprolactone (CLO) | $0.20/lb | $441/mt |
| 1,5-Pentanediol (PDO) | $0.20/lb | $441/mt |
Neopentylglycol (NPG) is a unique polyalcohol offering superior performance in many end-use applications. Due to its high chemical and thermal stability, NPG has proven itself in many applications, especially as a building block for the production of polyester and alkyd resins for various coatings and plastics. An essential field of NPG application is powder coatings, which prove particularly successful in the construction industry as well as in the coating of household appliances. Other areas of application for NPG include the manufacture of lubricants, plasticizers and pharmaceuticals: It is used as a building block in the synthesis of for example hormones, cardiovascular drugs and painkillers. BASF markets NPG under its NEOL® brand.
Hexanediol (HDO) is used to manufacture industrial coatings including lower volatile organic compound formulations, polyurethanes, adhesives, and cosmetics. HDO also serves as a reactive thinner in the formulation of epoxy systems, which for example are used for the efficient production of rotor blades for modern wind turbines, as well as construction components for automotive lightweight applications.
1,5-Pentanediol (PDO) is used as a linear diol to produce various resin types like polyester and polyurethane (polyester polyol and polycarbonate diol) resins. These resins are used for example in the production of adhesives and sealants. PDO is also used in the production of coatings where PDO contributes to a good balance between hardness and flexibility, adhesion, weatherability and hydrolysis resistance.
Capromer® polycaprolactone is a specialty polyol for high performance polyurethane applications for example thermoplastic elastomers used in technical applications and coatings.
NEOL®, HDO® and Capromer® are registered trademarks of BASF Corporation.
May 14, 2022
Tosoh Reports Its Consolidated Results for Fiscal 2022
May 12, 2022 – Tokyo, Japan—Tosoh presents its full-year consolidated results for its 2022 fiscal year, from April 1, 2021, to March 31, 2022. The company’s consolidated net sales were ¥918.6 billion (US$8.2 billion), up ¥185.7 billion, or 25.3%, from fiscal 2021. The increase resulted from higher sales prices on the back of increased prices for raw materials and fuels such as naphtha, and of improved trade conditions overseas.
Operating income for fiscal 2022 was ¥144.0 billion (US$1.3 billion), an increase of ¥56.2 billion, or 64.0%. This increase was primarily due to improved international trade conditions as higher selling prices exceeded the impact of higher raw material and fuel prices. Ordinary income rose ¥65.4 billion, or 68.7%, to ¥160.5 billion (US$1.4 billion), while profit attributable to owners of the parent was up ¥44.6 billion, or 70.6%, to ¥107.9 billion (US$960.0 million).
During the period under review, the Japanese economy continued to recover from the lingering effects of the COVID-19 pandemic, driven by progress in vaccination and recovery in overseas demand. The situation remained unstable, though, as restrictions on social and economic activities were repeatedly imposed and eased as the number of infections oscillated. Concerning the global economy, while demand is on the road to recovery as restrictions on economic activities are being eased—particularly in developed countries—the outlook remains unclear, given the current downward pressures resulting from Russia’s invasion of Ukraine and the lockdown in Shanghai, China. Other economic slowdown factors such as the continued intermittent spread of COVID-19, surging resource prices, rising and prolonged inflation pressures, and disruptions in global supply chains are contributing to the uncertainty.
Results by business segment
Petrochemical Group
Petrochemical Group net sales rose ¥45.8 billion, or 34.9%, to ¥177.2 billion (US$1.6 billion), compared with fiscal 2021. The group’s operating income likewise increased, ¥8.0 billion, or 103.2%, to ¥15.7 billion (US$139.7 million). The increases were attributable to increased shipments of a broad range of products and to rising prices for raw materials and fuels such as naphtha which positively impacted the difference between product receipts and payments.
Shipments of propylene and cumene increased on the back of a recovery in demand and elevated production volumes. Moreover, higher prices for raw materials and fuels such as naphtha and improved conditions in markets overseas led to an increase in product prices.
Shipments of polyethylene resin increased both in Japan and exports as demand rebounded. In addition, polyethylene resin prices rose, reflecting higher naphtha prices and overseas market conditions. Shipment of chloroprene rubber increased in both domestic and export markets due to recovery in demand. And product prices rose, bolstered by firm overseas demand.
Chlor-alkali Group
The Chlor-alkali Group’s net sales rose ¥86.8 billion, or 31.6%, to ¥361.6 billion (US$3.2 billion), and operating income was up ¥28.0 billion yen, or 67.4%, to ¥69.5 billion (US$618.3 million) due to improved terms of trade for polyvinyl chloride (PVC) products and urethane raw materials.
Shipment of caustic soda decreased, mainly in exports, but product prices rose to reflect higher overseas market prices. Vinyl chloride monomer and vinyl chloride resin shipments both decreased as production volume declined, but vinyl chloride product prices rose, reflecting higher naphtha prices and improved terms of trade overseas.
Domestic and overseas shipments of cement remained strong.
Methylene diphenyl diisocyanate (MDI) increased both in Japan and overseas due to the steady operation of a production subsidiary in China, which had suspended operations in the previous fiscal year due to the spread of COVID-19, and a rebound in demand. In addition, product prices rose, reflecting improvement in overseas market conditions.
Specialty Group
Net sales by the Specialty Group increased ¥45.6 billion, or 25.3% to ¥226.2 billion (US$2.0 billion). Operating income was up ¥20.0 billion, or 85.0%, to ¥43.5 billion (US$387.0 million), primarily due to the recovery in demand driving an increase in sales volume.
Domestic and overseas ethyleneamines product shipments increased as demand recovered. And product prices increased due to improved overseas market conditions.
Separation-related products saw an increase in shipments of packing materials for liquid chromatography, to Europe, the United States, and China. Domestic in vitro diagnostic reagent shipments, as well as those to Europe, the United States, and Asia, rose on the back of the recovery in demand.
Shipments of high-silica zeolite increased both in Japan and overseas, primarily for automotive exhaust gas catalysts, as demand recovered. Increased demand also pushed export shipments of zirconia for dental applications upward. Silica glass shipments were up, buoyed by a strong semiconductor market. Shipments of electrolytic manganese dioxide for dry cell and rechargeable battery applications increased on the back of stronger demand.
Engineering Group
Engineering Group net sales increased ¥10.1 billion, or 9.5%, to ¥116.3 billion (US$1.0 billion). Operating income rose ¥0.3 billion yen, or 2.4%, to ¥12.3 billion (US$109.4 million).
The water treatment business saw increased sales attributable to steady progress in construction of large-scale projects in Japan and overseas, for which orders were received primarily in the electronics industry.
Sales in the Engineering Group’s construction subsidiaries increased.
Ancillary
Ancillary net sales decreased ¥2.5 billion, or 6.4% to ¥37.3 billion (US$331.9 million). Operating income likewise decreased ¥17 million, or 0.6%, to ¥3.1 billion (US$27.6 million).
Sales of other operating companies such as trading companies decreased.
Overview of Tosoh’s financial position for the period under review
Total assets increased ¥104.9 billion, to ¥1,087.7 billion yen (US$9.7 billion), primarily due to an increase in contract assets.
Because of an increase in notes and accounts payable, total liabilities rose ¥6.8 billion yen, to ¥327.9 billion yen (US$2.9 billion).
Net assets increased ¥98.0 billion, to ¥759.7 billion (US$6.8 billion). The increase owed itself to the recording of current net profit attributable to owners of the parent company.
Overview of Tosoh’s cash flow for the period under review
Cash and cash equivalents were up ¥12.4 billion, to ¥160.8 billion (US$1.4 billion).
Net cash provided by operating activities amounted to ¥108.6 billion (US$966.1 million), up ¥13.5 billion from a year earlier. This increase was due to an increase in income before income taxes.
Net cash used in investing activities was ¥43.5 billion (US$387.0 million), a decrease of ¥2.8 billion caused by decreased expenditures used in the acquisition of fixed assets.
As a result, free cash flow rose ¥16.3 billion, to ¥65.1 billion (US$579.2 million).
Net cash used in financing activities was ¥57.9 billion (US$515.1 million), an increase of ¥59.4 billion yen from a year earlier because of a net increase in short-term loans payable.
Outlook for the fiscal year ending March 31, 2023
Social and economic activities that have been constrained by the impact of COVID-19 are expected to begin normalizing in many of the world’s major regions, backed by progress in vaccination. However, Russia’s invasion of Ukraine and prolonged economic sanctions have amplified downside risks to the global economy through soaring resource prices and other factors. As such, uncertainty in the outlook for economic conditions domestically and abroad is expected to persist.
Under these circumstances, the Group will remain vigilant with regard to business risks and changes in the business environment, such as the situation in Ukraine and the status of normalization of the pandemic in Japan and overseas. Other factors include the deterioration of the supply-demand environment due to various uncertainties, volatility in raw material and fuel prices and trade conditions abroad, exchange rates fluctuations, and supply chain disruptions. Tosoh will strive to secure earnings by responding quickly and flexibly as situations evolve.
As for fiscal year 2023, the deteriorating situation in Ukraine will greatly intensify the volatility of prices of major raw materials and fuels such as naphtha and coal, which will significantly impact trade conditions and the difference between inventory receipts and payments, as well as the rapid depreciation of the yen against other currencies.
Since there are many uncertainties at this time and it is difficult to present a reasonable earnings forecast, Tosoh will release its forecast as soon as it deems the situation has stabilized sufficiently.
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