The Urethane Blog
Everchem Updates
VOLUME XXI
September 14, 2023
Everchem’s exclusive Closers Only Club is reserved for only the highest caliber brass-baller salesmen in the chemical industry. Watch the hype video and be introduced to the top of the league: — read more
October 9, 2021
BASF to increase prices for thermoplastic polyurethane systems in North America
WYANDOTTE, MI, October 5, 2021 – BASF will increase prices for all thermoplastic polyurethane (TPU) products in North America by $0.55/lb for orders shipping on or after October 15, 2021, or as contracts allow.
October 9, 2021
Johan, CC BY-SA 3.0 Natural gas prices are being passed to MDI American chemicals producer, Huntsman, has announced that it will be increasing the price of its methylene diphenyl diisocyanate (MDI) due to high natural gas prices.
Breaking it down:
Remember last time when we talked about Yara’s response to rising natural gas prices? Yara decided to cut back its ammonia production by 40% instead of passing the additional production cost down the value chain. Huntsman made the call to add a surcharge of €125 (which is roughly a 10% price increase) to its MDI production.
The decision to cut production or increase prices has to do with current storage levels and whether the end market is willing to pay the price. Ammonia is used to make fertilizers and MDI is used to make polyurethanes. Apparently, polyurethane consumers can eat the margin.
Wait, natural gas prices are high?
Take a look at the price at the top of the newsletter (HH stands for Henry Hub—a nickname owed to pipeline nexus in Louisiana). It’s twice as high as normal here in the US, but even higher in regions that rely on oil & gas imports (cough cough Europe). Give Wednesday’s newsletter a read if you’re interested in what’s causing the spike.
Read the press release here.
October 9, 2021
Johan, CC BY-SA 3.0 Natural gas prices are being passed to MDI American chemicals producer, Huntsman, has announced that it will be increasing the price of its methylene diphenyl diisocyanate (MDI) due to high natural gas prices.
Breaking it down:
Remember last time when we talked about Yara’s response to rising natural gas prices? Yara decided to cut back its ammonia production by 40% instead of passing the additional production cost down the value chain. Huntsman made the call to add a surcharge of €125 (which is roughly a 10% price increase) to its MDI production.
The decision to cut production or increase prices has to do with current storage levels and whether the end market is willing to pay the price. Ammonia is used to make fertilizers and MDI is used to make polyurethanes. Apparently, polyurethane consumers can eat the margin.
Wait, natural gas prices are high?
Take a look at the price at the top of the newsletter (HH stands for Henry Hub—a nickname owed to pipeline nexus in Louisiana). It’s twice as high as normal here in the US, but even higher in regions that rely on oil & gas imports (cough cough Europe). Give Wednesday’s newsletter a read if you’re interested in what’s causing the spike.
Read the press release here.
October 8, 2021
Soaring LPG prices rapidly deteriorate Korean petrochem makers’ profitability
 |
| [Photo by Kim Ho-young] |
| <이미지를 클릭하시면 크게 보실 수 있습니다> |
A sharp surge in liquefied petroleum gas (LPG) prices driven by a surge in oil prices is threatening the profitability of South Korean petrochemical companies that heavily relay on propane to produce plastic materials.
According to industry sources on Tuesday, LPG prices soared nearly 30 percent in seven months from over $500 per ton in March to over $800 in September. The higher crude oil prices have led to a jump in LPG prices given that LPG is produced in the process of refining crude oil. The recent hike, however, is seen as excessive, sources say.
The anticipated higher demand for heating during the upcoming winter season should hike LPG prices further, industry observers concerned.
With the surge in LPG prices, Korean petrochemical companies are rapidly losing profit because they rely on import propane to make and sell plastic products.
Removing hydrogen from LPG-categorized propane creates propylene, which is a feedstock to make plastics. Petrochemical companies usually produced naphtha from crude oil before changing it to propylene but because the abundant supply of U.S. Shale gas had helped significantly lower LPG prices, producing propylene using propane began to generate more profit.
In recent years, major Korean petrochemical players such as Lotte Chemical, LG Chem, and Hanwha Total, expanded facility that produces propylene using propane. With the surge in LPG prices, however, the companies started losing price competitiveness.
Industry sources noted that in general, producing propylene using LPG creates more profit when LPG price per ton falls to below 90 percent of naphtha.
Until last year, LPG prices were kept low, leading many petrochemical companies to rush to ramp up propylene production using LPG instead of naphtha. But tith LPG prices hitting multi-year highs near naphtha prices, local petrochemical players are under mounting pressure to change their feedstock diversification strategies.
October 8, 2021
Soaring LPG prices rapidly deteriorate Korean petrochem makers’ profitability
|
| [Photo by Kim Ho-young] |
| <이미지를 클릭하시면 크게 보실 수 있습니다> |
A sharp surge in liquefied petroleum gas (LPG) prices driven by a surge in oil prices is threatening the profitability of South Korean petrochemical companies that heavily relay on propane to produce plastic materials.
According to industry sources on Tuesday, LPG prices soared nearly 30 percent in seven months from over $500 per ton in March to over $800 in September. The higher crude oil prices have led to a jump in LPG prices given that LPG is produced in the process of refining crude oil. The recent hike, however, is seen as excessive, sources say.
The anticipated higher demand for heating during the upcoming winter season should hike LPG prices further, industry observers concerned.
With the surge in LPG prices, Korean petrochemical companies are rapidly losing profit because they rely on import propane to make and sell plastic products.
Removing hydrogen from LPG-categorized propane creates propylene, which is a feedstock to make plastics. Petrochemical companies usually produced naphtha from crude oil before changing it to propylene but because the abundant supply of U.S. Shale gas had helped significantly lower LPG prices, producing propylene using propane began to generate more profit.
In recent years, major Korean petrochemical players such as Lotte Chemical, LG Chem, and Hanwha Total, expanded facility that produces propylene using propane. With the surge in LPG prices, however, the companies started losing price competitiveness.
Industry sources noted that in general, producing propylene using LPG creates more profit when LPG price per ton falls to below 90 percent of naphtha.
Until last year, LPG prices were kept low, leading many petrochemical companies to rush to ramp up propylene production using LPG instead of naphtha. But tith LPG prices hitting multi-year highs near naphtha prices, local petrochemical players are under mounting pressure to change their feedstock diversification strategies.
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