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VOLUME XXI

September 14, 2023

Everchem’s Closers Only Club

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

Repsol’s new PU foam recycling plant will be capable of processing over 2,000 t of waste per year. (Source: Repsol) 18. March 2021

Repsol: Construction of Spain’s first PU foam recycling plant

Repsol announced that it plans to build Spain’s first plant for chemical recycling of polyurethane foam at its Puertollano Industrial Complex. According to the company, the new recycling facility is expected to be completed by the end of 2022 and will entail an investment of approximately EUR 12 million. Once operational, the plant will be capable of processing around 2,000 metric tons of polyurethane foam per year, the equivalent of 380 linear kilometers of mattresses placed side by side. Repsol plans on using this circular economy project to produce circular polyols from recycled polyurethane foam.

The company said that integrating this new recycling plant into the Puertollano petrochemical complex will ensure the quality of this circular product by allowing the maximisation of synergies with the facility’s standard processes. This investment marks yet another step forward in Repsol’s commitment to the transformation of its industrial area. It involves turning production centres into multi-energy hubs capable of generating products with a low, zero, or even negative carbon footprint. Repsol has already announced investments totalling EUR 700 million in decarbonisation and circular economy projects to be carried out through 2025 at the Puertollano Industrial Complex alone. This helps ensure a competitive future for the industrial facility, said the company.

In the words of José Luis Bernal, executive director of Repsol Chemicals: “The polyurethane foam recycling plant represents a chance to create new business models that reflect Repsol’s environmental commitment while also helping our customers meet their sustainability objectives and respond to the growing need to recycle and extend the useful life of our products.”

Repsol said it has adopted the circular economy as a tool for using resources more efficiently, thus, enabling the company to reduce CO2 emissions. In December 2019, Repsol became the first company in its sector to announce it was reorienting its strategy to reach carbon neutrality by 2050. The company’s circular economy strategy dates back to 2016. Today, it includes over 200 initiatives applied throughout the value chain, from obtaining raw materials to marketing of products and services. All industrial complexes are being adapted to use waste from a variety of sources as raw materials in new products, with the aim of using a total of 2 million t of waste by 2030. With this strategy based on new recycling processes, Repsol said it has positioned itself as one of the petrochemical companies with the strongest commitments to sustainability and with one of the most extensive catalogs of circular products, ranging from polyolefins recovered through mechanical recycling processes to polyolefins, styrene, and other chemically recycled products.

www.repsol.com

https://www.gupta-verlag.com/news/industry/25045/repsol-construction-of-spains-first-pu-foam-recycling-plant

Repsol’s new PU foam recycling plant will be capable of processing over 2,000 t of waste per year. (Source: Repsol) 18. March 2021

Repsol: Construction of Spain’s first PU foam recycling plant

Repsol announced that it plans to build Spain’s first plant for chemical recycling of polyurethane foam at its Puertollano Industrial Complex. According to the company, the new recycling facility is expected to be completed by the end of 2022 and will entail an investment of approximately EUR 12 million. Once operational, the plant will be capable of processing around 2,000 metric tons of polyurethane foam per year, the equivalent of 380 linear kilometers of mattresses placed side by side. Repsol plans on using this circular economy project to produce circular polyols from recycled polyurethane foam.

The company said that integrating this new recycling plant into the Puertollano petrochemical complex will ensure the quality of this circular product by allowing the maximisation of synergies with the facility’s standard processes. This investment marks yet another step forward in Repsol’s commitment to the transformation of its industrial area. It involves turning production centres into multi-energy hubs capable of generating products with a low, zero, or even negative carbon footprint. Repsol has already announced investments totalling EUR 700 million in decarbonisation and circular economy projects to be carried out through 2025 at the Puertollano Industrial Complex alone. This helps ensure a competitive future for the industrial facility, said the company.

In the words of José Luis Bernal, executive director of Repsol Chemicals: “The polyurethane foam recycling plant represents a chance to create new business models that reflect Repsol’s environmental commitment while also helping our customers meet their sustainability objectives and respond to the growing need to recycle and extend the useful life of our products.”

Repsol said it has adopted the circular economy as a tool for using resources more efficiently, thus, enabling the company to reduce CO2 emissions. In December 2019, Repsol became the first company in its sector to announce it was reorienting its strategy to reach carbon neutrality by 2050. The company’s circular economy strategy dates back to 2016. Today, it includes over 200 initiatives applied throughout the value chain, from obtaining raw materials to marketing of products and services. All industrial complexes are being adapted to use waste from a variety of sources as raw materials in new products, with the aim of using a total of 2 million t of waste by 2030. With this strategy based on new recycling processes, Repsol said it has positioned itself as one of the petrochemical companies with the strongest commitments to sustainability and with one of the most extensive catalogs of circular products, ranging from polyolefins recovered through mechanical recycling processes to polyolefins, styrene, and other chemically recycled products.

www.repsol.com

https://www.gupta-verlag.com/news/industry/25045/repsol-construction-of-spains-first-pu-foam-recycling-plant

March 18, 2021

Freight Update

Freight costs likely to keep rising amid increased demand, driver shortage

Author: Adam Yanelli

2021/03/16

HOUSTON (ICIS)–The trends of rising freight costs and longer lead times for trucks are likely to continue as the trucking industry faces familiar obstacles – plenty of material to be moved and a shortage of drivers to move it.

Bob Costello, chief economist for the American Trucking Associations (ATA), said he expects demand to soar in 2021 due to lean inventories and pent-up demand and a broad economic recovery following the downturn caused by the coronavirus pandemic.

Costello, who made his comments on Tuesday in a webinar put on by the National Association of Chemical Distributors (NACD), said he expects US GDP to grow by almost 5% in the first and fourth quarters, and by around 7% in the second and third quarters driven by the increased rate of vaccinations and the $1.9tr stimulus package.

“This economy can typically grow at 1.9% on average, so we are in for some very strong growth this year, at least in terms of GDP,” Costello said.

Costello also said pent-up demand should boost the economy as household savings has risen by $1.7tr during the pandemic.

DRIVER SHORTAGE
But, Costello said, there is still a driver shortage.

“Everybody is struggling with drivers now, and I think it is going to take a while to work itself out,” he said.

Reasons for the shortage vary, but the traditional causes of demographics and lifestyle have not changed.

Demographically, Costello said only 6% of drivers are female, which greatly reduces the pool of available candidates. From a lifestyle perspective, the job often keeps long-haul truck drivers away from home and their families.

Some drivers are prevented from being employed because of the Drug and Alcohol Clearing House, an online database that gives employers and government agencies real-time access to information about CDL driver drug and alcohol program violations.

Costello said that out of the 48,000 drivers in prohibited status because of at least one violation, about 75% have not even started the process to regain driving privileges.

Costello said the ATA supports the DRIVE-Safe Act, (Developing Responsible Individuals for a Vibrant Economy) a piece of proposed legislation that would lower the interstate commercial driving age to 18, open jobs to a new segment of the workforce while strengthening safety training programs.

INCREASED RATES
Costello touched on rising rates for freight and said the reason is pretty clear.

“When you have a situation where demand outpaces supply, rates go up,” he said.

A market participant told ICIS that freight costs have been rising steadily.

“Freight cost has gone through the roof. What was $3.50/mile per shipment is now $7/mile and I even saw $15/mile and above,” the market participant said. “It is crazy, and that is if you can get trucks.”

Other contributors to higher freight rates are rising fuel prices and higher insurance rates.

“Diesel has increased quite a bit from a host of factors, including production being down,” Costello said.

Costello shared an anecdote from an ATA member who said their liability insurance premiums had risen by 50% year over year.

The driver shortage has also contributed to higher wages for drivers, which are often passed on to the customers.

“As long as demand for drivers outpaces supply, you are going to keep seeing wages go up,” he said.

Focus article by Adam Yanelli

https://www.icis.com/explore/resources/news/2021/03/16/10618153/freight-costs-likely-to-keep-rising-amid-increased-demand-driver-shortage

March 18, 2021

Freight Update

Freight costs likely to keep rising amid increased demand, driver shortage

Author: Adam Yanelli

2021/03/16

HOUSTON (ICIS)–The trends of rising freight costs and longer lead times for trucks are likely to continue as the trucking industry faces familiar obstacles – plenty of material to be moved and a shortage of drivers to move it.

Bob Costello, chief economist for the American Trucking Associations (ATA), said he expects demand to soar in 2021 due to lean inventories and pent-up demand and a broad economic recovery following the downturn caused by the coronavirus pandemic.

Costello, who made his comments on Tuesday in a webinar put on by the National Association of Chemical Distributors (NACD), said he expects US GDP to grow by almost 5% in the first and fourth quarters, and by around 7% in the second and third quarters driven by the increased rate of vaccinations and the $1.9tr stimulus package.

“This economy can typically grow at 1.9% on average, so we are in for some very strong growth this year, at least in terms of GDP,” Costello said.

Costello also said pent-up demand should boost the economy as household savings has risen by $1.7tr during the pandemic.

DRIVER SHORTAGE
But, Costello said, there is still a driver shortage.

“Everybody is struggling with drivers now, and I think it is going to take a while to work itself out,” he said.

Reasons for the shortage vary, but the traditional causes of demographics and lifestyle have not changed.

Demographically, Costello said only 6% of drivers are female, which greatly reduces the pool of available candidates. From a lifestyle perspective, the job often keeps long-haul truck drivers away from home and their families.

Some drivers are prevented from being employed because of the Drug and Alcohol Clearing House, an online database that gives employers and government agencies real-time access to information about CDL driver drug and alcohol program violations.

Costello said that out of the 48,000 drivers in prohibited status because of at least one violation, about 75% have not even started the process to regain driving privileges.

Costello said the ATA supports the DRIVE-Safe Act, (Developing Responsible Individuals for a Vibrant Economy) a piece of proposed legislation that would lower the interstate commercial driving age to 18, open jobs to a new segment of the workforce while strengthening safety training programs.

INCREASED RATES
Costello touched on rising rates for freight and said the reason is pretty clear.

“When you have a situation where demand outpaces supply, rates go up,” he said.

A market participant told ICIS that freight costs have been rising steadily.

“Freight cost has gone through the roof. What was $3.50/mile per shipment is now $7/mile and I even saw $15/mile and above,” the market participant said. “It is crazy, and that is if you can get trucks.”

Other contributors to higher freight rates are rising fuel prices and higher insurance rates.

“Diesel has increased quite a bit from a host of factors, including production being down,” Costello said.

Costello shared an anecdote from an ATA member who said their liability insurance premiums had risen by 50% year over year.

The driver shortage has also contributed to higher wages for drivers, which are often passed on to the customers.

“As long as demand for drivers outpaces supply, you are going to keep seeing wages go up,” he said.

Focus article by Adam Yanelli

https://www.icis.com/explore/resources/news/2021/03/16/10618153/freight-costs-likely-to-keep-rising-amid-increased-demand-driver-shortage

Soaring 11,000 yuan/ton! Chemical raw materials skyrocketed “breaking records”!

Echemi 2021-03-17

Recently, affected by factors such as limited supply and strong demand, the price of Bisphenol A (BPA) in Asia has soared to a historical high, and the current price has reached US$2,800 to US$3,000/ton. Since January this year, the price of bisphenol A has been rising. The current price has reached RMB 24,666/ton, which is an increase of RMB 11,441/ton, an increase of 86.51% compared to the price of RMB 13,225/ton on January 4. Market participants worry that under the current tight supply situation, the demand for bisphenol A will become tighter, which is likely to lead to high prices.

At the beginning of 2021, many industries such as chemicals, food, industrial products, etc. seem to have taken a stand, starting to increase prices across the board, and some even soared, setting a new high in the past 10 years, raising the average market price by a notch.


The prices of chemicals, food, industrial products and other industries hit new highs

PVC monthly increase of 26.5%, the highest since 2010
PVC (polyvinyl chloride) futures surged over 4.5%. The price of calcium carbide PVC in East China was 9,209 yuan/ton, and the price difference was 3915.25 yuan/ton. The current price is at the highest level since 2010, with a monthly increase of 22.9%; East China The price of ethylene-based PVC is 9,700 yuan/ton, and the price difference is 7353 yuan/ton. The current price is at the highest level since 2010, with a monthly increase of 26.5%. Previously, domestic PVC prices reached their highest point in the past ten years in December 2020.

Titanium dioxide hits a 3-year high
The average price of rutile titanium dioxide is 18,000 yuan/ton, and some companies’ quotations have reached 20,000 yuan/ton, which is the highest price in three years. In addition, under the current supply and demand conditions, there is still an upward trend.

BDO hits a 10-year high
The return of the Spring Festival in 2021 will be only five working days, and there will be 4 auctions, boosting the domestic BDO market from 18,500 yuan/ton to 29,500 yuan/ton, an average daily increase of 2,200 yuan/ton, and only an increase of 5,000 yuan/ton on the 23rd Tons, a new historical high point since 2010.

Acetic acid breaks through a 10-year high
The price of acetic acid rose to 6066.67 yuan/ton, an increase of 141.06% year-on-year. The price of acetic acid rose for six consecutive months, breaking a 10-year high.

DOTP hits a new high in 8-9 years
Since 2021, the DOTP market has shown an upward pattern as a whole, especially after the Spring Festival holiday, the price has hit a new high in 8-9 years. Taking the price in Zhejiang as a benchmark, the price of DOTP rose by as much as 3,700 yuan/ton in just 7 days after the holiday.

Asian PX prices hit 21-month high
The Asian PX price hit a 21-month high, reaching 895.83 US dollars/ton (CFR, China). Since the beginning of this month, the price has jumped by 172.66 US dollars/ton, an increase of 23.9%. The last price high occurred on May 27, 2019, at a price of US$896.25/ton.

Shanghai aluminum futures prices have reached a 9-year high
Since January, Shanghai Aluminum has rebounded from a low level again. By March 15th, Shanghai Aluminum’s main contract closed at 17,650 yuan/ton. The current price has reached a 9-year high.

DOP price breaks 9-year high
In 2021, the DOP price broke a 9-year high, with a quoted price of 14,167 yuan/ton, an increase of 20.91% month-on-month. The current price has hit a new high since 2012 and the fastest rate of increase in the past 10 years.

International and domestic prices of diammonium phosphate hit a new high in nearly 10 years
The FOB prices of DAP in the U.S. Gulf, Morocco and China are US$530/547.5/517.5/ton respectively, up by more than 35% year-to-date, up by more than 75% year-on-year; the current ex-factory price of DAP at Yuntianhua is 3,000 yuan/ton, up year-on-year 46%, up 25% year-to-date. The international and domestic prices of diammonium phosphate hit a new high in the past 10 years.

Adipic acid breaks through the nearly 3-year high
Entering March, in the first two working days, adipic acid has an unprecedented increase of 12.66%, and the national market has generally risen by more than 1,000 yuan. The current price is in the range of 10500-11000 yuan/ton, breaking through the high point in the past three years.

Butyl acrylate surpasses 9-year high
The price of butyl acrylate was 19100 yuan/ton, an increase of 6466.67 yuan/ton, or 51.19%, compared with the price before the Spring Festival. In 2021, the domestic market price of butyl acrylate has surpassed the high price in the 9 years from 2012 to 2020, and has caught up with the high price in 2011 10 years ago.

Maleic anhydride hit a 4-year high
Maleic anhydride was quoted at RMB 12,750/ton, a 4-year high.
Spandex breaks through the 2011 price, the highest price in the past 10 years
Spandex broke the price in 2011, the highest price in the past 10 years. Since August last year, the domestic price of spandex has continued to soar. The average market price of 40D specification is 57,000 yuan/ton, which is an increase compared with the lowest price in August 2020. 84.47%.

EPDM rubber hits a new high in more than 5 years
The EPDM rubber reached 22,000 yuan/ton, a record high in more than five years; the average price increased by 7.18% month-on-month and 42.78% year-on-year.

Titanium concentrate hits a 3-year high
The price of Sichuan Panzhihua Iron and Steel’s titanium concentrate rose to 2,300 yuan/ton, and the highest price in the past 10 years was 2,400 yuan/ton. The price of titanium concentrate rose by more than 40% year-on-year, a three-year high.

DBP breaks through 3-year high
DBP rose to 12,500 yuan/ton, breaking through a 3-year high, with an average price of 9,890.38 yuan/ton, an increase of 38.68% year-on-year.

Propylene oxide hits a new high since 2008
The price of propylene oxide in Shandong and other major producing areas and major consumer areas in the East China market was 19,100-19,400 yuan/ton. The highest price has surpassed last year’s high and hit a new high since 2008. At present, the inventory of production enterprises is low, and the market spot is tight to further boost the upward trend.

The average price of welded pipe and galvanized pipe is at the highest level in the past 10 years
The national average price of 4-inch*3.75mm welded pipe is 5230 yuan/ton, up 522 yuan/ton month-on-month, and 1,214 yuan/ton year-on-year; the national average price of 4-inch*3.75mm galvanized pipe is 5823 yuan/ton, month-on-month In February, the price rose by 597 yuan/ton, which was a year-on-year increase of 1116 yuan/ton. At present, the average price of welded pipes and galvanized pipes in the country is at the highest level in the past 10 years. However, in March of previous years, the prices of welded pipes and galvanized pipes in the country rarely experienced sharp increases.

Billet prices hit 10-year highs 4 times
Since March, the domestic steel barometer Tangshan billet prices have hit a 10-year high four times. March 3 was 4410 yuan/ton, March 7 was 4410 yuan/ton, March 12 was 4430 yuan/ton, and March 15 was 4440 yuan/ton. Although terminal profits have been compressed and purchasing capabilities have declined, manufacturers are still dominated by optimism, and prices still have a certain degree of support. From the perspective of historical prices, since 2008, the highest point of billet prices was RMB 5,600/ton in 2008, and the second highest point was RMB 4,530/ton in 2011.

Iron ore prices hit a new high since 2011
Iron ore prices soared on the first trading day after the Spring Festival, reaching the highest level since September 2011. The benchmark 62% iron powder (CFR Qingdao) imported from northern China changed hands at a price of US$175.05 per ton, a 9% increase from the beginning of the year. Iron ore 65% Fe Brazil daily index rose 4.2% to $198 per ton, a record high.

Copper prices rose by 10%, hitting a 9-year high
Since February this year, copper prices have risen rapidly. The main force of Shanghai copper has risen to 70,000 yuan/ton, a 9-year high. It has recently corrected slightly but still remains at a high level of more than 60,000 yuan/ton, with a cumulative increase of more than 10%.

Sales of electrical appliances increased, and panel prices hit a 1-year high
Domestic mobile phone shipments in January increased by 92.8% year-on-year and 50.85% month-on-month to 40.12 million units. In January, notebook panel shipments increased by 51% year-on-year, and LCD TV panel shipments increased slightly by 1%. In February, the prices of small-size panels (tablets, mobile phones, and notebooks) all hit new highs since 2020, up 3.4%, 0%, and 5.7% from January, reaching 30.7, 13.5, and 35.1 US dollars per piece, respectively.

Cherries hit a new high in recent years, and the overall price is about 10% more expensive than in previous years
At the moment, greenhouse cherries in Dalian, Liaoning, have been matured one after another, and their prices have hit a new high in recent years. The first fruit began to mature in late February and sold for 120 yuan per catty. The market is the best year in recent years. The price was already lowered at this time last year, and there is no price lower this year. The overall price is about 10% higher than in previous years.

The main soybean futures contract rose by 50% year-on-year, setting a new record high
Affected by the increase in the purchase price of domestic soybeans, the main contract of Bean One Futures continued to rise, reaching a maximum of 6,375 yuan per ton during the session, which continued to set a record high. Bean One Futures mainly refers to domestic non-GMO soybeans, which are generally used in the processing and production of various soybean products. This data has increased by 50% compared with the same period last year.

Supply and demand imbalances and financial factors have jointly pushed up prices in multiple industries
Recently, it seems that many industrial chains have joined the queue of price increases. Whether it is multiple categories of chemical products, bulk industrial products, and industries closely related to people’s food, clothing, housing, and transportation, they have shown a hot trend. This is related to the imbalance of supply and demand and financial factors. And many other factors. The global new crown pneumonia epidemic has slowed down, and terminal industry demand has been significantly boosted, but the supply side cannot meet the downstream demand for various reasons, which has caused an imbalance of supply and demand. The US$1.9 trillion fiscal stimulus policy and its inflation expectations have stimulated financial enthusiasm for investment in the commodity market. Crude oil futures prices have fluctuated sharply, boosting market risk sentiment, and multiple industrial chains have shown upward trends. Based on the current situation, industry insiders said that from a horizontal perspective, the prosperity of many industries such as chemical industry may continue to rise, and it is difficult to see a decline in the short term.

https://www.echemi.com/cms/158634.html