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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
March 16, 2021
Winter Storm Uri Update: US Oil and Gas Production All but Recovered While Refining and Petrochemicals Sectors Remain a “Mixed Bag” in Return to Normalcy
Winter Storm Uri Update: US Oil and Gas Production All but Recovered While Refining and Petrochemicals Sectors Remain a ‘Mixed Bag’ in Return to Normalcy
March 12, 2021
IHS Markit, (NYSE: INFO), a world leader in critical information, analytics and solutions is providing periodic updates on the state of U.S. crude, refining and chemical operations following the impacts of Winter Storm Uri.
To request a media copy of the full report (including detailed sector-by-sector updates) or to speak with an IHS Markit expert, contact: Jeff Marn / jeff.marn@ihsmarkit.com or email press@ihsmarkit.com
A summary of the key conclusions follows here:
‘While U.S. crude production has mostly returned to normal, refining and petrochemical facilities are still more of a mixed bag in terms of recovery. The coming days should see significant progress but a return to pre-storm levels across all sectors is unlikely until the second half of March. The worst of the storm is definitely behind us, but we are still in the middle act when it comes to a holistic recovery.’ – Bill Hyde, executive director, IHS Markit
Chemicals
Total petrochemical production is on track to begin approaching normal around mid-March, though some units will take longer. Nitrogen remains a limitation to an efficient startup with some facilities having to prioritize restarts based on limited supply. The overall nitrogen supply infrastructure does not appear to have been designed to handle the extraordinary event of starting up most of the Texas plants at the same time. This week should see significant progress in restarting production capacity.
https://www.publicnow.com/view/FBDE28F3F6520D88D45B0635FB080D3403D72A45
March 16, 2021
Germany’s chems Q4 production jumps 9.2% but Q1 more challenging – VCI
Author: Tom Brown
2021/03/16
LONDON (ICIS)—German chemicals production excluding the pharmaceutical sector jumped 9.2% in the fourth quarter, compared to the third, on the back of customer restocking but industry body VCI said conditions at the start of 2021 have been more challenging.
Customers looking to replenish empty warehouses toward the end of the year helped to galvanise the pace of recovery for chemicals, with production also substantially higher compared to the closing months of 2019.
Including the pharmaceutical sector, the level total sector productivity moderated slightly to 7.4% quarter on quarter, with pricing firming 0.4% compared to the July-September 2020 quarter.
However, chemicals prices remained in the fourth quarter nearly 2% lower year on year.
LOCKDOWNS COOL DOWN OPERATIONS
Conditions were less unambiguously bullish in the opening months of this year amid lockdown extensions and fears of a fresh wave of infections in parts of Europe, with almost half of VCI members responding to a survey expecting setbacks for the quarter.
Aside from coronavirus fears, the extent that the manufacturing sector has heated up through 2021 so far has led to material shortages for German chemicals producers, exacerbated by the logistics issues brought on by the ongoing shipping sector disruption.
The pace of demand growth has resulted in the second-greatest month on month decline in lead times for eurozone manufacturing in 24 years, according to data from analyst Markit Economics.
“If chemical business continues to develop positively over the year, the signs are good for our industry,” said VCI director general Grosse Entrup. “However, major fluctuations in demand cannot be ruled out.”
Fourth-quarter sales rose 8.1% for the sector, driven by firmer domestic and export demand, although overseas sales remained below late-2019 levels.
Capacity utilisation firmed from 81.6% to 85% quarter on quarter, and employment was stable, a sign that chemicals have managed to weather the lockdowns better than in the first wave of the pandemic.
In the fourth quarter, chemicals was one of the industries with fewer employees in short-time work – or Kurzarbeit in German – by which the state subsidises hours not worked by the employee at times of crisis.
The strong German chemicals industry employed 464,000 workers in the fourth quarter, a figure which remained stable in the first quarter, said VCI.
The extent of the fourth-quarter rally is not likely to be sufficient to hold off a full-year decline in production, VCI said, but pricing and production for 2021 are likely to grow 2% and 3% respectively.
“[Total, including pharma] industry’s sales should improve by 5% to just under €200bn,” said VCI.
In 2020, total sales fell 6% to €186.4bn.
March 16, 2021
Germany’s chems Q4 production jumps 9.2% but Q1 more challenging – VCI
Author: Tom Brown
2021/03/16
LONDON (ICIS)—German chemicals production excluding the pharmaceutical sector jumped 9.2% in the fourth quarter, compared to the third, on the back of customer restocking but industry body VCI said conditions at the start of 2021 have been more challenging.
Customers looking to replenish empty warehouses toward the end of the year helped to galvanise the pace of recovery for chemicals, with production also substantially higher compared to the closing months of 2019.
Including the pharmaceutical sector, the level total sector productivity moderated slightly to 7.4% quarter on quarter, with pricing firming 0.4% compared to the July-September 2020 quarter.
However, chemicals prices remained in the fourth quarter nearly 2% lower year on year.
LOCKDOWNS COOL DOWN OPERATIONS
Conditions were less unambiguously bullish in the opening months of this year amid lockdown extensions and fears of a fresh wave of infections in parts of Europe, with almost half of VCI members responding to a survey expecting setbacks for the quarter.
Aside from coronavirus fears, the extent that the manufacturing sector has heated up through 2021 so far has led to material shortages for German chemicals producers, exacerbated by the logistics issues brought on by the ongoing shipping sector disruption.
The pace of demand growth has resulted in the second-greatest month on month decline in lead times for eurozone manufacturing in 24 years, according to data from analyst Markit Economics.
“If chemical business continues to develop positively over the year, the signs are good for our industry,” said VCI director general Grosse Entrup. “However, major fluctuations in demand cannot be ruled out.”
Fourth-quarter sales rose 8.1% for the sector, driven by firmer domestic and export demand, although overseas sales remained below late-2019 levels.
Capacity utilisation firmed from 81.6% to 85% quarter on quarter, and employment was stable, a sign that chemicals have managed to weather the lockdowns better than in the first wave of the pandemic.
In the fourth quarter, chemicals was one of the industries with fewer employees in short-time work – or Kurzarbeit in German – by which the state subsidises hours not worked by the employee at times of crisis.
The strong German chemicals industry employed 464,000 workers in the fourth quarter, a figure which remained stable in the first quarter, said VCI.
The extent of the fourth-quarter rally is not likely to be sufficient to hold off a full-year decline in production, VCI said, but pricing and production for 2021 are likely to grow 2% and 3% respectively.
“[Total, including pharma] industry’s sales should improve by 5% to just under €200bn,” said VCI.
In 2020, total sales fell 6% to €186.4bn.
March 15, 2021
Isocyanates Markets Are Tight Once Again Due To Supply Disruptions
March 12, 2021 | Regina Sousa
The historically cold winter storm that struck the US Gulf Coast mid February led to widespread shutdowns of petrochemical facilities and oil refineries, as well as closures of industrial gas providers, storage facilities, transportation links, and other critical infrastructure across the region. The petrochemical industry immediately started the necessary inspection process for production to be safely restarted, but it is expected that this will take some time.
The North American MDI market was severely affected by the freezing weather as both feedstock and MDI plants were shut down. Around two thirds of MDI plants are believed to have been affected, with a number of operators either reducing production or declaring force majeure. Crude and pure MDI were already short as there were some operational issues among both domestic and international producers before the storm. Some MDI plants were reported to be running at approximately 80% capacity before the deep freeze.
European MDI production had started to normalise around January and February but there were reports of some minor supply disruptions. Huntsman was due to shut for a turnaround in March but this has not been confirmed by the operator. There was a period that European MDI was being exported to the US due to the ongoing supply issues in the region but levels have been recently declining. It is assumed that the big freeze and the ensuing production issues in the US Gulf will have an impact on supply in other regions too.
Read more here:
https://www.orbichem.com/blog/isocyanate-markets-are-tight-once-again
March 15, 2021
Isocyanates Markets Are Tight Once Again Due To Supply Disruptions
March 12, 2021 | Regina Sousa
The historically cold winter storm that struck the US Gulf Coast mid February led to widespread shutdowns of petrochemical facilities and oil refineries, as well as closures of industrial gas providers, storage facilities, transportation links, and other critical infrastructure across the region. The petrochemical industry immediately started the necessary inspection process for production to be safely restarted, but it is expected that this will take some time.
The North American MDI market was severely affected by the freezing weather as both feedstock and MDI plants were shut down. Around two thirds of MDI plants are believed to have been affected, with a number of operators either reducing production or declaring force majeure. Crude and pure MDI were already short as there were some operational issues among both domestic and international producers before the storm. Some MDI plants were reported to be running at approximately 80% capacity before the deep freeze.
European MDI production had started to normalise around January and February but there were reports of some minor supply disruptions. Huntsman was due to shut for a turnaround in March but this has not been confirmed by the operator. There was a period that European MDI was being exported to the US due to the ongoing supply issues in the region but levels have been recently declining. It is assumed that the big freeze and the ensuing production issues in the US Gulf will have an impact on supply in other regions too.
Read more here:
https://www.orbichem.com/blog/isocyanate-markets-are-tight-once-again
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