July 27, 2020

July 24, 2020

Subject: Force Majeure

Dear Valued Customer:

On the week of July 20th, the BASF Geismar, LA TDI plant experienced an unexpected equipment failure which impacted our ability to operate the facility. As a result, BASF is declaring force majeure on TDI and TDI containing blends effective immediately.

We are actively working to make repairs and are taking all necessary steps to resume normal operations. Current projections indicate the production interruption will last at least two weeks. Your BASF account manager will be in contact with you to discuss the status of current and future orders. We appreciate your patience and understanding during this event and will keep you informed of progress.

July 22, 2020

Existing Home Sales

US sales of existing homes jump 20% after a 3-month slump

By JOSH BOAK – – Wednesday, July 22, 2020

BALTIMORE (AP) – Americans stepped up their home purchases in June by a robust 20.7% after the pandemic had caused sales to crater in the prior three months. But the housing market could struggle to rebound further in the face of the resurgent viral outbreak and a shrinking supply of homes for sale.

Sales of existing homes rose last month to a seasonally adjusted annual rate of 4.72 million, the National Association of Realtors said Wednesday. Despite the sharp gain, purchases are still down 11.3% from a year ago, when homes had sold at an annual pace of 5.32 million. And Lawerence Yun, the Realtors’ chief economist, noted that sales remain roughly 20% below their pre-pandemic levels.

At the same time, housing has managed to avoid a deeper slump from the severe recession caused by the coronavirus. Demand has remained strong among buyers who have managed to weather the downturn, while record-low mortgage rates have helped sustain affordability.

Even so, the number of property listings has plunged 18.2% from a year ago to 1.57 million. It’s the 13th straight month of shrinking supply on an annual basis. The shortage of homes makes it unlikely that the housing industry can significantly boost the overall economy.

Home buyers typically purchase new furniture and fix up older properties. Their ability to deliver such a spending boost is constrained if they can’t find an available house. The limited supply is also forcing up prices just when many Americans are struggling with financial uncertainty because of the recession.

The combination of steady demand and falling mortgage rates has helped fuel a 3.5% rise in the median price of an existing home over the past year to $295,300.

https://www.washingtontimes.com/news/2020/jul/22/us-sales-of-existing-homes-jump-20-after-a-3-month/

July 22, 2020

Existing Home Sales

US sales of existing homes jump 20% after a 3-month slump

By JOSH BOAK – – Wednesday, July 22, 2020

BALTIMORE (AP) – Americans stepped up their home purchases in June by a robust 20.7% after the pandemic had caused sales to crater in the prior three months. But the housing market could struggle to rebound further in the face of the resurgent viral outbreak and a shrinking supply of homes for sale.

Sales of existing homes rose last month to a seasonally adjusted annual rate of 4.72 million, the National Association of Realtors said Wednesday. Despite the sharp gain, purchases are still down 11.3% from a year ago, when homes had sold at an annual pace of 5.32 million. And Lawerence Yun, the Realtors’ chief economist, noted that sales remain roughly 20% below their pre-pandemic levels.

At the same time, housing has managed to avoid a deeper slump from the severe recession caused by the coronavirus. Demand has remained strong among buyers who have managed to weather the downturn, while record-low mortgage rates have helped sustain affordability.

Even so, the number of property listings has plunged 18.2% from a year ago to 1.57 million. It’s the 13th straight month of shrinking supply on an annual basis. The shortage of homes makes it unlikely that the housing industry can significantly boost the overall economy.

Home buyers typically purchase new furniture and fix up older properties. Their ability to deliver such a spending boost is constrained if they can’t find an available house. The limited supply is also forcing up prices just when many Americans are struggling with financial uncertainty because of the recession.

The combination of steady demand and falling mortgage rates has helped fuel a 3.5% rise in the median price of an existing home over the past year to $295,300.

https://www.washingtontimes.com/news/2020/jul/22/us-sales-of-existing-homes-jump-20-after-a-3-month/

July 22, 2020

China Update

INSIGHT: China petrochemical demand stays weak; supply to increase near term

Author: Yvonne Shi

2020/07/22

SINGAPORE (ICIS)–China’s overall petrochemical demand has weakened in July while supply is projected to increase, dimming the market outlook in the near term.

Inventories of major chemicals such as benzene, polyolefins, ethylene glycol, acetone and toluene all posted increases in the week ended 17 July, according to ICIS data.

Softer demand was reflected in spot market prices as tracked by the ICIS China Petrochemical Index. The index fell to 877 on 17 July, down from 898 on 8 July, and lower than the June average of 888.6.

The index tracks movement of domestic prices of a wide array of organic and plastics products, including methanol, purified terephthalic acid (PTA), polypropylene (PP), polyethylene (PE), monoethylene glycol (MEG), mixed xylene, benzene, toluene, acetic acid, styrene, phenol, acrylonitrile, acetone, n-butanol, 2-ethylhexanol (2-EH), acrylic esters and propylene oxide (PO).

END-DEMAND STILL WEAK
Spot petrochemical purchases have slowed down due to a combination of recent price spikes, high stocks and poor end-demand.

For propylene oxide (PO), recent market gains have driven up prices of downstream polyether polyols, whose producers have had to struggle with limited margins due to inability to fully pass on increased costs to end-users.

Downstream sectors, such as automobile, furniture and fabrics, are still in the process of a slow recovery.

Producers of polybutylene terephtalate (PBT) – downstream of butanediol (BDO) – may have to reduce output, with end-users holding sufficient inventories less willing to purchase raw materials at increased prices.

For purified terephthalic acid (PTA), limited exports of downstream clothing and textiles hamper market gains although downstream polyester plants are running at high rates.

PTA inventory among producers and downstream end-users alike has remained high, while the government is trying to help out exporting companies survive by re-directing their products to the domestic market.

Polyolefin downstream manufacturers, meanwhile, are also currently holding large inventories of raw materials and products.

Buying of polypropylene (PP) turned more cautious after recent price gains, while some small downstream factories have halted operations due to high feedstock costs.

Demand for bisphenol-A (BPA) was hit as downstream polycarbonate (PC) producers cut output following heavy losses caused by poor end-demand and high feedstock prices.

Scheduled turnarounds at another major downstream – liquid epoxy resins (LER) – will also further weaken demand for BPA. The LER market, nonetheless, is relatively healthy on the back of government’s subsidy on its downstream wind power industry.

Petrochemical end-users in general are also hesitant to buy as new capacity coming on stream will boost domestic supply in the third quarter.

July 22, 2020

China Update

INSIGHT: China petrochemical demand stays weak; supply to increase near term

Author: Yvonne Shi

2020/07/22

SINGAPORE (ICIS)–China’s overall petrochemical demand has weakened in July while supply is projected to increase, dimming the market outlook in the near term.

Inventories of major chemicals such as benzene, polyolefins, ethylene glycol, acetone and toluene all posted increases in the week ended 17 July, according to ICIS data.

Softer demand was reflected in spot market prices as tracked by the ICIS China Petrochemical Index. The index fell to 877 on 17 July, down from 898 on 8 July, and lower than the June average of 888.6.