The Urethane Blog

March 30, 2020

BASF to Shutter Smaller TDI Unit in April

Europe toluene, MX sink past 14-year lows on crude coronavirus flop, weaker demand

Author: Vicky Ellis

2020/03/30

LONDON (ICIS)–European toluene and mixed xylenes (MX) spot prices crashed to 14- and 15-year lows last week, dragged by Eurobob gasoline dropping well below $200/tonne as coronavirus travel restrictions weakened petrol use and crude oil demand.

On Friday (27 march), the International Energy Agency (IEA)  forecast crude demand could fall as much as 20% over the coming months due to coronavirus.

Values for the sister products toluene and MX remain well below lows hit during the 2008 slump – and the lowest since the toluene and MX’s assessments began in 2006 and 2005, respectively.

Toluene was also pressured by a well-supplied market set to become lengthier, prompting premiums over gasoline to plunge in some instances, assessed at $60-110/tonne.

MX fared slightly differently, with supply slightly harder to find, which supported premiums over gasoline up to around $100-110/tonne.

TRUCK MARKET QUIET
European truck prices are mainly stable for the time being, with suppliers due to share new monthly prices in the week to come.

Trucks have been below €600/tonne in cases or slightly above on a delivered basis in others. On a FCA (free carrier) basis, they are at the mid-€500s/tonne.

Truck activity remains quiet as the distribution market fields enquiries for other products, such as isopropanol (IPA) and ethanol due to rising demand for hand sanitizer.

GLOBAL TRADE: DIFFICULT
Volatility in upstream pricing is challenging for traders checking global arbitrages daily for potential openings.

US arbitrage appears closed for toluene, limiting any outflows from Europe other than a possible structural or internal move for one producer, trading feedback suggests.

Asia is also not pulling either, despite being a high-priced region, since it should be well-catered to by local stocks.

Lengthy supply for toluene is a possibility for April as stable-to-soft chemical demand amid the uncertain economic environment could be amplified by the closure of BASF’s smaller toluene diisocyanate (TDI) plant in April, which could free up toluene in the German market.

Bulk prices for toluene dropped to $205-315/tonne and MX was down to $245-315/tonne, with these weekly ranges to Friday 27 March both on a FOB (free on board) Rotterdam basis.

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The main chemical use of toluene is to make benzene and xylenes. The product is also used as a solvent in paint thinners, nail polish remover and in the manufacturing of nylon and plastic bottles.

MX is a feedstock for paraxylene (PX) and orthoxylene (OX) production, while the solvent grade is a raw material for dye, organic pigment, perfume and medicines, as well as a general solvent for paint and agricultural pesticides.

Front page picture: Planes grounded at Frankfurt airport; the European aviation industry has come to standstill amid travel restrictions
Source: Thorsten Wagner/EPA-EFE/Shutterstock 

https://www.icis.com/explore/resources/news/2020/03/30/10487995/europe-toluene-mx-sink-past-14-year-lows-on-crude-coronavirus-flop-weaker-demand

March 28, 2020

Propylene Falling in Asia

Propylene prices journey southwards in Asia

Petrochemical industry | 28 Mar 2020 09:30 IST | Polymerupdate.com
This week, propylene prices in Asia plunged. The steep price drop was triggered by bearish upstream energy values coupled with persistent sluggish buying interest across the Asian regions, owing to COVID-19 outbreak.

Weaker downstream PE demand and pricing trends, further supported the price fall.

FOB Korea propylene prices were at the USD 650/mt levels, a plunge of USD 70/mt from the previous week. CFR China propylene prices were at the USD 640/mt levels, a week on week slide of USD 85/mt.

CFR South East Asia propylene prices were assessed lower at the USD 620/mt levels, a whopping drop of USD 120/mt from the previous week.

In plant news, Lotte Chemical, South Korea has undertaken an emergency shutdown at its Deasan cracker, following a blast reported on early Wednesday. The cracker has an ethylene capacity of 1.1 million mt/year and propylene capacity of 540,000 mt/year.

In other plant news, JXTG Nippon Oil and Energy, has undertaken a planned shutdown at its cracker, on February 27, 2020. The cracker is likely to remain under maintenance for a period of around 6-7 weeks. Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 460,000 mt/year and propylene production capacity of 235,000 mt/year.

Tosoh Corp, has undertaken a maintenance shutdown at its naphtha cracker on March 4, 2020. The cracker is expected to remain under maintenance till April 21, 2020. Located at Yokkaichi in Japan, the cracker has an ethylene production capacity of 527,000 mt/year and a propylene production capacity of 315,000 mt/year.

https://www.polymerupdate.com/news/important/28Mar2020/1053502/propylene-prices-journey-southwards-in-asia

March 28, 2020

Propylene Falling in Asia

Propylene prices journey southwards in Asia

Petrochemical industry | 28 Mar 2020 09:30 IST | Polymerupdate.com
This week, propylene prices in Asia plunged. The steep price drop was triggered by bearish upstream energy values coupled with persistent sluggish buying interest across the Asian regions, owing to COVID-19 outbreak.

Weaker downstream PE demand and pricing trends, further supported the price fall.

FOB Korea propylene prices were at the USD 650/mt levels, a plunge of USD 70/mt from the previous week. CFR China propylene prices were at the USD 640/mt levels, a week on week slide of USD 85/mt.

CFR South East Asia propylene prices were assessed lower at the USD 620/mt levels, a whopping drop of USD 120/mt from the previous week.

In plant news, Lotte Chemical, South Korea has undertaken an emergency shutdown at its Deasan cracker, following a blast reported on early Wednesday. The cracker has an ethylene capacity of 1.1 million mt/year and propylene capacity of 540,000 mt/year.

In other plant news, JXTG Nippon Oil and Energy, has undertaken a planned shutdown at its cracker, on February 27, 2020. The cracker is likely to remain under maintenance for a period of around 6-7 weeks. Located at Kawasaki in Japan, the cracker has an ethylene production capacity of 460,000 mt/year and propylene production capacity of 235,000 mt/year.

Tosoh Corp, has undertaken a maintenance shutdown at its naphtha cracker on March 4, 2020. The cracker is expected to remain under maintenance till April 21, 2020. Located at Yokkaichi in Japan, the cracker has an ethylene production capacity of 527,000 mt/year and a propylene production capacity of 315,000 mt/year.

https://www.polymerupdate.com/news/important/28Mar2020/1053502/propylene-prices-journey-southwards-in-asia

March 27, 2020

CFATS Extension

NACD Welcomes Three-Month CFATS Extension, but Urges Long-Term Reauthorization

 

Today, National Association of Chemical Distributors (NACD) President and CEO Eric R. Byer issued the following statement on the passage of legislation that would extend for an additional three months the Chemical Facility Anti-Terrorism Standards (CFATS) program ahead of its expiration on April 18, 2020.

“CFATS is vital to ensuring the chemical industry and regulators work together to keep our nation’s chemical facilities secured against potential acts of terrorism, and its continuation is a critical component of the broader U.S. national security strategy. While NACD welcomes a CFATS extension of three months and five days to get us beyond the April 18 program deadline, our industry needs a much longer program authorization to ensure both regulators and industry leaders alike have the certainty needed to administer this program.

“While we understand the intense political pressure placed upon Congress right now because of COVID-19, they cannot allow this program to sunset. It must be a priority for elected officials to reauthorize this program for the long-term to ensure that chemical facilities and communities are protected from potential acts of terrorism. We therefore urge the passage of long-term reauthorization legislation that would keep CFATS in place for many years to come, and certainly in place beyond July. Leaders in Congress on both sides of the aisle should prioritize CFATS reauthorization so this program can continue running strong.”

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NACD and its nearly 430 member companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third-party-verified management practice. For more information, visit www.NACD.com.

https://www.nacd.com/media-center/press-releases/three-month-cfats-extension/

March 27, 2020

CFATS Extension

NACD Welcomes Three-Month CFATS Extension, but Urges Long-Term Reauthorization

 

Today, National Association of Chemical Distributors (NACD) President and CEO Eric R. Byer issued the following statement on the passage of legislation that would extend for an additional three months the Chemical Facility Anti-Terrorism Standards (CFATS) program ahead of its expiration on April 18, 2020.

“CFATS is vital to ensuring the chemical industry and regulators work together to keep our nation’s chemical facilities secured against potential acts of terrorism, and its continuation is a critical component of the broader U.S. national security strategy. While NACD welcomes a CFATS extension of three months and five days to get us beyond the April 18 program deadline, our industry needs a much longer program authorization to ensure both regulators and industry leaders alike have the certainty needed to administer this program.

“While we understand the intense political pressure placed upon Congress right now because of COVID-19, they cannot allow this program to sunset. It must be a priority for elected officials to reauthorize this program for the long-term to ensure that chemical facilities and communities are protected from potential acts of terrorism. We therefore urge the passage of long-term reauthorization legislation that would keep CFATS in place for many years to come, and certainly in place beyond July. Leaders in Congress on both sides of the aisle should prioritize CFATS reauthorization so this program can continue running strong.”

###

NACD and its nearly 430 member companies are vital to the chemical supply chain providing products to over 750,000 end users. NACD members are leaders in health, safety, security, and environmental performance through implementation of Responsible Distribution, established in 1991 as a condition of membership and a third-party-verified management practice. For more information, visit www.NACD.com.

https://www.nacd.com/media-center/press-releases/three-month-cfats-extension/