November 1, 2018

Press Release of Recticel – 31 October 2018

Trading update 3rd quarter 2018

Combined 3Q sales decrease of -4.1%
Combined year-to-date 9M sales growth of +1.3%, including a -1.0% adverse currency impact
Combined net financial debt: EUR 117.9 million (30 June 2018: EUR 138.7 million; 30 September 2017: EUR 151.6 million)

Olivier Chapelle (CEO): “The markets in which we operate, with the exception of Insulation, have deteriorated during the 3rd quarter of 2018, leading to a 3rd quarter sales decrease of -4.1%.

Comfort foam and bedding volumes, influenced by continued slow retail traffic, have deteriorated during the 3rd quarter, after an already soft 1st half-year. In the automotive sector, certain OEM’s are temporarily reducing their production volumes in the context of trade tensions and new emission regulations. On the contrary, insulation volumes have continued to strengthen in a context of declining selling prices as a consequence of decreasing raw material costs (MDI).

Cash flow generation remains strong, leading to a further reduction of our net financial debt.

The expansion plans in our Insulation division are on track: our new plant in Finland has now started production, and we are looking at external growth opportunities for the division.

We confirm that the processes engaged during the 1st half-year of 2018 to divest our Automotive divisions continue to progress according to plan.”

OUTLOOK

Given the recent trends and in view of the volatile economic, financial and geopolitical environment, the Group expects its full year 2018 combined REBITDA to be in line with 2017 combined REBITDA.

www.recticel.com

October 31, 2018

Propylene Inventories Rise

US October propylene inventory hits multimonth high on increased production

Author
Brian Balboa
Editor
Pankti Mehta

Houston — A continued increase in domestic propylene production has pushed inventory up to levels not seen since March. US stockpiles of propylene for non-fuel use ended October with a third consecutive increase, according to data released by the Energy Information Administration Wednesday.

Stocks of propylene for non-fuel use were up by 432,000 barrels on the week at 3.223 million barrels for the week ended October 26, EIA data showed. It was the highest level of inventory since the week of March 9, when stockpiles were at 3.350 million barrels.

Last week’s inventory was also above 2.52 million barrels from the same time a year earlier.

US refinery run rates were also up, gaining 0.2% to 89.4% utilization. US propane dehydrogenation units have been operating for most of October, trade sources have said.

The higher production levels and growing inventory have pushed spot prices lower during the month as well. Prompt polymer-grade propylene spot prices were at 48.75 cents/lb FD USG early Wednesday, down from 52.50 cents/lb FD USG a week earlier.

–Brian Balboa, brian.balboa@spglobal.com

–Edited by Pankti Mehta, pankti.mehta1@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/103118-us-october-propylene-inventory-hits-multimonth-high-on-increased-production?utm_source=twitter&utm_medium=social&utm_content=news&utm_term=we-pet&hootpostid=d5e267139dffffe84c46b402f8fa7002

October 31, 2018

Propylene Inventories Rise

US October propylene inventory hits multimonth high on increased production

Author
Brian Balboa
Editor
Pankti Mehta

Houston — A continued increase in domestic propylene production has pushed inventory up to levels not seen since March. US stockpiles of propylene for non-fuel use ended October with a third consecutive increase, according to data released by the Energy Information Administration Wednesday.

Stocks of propylene for non-fuel use were up by 432,000 barrels on the week at 3.223 million barrels for the week ended October 26, EIA data showed. It was the highest level of inventory since the week of March 9, when stockpiles were at 3.350 million barrels.

Last week’s inventory was also above 2.52 million barrels from the same time a year earlier.

US refinery run rates were also up, gaining 0.2% to 89.4% utilization. US propane dehydrogenation units have been operating for most of October, trade sources have said.

The higher production levels and growing inventory have pushed spot prices lower during the month as well. Prompt polymer-grade propylene spot prices were at 48.75 cents/lb FD USG early Wednesday, down from 52.50 cents/lb FD USG a week earlier.

–Brian Balboa, brian.balboa@spglobal.com

–Edited by Pankti Mehta, pankti.mehta1@spglobal.com

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/103118-us-october-propylene-inventory-hits-multimonth-high-on-increased-production?utm_source=twitter&utm_medium=social&utm_content=news&utm_term=we-pet&hootpostid=d5e267139dffffe84c46b402f8fa7002

October 31, 2018

More Rhine River Impact

Low Rhine may affect Covestro PU business, operating rates cut

31 October 2018 12:43 Source:ICIS News

LONDON (ICIS)–Low Rhine water levels may affect Covestro’s polyurethane (PU) business, having already led to operating rates being reduced, according to a letter that was seen by ICIS on Wednesday.

However, the German seller informed its customers in the letter that it expects to be able to fulfil nearly all of its confirmed orders in the next few weeks in spite of a potential delay in supply in some cases.

“Many vessels transporting raw materials into our plants in North-Rhine-Westphalia are not allowed to operate anymore or need to operate with strongly reduced loads,” said the letter.

“Consequently, Covestro has started early to mitigate effects on its network by shifting as much supply as possible to other modes of transport and creating emergency supply routes.”

The letter does not mention the plants affected, and the company has declined to comment.

Covestro isocyanates and polyols plants that are near the River Rhine include its Uerdingen and Dormagen facilities in Germany as well as its Antwerp site in Belgium.

Polyols capacity is 270,000 tonnes/year at the Antwerp facility and 250,000 tonnes/year at the Dormagen site where there is also toluene di-isocyanate (TDI) production at 300,000 tonnes/year.

The company’s methyl di-p-phenylene isocyanate (MDI) capacity at Uerdingen is 200,000 tonnes/year.

These products are raw materials for PU foam.

By Pavle Popovic

https://www.icis.com/resources/news/2018/10/31/10270002/low-rhine-may-affect-covestro-pu-business-operating-rates-cut/