The Urethane Blog
February 13, 2019
Spot propylene moves back down in Europe, US; what lies ahead for Asia?
Spot propylene in Europe down again on supply
According to the weekly average data obtained from ChemOrbis Price Wizard, spot propylene prices on FD NWE basis have recently turned to a softening note after gradually rising since the second half of November 2018.
The softening in the European spot propylene market was mainly attributed to ample supplies across the region. The possible pressure from US imports along with limited buying interest were also cited as other factors weighing down on the market.
US spot propylene market loses around 8% in past two weeks
A similar scenario is the case for the US market. Spot propylene prices on FD USG basis have recently headed south after starting to rise two months ago. The weekly average of spot prices has lost around 8% since the softening kicked off, as ChemOrbis data show above.
High inventories amid healthy production rates at PDH plants and the recent softening in propane costs were blamed for these losses.
Asian spot propylene market mostly stable amid holiday lull
Spot propylene prices in Asia have been mostly stable for the past two weeks in the midst of the Chinese New Year celebrations across the regional markets.
Going forward, Asian players foresee gradual increases in spot propylene prices on FOB Korea basis in line with buyers’ possible post holiday replenishment activities.
February 13, 2019
Spot propylene moves back down in Europe, US; what lies ahead for Asia?
Spot propylene in Europe down again on supply
According to the weekly average data obtained from ChemOrbis Price Wizard, spot propylene prices on FD NWE basis have recently turned to a softening note after gradually rising since the second half of November 2018.
The softening in the European spot propylene market was mainly attributed to ample supplies across the region. The possible pressure from US imports along with limited buying interest were also cited as other factors weighing down on the market.
US spot propylene market loses around 8% in past two weeks
A similar scenario is the case for the US market. Spot propylene prices on FD USG basis have recently headed south after starting to rise two months ago. The weekly average of spot prices has lost around 8% since the softening kicked off, as ChemOrbis data show above.
High inventories amid healthy production rates at PDH plants and the recent softening in propane costs were blamed for these losses.
Asian spot propylene market mostly stable amid holiday lull
Spot propylene prices in Asia have been mostly stable for the past two weeks in the midst of the Chinese New Year celebrations across the regional markets.
Going forward, Asian players foresee gradual increases in spot propylene prices on FOB Korea basis in line with buyers’ possible post holiday replenishment activities.
February 12, 2019
Lincoln in May 1860 and February 1865:
February 12, 2019
Lincoln in May 1860 and February 1865:
February 12, 2019
BASF to launch construction chemicals unit sale in spring – sources
FRANKFURT (Reuters) – BASF will launch the sale of its $3 billion-plus (£2.3 billion) construction chemicals business in the spring, as part of the German chemicals group’s drive to focus on more profitable operations, people close to the matter said.
BASF, which flagged its intention to auction off or merge the unit in October, said on Tuesday it had hired Goldman Sachs to organise the transaction.
“We are still at an early stage of the process,” a BASF spokesman said, declining to comment further on the timing.
Goldman Sachs declined to comment.
The world’s largest maker of chemical additives for concrete is expected to fetch roughly 3 billion euros (£2.6 billion), the sources said.
First information packages are expected to be sent out to prospective bidders in March, the sources said, while one of them added that first-round offers were likely to be due before the summer break.
The company’s new Chief Executive Martin Brudermueller in October unveiled plans to hive off the unit as BASF looks for ways to boost the group’s share price.
The company said at the time that the business, whose products have been used to build major train tunnels in the Swiss Alps and in London, was not deeply integrated into BASF’s production network and that it had fallen short of profitability targets.
It has grown little since BASF purchased it from Degussa in 2006 for 2.7 billion euros including debt. The unit’s need to cater to a large number of small to mid-size builders goes against BASF’s focus on large industrial customers, industry analysts said.
BASF bought seeds and crop chemical assets from Bayer and is seeking to wrap up the purchase of an engineering plastics business from Solvay to bolster margins at a time when its basic petrochemical businesses are slowing down.
Switzerland’s Sika, which is buying French construction chemicals company Parex from CVC Capital Partners, said last month it would be interested in the BASF unit but doubted a deal for all of the business was possible because of antitrust restrictions.
Companies such as LafargeHolcim, Saint Gobain, GCP, RPM and Mapei are also seen as potential suitors for all or parts of the business, as well as buyout groups such as Advent, Carlyle or CVC.
https://uk.reuters.com/article/uk-basf-divestiture/basf-to-launch-construction-chemicals-unit-sale-in-spring-sources-idUKKCN1Q116A
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