The Urethane Blog

November 20, 2018

Rhine River Options

Rhine water levels remain low, BASF exploring alternative shipping methods

Source: ICIS News

2018/11/16

LONDON (ICIS)–BASF is exploring alternative shipping methods on the River Rhine, as persistently low water levels continue to wreak havoc on it and other companies’ production levels on sites near the river.

According to a company spokesperson, BASF is looking at a number of measures “to make the site more resistant to low water events in the long term”.

As of 12:00pm GMT on Friday, water levels at Kaub, a key gauging point, stood at 45cm, well below the 60cm considered necessary for normal navigation.

According to reports in German press early in the week, BASF are looking into potentially building its own fleet of flat-bottomed boats, as well as building tank capacity at the Ludwigshafen complex.

The Germany-headquartered major has had to declare several force majeures because of the logistical difficulties presented by the low levels, and, according to investment bank DZ Bank, has already taken a €15m hit due to higher logistical costs in the third quarter.

“At the current water level, Ludwigshafen can only be reached by a few ships. Shifting quantities to alternative means of transport such as pipelines, trucks and rail is only possible to a limited extent,” the BASF spokesperson told ICIS.

“At present, about 30% of shipping capacity can be compensated by alternative means of transport.

“As a result, the supply of some important raw materials is limited. Restrictions in production can lead to supply bottlenecks for individual products at customers.”

The spokesperson said, however, that there is no timetable yet for the implementation of individual measures.

Asked whether alternative measures such as those being rumoured would be beneficial, Florian Krekel, a spokesperson for the Rhine Shipping Authority, said a lack of information made it impossible to comment definitively.

Pictured: The Rhine at Maxau, Germany
Picture source: ICIS

Focus article by Niall Swan

https://www.icis.com/explore/resources/news/2018/11/16/10282619/rhine-water-levels-remain-low-basf-exploring-alternative-shipping-methods/?cmpid=SOC|CHEM|CHCOM-2018-11-EURO-River_Rhine&sfid=7012X000001WMIY&cid=sf202717529

November 20, 2018

Spot Propylene

Spot C3 in Asia and Europe plunges on lower crude, US shows uptick

Spot propylene prices in Asia slid for the fifth consecutive week and hit their lowest levels in a year amid pressure from falls in crude oil futures and oversupply issues. European spot propylene prices also extended losses, spurred not only by decreasing feedstock costs but also by the continued logistical challenges arising from the River Rhine.

According to the weekly average data from ChemOrbis Price Wizard, spot propylene prices on FOB Korea basis have cumulatively lost $245/ton since they hit a four-year high in around mid-October. The continued erosion in Asia’s spot propylene prices was mostly attributed to supplies outpacing demand and the ongoing losses in crude oil futures.
In a similar vein, European spot propylene prices followed crude oil and naphtha prices lower and hit their lowest levels in almost eight months. The sentiment was also weighed down by lengthening propylene supply, which stemmed from the logistical constraints amid chronic low water levels in the Rhine River.

ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of $178/ton on weekly average since the downturn began in late September.

On the other hand, the spot propylene market in the US gave up its earlier weakness and rebounded amid production issues. Data from ChemOrbis Price Wizard reveal that spot propylene prices on FD USG basis snapped their four-week long losing streak with a modest gain of $22/ton from the previous week. However, prices were still below the peak levels recorded earlier this year.

The slight uptick was mostly driven by a short-lived shortage at Enterprise’s 750,000 tons/year PDH unit in Mont Belvieu, Texas last week.

https://www.chemorbis.com/en/plastics-news/Spot-c3-in-Asia-and-Europe-plunges-on-lower-crude-US-shows-uptick/2018/11/20/742162#reportH

November 20, 2018

Spot Propylene

Spot C3 in Asia and Europe plunges on lower crude, US shows uptick

Spot propylene prices in Asia slid for the fifth consecutive week and hit their lowest levels in a year amid pressure from falls in crude oil futures and oversupply issues. European spot propylene prices also extended losses, spurred not only by decreasing feedstock costs but also by the continued logistical challenges arising from the River Rhine.

According to the weekly average data from ChemOrbis Price Wizard, spot propylene prices on FOB Korea basis have cumulatively lost $245/ton since they hit a four-year high in around mid-October. The continued erosion in Asia’s spot propylene prices was mostly attributed to supplies outpacing demand and the ongoing losses in crude oil futures.
In a similar vein, European spot propylene prices followed crude oil and naphtha prices lower and hit their lowest levels in almost eight months. The sentiment was also weighed down by lengthening propylene supply, which stemmed from the logistical constraints amid chronic low water levels in the Rhine River.

ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of $178/ton on weekly average since the downturn began in late September.

On the other hand, the spot propylene market in the US gave up its earlier weakness and rebounded amid production issues. Data from ChemOrbis Price Wizard reveal that spot propylene prices on FD USG basis snapped their four-week long losing streak with a modest gain of $22/ton from the previous week. However, prices were still below the peak levels recorded earlier this year.

The slight uptick was mostly driven by a short-lived shortage at Enterprise’s 750,000 tons/year PDH unit in Mont Belvieu, Texas last week.

https://www.chemorbis.com/en/plastics-news/Spot-c3-in-Asia-and-Europe-plunges-on-lower-crude-US-shows-uptick/2018/11/20/742162#reportH

November 19, 2018

Hunting Joins CertiPUR-US® Board of Directors

Cyndi Hunting of Zinus Joins CertiPUR-US® Board of Directors

(Rochester Hills, Mich. — November 16, 2018) – Cyndi Hunting of Zinus has joined the Board of Directors of the Alliance for Flexible Polyurethane Foam, the not-for-profit organization that administers the CertiPUR-US® foam certification program.

 

Hunting is the marketing director for both the Zinus brand and Zinus products sold on partner websites. She started at the company as a product manager in

2004 and was one of the founding members of the Zinus USA team. Prior to joining Zinus, Hunting worked in the corporate buying office of Macys and in financial planning positions with The Bon-Ton and Seiko USA. She is a graduate of the University of Michigan Ross School of Business and a long-time believer in the value of the CertiPUR-US program.

 

The CertiPUR-US program is just finishing its tenth year. More than 50 slabstock and molded foam producers are currently certifying flexible polyurethane foams and more than 900 of their bedding and upholstered furniture manufacturers and retailers are participating in the program.

CertiPUR-US certified flexible polyurethane foams are analyzed by independent, accredited testing laboratories and are certified to be made without ozone depleters; made without PBDEs, TDCPP or TCEP (“Tris”) flame retardants; made without lead and heavy metals; made without formaldehyde; made without phthalates regulated by the Consumer Product Safety Commission; and low VOC (Volatile Organic Compound) emissions for indoor air quality (less than 0.5 parts per million).

Certified foams meet program standards for content, emissions and durability based on the Technical Guidelines, a document that is updated regularly based on current government regulations, and information developed by science-driven chemical and environmental groups.

November 19, 2018

Hunting Joins CertiPUR-US® Board of Directors

Cyndi Hunting of Zinus Joins CertiPUR-US® Board of Directors

(Rochester Hills, Mich. — November 16, 2018) – Cyndi Hunting of Zinus has joined the Board of Directors of the Alliance for Flexible Polyurethane Foam, the not-for-profit organization that administers the CertiPUR-US® foam certification program.

 

Hunting is the marketing director for both the Zinus brand and Zinus products sold on partner websites. She started at the company as a product manager in

2004 and was one of the founding members of the Zinus USA team. Prior to joining Zinus, Hunting worked in the corporate buying office of Macys and in financial planning positions with The Bon-Ton and Seiko USA. She is a graduate of the University of Michigan Ross School of Business and a long-time believer in the value of the CertiPUR-US program.

 

The CertiPUR-US program is just finishing its tenth year. More than 50 slabstock and molded foam producers are currently certifying flexible polyurethane foams and more than 900 of their bedding and upholstered furniture manufacturers and retailers are participating in the program.

CertiPUR-US certified flexible polyurethane foams are analyzed by independent, accredited testing laboratories and are certified to be made without ozone depleters; made without PBDEs, TDCPP or TCEP (“Tris”) flame retardants; made without lead and heavy metals; made without formaldehyde; made without phthalates regulated by the Consumer Product Safety Commission; and low VOC (Volatile Organic Compound) emissions for indoor air quality (less than 0.5 parts per million).

Certified foams meet program standards for content, emissions and durability based on the Technical Guidelines, a document that is updated regularly based on current government regulations, and information developed by science-driven chemical and environmental groups.