India petrochemical market ends financial year on a low

Spanish Market: LPG, Petrochemicals
31/03/20

Indian petrochemical producers are facing a tough start to the country's new financial year, as a nationwide lockdown to curb the spread of coronavirus slashes sales and limits distribution.

"We have ended the financial year with high inventory and low sales, and everyone wants the opposite," said a major methanol trader. India's financial year lasts from 1 April to 31 March.

Sales of key petrochemical products have slumped following the sudden 21-day lockdown of the country from 25 March.

There has been limited or no distribution of chemicals such as methanol because of logistics and transportation challenges resulting from the lockdown.

"There is no market as products are not moving," said an official at another Indian producer, referring to a lack of port facilities and a slowdown in customs activity. This has led some methanol buyers to look at either cancelling or deferring shipments.

The movement of migrant workers from factories to villages amid the lockdown may slow production at downstream factories in the coming month.

"Migrant workers are not able to return immediately after the lockdown is lifted, so that is going to slow down the market for longer," said a trader.

Major producers including Bharat Petroleum (BPCL), IOC and Haldia Petrochemical have reduced production or shut units in an effort to balance inventory against the sharp drop in domestic demand.

The lockdown may also affect new cracker and downstream projects that are due to start in 2021-22. Engineering companies and contractors may have had to cut back operations at project sites in some instances, which may have an eventual impact on project timelines, said another producer.

"When one shuts down a country as large as India for 21 days, the impact is expected to be huge," a trader added.

By Mahua Chakravarty

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16/05/25

Trump says US will soon set new tariff rates

Washington, 16 May (Argus) — The US will unilaterally set new tariff rates on imports from select trading partners instead of holding negotiations over import tax levels, President Donald Trump said today. In the next 2-3 weeks "we'll be telling people what they will be paying to do business in the US," Trump told a group of US and UAE business executives in Abu Dhabi today. Trump contended that more than 150 US trading partners have expressed interest in negotiating with his administration, adding that "you're not able to see that many countries." Trump's administration since 5 April imposed a 10pc baseline tariff on imports from nearly every US trading partner — with the notable exception of Canada, Mexico and Russia. Trump paused his so-called "reciprocal tariffs" until 8 July, nominally to give his administration time to negotiate with foreign countries subject to those punitive rates. The reciprocal tariffs would have added another 10pc on top of his baseline tariff for imports from the EU, while the cumulative rate would have been as high as 69pc on imports from Vietnam. Trump in April suggested that 200 deals with foreign trade partners were in the works. Treasury secretary Scott Bessent has said the US is only negotiating with the top 18 trading partners. The trade "deals" clinched by the Trump administration so far merely set out terms of negotiations for agreements to be negotiated at a later date. The US-UK preliminary deal would keep the US tariff rate on imports from the UK at 10pc, while providing a quota for UK-manufactured cars and, possibly, for steel and aluminum. The US-UK document, concluded on 9 May, explicitly states that it "does not constitute a legally binding agreement." The US-China understanding, reached on 12 May, went further by rolling back some of the punitive tariff rates but left larger trade issues to be resolved at a later date. The Trump administration would keep in place a 20pc extra tariff imposed on imports from China in February-March and a 10pc baseline reciprocal tariff imposed in April. The US will pause its additional 24pc reciprocal tariff on imports from China until 10 August. Conversely, China will keep in place tariffs of 10-15pc on US energy commodity imports that it imposed on 4 February, and 10-15pc tariffs on US agricultural imports, imposed in March. It will maintain a 10pc tariff on all imports from the US that was imposed in April, but will pause an additional 24pc tariff on all US imports until 10 August. These rates are on top of baseline import tariffs that the US and China were charging before January 2025. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

France consults on expanded biofuels mandate

15/05/25

France consults on expanded biofuels mandate

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Q&A: Braskem Idesa Mexico terminal to feed cracker

14/05/25

Q&A: Braskem Idesa Mexico terminal to feed cracker

Mexico City, 14 May (Argus) — The new ethane storage terminal owned 50:50 by Brazilian-Mexican JV Braskem Idesa and the Netherlands-based Advario will be fully operational by mid-July, when the Etileno XXI cracker returns from a full-stop maintenance program, said Cleantho Leite, chief executive of Terminal Quimica Puerto Mexico (TQPM), in an interview with Argus. Edited highlights follow. What does the new terminal represent for Braskem after years of limited ethane supply? TQPM solves a long-standing ethane supply shortage in Mexico, which remains one of the largest ethane consumers in the region. Under the previous supply contract with Pemex, we did not have full supply. It was like having an F1 car with only 70pc of its fuel — eventually, we would run out of supply before even completing the race. Now, thanks to this terminal, Braskem can import the ethane it needs from the US to ensure consistent operations. Of course, we will continue buying from Pemex whenever possible, as its ethane remains the most cost-effective solution. But with this infrastructure in place, we are no longer tied to a single supply source. When will the terminal begin operating at full capacity? We are currently in pre-operational stages, and commercial operations are expected to begin by late May. Then, the Braskem complex will enter its scheduled maintenance shutdown. Once it resumes in mid-July, we will begin transitioning to full utilization of the terminal. The facility is fully capable of covering up to 100pc of Braskem's demand. In fact, it was designed with a 25pc buffer — excess capacity that could support future expansions. The equipment is ready, and whether we go from 75pc to 100pc in 15 days or in a month will depend entirely on Braskem's operating strategy. What is going to happen with the ethane Pemex no longer uses? For now, I do not see Pemex's own complexes significantly increasing their consumption of ethane. It is not like they will double their intake overnight. At least during 2025, Pemex is still in the process of reactivating its own crackers, so that volume will remain available to Braskem. If Pemex eventually requires more supply, it has its own import terminal. Alternatively, it could request capacity from TQPM if needed. Also, Braskem has long-term contracts that allow flexibility in adjusting volumes. If there is unused ethane in a given month, we can resell it to other locations. That has always been part of our strategy. The Braskem group, through Braskem Trading and Shipping, has consistently found alternatives for any surplus. Do you foresee any regulatory or permitting issues under the new legal framework in Mexico? No. We already hold all relevant permits from the now-defunct energy regulator CRE, which are now under the authority of the new CNE. That means no additional permits are required for the terminal under the new framework. Furthermore, the open-access guidelines established by the CRE are still valid and will be used by the CNE to issue and manage permits. The only other authorizations we need are from customs, which have not hindered pre-operations. Historically, the CRE reviewed transportation tariffs every five years, and we expect the CNE will follow the same regulatory schedule. What is the outlook for Braskem's crackers in Brazil regarding a transition to ethane? In Brazil, Braskem currently operates four crackers — three based on naphtha and one, in Rio de Janeiro, on ethane. The company is studying a broader shift toward ethane to reduce dependence on naphtha. Shipments to Brazil would follow a similar model to what we are doing in Mexico, with contracts signed with US suppliers. Our Salvador Bahia plant already receives ethane occasionally, using vessels that take roughly 12 days to arrive. Mexico has a geographical advantage — just two days away from US ethane. What are the long-term plans for TQPM? Our immediate focus is stable operation and efficiency. Long term, the terminal is well located in the Interoceanic Corridor and could serve future industrial projects. We have space and docking infrastructure to add tanks for chemicals, ammonia or propane. Nothing is confirmed yet, but in 3–4 years we expect opportunities to emerge. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Naphtha no longer competitive feedstock: Braskem

12/05/25

Naphtha no longer competitive feedstock: Braskem

Sao Paulo, 12 May (Argus) — Brazil-based petrochemical producer Braskem is pursuing a strategic shift in polymers production by favoring natural gas liquid (NGL) feedstocks and moving away from naphtha. Naphtha is no longer a competitive feedstock in the petrochemical sector, driving the need for greater flexibility in raw material sourcing, chief executive Roberto Ramos said Monday on the company's first-quarter earnings call. The transition to lighter feedstocks is part of a broader initiative to enhance efficiency, reduce costs, and improve competitiveness amid evolving global petrochemical dynamics, Ramos said. The company's plan focuses on increasing the use of ethane and propane as primary feedstocks in Mexico and Brazil. In Mexico, Braskem has inaugurated an ethane import terminal, which will provide a stable supply to its operations. The facility has the capacity to store 80,000 b/d of ethane, while the polyethylene (PE) plant processes 66,000 b/d. This surplus storage has prompted considerations for a new PE unit in Mexico to maximize the available feedstock. In Brazil, Braskem aims to reduce reliance on naphtha-based PE production by integrating more natural gas-derived inputs. The company is evaluating projects to utilize feedstocks sourced from shale gas extracted in Argentina's Vaca Muerta formation. The petrochemical complex in Rio Grande do Sul, which operates with a mixture of naphtha and natural gas, is among the facilities targeted for increased gas utilization. Braskem's Rio de Janeiro facility is also undergoing expansion of its gas-based assets, adding two new furnaces that crack ethane and propane to increase capacity to 700,000 t/yr. This increased production is anticipated to lower unit production costs and improve profitability. The move to gas-based production is expected to optimize operations and align Braskem's facilities with cost-effective supply chains, Ramos said. The shift comes as global trade dynamics continue to influence raw material availability. While US-China trade agreements have temporarily eased tariff pressures, Braskem is trying to position itself to navigate long-term supply chain uncertainties by diversifying its production inputs. Ramos has also indicated potential investments in ethanol dehydration technology, which would allow select facilities to convert ethanol into ethylene, further supporting PE production with an alternative renewable feedstock. Production and sales Braskem said its first-quarter domestic resin sales fell by 4pc from the same period in 2024, but sales were little changed from the prior quarter. Domestic resin sales totalled 807,000 metric tonnes (t) in the first quarter, down from 839,000t a year earlier. Resin sales volumes remained in line with the fourth quarter last year, but the company highlighted a quarter-on-quarter increase in PE and polypropylene (PP) sales volumes of 2pc and 3pc, respectively, offset by a 16pc reduction in PVC sales. In Mexico, Braskem Idesa's PE sales fell by 11pc from the same period in 2024 and by 5pc quarter-on-quarter, as the company is looking to manage inventory ahead of a planned maintenance shutdown in the second quarter. The plant utilization rate reached 79pc, rising from the fourth quarter on higher ethane availability through the Fast Track solution. But utilization fell by four percentage points year-on-year, mainly due to reduced supply of ethane from Mexico's Pemex. Braskem posted a first-quarter profit of $114mn, rebounding from a loss of $273mn a year earlier and a loss of $967mn in the fourth quarter last year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU consults on tariffs for €95bn US imports

09/05/25

EU consults on tariffs for €95bn US imports

Brussels, 9 May (Argus) — The European Commission is consulting on an extensive list, worth €95bn ($107bn), of US industrial, agricultural and other imports that could be subject to tariff countermeasures. The long list includes extends from livestock, biofuels, wood pellets to metals, aircraft, tankers and polymers . The consultation runs until midday on 10 June. It is aimed at stakeholders affected by US measures and possible EU rebalancing measures. Also considered for possible countermeasures are restrictions, worth €4.4bn, on EU exports to the US of steel, iron and aluminium scrap, as well as toluidines, alcoholic solutions and enzymes (CN codes 7204, 7602, 292143, 330210 and 350790). The commission linked the possible new measures to US universal tariffs and to Washington's specific tariffs on cars and car parts. The commission said the public consultation is a necessary procedural step. It does not automatically result in countermeasures. The EU also launched a WTO dispute procedure against the US for Washington's universal tariffs, set at 20pc for EU goods and currently paused at 10pc, and at 25pc on all imports of vehicles and car parts. The commission will need approval by EU governments under a simplified legislative procedure. Officials say this will complete a legal act for the countermeasures, making them "ready to use" if talks with the US do not produce a "satisfactory" result. The list of products potentially targeted includes livestock, along with items ranging from spectacles to antiques. The 218-page list includes a range of agricultural and food products including oats, maize, and cereal pellets. Also included are biodiesel and wood pellets (CN codes 38260010, 44013100), as well as paper and cotton products. Aluminium, iron, steel are listed together with a wide range of other goods from gas turbines, ships propellers and blades, aircraft, sea-going tankers and other vessels. Polymers, copolymers, polyesters and other products are not spared (CN codes 39039090 and more). On 10 April, the EU paused its reciprocal tariffs against the US for 90 days, responding to a US pause. The EU notes that €379bn, or 70pc, of the bloc's exports to the US are currently subject to new or paused tariffs. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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