Thai PTT, US' Cargill to build biopolymer plant

Spanish Market: Petrochemicals
11/08/21

Thailand's state-controlled petrochemicals producer PTT and US agricultural firm Cargill plan to construct a new biopolymer plant in Nakhon Sawan province in Thailand that is expected to come on line in 2024.

The plant will be the world's first polylactic acid (PLA) biopolymer plant designed to be fully integrated.

The new plant with nameplate capacity of 75,000 t/yr of biopolymers will meet increased global demand for sustainable plastics, and has an investment cost of more than $600mn.

The new plant will be built through NatureWorks, a 50:50 joint venture between Cargill and GC International, a wholly-owned subsidiary of PTT. Natureworks operates the world's first and largest PLA biopolymer plant with a nameplate capacity of 150,000 t/yr of biopolymer in Blair, Nebraska, US.

US-based biopolymer producer NatureWorks transforms greenhouse gases into high-performance compostable PLA biopolymer called Ingeo. The firm uses plants to capture and transform carbon dioxide into long chain sugar molecules, which are then fermented to make lactic acid, feedstock for its Ingeo biopolymer production.

NatureWorks will build its second biopolymer plant in Thailand using the same technology. The 75,000 t/yr biopolymer plant will consume around 110,000 t/yr sugar as its main feedstock, which will be sourced from local Thai sugarcane farmers. The biopolymer produced can be used in various applications such as food packaging, 3D printing, consumer goods, home appliances and others.

Thailand had earlier introduced a bio-circular-green economy model to drive sustainable socio-economic recovery in the country from Covid-19.

Total Corbion operates a 75,000 t/yr PLA biopolymer plant in Rayong, Thailand, which started up in December 2018. The firm also plans to build another 100,000 t/yr PLA biopolymer plant in Grandpuits, France, which is expected to come on line in 2024. Total Corbion is a 50:50 joint venture between TotalEnergies and Dutch food and biochemicals producer.

By Yee Ying Ang

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09/01/25

US physical trade in ethane, propane, rose in 2024

Houston, 9 January (Argus) — Growing natural gas liquids (NGL) production in the US last year led to higher volumes of physical trading for ethane and propane in 2024, according to Argus data. Volumes of physical ethane traded at the Enterprise (EPC) storage cavern in Texas surged last year by 43pc to 90.12mn bl from 63.2mn bl in 2023, according to trades recorded by Argus . The gains in physical in-well trading activity at Mont Belvieu, the world's largest storage hub for the feedstock, came even as spot ethane prices fell in 2024 to an average of 19.03¢/USG, down from 24.59¢/USG the previous year, on the back of production gains and weaker prices for natural gas. US ethane production from gas processing averaged 2.8mn b/d in the first 10 months of 2024, up from 2.64mn b/d during the same period in 2023, according to the latest US Energy Information Administration (EIA) data. Gains in US ethane production come amid growing demand from petrochemical buyers in China and Europe, which has bolstered US ethane exports and led to additional investments by both Enterprise Products Partners and Energy Transfer in additional dock capacity for the feedstock. US ethane exports averaged 478,800 b/d in the first 10 months of 2024, down by 1.8pc from 487,600 b/d in 2023, due in part to loading delays associated with tie-in work for additional refrigeration at Gulf coast facilities. But exports in January-October 2024 were up by 17pc from the same period in 2022 on additional term contracts with international ethylene producers. Higher trading volumes in 2024 were not limited to ethane. Physical in-well trading of propane at Energy Transfer's LST storage cavern in Mont Belvieu rose by 30pc to 44.7mn bl in 2024, and in-well trading of propane at Enterprise's EPC storage cavern rose by 19pc to 68.3mn bl in 2024 versus 2023, according to trades recorded by Argus . US propane production from gas processing averaged 2.13mn b/d in January-October 2024, according to the latest available EIA data, up from 2mn b/d during the same period in 2023. LST and EPC propane prices rose in 2024 versus 2023 alongside increases in crude. Prompt-month LST propane averaged 77.12¢/USG during 2024, up from 71.13¢/USG in 2023. EPC propane averaged 77.63¢/USG in 2024, up from 70.83¢/USG in 2023. Argus publishes volume-weighted averages of physical trading at Mont Belvieu in addition to daily ranges. Ethane's traded midpoint averaged a 0.009¢/USG premium over the volume-weighted average in 2024. LST propane's traded range averaged a 0.037¢/USG discount to the volume-weighted average, and EPC propane's traded midpoint averaged a 0.143¢/USG discount to the volume-weighted average last year. By Amy Strahan Physical trading '000 bl Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Maersk warns of US east, Gulf coast ports strike

02/01/25

Maersk warns of US east, Gulf coast ports strike

New York, 2 January (Argus) — Containership owner Maersk is warning clients that a potential port labor strike could disrupt cargo shipping operations on the US east coast and Gulf coast later this month. A temporary agreement on wages that was struck in October between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is set to expire on 15 January. The short-term agreement, which ended a brief strike, was intended to provide more time for negotiating the remaining contract issues. "Considering the status, we strongly encourage our customers to pick up their laden containers and return empty containers at US east and Gulf coast ports before 15 January," Maesrk said on 31 December. "This proactive measure will help mitigate any potential disruptions at the terminals." During negotiations last year, the ILA's demands included no new automation technology at US ports that would replace workers, describing this position as "non-negotiable". US president-elect Donald Trump appeared to back the union after meeting with ILA's president and executive vice president in mid-December. "The amount of money saved [from automation] is nowhere near the distress, hurt, and harm it causes for American workers, in this case, our longshoremen," Trump said on social media. The US president does not have direct power over union negotiations, but the president can issue executive orders affecting workers and intervene in strikes, if doing so would be in the national interest. The current labor agreement covers approximately 25,000 workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. Movements of dry bulk cargo, such as coal and grains, are expected to be less affected by any work stoppage, though there could be side effects from the congestion of other products being rerouted to ports not affected by the strike. Movement of crude, refined products and many petrochemicals would like be unaffected by a strike, as ILA members do not work within the private terminals that handle nearly all US dry bulk, oil, and gas exports. But some polymers that are moved by container, including polyvinyl chloride, polyethylene, and polypropylene, could be disrupted. A segment of US steel imports could also be disrupted by the strike, as about 9pc of those imports come in via containers, according to data from Global Trade Tracker. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US construction spending flat, PVC demand falls in Nov

02/01/25

US construction spending flat, PVC demand falls in Nov

Houston, 2 January (Argus) — US construction spending was virtually flat in November compared with the previous month as private and public spending offset one another, according to the US Census Bureau. US polyvinyl chloride (PVC) contract prices declined by 1¢/lb in November to 57.5¢/lb, according to Argus . Producers faced pressure during the month as the softening US construction sector failed to absorb recent PVC capacity additions that had come on line. Formosa added an additional 130,000 metric tonnes (t) of PVC capacity to its Baton Rouge, Louisiana, plant in the mid-third quarter. Shintech added 380,000t/yr of nameplate PVC capacity to its Plaquemine, Louisiana, plant in the fourth quarter. PVC buyers increasingly focused on inventory management in November, further constraining demand. Many buyers and converters wished to avoid being oversupplied as the end of the year approached due to modest demand growth expectations for 2025. Private residential spending grew for the second month in a row after a sharp decline in September, but recovery slowed in November. Public spending fell for the second-straight month, offsetting minimal gains in private spending. Public spending was virtually flat or slightly down from the prior month in various major categories. Private manufacturing investment was above 10pc year over year, but sustained monthly growth has stalled. A small boost in commercial spending does not reverse year-over-year decline. By Aaron May US Construction Spending $mn Column header left 24-Nov 24-Oct +/-% 23-Nov +/-% Total Spending 2,152,581.0 2,152,250.0 0.0 2,090,690.0 3.0 Total Private 1,650,665.0 1,649,758.0 0.1 1,610,750.0 2.5 Private Residential 906,201.0 905,149.0 0.1 879,069.0 3.1 Private Manufacturing 234,917.0 235,231.0 -0.1 211,541.0 11.1 Private Commercial 118,206.0 118,127.0 0.1 130,707.0 -9.6 Total Public 501,916.0 502,491.0 -0.1 479,940.0 4.6 Public Water/Sewage 79,018.0 79,207.0 -0.2 71,683.0 10.2 Public Highway/Road 142,908.0 142,682.0 0.2 148,143.0 -3.5 US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: North American BZ, SM output to dip in 2025

02/01/25

Viewpoint: North American BZ, SM output to dip in 2025

Houston, 2 January (Argus) — North American benzene (BZ) and derivative styrene monomer (SM) production and operating rates may decline in 2025 as production costs climb. SM and derivative output will likely see a drop due to the permanent closure of a SM plant in Sarnia and an acrylonitrile butadiene styrene (ABS) plant in Ohio. In 2024, SM operating rates averaged about 71-72pc of capacity, up by 1-2 percentage points from the year prior, according to Argus data. In 2025, operating rates are expected to pull back closer to 70pc due to lackluster underlying demand, offsetting the impact of the two plant closures. Many SM producers on the US Gulf coast are entering 2025 at reduced rates due to high variable production cash costs against the SM spot price. The BZ contract price and higher ethylene prices recently pushed up production costs for SM producers. A heavy upstream ethylene cracker turnaround season in early 2025 will keep derivative SM production costs elevated in Louisiana, stifling motivation for some downstream SM operators to run at normal rates. Gulf coast BZ prices typically fall when SM demand is weak. But imports from Asia are projected to decline, leading to tighter supply in North America that could keep BZ prices elevated. BZ imports from Asia are expected to decline in 2025 because of fewer arbitrage opportunities, as Asia and US BZ prices are expected to remain near parity in the first half of the year. The import arbitrage from South Korea to the Gulf coast was closed for much of the fourth quarter of 2024. Prices in Asia have garnered support because of demand from China for BZ and derivatives, as well as from aromatics production costs in the region that have increased alongside higher naphtha prices. In January-October 2024, over 60pc of US BZ imports originated from northeast Asia, according to Global Trade Tracker data. Losing any portion of those imports typically tightens the US market and drives up domestic demand for BZ. But tighter BZ supply due to lower imports may be mitigated by SM producers, if they continue to run at reduced rates in 2025. The US Gulf coast is around 100,000 metric tonnes (t) net short monthly on BZ, but market sources say the soft SM demand outlook for 2025 will cut US BZ import needs almost in half. Despite fewer BZ imports to North America, reduced SM consumption could hamper run rates for BZ production from selective toluene disproportionation (STDP) unit operators. The biggest obstacle for STDP operators in 2025 will like be paraxylene (PX) demand. Since STDP units produce BZ alongside PX, there needs to be domestic demand for PX. But demand has been weak due to PX imports and derivative polyethylene terephthalate (PET). STDP operations increased at the end 2025 after running at at minimum rates or being idled since 2022. This came as BZ prices consistently eclipsed feedstock toluene prices. The BZ to feedstock nitration-grade toluene spread averaged 30.5¢/USG in 2024 and the BZ to feedstock commercial-grade toluene (CGT) spread averaged 49.25¢/USG, according to Argus data. This means that for much of the year STDP operators could justify running units at higher rates to produce more BZ and PX. But another challenge to consider on STDP run rates in 2025 is the value of toluene for gasoline blending compared to its value for chemical production. In 2022 and 2023, the toluene value into octanes was higher than going into an STDP for BZ and PX production. Feedstock toluene imports are poised to fall in 2025, a factor that would narrow STDP margins and further hamper on-purpose benzene production in the US in 2025. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US maintenance to limit EO, derivatives

31/12/24

Viewpoint: US maintenance to limit EO, derivatives

Houston, 31 December (Argus) — Multiple ethylene oxide (EO) and derivative turnarounds may limit US supply in the first half of 2025. At least six producers of EO and derivatives are expected to be down for maintenance in February-June. Some are just two weeks while others are 30-45 days. Most US EO producers are integrated to produce derivatives such as monoethylene glycol (MEG), diethylene glycol (DEG) and triethylene glycol (TEG). This dynamic has market participants anticipating the derivatives will feel the supply squeeze in the first half of the year. The producers with planned maintenance have the capacity to produce over 3mn metric tonnes (t) of ethylene glycol during the five months of turnarounds, according to Argus data. These supply limitations are expected to tighten the spot market more than the contracted volumes, as the US is a typically a net exporter of MEG, DEG and TEG. Any delays in restarts or unplanned outages could quickly change the US ethylene glycol supply picture. Additionally, multiple steam-cracker maintenance projects are planned for the first quarter of 2025, which will limit supply of feedstock ethylene and likely raise feedstock costs in the short term. Some market participants see the US entering the heavy turnaround season at minimum inventories. The US is still rebuilding stocks of EO derivatives such as MEG, DEG and TEG after constraints in September and October tightened supply. Some planned and several unplanned outages occurred in September that were not resolved until mid-October. During this time, spot supply was harder to find but seasonal demand was starting to slow, according to market participants. Despite these supply constraints, exports of MEG rose by 32pc to 312,800t in September compared to a year earlier. The US exported 317,900t of MEG in October, a 53pc increase on the year. Overlapping turnarounds in the first half of 2025 could slow exports as the US is typically a net exporter of MEG, DEG and TEG. Market participants anticipate first-quarter demand to be similar to the last three months of the year with the addition of some restocking activity. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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