BASF warns of output cuts if gas supply halved

Spanish Market: Fertilizers, Petrochemicals
31/03/22

German chemicals company BASF has warned of an effect on its operations from any cuts to gas supply, saying it will halt production at its Ludwigshafen complex if it cannot meet half of its current demand.

The warning followed Germany's activation yesterday of its emergency gas plan after Russia said it may require payment in roubles for future supply. G7 countries including Germany have rejected paying for gas in roubles, and German economy minister Robert Habeck has said there are no supply bottlenecks.

"The chemical industry supplies the base products for almost all manufacturing industries," BASF told Argus Media. "Therefore, severe bottlenecks in gas supply and resulting impairments or shutdowns in BASF's production can be expected to lead to serious interruptions in many value chains of our downstream customers."

It said "almost all industries" would be affected, including agriculture, food, automotive, cosmetics/hygiene, construction, packaging, pharmaceuticals and electronics.

As an example, BASF pointed out Ludwigshafen makes substances used in medical products like disinfectant and protective clothing that are needed for the Covid-19 pandemic. The complex also makes products used for items like food packaging and hygiene products.

BASF said its European gas purchasing is used 60pc to generate energy for production and 40pc as a raw material in that production, so any shortage would hit hard.

It cited ammonia as an example of a process that uses gas. Ammonia, in turn, is used to make fertilizer, availability of which would be cut if BASF reduces ammonia output. This could shrink yields in food production. These markets have already felt the affects of the Ukraine conflict, as Russia is a major exporter of ammonia and fertilizers.

"A reduction in gas supplies in Germany would further exacerbate the shortage of fertilizers worldwide, reduce food production and cause prices for basic foodstuffs to rise further," BASF said.

Another process that uses gas is acetylene, which is then used as a building block for other products including, BASF said, "the automotive, pharmaceutical, construction, consumer goods and textile industries."

By Eoin Hughes

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14/04/25

Ecuador's Noboa wins reelection with ample margin

Quito, 14 April (Argus) — Ecuador's president Daniel Noboa won reelection in a run-off on Sunday with 56pc of the vote, a wider margin than projected after a tight first-round race in February . Electoral authority (CNE) head Diana Atamaint confirmed the results with 93pc of votes counted. Noboa will hold office through May 2029. Security has topped voters' concerns as gang violence has increased in recent years, and Noboa has vowed a tough approach on crime. He also wants to attract more private-sector investment to Ecuador's energy sector, with hopes of boosting crude production of about 467,000 b/d. His challenger, Luisa Gonzalez, obtained only 44pc, but she did not recognize Noboa's win and has called for a recount. She belongs to the left-wing Revolucion Ciudadana party, sponsored by former president Rafael Correa, a close friend of presidents Nicolas Maduro of Venezuela and Daniel Ortega of Nicaragua. She promised more state-led energy-sector investment. Noboa won with a difference of about 1.1mn votes out of the 10.5mn Ecuadorians that voted, the CNE said. He called the results overwhelmingly in his favor, speaking from his residency in Santa Elena province. He will hold office through May 2029. The Organization of American States (OAS) declared the voting process normal based on the participation of 84 of its observers. None of the 40,000 observers from Gonzalez's Revolucion Ciudadana party or Noboa's ADN party denounced irregularities. Noboa will continue in power with no single party holding a majority in the national assembly, Ecuador's 151-member unicameral congress, based on results from the 9 February congressional and first-round presidential election. Revolucion Ciudadana will have the first minority with 67 members, followed by ADN with 66 members and 18 members from another five parties. Noboa will be sworn in on 24 May. He took office in November 2023 to fulfill the mandate of former president Guillermo Lasso, who dissolved the national assembly in May 2023 and called for anticipated elections. By Alberto Araujo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Recycled resin importers caught in tariff uncertainty

11/04/25

Recycled resin importers caught in tariff uncertainty

Houston, 11 April (Argus) — US President Donald Trump's evolving tariff policies have created tremendous uncertainty for US importers of recycled polymers, and constant halts and flip-flopping from the administration have led some to pause their US operations. Multiple importers told Argus that the constantly changing US tariffs on goods have upended business plans, and forced them to pause their US operations for the time being due to uncertainty about the taxes their material will face when it reaches US shores. "You have to have some confidence that conditions will hold in order to import," one trader told Argus . Trump's tariff rollout began on 1 February, when he announced that China would face a 10pc universal tariff, and the US's two largest trading partners, Mexico and Canada, would face 25pc universal tariffs. At the time, market participants speculated that the 25pc tariffs on Canada and Mexico would make operations and sales more expensive for Mexican and Canadian recyclers, particularly those that trade bales or finished resin across the US border. After some negotiations between world leaders, the tariffs on Canada and Mexico were delayed for 30 days, though the 10pc tariff on China went into effect as planned. The 25pc universal tariffs on Canada and Mexico were pushed back again on 6 March, but tariffs on aluminum — a significant competitor to rPET packaging — went into place on 12 March. The tariffs on aluminum have not been rescinded or paused, and the extra cost for imported aluminum as a result of the tariff could incentivize US consumer goods companies to use more PET in their packaging. On 9 April, the US put into place varying reciprocal tariffs on a number of countries that export recycled resin to the US, including India, Malaysia and Vietnam. While rPET and vPET pellets were excluded from the reciprocal tariffs, importers of rPE, rPP and PET waste were not excluded from the tariff. The same day, the reciprocal tariffs were pushed back 90 days in favor of a 10pc universal tariff that excludes Canada and Mexico. China and the US's reciprocal tariffs have escalated into a trade war, and currently material from China faces a 145pc tariff. Since the price is too high for most importers to be willing to pay, in essence all recycled resin imports from China are halted. China is one of the largest buyers of US virgin polyethylene https://direct.argusmedia.com/newsandanalysis/article/2675420), and the current trade war with China has the potential to increase domestic supply as exporters are forced to find new buyers for resin. Increased competition from oversupplied virgin resin could pull down recycled resin pricing. Until some stability in tariff policy returns to the US, traders and importers will continue to turn to other destinations outside the US to sell their recycled resin. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US MAP-DAP premium primed to return on tariffs

11/04/25

US MAP-DAP premium primed to return on tariffs

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Malaysia sets new haulier limits at Port Klang

11/04/25

Malaysia sets new haulier limits at Port Klang

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EU exempts most LLDPE imports from retaliatory tariffs

10/04/25

EU exempts most LLDPE imports from retaliatory tariffs

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