US spot PGP falls to lowest since November
US prompt-month spot polymer-grade propylene (PGP) fell this week to the lowest in nearly five months on weak domestic demand for some smaller volume propylene derivatives, especially acrylonitrile (ACN) and propylene oxide (PO).
US PGP traded on Tuesday at 41.5¢/lb, down by 30pc since 5 March and the lowest price since late November.
US PGP's pricing in recent years has mostly been driven by supply changes, but market participants believe that some of the price drop since early March stems from weakness in PGP's smaller demand sources like ACN and PO.
ACN consumes about 7pc of US propylene, declining from 10pc over the last six years, and PO accounts for around 11pc of US demand for propylene. US demand remains weak for polypropylene (PP), which accounts for about half of domestic PGP demand, but has increased over the last few weeks, with operating rates improving. Rising PGP demand has been offset by falling production of smaller volume derivatives like ACN and PO, largely driven by elevated PGP spot prices in the first quarter that narrowed margins.
Cornerstone's 257,000 metric tonne (t)/yr ACN unit in Waggaman, Louisiana, has been down on an extended turnaround, according to market sources. That unit comprises 16pc of the US ACN capacity, according to Argus data. Another producer told Argus that ACN is being produced "to order," as demand has not been steady, saying "these are tough times" for ACN.
A PO producer in Texas began a planned turnaround this month that is expected to last until mid-May, reducing demand for US propylene. The turnaround has shut 20pc of US PO capacity, according to Argus data.
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IMO 2040 CO2 goals unmet under base case: ABS
IMO 2040 CO2 goals unmet under base case: ABS
New York, 27 August (Argus) — The shipping industry will not meet the International Maritime Organization (IMO) goal for reducing CO2 emissions by 2040 without hastening the expected pace of vessel replacements, a study by vessel classification organization American Bureau of Shipping (ABS) concluded. IMO calls for the reduction of greenhouse gas emissions by at least 20pc by 2030, by at least 70pc by 2040, and to net zero by 2050, compared with 2008 base levels. Under a base case scenario, a 20pc reduction in CO2-equivalent emissions by 2030 is achievable on a full lifecycle basis, but a 70pc percent reduction by 2040 is not, ABS said. Under the best case scenario examined by ABS, achieving IMO's 70pc target would require a significantly faster renewal of the vessel fleet to replace oil-fueled vessels or a higher degree of vessel retrofitting. The three biggest categories of bunker consuming vessels — tankers, dry bulk carriers and container ships — are expected to follow a similar trajectory for marine fuel demand under the base case scenario, with conventional marine fuel accounting for more than 60pc of demand through 2035, ABS said. Conventional fuel demand would decline to 38-44pc of marine fuel demand in the first half of the 2040s in the base case, ABS predicted. Methanol in that period would grow to about 35pc of marine fuel demand for tankers and container ships and about 22pc for dry bulk carriers. Ammonia and hydrogen demand would grow to about 13pc of tankers' marine fuel demand, 18pc of dry bulk carriers' demand and about 14pc of container ships' demand. LNG across the three vessel categories is expected at 4-6pc of bunkering demand in the early 2040s, with biodiesel at 5-9pc of demand. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India extends BIS deadline for PVC imports to December
India extends BIS deadline for PVC imports to December
Singapore, 26 August (Argus) — India has extended the implementation of Bureau of Indian Standards (BIS) quality controls on polyvinyl chloride (PVC) homopolymer imports into India from 26 August to 24 December 2024. The notice was published in the Gazette of India on 23 August. The initial proposal from India's Department of Chemicals and Petrochemicals (DCP) was submitted on 11 August 2023 , with an implementation date of 26 August communicated to the wider market in February 2024. As of this month, only 12 PVC production units outside of India are currently listed as being BIS-certified, meaning they would be able to supply PVC into India after the BIS deadline, but many other key exporters to India are still waiting for their certification to come through. Some are expected to receive their certification in September, but the majority of production units that typically export to India have yet to be audited by BIS agents as of the time of writing. Indian PVC producers are also required to receive BIS certification before the deadline, with most having already received approval from BIS agents. But the Indian PVC market remains net-short and in need of imports, brewing expectations among most market participants in recent months that an extension to the BIS was likely since most major suppliers had yet to receive approval or audits. Further upstream, market participants are currently waiting for BIS quality controls to be applied on imports of ethylene dichloride (EDC) and vinyl chlorine monomer (VCM) — two major feedstocks used to produce PVC in India — on 12 September. Changes in import shares The Indian PVC market recorded historically high import demand in 2023, with imports totalling over 3.2mn t/yr, according to GTT data. Latest trade data for 2024, which only indicates imports between January and June, shows that India has imported over 1.5mn t/yr of PVC as of June, just under the halfway mark for 2023. Most origins recorded growth in India's PVC import share in 2023, with the most notable being China, North America and the remainder of northeast Asia. The share of imports from northeast Asia — excluding China — into India grew by 47pc in 2023, while China almost doubled its import share, and North America almost tripled this during the same time period. PVC import growth from China in 2023 and 2022 was mainly denoted by higher carbide-based PVC imports into India, which tends to be cheaper than conventionally and globally produced ethylene-based PVC. BIS quality controls on PVC imports will effectively remove supply of PVC containing a residual VCM content above two parts per million, which is common in carbide-based PVC specifications. An extension of BIS quality controls on PVC could potentially bode well for total import growth into India in 2024, with the potential for similar results as 2023, as the country estimates PVC consumption in the construction and agricultural sectors to remain strong in the coming years. But the possibility of further PVC import restrictions remains likely in the medium-term, as new Indian PVC production capacities are set to come on line between 2026-30. In a separate investigation, Indian authorities are looking to implement potential anti-dumping duties on suspension PVC (s-PVC) imports into India , but the result of this investigation has yet to be finalised. This could potentially restrict import growth from North America, northeast Asia and other major export origins, creating more competitiveness for imports into India as the country looks to become self-sustained on PVC supply. By Michael Vitiello India's PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India extends anti-dumping duties on c-PVC imports
India extends anti-dumping duties on c-PVC imports
Singapore, 26 August (Argus) — India's Ministry of Finance has recommended continuing anti-dumping duties (ADDs) on chlorinated polyvinyl chloride (c-PVC) imports from China and South Korea, citing continuing imports below market value threatening the domestic sector. The recommendation was published in the Gazette of India on 23 August, with ADDs to be applied to all c-PVC imports from China and South Korea either in compounded form or unprocessed form. ADDs under this notification can be levied for a period of five years, unless revoked, superseded or amended earlier from the date of publication in the Gazette of India. An initial anti-dumping investigation began in March 2019, followed by final findings and initial ADDs on c-PVC imports from China and South Korea on February 2020. Indian producers noted continuing dumping of c-PVC resin following expected demand growth from the agricultural and construction sectors. But authorities said, despite new production capacity planning to come on line in India in the coming years, that the likelihood of further dumping would remain high should ADDs be removed too soon. India has already implemented ADDs on paste PVC imports on 13 June, while continuing to investigate anti-dumping of suspension PVC imports . C-PVC is produced by the addition of chlorine to standard PVC resin, with the final compound having greater resistance to higher temperatures, fire and corrosion compared with traditional PVC. C-PVC is primarily used in pipe applications. By Michael Vitiello India c-PVC ADDs Country of origin Country of export Producer Specification Duty ($/t) China Any Any CPVC resin 790 China Any Any CPVC compound 605 Any China Any CPVC resin 790 Any China Any CPVC compound 605 South Korea Any Hanwha Solutions Corporation CPVC resin 593 South Korea Any Hanwha Solutions Corporation CPVC compound 792 South Korea Any Any CPVC resin 593 South Korea Any Any CPVC compound 792 Any South Korea Any CPVC resin 593 Any South Korea Any CPVC compound 792 Source: Ministry of Finance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Union plans new rail strike despite order: Update
Union plans new rail strike despite order: Update
Adds additional comment from Teamsters Canada Rail Conference Washington, 23 August (Argus) — The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government ordered all parties to participate in binding arbitration. The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out. The union said it moved to strike to "frustrate CN's attempt to force arbitration", and protect workers' rights to collectively bargain. CN had previously sought a federal order for binding arbitration. The government's back-to-work order yesterday sidestepped the collective bargaining process, and "undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians", union president Paul Boucher said today. "Bargaining is also the primary way our union fights for rail safety — all considerations that outweigh short-term economic concerns," Boucher said. The union was more optimistic in its strike notice to CN this morning. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable." It said it would be available to discuss issues to avoid another work stoppage. CN indicated it was frustrated with the union's action. "While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said. CN last night had begun implementing a recovery plan to restore service . The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment. Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order. CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB. CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service. CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction." A case management meeting with CIRB occurred last night and another was scheduled for early today. Hearings are also underway to address preliminary issues, the union said. But the Teamsters said it was prepared to appeal the case to federal court if necessary. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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