No major damage to Polish PDH plant after fire: Azoty

Spanish Market: LPG, Petrochemicals
26/07/24

Polish chemical conglomerate Grupa Azoty said there is no "significant damage" to its 437,000 t/yr propane dehydrogenation (PDH) plant after a fire last week, but the unit remains shut for investigation and repair.

Azoty shut the unit in Police, northwest Poland, following a leak and a fire on July 19. The company said an inspection after the fire — which was promptly put out — found no "significant damage that would prevent restart of the unit".

The unit remains shut to allow the company and the plant's general contractor to investigate the accident, fix the source of the leak and prepare it for restart as soon as possible, Azoty said. The company did not say when the unit may restart.

Last month Azoty said it is still conducting tests at the PDH unit and its integrated 429,000 t/yr polypropylene complex which both operate in commissioning-mode ahead of planned commercial start of production later in the third quarter this year.

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13/01/25

Mexico’s industrial output up 0.1pc in November

Mexico City, 13 January (Argus) — Mexico's industrial production edged up 0.1pc in November, as gains in autos and other manufacturing offset weaker construction, national statistics agency Inegi said. Mexican bank Banorte described the monthly increase as "rather small," noting it followed a 1.1pc decline in October and was largely driven by base comparison effects. The bank added that the overall industrial outlook remained "fragile." Manufacturing, which represents 63pc of Inegi's seasonally adjusted industrial activity indicator (IMAI), increased by 0.7pc in November, though it failed to fully recover from a 1.7pc drop in October. Transportation manufacturing, a key subsector accounting for 12pc of the sector, rose by 3.8pc after a steep 4.3pc decline the prior month. Despite recent volatility, Mexico's auto sector achieved record annual light vehicle production in 2024, reaching 3.99mn units. Yet, automaker association AMIA warned of potential challenges in 2025 because of economic uncertainty, which could affect investment and demand. Mining, which makes up 12pc of the IMAI, increased by 0.1pc in November following a 1.1pc decline in October. Growth was driven by a 41.4pc jump in mining-related services, while oil and gas output fell by 2.4pc, marking a fifth consecutive monthly decline for hydrocarbons. Construction, representing 19pc of the IMAI, contracted by 1.8pc in November after modest gains of 0.2pc in October and 1.1pc in September. As industry eyes potential policy shifts under US president-elect Donald Trump, Banorte projected a weak start to 2025 for Mexico's industrial output. But it expects momentum to build as government spending on priority infrastructure projects "moves more decisively." By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexico inflation ends 2024 near 4-year low

09/01/25

Mexico inflation ends 2024 near 4-year low

Mexico City, 9 January (Argus) — Mexico's consumer price index (CPI) eased to an annual 4.21pc in December, the lowest in nearly four years, as slowing agricultural prices offset increases in energy, consumer goods and services. This marks the lowest annual inflation since February 2021 and a significant slowdown from July's annual peak of 5.57pc, which was driven by weather-impacted food prices. Inflation slowed from 4.55pc in November, marking four months of declines in the past five months. It closed 2024 below the December 2023 reading of 4.66pc, as CPI continues to cool from its peak of 8.7pc in August/September 2022at the height of the global inflation crisis. The December headline rate slightly exceeded Mexican bank Banorte's 4.15pc forecast but aligned with its consensus estimate. Following the results, Banorte revised its end-2025 inflation projection to 4pc from 4.4pc and its core inflation estimate to 3.6pc from 3.7pc. The bank suggested that the data supports the possibility of earlier cuts in 2025 in the central bank's target rate, currently at 10pc. Citi Mexico's January survey of 32 analysts estimated a target rate of 8.50pc by the end of 2025, with the next cut of 25 basis points expected at the next central bank policy meeting on 25 February. The central bank is targeting annual CPI of 2-4pc. Core inflation, excluding volatile food and energy prices, accelerated to 3.65pc in December from 3.58pc in November, marking the first uptick after 22 consecutive months of deceleration, according to Mexico's statistics agency (Inegi). Services inflation sped up to 4.94pc from 4.9pc, while consumer goods inflation ticked up to 2.47pc from 2.4pc. Agricultural inflation moved to 6.57pc from 10.74pc in November, supported by favorable weather conditions. Banorte noted that the developing La Nina phenomenon could significantly impact meat prices in the coming months. Meanwhile, energy inflation accelerated to 5.73pc in December from 5.25pc the previous month, driven by higher LPG prices. The industrial association Coparmex called for a review of Mexico's LPG pricing model, citing risks to supply and distribution. Electricity inflation decelerated sharply to 2.65pc from 22pc in November, reflecting the end of seasonal summer subsidies, while natural gas prices fell 5.67pc year over year. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US physical trade in ethane, propane, rose in 2024

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.

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