Singapore November petrochemical exports fall 7.4%

Singapore’s petrochemical exports in November fell by 7.4% year on year to Singapore dollar (S$) 1.16bn ($872m)), reversing the 3.4% expansion in the previous month, official data showed on Monday.

The country's overall non-oil domestic (NODX) for the month inched up by 1.0% year on year to S$14.5bn, reversing the 3.5% decline in the preceding month, Enterprise Singapore data showed.

Non-electronic NODX, which includes pharmaceuticals and petrochemicals, rose by 5.2% year on year to S$11.6bn in November.

Overall NODX to Singapore's top 10 markets declined in November, with shipments to Taiwan and the EU recording the steepest year-on-year falls of 40% and 21.7%, respectively.

Singapore is a major petrochemicals manufacturer and exporter in southeast Asia. Its petrochemicals hub Jurong Island houses more than 100 global chemical firms, including energy majors ExxonMobil and Shell.

Its trade-reliant economy is projected to post a 2023 growth of around 1%, the midpoint of the previous forecast of a 0.5-1.5% expansion, according to the country’s Ministry of Trade and Industry (MTI). For 2024, Singapore’s GDP growth is projected at 1%-3%.

We remind, Singapore's middle distillates inventories fell marginally week-on-week as net exports of both gasoil and jet fuel/kerosene grew. Gasoil and jet fuel/kerosene inventories at the key oil storage hub were at 10.422 million barrels in the week ended Nov. 22 from 10.423 MMbbl a week earlier, data from Enterprise Singapore showed. Net exports of gasoil posted a week-on-week gain for the first time in two months.

mrchub.com

Versalis is to close its Grangemouth, UK, synthetic rubber plant, the company confirmed on Friday, on the back of worsening elastomer market conditions and deteriorating profitability, said BBC.

The company has informed UK unions GMB and Unite that the plant is expected to close in April next year, with employee layoffs to take place on a phased basis up to that point.

A spokesperson for union GMB said that the company had been expected to inform workers at the site on Thursday afternoon, with 135 employees potentially affected. Talks about the future of the site had been ongoing for several months, but Versalis informed unions on Thursday morning of the decision.

“We have been in talks with management for some time and, while closure was an option, this news is a body blow for many of our members, their families and the communities where they live," said Dom Pritchard, GMB Scotland organiser. "We will be continuing our discussions with the company," he added.

According to the ICIS Supply & Demand Database, the Versalis site has capacity to produce 60,000 tonnes/year of styrene butadiene rubber (SBR) capacity and 80,000 tonnes/year of polybutadiene (PBR). Changing conditions in the European market have made site economics less viable, according to a spokesperson for parent company Eni.

We remind, Versalis, Eni's chemical company, has published the 2022 Sustainability Report, illustrating its contribution to the development of more sustainable and circular models in line with Eni's strategy and values, said the company.

mrchub.com

MRC -- Grupa Azoty Polyolefins, the special-purpose vehicle overseeing Poland’s delayed $1.8bn world-scale propane dehydrogenation (PDH) and polypropylene (PP) plant, has so far requested support loan tranches amounting to €55m, parent company Grupa Azoty Police said.

Azoty Police made the announcement after it and the group parent company, state-controlled Grupa Azoty, received the latest request for a tranche, of €10m.

Grupa Azoty Polyolefins, said Azoty Police, was faced by insufficient funding to complete the PDH/PP project because general contractor Hyundai Engineering has been delayed in finishing the production complex.

Grupa Azoty announced in late November that commercial operation of the installation that it started up in June had been delayed until the first half of 2024.

In a note to the market on the installation, billed as Europe’s first new PP plant to open in 15 years, Azoty said: “The updated investment schedule provides for an installation integrity test to be carried out in the first quarter of 2024 and the commencement of commercial operation of the plant in the first half of 2024.”

After the delay was announced, one PP buyer told ICIS: “Yes, we have been informed by Azoty [representative], some months ago, about their delay and the new start up scheduling. We do not expect any impact, because the situation was well known. Maybe such delay will [postpone] the pressure on other EU PP suppliers, especially in a moment when the PP demand in EU is quite low.”

Another buyer said: “My feeling is that it’s better [to] not produce than produce and lose money. I don’t expect issues for this delay.”

The plant, in Police, in the far northwest of Poland by the sea-linked river Oder, has capacity to producer 429,000 tonnes/year of polymer-grade propylene (PGP) and 437,000 tonnes/year of PP.

mrchub.com

Nouryon is now certified to the International Sustainability and Carbon Certification standard ISCC PLUS for the production of green monochloroacetic acid (MCA) at its site in Delfzijl, the Netherlands, said the company.

The Company is a leading global supplier of MCA and the first and only producer of green MCA that is derived from sustainably sourced raw materials1.

“We are pleased to be the first supplier to offer green MCA as a building block for our customers that contributes to their sustainability goals,” said Joppe Smit, Senior Vice President of Natural Resources and Intermediates at Nouryon. “Today’s announcement underscores our efforts to deliver solutions that contribute to a more sustainable future.”

MCA is used in the manufacture of carboxymethyl cellulose (CMC), agrochemicals, surfactants and other functional chemical building blocks that are essential to building and construction, crop protection, food additives, personal care products, cleaning goods, and pharmaceuticals. Nouryon’s green MCA is a sustainable alternative offering a significant reduction in product carbon footprint while delivering the same quality and performance.

As a manufacturer of speciality chemicals, Nouryon works to ensure that its products meet or exceed industry benchmarks for sustainability without sacrificing performance. Nouryon supports customer needs around the world through several regional sites, including the Netherlands, India, China, Japan, and the USA.

We remind, Nouryon announced a long-term agreement with NRG Energy, Inc. brand Direct Energy to support 100% of the electricity needs from renewable sources for the Company’s manufacturing sites in La Porte, Fort Worth, and Houston, through the purchase of renewable energy certificates (RECs) derived from wind farms throughout Texas, US, helping to reduce carbon emissions. The delivery term will begin the end of December 2024.

mrchub.com

Azelis, a leading global innovation service provider in the specialty chemicals and food ingredients industry, announces that it has signed an agreement to acquire Localpack S.A., a specialty chemical distributor active in both the life sciences and industrial chemicals segments in Colombia, said the company.

The acquisition represents a strategic expansion of the Group’s footprint, consistent with its growth objectives in the region.

Localpack is one of the leading specialty chemical distributors in the domestic market. The company employs a staff of 27 people, and operates an application laboratory close to Medellin, serving customers across Colombia. Localpack’s long-standing relationships with global and regional principals, and the technical product expertise that it has built over the years, expand Azelis’ lateral value chain across Latin America. This expansion will allow Azelis to serve customers better and accelerate its growth in the region.

The transaction follows several key initiatives in Latin America by Azelis in recent years, including the establishment of a regional innovation center (RIC) in Mexico in 2022, the acquisition of ROCSA S.A. in Colombia in 2022, and Vogler Ingredients Ltda. in Brazil earlier this year. The addition of Localpack’s portfolio of products and capabilities marks another significant milestone in Azelis’ growth strategy in the region.

We remind, Azelis, a leading innovation service provider in the specialty chemicals and food ingredients industry, is pleased to announce that it has opened a new laboratory dedicated to Lubricants & Metal Working Fluids (L&MWF) in the north of Milan, Italy. The facility has been transferred to benefit from more space and from the potential to further scale its capabilities in 2024 and, thus, better serve the EMEA region as a whole. The laboratory is fully operational and serves as a valuable resource for Azelis' teams, customers, and principals.

mrchub.com