Rhine River water level slips further at key German waypoint

The Rhine River’s water level at a key waypoint hit a new low, risking the transit of fuel and other goods as Europe’s climate crisis exacerbates its energy-supply crunch, said Bloomberg.

The marker at Kaub, a particularly shallow point west of Frankfurt, briefly dropped to 30 centimeters (11.8 inches) earlier Monday before edging back up, the latest German government data show. It is forecast to fluctuate around 31-33 centimeters as the week progresses.

“The current water levels on the Middle and Lower Rhine are currently at an exceptionally low level for this time of year,” the Rhine Waterways and Shipping Authority, known as WSA, said in a statement. “They are the result of the lack of precipitation in recent weeks and months.”

The Rhine is western Europe’s most important river for the transport of fuel and other industrial goods. Many barges find it uneconomical to transit past Kaub when the water level there is at 40 centimeters or below. The marker is not the actual depth of the river, but rather a reference for navigability.

The WSA said it hasn’t imposed shipping restrictions, noting that when water levels are low, less cargo can be transported.

Last week, shipping company Contargo, which also operates terminals, said that a drop at Kaub to below 40 centimeters would prompt it to largely discontinue its barge business on the middle and upper Rhine. Neska Container Line B.V. said on Aug. 11 that its barges weren’t able to call at Cologne and Dusseldorf -- downriver from Kaub -- and that inland waterway barge handling would be possible again from around Aug. 19.

Chemical maker BASF SE later this year plans to put into service a new, low-water vessel that can haul 650 tons of cargo with the Kaub level at 30 centimeters, which the company said corresponds to a water depth of 1.6 meters (5.25 feet).

That’s significantly more than other tankers and about 25% of its capacity in average low water, BASF has said. For now, the company is using a vessel that can haul 200 tons of liquefied gases at 30 centimeters. The measured water-level at Kaub hasn’t been this low at this time of year since at least 1990, according to official data compiled by Bloomberg. Prior to November 2013, data are tallied on a daily, rather than intraday basis. In late 2018, the level fell as low as 24 centimeters.

Energy prices on the continent have soared as a heat wave bears down upon the region. Benchmark natural gas futures rose on Monday, while German year-ahead power jumped to a new record.

We remind, BASF and Inditex jointly announce a breakthrough in their efforts for boosting recyclability in the textile industry. With the launch of loopamid , a polyamide 6 (PA6, also known as nylon 6) made from 100 percent textile waste, BASF is providing the first circular solution for nylon apparel made entirely from textile waste.

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Guinea is studying proposals to build a new oil terminal in the capital Conakry within the next six to 12 months following an explosion in December that severely damaged its main storage facility, said Hydrocarbonprocessing.

The Dec. 18 blast destroyed most of the terminal's storage capacity, sending shockwaves through a downtown Conakry district and killing 23 people in the West African nation, which is not an oil producer and relies on imports of refined products.

The government was evaluating proposals to construct the new terminal and would make a decision as soon as possible, advisor Ismael Nabe told Reuters at a roundtable in Dubai.

The project could be built through a public-private partnership (PPP), he said, adding that it was a priority for the ruling junta, which seized power in 2021. The government and the International Monetary Fund are studying the impact of the storage capacity loss, but it was expected to marginally reduce economic growth this year, Nabe said.

He said authorities wanted to ensure enough capacity to store more than a year's worth of fuel reserves and was considering building up to two new terminals outside the capital, including in coastal Kamsar and inland Forecariah. Most of Guinea's power plants, particularly those supplying the capital, run on diesel fuel.

Minister of Planning and International Cooperation Rose Pola Pricemou told reporters at the same event that oil had recently been discovered in Guinea. Further studies were needed to determine the quantity of the reserves and whether it could be commercially produced, she said.

We remind, the University of Sheffield has successfully bolstered its efforts to decarbonize the aviation industry by increasing its green hydrogen production capacity, following the successful commissioning of a new polymer electrolyte membrane electrolyzer.

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Chinese tire cord manufacturer Shenma Co., Ltd has unveiled plans to establish a new PA66 tire cord facility in the Thai 'Eastern Economic Corridor' industrial zone, situated in Rayong, Chonburi, said Chemanalyst.

The company is set to invest €32 million (Yuan 252 million) in the project, signaling a significant move towards international expansion and response to the trend of Chinese tire manufacturers establishing overseas bases.

The upcoming plant will be constructed in two phases and is designed to have an annual production capacity of 20 kilotonnes, specifically focusing on the production of 'differentiated fiber' for tire manufacturing purposes. In a stock exchange filing on January 18, Shenma detailed that the initial phase of the project is anticipated to be completed within 15 months, boasting a nameplate capacity of 10ktpa for nylon yarn production.

Shenma's strategic investment aligns with its broader 'internationalization strategy,' reflecting the company's commitment to staying abreast of industry trends and catering to the evolving needs of its customer base. The decision to establish a production facility in the Thai industrial zone serves multiple purposes for Shenma, including cost reduction in sales, heightened product profitability, and improved responsiveness to the downstream market in the Southeast Asian region.

Proximity to downstream customers in Southeast Asia is anticipated to play a pivotal role in Shenma's strategy, allowing the company to enhance its market presence and offer swift responses to the demands of the local market. This strategic positioning aligns with the broader industry trend, where manufacturers are increasingly establishing facilities in close proximity to their target markets to optimize logistics, reduce costs, and strengthen relationships with customers.

Moreover, Shenma's venture into Thailand is positioned as a proactive response to the growing trend of Chinese tire manufacturers setting up overseas bases. The move is not only strategic in terms of market proximity but also emphasizes the company's commitment to adapting and expanding its global footprint in response to evolving industry dynamics.

Beyond the immediate benefits of cost reduction and enhanced market responsiveness, Shenma aims to leverage its Thai manufacturing base to expand exports to other Asian markets. This signifies a broader ambition to position the Thai facility as a regional hub, catering not only to the Southeast Asian market but also extending its reach to neighboring regions.

Shenma's investment in a new tire cord facility in Thailand represents a significant milestone in the company's internationalization strategy. The move aligns with the broader trend of Chinese companies establishing overseas bases to optimize their global operations and cater to the specific needs of regional markets. With a focus on proximity to downstream customers, cost-effectiveness, and expanded market reach, Shenma's venture into Thailand underscores its commitment to staying at the forefront of industry trends and maintaining a resilient and adaptive presence in the global tire cord manufacturing landscape.

We remind, in the closing month of 2023, China's export landscape for passenger car tires witnessed a substantial uptick, with the export volume reaching 244,300 tonnes. Despite this positive trend, the average export price experienced a marginal decline, settling at Yuan 2,677.69 per tonne. This reflected a 0.12% drop on a monthly basis and a 3.98% decrease year-on-year. The culmination of export activities throughout the entire year of 2023 showcased an outstanding 20.29% year-on-year improvement, reaching a cumulative export volume of 7,876,600 tonnes.

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Sales of ethanol in the Brazilian market increased sharply in January according to industry data released on Thursday with mills very active in the selling side as they are apparently running out of storage space due to a bumper crop, said Hydrocarbonprocessing.

Total ethanol sales in the domestic market in the first half of January rose 44% year-on-year, said industry group UNICA, to 335.5 million gallons. Sales of hydrous ethanol, the type that competes with gasoline at pumps for the preference of car owners, rose even more, up 83%.

Mills are selling large volumes despite low current prices. Hydrous ethanol prices in January hit the lowest for the last two years according to Cepea Esalq, a research center at the University of Sao Paulo (USP).

Very high stocks of ethanol following a record sugarcane crop in Brazil in the 2023/24 season are driving mills to sell the product even at low prices, said Filipi Cardoso, a sugar and ethanol analyst at broker StoneX.

He added that fuel distributors are active in the buying as they build inventories before an expected change in state taxes in February that would make gasoline more expensive, potentially benefiting ethanol sales.

Brazil's center-south sugarcane crushing totaled 1.11 million metric tons in the first half of January, UNICA said, up 152.3% from a year ago as the current season nears its end. UNICA said in a report that sugar production totaled 48,000 tons in the period, up 148.6% year-on-year, while total ethanol output rose 62.4% to 338 million liters.

We remind, Brazilian state-run oil firm Petrobras, opens new tab said on Wednesday that it plans to finish expansion works on Train One of its Abreu e Lima refinery in the first quarter of 2025, nearly a decade after the expansion was halted due to a massive corruption scandal.

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Dow is proud to announce it received International Sustainability and Carbon Certification (ISCC) PLUS certification at its PO/PG and Polyols manufacturing site in Freeport, Texas, said the company.

An ISCC PLUS certification recognizes Dow’s implementation of decoupling fossil feedstocks by using waste sourced feedstock, following a full independent, external audit.

ISCC is a world leading international certification standard for fully traceable and environmentally, socially and economically sustainable supply chains. As Dow continues to manufacture products with circular and bio-circular feedstocks, this verification qualifies the tracking of alternative feedstocks through the mass balance approach.

“Mass balance is the best technique to demonstrate usage of alternative feedstock at-scale in the chemical sector,” said Thales de Oliviera, business sustainability leader for the Americas at Dow Polyurethanes. “The ISCC PLUS certification is a significant milestone towards more circular and bio-circular products for polyurethanes end-markets in North America, demonstrating our commitment to more sustainable production and products."

We remind, control of Dow Europe Holding's Russian subsidiary Finndisp LLC has been acquired by Sergei Bendenko and Tula Region company JSC Plastic, which now own respectively 51% and 49% of polymer dispersions producer, data from the Unified State Register of Legal Entities showed. President Vladimir Putin signed an order in December allowing Dow Europe to sell 100% of Finndisp, which is based in Ramenskoye, Moscow Region. Bendenko has also been appointed CEO of Finndisp LLC, as well as Finndisp Uzlovaya LLC, a company established last October 25 that produces polymer-based paints and varnishes.

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