Baltimore bridge collapse could have knock-on effects for US LDPE film bale exports

US exporters of post-use low-density polyethylene (LDPE) film bales were processing the effects of a bridge collapse at Baltimore, Maryland, on March 26, said Chemweek.

A container ship struck the Francis Scott Key Bridge, causing the structure to collapse and shutting down the fifth-busiest container ship port on the US East Coast.

“Anyone with cargo on that ship is liable for damage,” said one exporter, adding that the insurance departments of commodity brokerages were scrambling to understand the impact of the collision.

Another exporter said the indeterminate closure of the port would impact its post-use LDPE bale shipments out of Baltimore. Although the volumes exported from Baltimore represent only a small portion of total US scrap plastic ethylene derivative exports, according to US International Trade Commission (ITC) data, a third exporter said the port closure could add delays to the next closest ports, such as New York and Norfolk, Virginia.

In all of 2023, Baltimore saw only 1,125 metric tons of scrap plastic exports, or less than 1% of the total 153,575 metric tons exported by the US. Three East Coast ports — New York and Norfolk, as well as Savannah, Georgia — handled more than half of the total 2023 export volumes.

For one shipper, New York is the best alternative while the port is closed, and a second said Norfolk is smaller but less complicated to navigate than Philadelphia. Regardless of the alternative port chosen, the sources agreed that the extra logistical steps to get to a more distant port could increase overall costs, including trucking and demurrage.

And although shipping on a cost, insurance and freight basis covers damages arising from such an incident, the first exporter said some shippers opt not to pay extra for the insurance coverage. In such cases, the incident could cause lasting and catastrophic financial damage, the source said.

Platts, part of S&P Global Commodity Insights, last assessed post-use A-grade LDPE film bales at 16 cents per pound (lb) FOB Chicago on March 25. Sources said before the collision that exporters’ bids were firming slightly on the week — last heard at 17 cents per lb FAS Chicago. Although cargoes for export tend to be priced higher than domestic bids to account for transportation costs ex-warehouse to port, domestic buying ideas do not have much room to go lower before sellers prioritize volumes for export, said a broker.

In virgin resin, only 1,236 metric tons of polypropylene, PE and polyvinyl chloride left from Baltimore in 2023, out of the 12.3 million metric tons of total US outflows, according to ITC data.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) will be USD840/tonne CFR Asian main ports for arrival April 2024.

The April 2024 ACP reflects the short-term supply and demand situation in the Asian market.

The price is on a CFR (cost & freight) Asia basis.

We remind, MEGlobal announced that its Asian Contract Price (ACP) for monoethylene glycol (MEG) was USD850/tonne CFR Asian main ports for arrival March 2024.

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EQUATE has nominated its April 2024 MEG India Contract Price (ICP) at USD538/tonne CFR (cost & freight) India Main Ports, said the company.

The April nomination was USD25/tonne lower than March number.

We remind, EQUATE has nominated its March 2024 MEG India Contract Price (ICP) at USD563/tonne CFR (cost & freight) India Main Ports. The March nomination was USD11/tonne higher than February number.
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Researchers at the University of Michigan have developed a new catalyst reactor that can produce propylene from natural gas, as an alternative to crude oil, said European-rubber-journal.

The reactor resembles a nested pair of tubes, wherein propane (C3H8) from shale gas flows through the innermost tube, explained the university in a 21 March report.

The reactor splits propane into propylene (C3H6) and hydrogen gas (H2), providing a ‘cleaner’ alternative with reduced manufacturing costs, compared to propylene derived from oil.

According to the University of Michigan, current processes available to source propylene from natural gas are “still too inefficient to bridge the gap in supply and demand”.

“It’s very hard to economically convert propane into propylene,” said Suljo Linic, the Martin Lewis Perl Collegiate professor of chemical engineering.

“You need to heat that reaction to drive it, and standard methods require very high temperatures to produce enough propylene,” added Linic, corresponding author of the study published in Science.

At such high temperatures, he explained, solid carbon deposits and other undesirable products that impair the catalyst are produced in addition to propylene.

And to regenerate the reactor, he added, we need to burn off the solid carbon deposits often, which makes the process inefficient.

According to the University of Michigan, the new reactor system efficiently makes propylene from shale gas by separating propane into propylene and hydrogen gas.

It also gives hydrogen “a way out”, changing the balance between the concentration of propane and reaction products in a way that allows more propylene to be made.

Once separated, the hydrogen can also be safely burned away from the propane, heating the reactor enough to speed up the reactions without making any undesirable compounds.

This separation is achieved through the reactor’s nested, hollow-fibre membrane tubing, according to the report.

The innermost tube is made up of materials that splits the propane into propylene and hydrogen gas.

While the tubing keeps most of the propylene inside the innermost chamber, the hydrogen gas can escape into an outer chamber through pores in a membrane layer of the material.

Inside that chamber, the hydrogen gas is controllably burned by mixing in precise amounts of oxygen.

Because the hydrogen can be burned inside the reactor and can operate under higher propane pressures, the technology could allow plants to produce propylene from natural gas without installing extra heaters.

According to the researchers’ estimate, a plant that produces 500 kilotonnes per annum of propylene could save as much as USD23.5 million (EUR22 million) over other methods starting with shale gas.

The savings are in addition to the operational savings from burning hydrogen produced in reaction, rather than other fuels.

The research was funded by the US department of energy’s office of basic energy sciences, the RAPID manufacturing institute and the National Science Foundation.

The team is pursuing patent protection with the assistance of U-M Innovation Partnerships and is seeking partners to bring the technology to market.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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The Association of American Railroads (AAR) today reported U.S. rail traffic for the week ending March 23, 2024. AAR also weighed in on the Francis Scott Key Bridge collapse and how railroads are working to limit disruptions, said Aar.

“The top priority following the tragic collapse of the Francis Scott Key Bridge must be supporting the individuals and families impacted,” said AAR SVP of Policy and Economics Dr. Rand Ghayad. “At this time, there are many unknowns about the long-term business impacts. However, recent years have shown us the resilience of railroads and the broader logistics sector in adapting swiftly to challenges while continuingto serve our customers. Those lessons will be put to work in the days ahead to minimize disruption to the fullest extent possible.”

For this week, total U.S. weekly rail traffic was 470,593 carloads and intermodal units, up 2.1 percent compared with the same week last year.

Total carloads for the week ending March 23 were 215,277 carloads, down 6.1 percent compared with the same week in 2023, while U.S. weekly intermodal volume was 255,316 containers and trailers, up 10.2 percent compared to 2023.

Five of the 10 carload commodity groups posted an increase compared with the same week in 2023. They included grain, up 2,735 carloads, to 21,467; chemicals, up 1,822 carloads, to 33,702; and motor vehicles and parts, up 888 carloads, to 16,109. Commodity groups that posted decreases compared with the same week in 2023 included coal, down 14,169 carloads, to 53,727; nonmetallic minerals, down 2,835 carloads, to 27,607; and metallic ores and metals, down 2,129 carloads, to 18,519.

For the first 12 weeks of 2024, U.S. railroads reported cumulative volume of 2,555,094 carloads, down 4.3 percent from the same point last year; and 3,014,729 intermodal units, up 9.1 percent from last year. Total combined U.S. traffic for the first 12 weeks of 2024 was 5,569,823 carloads and intermodal units, an increase of 2.5 percent compared to last year.

North American rail volume for the week ending March 23, 2024, on 10 reporting U.S., Canadian and Mexican railroads totaled 324,001 carloads, down 5.3 percent compared with the same week last year, and 340,799 intermodal units, up 9.4 percent compared with last year. Total combined weekly rail traffic in North America was 664,800 carloads and intermodal units, up 1.7 percent. North American rail volume for the first 12 weeks of 2024 was 7,798,583 carloads and intermodal units, up 1.8 percent compared with 2023.

Canadian railroads reported 91,620 carloads for the week, down 3.1 percent, and 73,851 intermodal units, up 7.9 percent compared with the same week in 2023. For the first 12 weeks of 2024, Canadian railroads reported cumulative rail traffic volume of 1,887,198 carloads, containers and trailers, down 0.9 percent.

We remind, the US Department of Energy (DOE) has selected ExxonMobil’s Baytown, Texas, olefins plant carbon reduction project to receive up to USD331.9 million in funding under the USD6-billion Industrial Demonstrations Program (IDP). The announcement comes one month after a report in the Houston Chronicle that ExxonMobil might have to cancel the project if proposed federal tax incentives for the production of clean hydrogen exclude the use of carbon capture and sequestration (CCS).

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