Chemicals

LONDON (ICIS)–The European Commission has confirmed to ICIS that only recycled polyethylene terephthalate (R-PET) produced using plastic waste in the EU can currently count towards the 25% recycled content target set out under the Single Use Plastics Directive (SUPD). In an email to ICIS, a spokesperson for the Directorate-General for Environment (DG-ENV) stated that the 25% target laid out in the SUPD can ‘only be achieved using post-consumer plastic waste generated from plastic products that have been placed on the EU market’. This expands on Point 4 of Implementing Decision 2023/2683 having regard to Directive (EU) 2019/904 (the SUPD), which states: 'Post-consumer plastic waste needs to be understood as waste generated from plastic products that have been placed on the market.'  The confirmation from the Commission clarifies what many R-PET market participants had already assumed – but not necessarily confirmed – that the 25% target can only be reached by using waste that has come from within the EU. It therefore rules out the use of plastic waste or material produced from plastic waste that has been placed on a market outside the EU. FUTURE CHANGESThe Commission confirmed that it is currently preparing an implementing act, planned for Q4 2025, that will extend the calculation, verification and reporting methodology to cover all recycling technologies, including chemical recycling. This will repeal and replace the existing act and contains a broader definition of ‘recycled plastic’ which will be the same as the Packaging and Packaging Waste Regulation (PPWR) and will cover recyclates ‘stemming from post-consumer plastic waste generated from plastic products that have been placed on markets outside of the EU’. Article 7 of the PPWR sets out the 30% recycled content target for PET bottles by 2030, in which paragraph 3(a), among other things, states that recycled content shall be recovered from post-consumer plastic waste that: “…has been collected within the Union pursuant to this Regulation or the national rules transposing Directives 2008/98/EC and (EU) 2019/904, as relevant, or that has been collected in a third country in accordance with standards for separate collection to promote high-quality recycling equivalent to those referred to in this Regulation and Directives 2008/98/EC and (EU) 2019/904, as relevant.” R-PET market participants have welcomed the clarification although there are concerns that bringing the SUPD in line with the PPWR – in terms of allowing recycled produced from waste placed on markets outside of the EU – will open up the European market to cheaper imports of recycled material. The Commission is currently drafting the methodology for calculation and verification of the PPWR’s recycled content targets due in December 2026.

04-Jun-2025

SINGAPORE (ICIS)–Click here to see the latest blog post on Asian Chemical Connections by John Richardson. Is the petrochemicals industry really a free market? Or have we been telling ourselves a comforting fiction? As we sift through margins, P&Ls, and operating rates to predict a recovery, we might be asking the wrong questions. Let’s rewind to 2014. While China’s state media signalled a major push toward self-sufficiency in petrochemicals, many Western analysts dismissed it — seeing China through the lens of profit maximisation. But I was told way back in 2000 that China’s strategy had just as much to do with jobs and economic value creation as with profits. Fast forward to today: polyester fibres, , polyethylene terephthalate (PET) film and bottle grade resins, purified terephthalic acid (PTA), styrene and polypropylene (PP),— China is nearly or completely self-sufficient in these markets. The drivers? National security, supply certainty, and industrial policy. And it’s not just China. Middle East investments — underpinned by cheap feedstocks, state ownership, and now oil demand substitution — follow similar, non-market logic. If key players haven’t been led by market signals alone, what happens next? Despite the deepest downturn in petrochemical history — likely to stretch into 2028 — new capacities keep rising. Not from those chasing short-term profit, but from those with long-term, state-backed agendas. Just a modest rise in China’s PP operating rates above the ICIS base case assumption could flip China into being a net exporter by 2027. The trade war may play a role here, as it has increased supply security concerns. True, there are more private petrochemical companies in China than ten years ago. But this latest wave of investment is more state-owned-enterprise-led than the previous one. And private companies can also benefit from local and central government support Saudi investments in refinery-to-petrochemicals will persist. More ethane crackers in the Middle East will be built. China’s plant-build costs are often 50%+ lower than the U.S., thanks to relentless innovation support. So… what does this mean for producers operating on pure market terms? Can they survive, let alone thrive, in a landscape shaped by strategic ambition rather than shareholder return? Your thoughts are welcome. Let’s start the conversation. Editor’s note: This blog post is an opinion piece. The views expressed are those of the author, and do not necessarily represent those of ICIS.

04-Jun-2025

SAO PAULO (ICIS)–Brazil's customs auditors have announced a new five-day "zero clearance period" at the Port of Santos on 2-6 June in which no physical inspections will be carried out, according to a letter to customers by logistics company Unimar seen by ICIS. The action at Santos – Latin America’s largest port – extends a strike started in 2024 which has disrupted logistics for months. The port is a key exit and entry point for some chemicals and a wide range of industrial goods, as well as of fertilizers imports feeding Brazil’s powerful agricultural sector. “Brazil’s Superior Courts have ruled that industrial action cannot entirely paralyze essential public services, such as the clearance of perishable cargo. Judicial intervention may be required to ensure the continuity of critical operations, assessed on a case-by-case basis,” said Unimar’s letter. “Currently, marine terminals at major ports have reported that most cargo is cleared automatically via the system, except for those not classified under the ‘Green Channel.’ Therefore, the strike is expected to primarily impact cargo that requires physical inspections.” Under normal conditions, average clearance times at Santos are five to seven days for imports and one to two days for exports – the action plan up to 6 June may cause delays for cargo requiring physical inspection, while clearance of vessel spare parts at major airports typically takes three to five days. Brazil's Superior Courts have ruled that industrial action cannot entirely paralyze essential public services, such as clearance of perishable cargo. Judicial intervention may be required to ensure continuity of critical operations on a case-by-case basis. A YEAR-LONG STRIKEThe strike by customs workers, with no sign of resolution in sight, is about to reach one year of duration, some of the longest strikes by civil servants ever seen in Brazil. Smaller strikes started to take place in mid-2024 but then escalated into a comprehensive two-month stoppage. Several rounds of talks between the union representing tax auditors and the government have failed to reach agreement. The union is demanding salary increases and better working conditions, including maintenance and upgrades at ageing customs points across Brazil. President Luiz Inácio Lula da Silva's government is attempting to control spending amid investor concerns about the fiscal deficit. Chemicals players have said to ICIS they are increasingly concerned about rising logistics costs, in part due to the strike. The trade group Brazilian Association of Distributors of Chemical and Petrochemical Products (Associquim) warned that companies handling perishable goods or materials requiring quick delivery – pharmaceuticals, food products – are facing particular difficulties. "We have chemical products that have to have a special place for storage, and if too much accumulates in those special storage places, then it will filter down to the end-user, and create a safety problem," said Associquim president Rubens Medrano earlier this year. NEW SYSTEM DEPLOYMENT AT RISKSomething most logistics players have mentioned and remain a key concern is how the strike could threaten the implementation of Brazil's New Import Process on the Single Foreign Trade Portal, approved in 2023 to reduce delivery times and costs. The system's third and most critical phase is due in the second half of 2025. Trade group the Brazilian Machinery Builders' Association (Abimaq) estimated the new system could save companies Brazilian reais (R) 40bn ($7.07bn) annually when fully implemented, nearly halving delivery times from nine days to five days through increased electronic processing. Meanwhile, the trade group representing chemicals producers Abiquim has equally warned that prolonged strike action could negatively impact the current implementation phase of the import system designed to simplify processes and reduce logistics costs. The Santos Port Authority had not responded to a request for comment at the time of writing. Front page picture: The Port of Santos in Sao Paulo state Picture source: Santos Port Authority  Additional reporting by Sylvia Traganida

03-Jun-2025

COLORADO SPRINGS, Colorado (ICIS)–US-based chemical distributor Univar Solutions has better positioned itself for growth and resilience with a sharper focus on key industries, said the head of its Ingredients + Specialties (I+S) business. More than a decade earlier when the specialties business was underperforming, Univar undertook a major shift in strategy by setting up four focus industries – food ingredients, pharmaceuticals, coatings and beauty care – to run them as standalone business units, recalled Nick Powell, CEO of Global I+S. “Everybody in each of those business units, that's all they did – focus on those industries. Prior to that, any seller, product manager or technical person may have served an oil refinery in the morning, and in the afternoon a food customer – no differentiation, no ability to sell our value,” said Powell in an interview with ICIS. Powell spoke to ICIS on the sidelines of the American Chemistry Council (ACC) Annual Meeting) This new business model worked well in Europe where Powell led the changes, and was then replicated in the Americas and Asia-Pacific but with different leadership for each region, he said. Then Univar CEO David Jukes, who assumed the role in 2019, decided to globalize all of the distributor’s businesses into six focus industries – each of them under a single leader, said Powell. SIX FOCUS INDUSTRIESThese six focus industries now fall under two segments. The I+S division now has three focus industries – CARE (beauty & personal care, homecare & industrial cleaning), Health & Nutrition (food ingredients, pharmaceutical ingredients) and Performance Materials (coatings, adhesives, sealants and elastomers (CASE), lubricants and metalworking). The Chemical Distribution & Services (CD&S) division also has three focus industries – General Industrial, Refining & Chemical Processing, and Service Solutions. Univar’s online platform ChemPoint is its third division, focused on demand creation and multi-channel digital marketing campaigns for a wide range of chemicals and ingredients. “In essence, we’re able to adjust to the very specific needs of suppliers who are producing products that go into those spaces, or our customers who want to be treated differently, depending on their market,” said Powell. And in each of the focus businesses, Univar has specialists that can connect the value the supplier has in its product portfolio to the value it can generate for a customer, typically by helping solve a technical problem or producing a new product from its globalized network of laboratories that goes to market, he pointed out. The strategy has been “extremely successful” for Univar, allowing it to outperform its peers, he noted. GLOBALIZATION AND CUSTOMER WINSWith the globalization of the focus industries, Univar is able to provide suppliers the same type and level of service in any region, adding local nuance when appropriate, said the executive. “That gives them confidence that we can deliver for them. We found that suppliers have really liked that business model, and a number of them have been awarding us large pieces of new business in geographies where we've not dealt with them in those product portfolios,” said Powell. In February 2025, Univar announced an expanded distribution partnership with BASF, securing the exclusive right to serve as a distributor of LuquaSorb Superabsorbent Polymers (SAPs) in the US and Canada in industrial applications. In January 2025, Univar Solutions announced an exclusive distribution agreement for the US, Canada and Puerto Rico with dsm-firmenich, adding its skin actives and bioactive skin care ingredients including synthetic peptides, organically grown plant extracts and other natural ingredients. In November 2024, Univar announced a new exclusive distribution agreement with Syensqo to become, effective 1 January 2025, the sole distributor of its beauty care ingredients across the US and Canada. “We are able to demonstrate to them that we have this large specialty and ingredients business inside the portfolio that’s staffed by technical people who are able to take their products to market and gain value for them,” said Powell. “They were able to do that in conjunction with our solution centers (labs), helping customers solve problems or create new products to go and take more share in their marketplaces,” he added, calling the strategy a game changer of growth” for Univar. The ACC Annual Meeting runs through Wednesday. Interview article by Joseph Chang

03-Jun-2025

COLORADO SPRINGS, Colorado (ICIS)–US-based chemical distributor Univar Solutions is helping customers deal with tariffs with its strong in-region sourcing network, its head of Ingredients and Specialties (I+S) said. “In every meeting I've had here and probably every meeting I've had in the last three to four months, tariffs have become the number one topic. Nobody seems to have an answer of where this is headed or what's coming next, and so we're having to deal with the here and now, and sometimes the here and now can be very different by the time you think you've got a plan,” said Nick Powell, CEO of Global I+S at Univar Solutions. Powell spoke to ICIS on the sidelines of the American Chemistry Council (ACC) Annual Meeting. “We're very fortunate in that greater than 90% of our products are sourced within region – not just in the US but Latin America, Asia and EMEA. We're not importing a huge amount of products, so there's not a massive financial penalty from tariffs,” said Powell. Where the distributor is impacted by tariffs, it is passing costs along to customers as are its competitors, he said. However, Univar is able to offer customers local buying options that can replace imported products, the executive noted. “The fact that we have a high level of our product portfolio sourced in-region allows us to offer them offsets for those imported products. We're getting a lot of interest from customers and are generating new relationships and new business that way,” said Powell. After the COVID pandemic in 2020 and other events that led to supply disruptions, there was a shift in customer mindset of wanting to onshore sourcing of chemical raw materials and intermediates, he explained. “I’m not so sure that many actually took a huge amount of action around that, but I think what’s happening [now] is those thoughts are resonating in their minds, and forcing them into action,” said Powell. “I think they realize there’s a structural change in the way economies are trading with each other, structural changes in trade flows, import duties and taxation. And for them to be competitive, they absolutely have to drive change now,” he added. “We are seeing a change in behavior. The fact that we’re 90%-plus regionally sourced means that we have something to offer. It’s opening up a lot of new dialogue for us,” said Powell. CERTAINTY OF SUPPLY"It's not just about cost but certainty of supply," he added. “If you're buying a product from Asia, you may be able to suck up the import duty disparity, but how certain can you be of continuity of supply? So both those factors are playing into customers’ minds right now,” said Powell. Univar is uniquely positioned to help customers in these aspects, not only because of a high level of in-region supply, but also particularly in North America because of its large infrastructure footprint which allows the company to provide reliable delivery and service, he pointed out. INDIRECT IMPACT ON CONSUMER CONFIDENCEWhile US tariffs are not having a direct negative impact on Univar’s business, they are causing a great deal of uncertainty among consumers of end-products and the companies that make those end-products, ultimately resulting in lower demand, he pointed out. “We're certainly in a market that is impacted by lack of consumer confidence right now. We're seeing some change in customer behavior. Customers are very much ordering just-in-time and supply chains are empty,” said Powell. “They have no confidence or a lack of confidence in what their own end-consumer demand is going to be next month. So they're not buying raw materials until they have a greater insight into that,” he added. CHANGE IN TRADE FLOWS INTENSIFY COMPETITIONUS tariffs are also leading to a change in trade flows and more intensified competition in Europe and Latin America, as Asian producers seek to sell more product to non-US outlets. “It’s producing a lot more competitive environments from both a volume and a pricing perspective. The European market is already in somewhat of a state of turmoil. It's not helping any of us in that space, whether you're a producer or a distributor,” said Powell. The ACC Annual Meeting runs through Wednesday. Interview article by Joseph Chang

03-Jun-2025

BARCELONA (ICIS)–As chemical producers gain access to more renewable energy and portfolios evolve, distributors and downstream customers can look forward to a growing amount of low carbon, low fossil-content products. Distributors can help communicate sustainability data up and down industrial value chains Full life-cycle analysis required to truly measure a product’s environmental footprint Vital to have standard measurements for carbon footprint Chemical industry has a 25-year innovation cycle, more investment needed to accelerate this Wave of low carbon products expected in next 2-3 years Azelis is sticking to its environmental targets Customers drive demand for more low carbon products Renewable energy will cut fossil content of distributor product portfolios Smaller chemical companies drive low carbon innovation in Asia Reshoring will drive national or regional chemical value chains In this Think Tank podcast, Will Beacham interviews Michael Heite, group sustainability director for Azelis, John Richardson from the ICIS market development team and Paul Hodges, chairman of New Normal Consulting. Click here to enter the ICIS Innovation Awards. Closing date 12 June.  Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS. ICIS is organising regular updates to help the industry understand current market trends. Register here . Read the latest issue of ICIS Chemical Business. Read Paul Hodges and John Richardson's ICIS blogs.

03-Jun-2025

COLORADO SPRINGS, Colorado (ICIS)–A clearer picture on the ultimate level of US tariffs could lead to a surge in pent-up demand for chemicals and plastics, said the CEO of Dow. “As we saw with COVID-19, the more people sit on the sidelines, the more there’s a build-up or a pent-up desire to do something… demand is going to come. And when it comes, it tends to bounce back in a big fashion,” said Jim Fitterling, CEO of Dow, in an interview with ICIS. Fitterling spoke to ICIS on the sidelines of the American Chemistry Council (ACC) Annual Meeting. Tariff uncertainty has caused businesses to put projects and other investments on hold, he noted. “At the beginning of this year, I think everybody thought with the new administration [that] 2025 will be better than 2024. But as we sit here at the mid-point of 2025, I don’t think anybody’s predicting a big H2 spike [in demand],” said Fitterling. “It would be crazy for me to try to predict it right now, but if we can get some certainty around the tariffs and what the levels are going to be, and a feeling that ‘this is it’, we can go forward from here. The sentiment will turn more positive, and the markets move on sentiment,” he added. NAVIGATING TARIFFSDow is navigating the tariff environment well through an international trade operations team with decades of experience and great lines of communications in all markets, he noted. “We haven’t seen any dramatic impact on our ability to move product and sell product because of tariffs,” said Fitterling. However, the uncertainty has caused customers to pull back a bit, he added. “But I think more of that has been worked out and things are starting to flow, and you’re starting to see that people are realizing that they’re not just going to be able to absorb these tariffs. They're going to have to pass along [costs],” said Fitterling. “Some of these costs [are being passed along] and some product is continuing to move. [But] I would say people in general are still very cautious,” he added. The CEO cautioned that while the market may see greater clarity by July after the 90-day pause starting 9 April on higher levels of US reciprocal tariffs comes to an end, it could take longer. DOW PE EXPORTS MOVING ALONGMeanwhile, Dow’s exports of polyethylene (PE) from the US are running well, he said. “Everybody was expecting a big hiccup [in exports] in the month of April, but things moved relatively well. And of course, China never put tariffs on imports of plastics materials, even on the ethane [feedstock],” said Fitterling. On 24 April, an unofficial China proposed tariff exemption list of 131 US products worth around $46 billion, or 28% of total imports, including PE, along with other chemicals and key feedstock ethane, was circulated. Two weeks prior to this, ICIS began picking up on some China PE importers asking for previously canceled US PE orders to be reinstated for June arrival, noted Harrison Jacoby, director of PE at ICIS. “[China] didn’t put any tariffs on those because they need them, for their own manufacturing industry and to make the products that they turn around and re-export. It’s only logical,” he added. Interview article by Joseph Chang Front thumbnail photo of polyethylene pellets (Source: Shutterstock)

02-Jun-2025

LONDON (ICIS)–Dow is exiting a carbon fiber and derivates joint venture (JV) with Turkey’s Aksa Akrilik Kimya Sanayii as it continues to focus on core downstream businesses, it said on Monday. The US chemicals producer is selling its 50% stake in DowAksa to its JV partner for an expected $125 million. The sale, which is subject to regulatory approvals and other conditions, is expected to close in the third quarter. “Dow's decision to exit the joint venture, which was formed in 2012, is consistent with Dow’s best-owner mindset strategy of focusing on its core, high-value downstream businesses,” the company said in a statement.

02-Jun-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 30 May. Brazil’s PE market assumes ADDs on US, Canada material to be imposed from June Brazil’s polyethylene (PE) sellers this week are encouraging customers to bring forward purchases on the assumption that the government is to impose antidumping duties (ADDs) on US and Canadian material from June. US ethylene market braces for supply ramp-up as demand stays unsettled After a heavy turnaround season that began in January, the US ethylene market is preparing for a wave of fresh output that threatens to tip the sector back into oversupply as demand continues to face economic and trade policy headwinds. Brazil postpones decision on US-Canada PE antidumping duties Brazil's foreign trade committee Gecex has postponed a meeting where it was expected to decide on imposing antidumping duties (ADDs) polyethylene (PE) imports from the US and Canada. UPDATE: US trade court rules against Trump's emergency tariffs on global goods A US court ruled on Wednesday that the president cannot impose global tariffs under an emergency act, voiding all but the sectoral ones that the nation imposed against nearly every country in the world. INSIGHT: Court ruling to remove nearly all US chem tariffs imposed in 2025 A court ruling will leave the US some room to impose tariffs on imports of plastics and chemicals, but if it remains in place, it will eliminate virtually all the duties that the country imposed on those materials – opening the way for other countries to lift their retaliatory tariffs imposed on the nation's substantial exports of petrochemicals. Appeals court allows US to maintain chem tariffs The US can maintain nearly all the plastic and chemical tariffs it imposed this year after an appeals court granted on Thursday the government's request to stay the judgment of a lower court. Tricon Energy emphasizes ability to pivot quickly in face of tariff volatility – CEO In an increasingly volatile and uncertain world with a constantly changing US tariff regime throwing fuel on the fire, agility to adjust and pivot is more important than ever for a global chemical distributor, said the CEO of US-based Tricon Energy.

02-Jun-2025

SAO PAULO (ICIS)–Here are some of the stories from ICIS Latin America for the fortnight ended on 30 May. NEWS Brazil’s Braskem denies linking PE price increases to antidumping expectationsBraskem has firmly denied it was preparing polyethylene (PE) price increases for June in anticipation of antidumping duties (ADDs) on US and Canadian imports, with a spokesperson at the Brazilian petrochemicals major calling such claims "absolutely unfounded". Brazil postpones decision on US-Canada PE antidumping dutiesBrazil's foreign trade committee Gecex has postponed a meeting where it was expected to decide on imposing antidumping duties (ADDs) polyethylene (PE) imports from the US and Canada Brazil’s PVC prices could pick up on higher ADDs; Argentina and Colombia to benefitSome sources in the Brazilian polyvinyl chloride (PVC) market expect prices to rise between 10% and 15% in coming weeks after the government sharply increased antidumping duties (ADDs) on US material. Mexico announces definitive ADDs on imports of Chinese PETMexico has announced it will impose definitive antidumping duties (ADDs) on Chinese polyethylene terephthalate (PET) imports from 30 May 2025, according to official news from the China Trade Remedies Information website. Mexico protects domestic industry with revised $195/tonne duty on US caustic soda importsOn 29 May 2025, Mexico's Ministry of Economy published in the Official Gazette (DOF) the Final Resolution of its review of the countervailing duty on imports of liquid caustic soda from the US. Argentina’s manufacturing March output up 4.2%; Milei's party win in local election boosts cabinetArgentina’s manufacturing sectors output rose by 4.2% in March, year on year, below the overall increase in output in the economy at 5.6%, the country’s statistical agency Indec said this week. INSIGHT: Chile’s strong economic data yet to trickle down to chemicals and votersChile’s healthy growth in Q1 surprised on the upside this week, adding to earlier, better-than-expected indicators but all the positive news have yet failed to lift the chances of a governing party set to return to the opposition benches. LatAm’s chemicals faces severe truck driver shortage amid safety concernsLatin America's chemicals transportation sector is grappling with a severe driver shortage, an aging workforce, and mounting safety challenges that threaten regional supply chains, according to industry executives this week. Panama Canal faces capacity challenges as it explores new business modelsThe Panama Canal is working to develop new products and services for different client segments while managing capacity constraints that have affected operations, particularly following the severe drought impacts of 2024, an executive at the Panama Canal Authority (PCA) said. Brazil’s Braskem stock shoots up on reports billionaire Nelson Tanure aims to acquire Novonor stakeBraskem’s stock rose sharply in Friday trading after reports citing unnamed sources said Brazilian entrepreneur Nelson Tanure would be seeking to acquire Novonor’s controlling stake at the petrochemicals major. Brazil prosecutors sue China’s EV major BYD for slave labor, human traffickingBrazil’s Public Ministry of Labor (MPT) this week filed a civil action against Chinese automaker BYD and two contractors for allegedly subjecting 220 Chinese workers to conditions analogous to slavery and human trafficking. PRICING LatAm PP international prices increase in Chile, Peru on higher offers from AsiaInternational polypropylene (PP) prices were assessed as higher in Chile and Peru on the back of higher offers from Asia. LatAm PE prices unchanged, discussions shift to JuneDomestic and international polyethylene (PE) prices were unchanged across Latin American countries. Innova announces June PS price increase in BrazilInnova has announced a 10% price increase, excluding local taxes, on all grades of polystyrene (PS) sold in Brazil, effective 1 June 2025, according to a customer letter.

02-Jun-2025