Optimize Your Business in China

THE CHEMICAL COMPANY

“The View from Jamestown”

CHEMICAL MARKETS UPDATE, November 2012

Optimize Your Position in China:
The Top 10 reasons to do business with The Chemical Company

Each and every day, if your spam filters don’t catch them, you will receive solicitations to do business in China.  Some are horribly written and not very professional, but many are quite good and seem legitimate.  These email solicitations will claim to be a producer and refer you to their professional looking web sites complete with pictures, specifications, a plant, etc.   When you contact them they will make claims and promises.  They will meet your specifications, provide incredible pricing and claim they can ship on time.

Unfortunately all of us at The Chemical Company have heard the stories of woe from different customers and associates who have been conned by one of these solicitations.  Please be careful.  If it sounds too good to be true, it probably is.

We have to understand that China is a different culture and the rules they play by are different than ours.  Many times employees of companies in China go home after work and run their side business.  They may even compete with their employer, selling the same or similar products on the side.  This isn’t unusual and isn’t considered as unethical as it is in the Americas.  The internet has now provided these small enterprising individuals access to the world and each one feels they are going to be the next world class trader.  Unfortunately, as was the case in the US when the internet ignited many new scams, China is no different.  We feel the problem is even bigger, its simple arithmetic, the more people the greater the possibility for unscrupulous individuals scamming on the internet.

Recently we have seen a huge uptick of email solicitation.  This is likely related to the availability of Google search on the internet in China.  The solicitations have been coming fast and furious.  Companies who have responded are being scammed and don’t even know it yet. So please be careful and take nothing for granted when deal with services from China.

 Top 10 Reasons to do Business with TCC:

1. The Chemical Company has operated a procurement and logistics office in China Since 2006.  We are well established, have major contracts and a history of success.  We can assure the most competitive price on most products we offer originating from the PRC.

2. The Chemical Company visits with each producing partner, analyzes their operations and abilities in depth prior to the first export.

3. We give firm price quotes with the validity (period of time that price offered is valid) specified.  We will not change our price after accepting an order.

4. We can handle all freight options and deliver on time.

5. We can offer payment terms where credit is approved.  Most transactions in China are Cash leaving a wide gap between payment and delivery.

6. We can keep the “pipeline full.”  We will make sure your critical raw materials are supplied on time and without interruption.

7. We can assure quality, terms, volume, etc.

8. We can offer l/c/l deliveries either direct from China or from one of our regional warehouses throughout the Americas.  In an environment of lower inventories allow us to manage your inventory off site.

9. We can assure quality.  Even offer pre-shipment sampling and testing/ survey to assure quality.

10. The Chemical Company is one of the largest chemical distributors world wide.  We are established, insured and trusted by our suppliers and customers.  The Chemical Company will back the products we offer from China or anywhere in the world.

 

We have heard so many sad stories over the years.  Including a company who loaded their reactor with melamine that turned out to be salt.  Another company ruined their reactor when their finished product turned rock hard.  Many companies have shut down their plants when product didn’t arrive as promised.  And hundreds of companies have received out of specification materials and some have paid and never received the product.  This is an epidemic in China.  We know it and have had to put the right people in place in China to prevent it.  It’s just not like doing business in the America’s and Europe.  In China you just need to be careful, we can help.

 

Quote of the Month:

Attention is the rarest and purest form of generosity.”

– French philosopher Simone Weil (1909-43)

 

 



TCC Downloadable Brochures:
The Chemical Company Brochure
TCC Plasticizers and Plastics Additives
Iron Oxides
Composites
Flame Retardants

 

Upcoming Events

 

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2013 AFPM International Petrochemical Conference March 24-26 Grand Hyatt San Antonio, TX

 

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Product News

NatureFlexx 509: Phthalate Free General Purpose Plasticizer.  Available in Totes (2200 lbs.) and Drums.

Phthalic Anhydride:  TCC offers Phthalic Anhydride in 25 Kg. Bags and 2,000 lb. supersacks.

Tetrabromo Phthalic Anhydride: TCC now offers TBPA in Small Bags (25 Kg.) and Supersacks (2,000 lb.)

Zinc Borate:TCC now offers Zinc Borate in 25 Kg. Bags

Malic Acid: 25 Kg. Bags (In Stock and Available Now!)

Adipic Acid: 25 Kg., 500 Kg. and 1,000 Kg. Bags (In Stock and Available Now!)

 

Products In Transit/ Available Soon

Tetrakis-(hydroxymethyl)-phosphonium chloride 2200 lb. Totes

Bio- Succinic Acid 2000 lb. supersacks and 25 Kg. Bags

 

New/ Updated Technical Information:

Stearic Acid

ChemFlexx DOTP

Vestinol 9 DINP

Dicyandiamide

Maleic Anhydride

Tris (Chloroisopropyl) Phosphate (TCPP)

 

Please contact Robb Roach at robb@thechemco.com

or Tel: (401) 423- 3100 for more information.

 

 

**Please note that all products are now in Alphabetical Order and many products are hyperlinked to their own information page.**

Critical Raw Materials Markets

Raw Materials Legend

Benzene: U.S. benzene contracts for November settled up $.50/ gallon to US$4.90/ gallon from US$4.40/ gallon in October. Spot prices are in the $4.90- $5.00/ gallon range.

 

N Butane: Normal Butane prices are trading in the mid US$1.60’s per gallon. N Butane closed the first week of November at $1.64/ gallon. This is well above the October’s average in the low $1.50’s.

 

Ethylene: U.S. Contract Price for October settled lower by $.01/ lb. to $.4725/ lb. Current spot is in the Mid to high $.50’s due to strong demand.

 

Natural Gas: Natural Gas pricing eclipsed the $4.00/ mmbtu price point in late October before falling back to the $3.60’s/ mmbtu. Recent strengthening has put pricing into the $3.80’s/ mmbtu.

Check the real-time commodities tracker at thechemco.com for up to the minute info.

Oil: Current WTI Crude price is in the $86 per barrel range.  Prices dropped through late October and post election but have stabilized in the $86/ barrel range.

Check the real-time commodities tracker at thechemco.com for up to the minute info.

Orthoxylene: November contracts settled down $.0325/ lb. to $.6375/ lb.

Propylene: Contract pricing for October were $.53/ lb. for Polymer Grade and $.515/ lb. for Chemical Grade.  November contracts have settled up $.04/ lb. to $.57/ lb. for Polymer Grade and $.555/ lb. for chemical Grade.

Chemicals Markets

 

Adipic Acid

Adipic Acid pricing is flat with good demand and stable supply.  Raw material prices are higher (ammonia/ benzene) putting further pressure on producer margins.   The risk of outages due to the Atlantic hurricane season is nearly over.  TCC has Adipic Acid in stock and immediately available in 1,000 Kg. Sacks, 500 Kg. Sacks and 25 Kg. bags.  
For more information please contact Robb Roach at robb@thechemco.com

Ammonia

November pricing in Tampa increased US$5/ ton over October ($715/ ton C&F) to US $720/ ton C&F.  NOLA is seen at $685/ ton fob.  Availability is tight to balanced with continued gas curtailments in Trinidad.  Prices in Yuzhnyy (Black Sea) are dropping while Middle East pricing is firm with limited availability. 
For more information please contact Robb Roach at robb@thechemco.com

Ammonium Nitrate

Ammonium Nitrate pricing is stable.  Seasonal demand has slowed.  The major feedstock ammonia is relatively tight due to the gas curtailments in Trinidad but price movement has not been extreme. 
For more information please contact AJ Petrarca aj@thechemco.com

Antimony Trioxide

Demand for antimony trioxide remains relatively weak and new availability from South America had helped relieve pricing although prices have recently plateaued.  Not much has changed as current offers are in the upper $4.00/ lb. range for full truckloads.  Buyers continue to keep inventories to a minimum and use alternate chemistries where possible. 
For more information please contact AJ Petrarca aj@thechemco.com

Dicyandiamide

Prices have come off approx. US$400-500/MT in the past 2 months.  Producers are selling at or below cost to keep volumes up with the anticipation of 2 new production facilities in China that are expected to be operational by the end of October 2012.  
For more information please contact AJ Petrarca aj@thechemco.com

Epoxidized Soybean Oil

The is some relief in Soybean pricing which should help the rather unhealthy margins associated with ESO.  ESO Supply is healthy keeping prices low.  
For more information please contact Robb Roach at robb@thechemco.com

Fumaric Acid

Fumaric Acid Pricing has pushed higher on improved butane values and limited availability.  Product has become tight due to flooding earlier this year at a U.S. Producers plant and the Nippon Shokubai explosion.  
For more information please contact AJ Petrarca aj@thechemco.com

Glycol (Mono, Di and Tri)

Ethylene:   U.S. Contract Price for October  by $.01/ lb. to $.4725/ lb. 

MEG – U.S. producers have announced a 2-5 cts/ lb. increase for November.  Spot prices are in the mid- $.50’s fob Gulf.  Availability is still limited but Should improve. 

DEG- U.S. producers have announced a price increase of $.03- $.05/ lb. for November.  Spot prices are in the $.70’s per lb. fob Gulf.  Availability is limited due to turnarounds. 

TEG- U.S. producers announced a price increase of $.21- $.27 per lb. increase for October.  Another $.06- $.10/ lb. increase was announced for November.  Spot pricing is seen up to $1.28/ lb.
For more information please contact Robb Roach at robb@thechemco.com

Isophthalic Acid

PIA pricing has increased slightly in response to strengthening raw material costs. Supply and demand remain stable. 
For more information please contact Robb Roach at robb@thechemco.com

Maleic Anhydride

The Maleic Anhydride market is quiet despite continued pressure from its feedstock Butane.  Supply is balanced to long in North America. 
For more information please contact AJ Petrarca aj@thechemco.com

Melamine

Melamine supply has tightened considerably.  Price increases of $.10- $12/ lb. were announce for Q4 and have stuck.  Supply and Demand is the most recent driver of pricing.  Urea prices have moved lower and therefore no longer pressuring Melamine cost.  
For more information please contact Javier Fernandez  Javier@thechemco.com 

Malic Acid

 Malic Acid pricing has been pressured by supply and demand issues.  Domestic and International manufacturers are running well so pressure should wane in the coming months.  TCC has Malic Acid in stock and available.
For more information please contact AJ Petrarca aj@thechemco.com

Methanol

The Methanex Non-Discounted Reference Price for November has increase by $.13/ gallon to US$1.45/ gallon. Spot pricing is currently approx. US$1.25- $1.28/ gal. and trending lower. 
For more information please contact Robb Roach at robb@thechemco.com

Notes:

Northeast terminals are still unable to load methanol due to storm damage and continued power outages.  Repairs are quickly being made and power is expected to be recovered in the very near future.

Northeast customers are being re-routed to Wilmington, NC for contingency supply.

SCC Posted price US$1.48/ gallon

Gas Curtailment issues in Trinidad continue. 

The Atlas Plant in Trinidad has re-started.

Nitric Acid

Nitric Acid pricing is level yet pressured by good demand and higher ammonia pricing.

For more information please contact Robb Roach at robb@thechemco.com

Phenolic Resins

Phenol pricing has shifted only moderately higher on less demand and despite higher benzene values.   Formaldehyde prices move nominally higher with limited availability in the Northeast due to Super Storm Sandy and methanol prices firming nationwide.  
For more information please contact John Santini at john@thechemco.com

Phthalic Anhydride

Phthalic Anhydride pricing will decrease by $.035/ lb. in December in line with the November orthoxylene price decrease.  Orthoxylene will likely continue to decrease as oil and aromatics pricing drops toward year end. 
For more Information please contact Javier Fernandez at javier@thechemco.com

Plasticizers and Plasticizer Alcohols

Plasticizer demand world-wide has been flat with pricing supported by underlying raw material costs.  No new increases have been nominated for November.  Pricing should remain unchanged for the remainder of 2012 unless there is an unforeseen issue/ outage or major raw material spike.

Plasticizer alcohol pricing is pretty stable with improved demand and some firming noted in Asia.  There is large capacity expansions completed in Asia and staggering growth slated for the future.
For more information please contact Forest Goodman at forest@thechemco.com

TCC Plasticizers available:

Note: Some plasticizers may have limited availability. Please contact TCC for further details.

Non (ortho)- Phthalate:

ChemFlexx Dibenzoate Esters

ChemFlexx DiOctyl Succinate (DOSX)

ChemFlexx NP 500” Non- Phthalate Replacement for General Purpose Plasticizers

ChemFlexx NP 600” Non- Phthalate Replacement for DIDP

NatureFlexx 509” Phthalate Free General Purpose (ATBC)

Epoxidized Soybean Oil

ChemFlexx TOTM (TriOctyl Trimellitate)

ChemFlexx DOA (DiOctyl Adipate)

ChemFlexx 8 10 Trimellitate

ChemFlexx DOTP (DiOctyl Terephthalate)

Oxsoft 3G8 (Triethylenglycol-di-(2-ethylhexanoate))

Oxsoft DUO 1

Oxsoft DUO 2

 

Phthalates:

Vestinol 9 DiIsononyl Phthalate (DINP)

ChemFlexx 206” Functional Linear Phthalate Replacement

ChemFlexx 208” Low Temp Functional Linear Phthalate Replacement

ChemFlexx DOP (DiOctyl Phthalate)

ChemFlexx DUP (DiUndecyl Phthalate)

DMP (DiMethyl Phthalate)

Brominated DOP

ChemFlexx 9 11 Phthalate

ChemFlexx L9 Phthalate

Styrene monomer:

Styrene pricing increased for November in line with higher benzene values (up $.50/ gallon). NA demand remains slow. +
For more information please contact Robb Roach at robb@thechemco.com

Urea:

Current granular pricing of Urea is US$385- 415/ ton down from $425- $435 in Mid- October. The softening of pricing is associated with a seasonal lull as well as recent excessive imports. –
For more information please contact Robb Roach at robb@thechemco.com
Notes:
Prills are selling at a US$20-$30/ ton premium over granular.
Buyers are expecting even lower prices in the coming weeks.
Massive U.S. acreage is again expected in 2013.

Zinc Borate:

Pricing has been relatively steady Product is in stock and immediately available.

For more information on these or any of the products and services provided by TCC please contact Robb Roach directly at robb@thechemco.com or go to our web site at thechemco.com

Contact:
The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: thechemco.com
Email: Info@thechemco.com

 

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