The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas August 8, 2018

Weekly Market Update: August 8, 2018

TCC’s Weekly Raw Materials Update: August 8, 2018.

Ethylene

Higher
Aug MtB-NOVA traded at 15.5cpp, offered up to 16cpp

Benzene

Higher
Priced DDP HTC at 296cpg

Propylene

PGP
Aug PGP traded at 60cpp

RGP
Aug RGP bid at 42.45cpp, with no offers

Brent Crude Oil

Slightly higher
$74.65/bbl
Oct ICE Brent

Crude Oil

Slightly higher
$74.65/bbl
Sep ICE Brent

Natural Gas

Higher
$2.897/mmBtu
Sep NYMEX Natural Gas

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas August 8, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company U.S. China Tariffs Update

Chinese Tariff Update & Chemical Industry Implications

Chinese Tariffs & The Impact on the Chemical Industry. Content updated as of 8/1/2018.

The chemical industry has been evaluating, and bracing for the potential impacts of President Trump’s announced tariffs on Chinese imports for a few months now. As new developments occur, categories of products are excluded from tariff lists or granted lighter tariffs, businesses must plan the best they can to absorb or pass through the additional costs associated with increasing cost of goods sold.

The Chemical Company’s regulatory department is closely monitoring tariff announcements, and will update this web page as announcements, developments and deadlines are met.

 

What’s happening?

President Trump has announced tariffs following the Section 301 Investigation performed by the USTR with the rationale of protecting U.S. business interests in response to business practices of the Chinese state and some of its’ companies. As of this article, there are three installments to this tariff list.

 

List 1: 25% Tariff on 818 items from China

Tariff “List 1” includes virtually no impact on the chemical industry. There is one section including isotopes and another two lines on rubber articles, but the bulk of this list includes electrical and mechanical machinery.  This list is considered final and its’ tariffs are fully in effect as of July 6, 2018.

The product exclusion request deadline for List 1 products is October 9, 2018.

Click here for the full Federal Register Submission, and see Annex A.

 

List 2: 25% Tariff on 284 items from China

Tariff “List 2” includes more products surrounding the chemical industry, and is anticipated to take effect September 2018. Items included on this list are six lines of lubricating oils, two lines of lubricating oil additives, as well as a variety of “plastics, including those mixed with plasticizers”. In addition, there is more mechanical equipment listed in this tariff list.

Click here for the full Federal Register submission, and see Annex C.

 

List 3: 10% Tariff on 6,031 Items from China

“List 3” is the heavy hitter on the chemical industry, and is scheduled to take effect October 2018. Sections 28, 29 and 38 have the heaviest impact on the chemical industry. One of the most notable products included in this list is Dicyandiamide, a product only produced in volume in China, an important import for agricultural applications.

As of this article, 21 of The Chemical Company’s core products are included on this list. For a detailed list and up-to-the-minute pricing, please contact your TCC sales representative, or contact us here for general product or quote information.

Hearings are scheduled to take place August 20-23, 2018, with final comments and rebuttals due by the end of August.

Click here to see the full Federal Register submission, with the list including the full annex of the submission.

 

The Miscellaneous Tariff Bill: Passed (verbally) by the U.S. Senate on July 26, 2018

The Miscellaneous Tariff Bill is slated to reduce, or wipe out tariffs on products that may help reduce costs to U.S. businesses and consumers, with three key requirements to be considered:

The bill states: “A decision of the commission on whether or not to include an item in the Miscellaneous Tariff Bill starts with determining:

1. The duty suspension or reduction can likely be administered by U.S. Customs and Border Protection;
2. The estimated loss in revenue to the United States from the duty suspension or reduction does not exceed $500,000 in a calendar year during which the duty suspension or reduction would be in effect; and
3. The duty suspension or reduction is available to any person importing the article that is the subject of the duty suspension or reduction.

The congressional committees may exclude from a miscellaneous tariff bill any petition for a duty suspension or reduction for reasons including that the petition is the subject of an objection from a Member of Congress; or it is for an article for which there is domestic production.”

The Miscellaneous Tariff Bill grants exclusions to two of the 21 products that TCC manages directly.

The Chemical Company will continue to monitor the tariff updates and impacts across the chemical industry. For more information or direct product information, send us an email by clicking here, and send to the attention of Matthew Francoeur / EH&S Department.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 31, 2018

Weekly Market Update: July 31, 2018

TCC’s Weekly Raw Materials Update: July 31, 2018.

Ethylene

Flat-to-Higher
Jul MtB-NOVA bid at 14.25cpp, offered at 14.5cpp
Aug MtB-NOVA bid at 14.00cpp, offered at 15.00cpp

Benzene

Slightly higher
Priced DDP HTC at 292cpg

Propylene

PGP
Jul PGP bid at 60cpp, offered at 63cpp
Aug PGP traded at 60.5cpp

RGP
Jul RGP bid at 42.25cpp
Aug RGP bid at 42.25cpp, offered at 49cpp

Brent Crude Oil

Higher
Wednesday: $74.97/bbl
Sep ICE Brent

Crude Oil

Slightly higher
Monday: $70.13/bbl
Sep NYMEX WTI Crude

Natural Gas

Flat
Wednesday: $2.797/mmBtu
Sep NYMEX

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 31, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 25, 2018

Weekly Market Update: July 25, 2018

TCC’s Weekly Raw Materials Update: July 25, 2018.

Ethylene

Flat-to-Higher
Jul MtB-NOVA traded at 14.5 & 14.75cpp
Aug MtB-NOVA bid at 14.25cpp, offered at 14.875cpp

Benzene

Higher
Priced DDP HTC at 288cpg

Propylene

PGP
Jul PGP bid at 59cpp, offered at 62cpp

RGP
Jul / Aug RGP bid at 42.45cpp, offered at 48cpp

Brent Crude Oil

Higher
Wednesday: $73.93/bbl
Sep ICE Brent

Crude Oil

Higher
Wednesday: $69.30/bbl
Sep NYMEX WTI Crude

Natural Gas

Flat
Wednesday: $2.775/mmBtu
Aug NYMEX

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 25, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 5, 2018

Weekly Market Update: July 5, 2018

TCC’s Weekly Raw Materials Update: July 5, 2018.

Ethylene

Higher
Jul MtB-NOVA traded at 14.125cpp

Benzene

Flat last week
Priced DDP HTC at 283cpg

Propylene

PGP
Jul PGP ended at 56cpp

RGP
Jul RGP last traded at 41.5cpp

Brent Crude Oil

Flat
Thursday: $77.39/bbl
Sep ICE Brent

Crude Oil

Flat-to-Higher
Monday: $73.66/bbl
Aug NYMEX WTI Crude

Natural Gas

Flat-to-lower
Thursday: $2.837/mmBtu
Aug NYMEX Natural Gas

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 5, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 2, 2018

Weekly Market Update: July 2, 2018

TCC’s Weekly Raw Materials Update: July 2, 2018.

Ethylene

Slightly higher
Jun MtB-NOVA bid at 13cpp, Offered at 13.75cpp
Last traded at 12.625cpp

Benzene

Flat, to slightly higher
Priced DDP HTC at 284cpg

Propylene

June Propylene contract price up 8cpp for June

PGP
June PGP offered at 55.75cpp, no bids

RGP
June RGP last traded at 42cpp

Brent Crude Oil

Higher this week
Friday: $79.44/bbl
Aug ICE Brent

Crude Oil

Futures higher this week
Friday: $74.45/bbl
Aug NYMEX WTI Crude

Natural Gas

Flat-to-lower
Monday: $2.924/mmBtu
Aug NYMEX

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas July 2, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas June 20, 2018

Weekly Market Update: June 20, 2018

TCC’s Weekly Raw Materials Update: June 20, 2018.

Ethylene

Slightly lower
Jun MtB-NOVA bid at 12cpp, offered at 12.875cpp
Last traded at 13.5cpp

Benzene

Lower in June
Priced DDP HTC at 280cpp

Propylene

RGP
June PGP bid at 54cpp, offered at 58cpp

RGP
June RGP bid down to 39cpp, last traded at 42cpp

Brent Crude Oil

Futures higher this week
Monday: $65.85/bbl
July NYMEX WTI Crude

Crude Oil

Futures lower this week
Monday: $75.34/bbl
AUG ICE Brent

Natural Gas

Flat-to-lower
Monday: $2.951/mmBtu
July NYMEX

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas June 20, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas June 5, 2018

Weekly Market Update: June 5, 2018

TCC’s Weekly Raw Materials Update: June 5, 2018.

Ethylene

Ethylene was slightly higher, up to 15.625cpp
Flat so far in June

Benzene

Benzene is flat-to-lower recently
Priced DDP HTC at 294cpp

Propylene

RGP
June PGP up to 61.125cpp

RGP
June RGP also up to 42.00cpp

Brent Crude Oil

Futures lower this week
Tuesday: $75.29/bbl
AUG ICE Brent

Crude Oil

Futures lower this week
Tuesday: $64.75/bbl
July NYMEX WTI Crude

Natural Gas

Flat-to-lower
Tuesday: $2.93/mmBtu
July NYMEX

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas June 5, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.

The “New Norm” of Logistics, Downstream Effects on the Chemical Industry

A variety of factors drives the specialty chemical market and chemical industry as a whole. Material availability, price fluctuations, geopolitical issues on a local and global scale and more, all contribute to cost changes, either for or against profitability. However, all potential hiccups to a production timeline are at the mercy of the transportation & logistics industry, one that accounts for 10 cents of every dollar in the U.S. economy (Donald Broughton / MSN).

The first half of 2018 saw unprecedented changes across the logistics industry. The average age of truck drivers continues to sit around the age of retirement, approximately 65 years old, an age that continues to skew older as ELD mandates are fully enacted, and today’s millennials choose not to enter the logistics marketplace. This tightness is clearly reflected in the rising cost of dry van trucking, raising the spot price from $1.41 in 2014 to $1.85 per mile in 2018 (MSN).

As of April 1, 2018, ELD Mandates proposed and enacted by the Federal Motor Carrier Safety Administration (FMCSA) officially went into effect, meaning drivers found out of compliance may be ticketed, and placed out of service until their trucks comply. Acutely opposed to significant industry changes, many older drivers have chosen to retire or find other work rather than submit to a new way of working, an issue that continues to push drivers out of the market faster than they are coming in.

Unforeseen and unprecedented shortages of OTR (over-the-road) freight options has pushed capacity onto railroad transportation, a medium that saw 6.5% growth in March 2018 compared to the same period in 2017. While railroad may be a savior for particular products or transportation lanes, it is a slower mode of transport, and often requires much further advanced planning and processing, which some shippers aren’t able to provide.

Nearly all goods manufactured, produced and/or sold in the United States are aboard a truck or rail car at some point in their lifespans, whether as early-on raw materials or as last steps before reaching end consumers. In many situations, and especially in the specialty chemical market, goods are moved multiple times as they go from raw materials to usable pieces or portions of final, consumer-ready products.

No industry or product category is exempt from these assumptions, whether it is produce, children’s toys, technology, agricultural or farming product or quite literally, anything else one might see in a shopping mall, industry wholesaler, or grocery store.

A comment from Donald Broughton of Broughton Capital published in a recent report on MSN stated, “Logistics and transportation account for almost 10 cents of every dollar in the U.S. economy. If there is a 10 percent increase in transportation costs, that gives you a 1 percent increase in inflation for the broader economy. That’s real.”

The logistics market is accustomed to tightening and easing market conditions like weather, seasons, seasonal product demand, and available truckers fluctuate. The current major issues in today’s freight market, however, don’t appear to be tightening market conditions. The market seems to be entering the new norm of the logistics industry for what will likely be years to come.

 

References
www.MSN.com

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas May 24, 2018

Weekly Market Update: May 24, 2018

TCC’s Weekly Raw Materials Update: May 24, 2018.

Ethylene

Ethylene last traded Tuesday at 14.5cpp
May was bid at 14cpp, offered at 16cpp
June bid at 14.25cpp

Benzene

Benzene continues to be flat this week
Last priced DDP HTC at 297cpp

Propylene

RGP
May PGP traded up to 53cpp
Up from 51cpp last week

RGP
May RGP bid down to 35.5cpp, offered up to 41cpp

Crude Oil

Flat-to-higher this week

Wednesday: $71.84/bbl
(June NYMEX WTI Crude)

Natural Gas

Slightly higher this week

Wednesday: $2.914/mmBtu
(June NYMEX Natural Gas)

Weekly Market Review

The Chemical Company Weekly Market Update Benzene Ethylene Propylene PGP RGP Crude Natural Gas May 24, 2018

TCC produces weekly market review graphics, with content courtesy of PetroChem Wire. This information is distributed via TCC’s social media pages, including Facebook, Twitter, LinkedIn and Instagram, as well as posted to The View section of the website, and occasionally published via email with other market updates.