May 2017: The View from Jamestown

 

Market Updates

When considering the last few years, the chemical industry has seen a relatively strong start in 2017. What’s driving it forward, and can it continue? Click the image to read more. 

 

Dollars & Cents

$1.00 USD =

0.919 EUR
0.772 GPB
113.924 JPY
19.09 MXN

As of: 5/10/17. xe.com

Product Update

ChemFlexx TOTM

Tri-2-Ethylhexyl Trimellitate

The Chemical Company’s ChemFlexx TOTM is a primary branched monomeric plasticizer for polyvinyl chloride homopolymer and copolymer resins. 

ChemFlexx TOTM is a lasting primary plasticizer, suitable for PVC, cellulose nitrate, ethyl cellulose and poly methyl methacrylate. 

 
The Chemical Company is proud to add Butanol and 2 Ethylhexanol (2-EH) to its expanding product line. See informational product videos on each of the products above. To read more, click the product name.
 

Upcoming Tradeshows & Events

Click any image to schedule a meeting 

Eastern Coatings Show

May 15-18, 2017
Atlantic City, NJ

InformEx 2017

May 16-18, 2017
Philadelphia, PA

APIC

May 18-19, 2017
Sapporo, Japan

 

Oxo-Alcohols Europe

May 24, 2017
Amsterdam, Netherlands

Latin American Coatings Show

June 20-22, 2017
Mexico City, Mexico

 

Southwestern Fertilizer Conference

July 15-19, 2017
San Antonio, TX

Want to schedule a meeting?

What’s Happening at TCC?

The Beavertail Lighthouse Museum Association: 2017 Capital Fundraising Campaign

In June, the Roach Family is sponsoring a cocktail party for The Beavertail Lighthouse Museum Association, as part of their 2017 Matching Gift Capital Campaign. The Association has an outside donor willing to match up to $500,000 in donations collected during 2017. The donations and matched capital will be placed in an endowment for the association to use annually for building maintenance and upkeep.

Although it has been rebuilt, repaired and even moved, a lighthouse has sat at the current location since 1749, on the southern-most tip of Jamestown, Rhode Island. The association oversees the lighthouse and museum’s maintenance and function. For more information about Beavertail Lighthouse or the fundraising event, click the image below.

Chemical Educational Foundation

Rhode Island State Challenge Sponsor & President’s Club Member

Last week, members of the TCC team were on-hand for the 2017 Chemical Educational Foundation’s Rhode Island “You Be The Chemist” state challenge. Sixteen competitors in fifth through eighth grade made their bid to be the Rhode Island State Champion, moving on to the national competition in Washington D.C. in June. For more information, click the image. 

 

 

The Chemical Company

30 Second Commercial Spot: “What Is Chemistry?”

Media Contact: Ben Sawicki
Marketing Coordinator
The Chemical Company
bsawicki@thechemco.com
401.360.2872

April 2017: The View from Jamestown

 

Market Updates

 The Trump Effect
An inconsistent tone and policy plan from President Trump and international leaders has built uncertainty among global petrochemical supply chains. To read the full report from ICIS, click the above image.

RODIS Robot Improves Pipeline Safety
Diakont, a Russian-based company with offices in San Diego, CA, is developing RODIS, a robot with the ability to scan pipelines that have never before been able to be checked. To read the CNBC full feature, click the above image.

Dollars & Cents

$1.00 USD =

0.935 EUR
0.784 GPB
108.412 JPY
18.50 MXN

As of: 4/18/17

Product Update

The Chemical Company is proud to add Butanol and 2 Ethylhexanol (2-EH) to its expanding product line. See informational product videos on each of the products above. To read more, click the product name.
 

Upcoming Tradeshows & Events

PLASTEC New England

May 3-4, 2017
Boston, MA

PLASTEC New England is a comprehensive industry showcase for the latest equipment, products, and services from national and international exhibitors related to the plastic industry. The conference is a forum for industry professionals to collaborate, share knowledge, and improve business relations in the industry.  

APIC 2017
May 18-19, 2017
Sapporo, Hokkaido, Japan

The 2017 Asia Petrochemical Industry Conference focuses on major industry issues happening across Asia and around the globe.
The 2017 conference theme is, “The Promise of Carbon Chemistry: Pathway to a Sustainable Future.”

Want to schedule a meeting?

What’s Happening at TCC?

Congratulations to our Captain’s Choice Recipients!

The TCC Captain’s Choice Award is a special recognition of outstanding performance in the workforce. At the end of each quarter, our staff votes for two employees who have exceeded expectations in sales and customer service.

Josh Savory, Logistics Coordinator – Josh Savory grew up in North Kingstown, RI and graduated from the University of Rhode Island in 2012. Today, Josh is the logistics manager for TCC. He oversees warehousing, repackaging, loading, and shipping, as well as the inventory for the local warehouse. Outside of work, Josh takes the time to enjoy and take in the landscapes that RI has to offer. Fishing, biking, kayaking and spending time at the beach are among his favorite pastimes. 

Tom Ultsch, V.P. Midwest Market – Tom Ultsch resides just outside of Pittsburgh, PA and has been with TCC for the better part of seven years. Today, Tom oversees the Midwest market for The Chemical Company and travels the country to connect with business partners and grow new business in the area.

Chemical Educational Foundation

Rhode Island State Challenge Sponsor & President’s Club Member

 The Chemical Company has partnered with The Chemical Educational Foundation (CEF). CEF organizes the annual You Be The Chemist Challenge®, a nationwide, interactive academic contest that encourages students in grades 5-8 to explore chemistry concepts and their real-world applications.
TCC is proud to be the Rhode Island State Challenge Sponsor, as well as a CEF President’s Club Member. For more information, click the logo to view the RI State Challenge.

 

The Chemical Company

30 Second Commercial Spot: “What Is Chemistry?”

Media Contact: Ben Sawicki
Marketing Coordinator
The Chemical Company
bsawicki@thechemco.com
401.360.2872

The View: Best Of October

What’s Happening At TCC?

K-Show – Guten Tag!kshow-booth2016

For the first time ever, TCC hosted an exhibit at the K-Show in Dusseldorf, Germany. Over 230,000 visitors with ties to the rubber and plastics industry navigated the halls of the Messe Dusseldorf. Our international sales team valued face-to-face interactions with customers and suppliers from around the world and enjoyed the hospitality offered at the U.S. Pavilion Exhibitors lounge. In their spare time, our team explored the city sights, especially the promenade along the Rhine River. 

 


TCC Recently Sponsored Project Scientist’s Charlotte Excursion

“It was an eye-opening day to see such enthusiasm from children as young as five-years-old asking women on the trading floor about their experiences” reflected Jessica Baker, TCC Marketing Manager. “Project Scientist’s emphasis on molding a better future for the next generation is precisely the passion that fueled our team at TCC to start our Love Chemistry campaign.”


The Annual Colorado Hunt

Our crew of customers, employees, and suppliers headed to Colorado this October to enjoy a week outdoors. It was a record-breaking year for the crew as they brought home the largest amount of game in the trip’s history, which will feed many families in the months to come. The week was filled with comradery, early mornings, and plenty of camouflage.


New Videos

skatefest-video-play-ccvideo-play_customer-service


Welcome Jill Goldstein, Our New Customer Service Team Member

Jjill_goldill is responsible for a variety of products at TCC, including urea, melafine, and Nature Flexx 509. Since graduating from college, Jill spent eight years with the Town of Jamestown implementing recreational programs and hosting events for the youth and adults of her hometown. She has lived in Jamestown since she was 13, and currently lives on the island with her six-year-old son, Dylan. She enjoys running, watching the Red sox and Patriots, and Sundays with her family. Jill decided to join the TCC team to make a change that advanced her career. The fact that TCC headquarters is in her hometown was a fortuitous perk. 


 

Several New Additions To The TCC Family: Ray Altenburger, VP Of Business Development celebrated many milestones this summer with his family.

Erin Altenburger married Luke Forster, originally from Australia. Eileen (Altenburger) Gerbay, married to Remy Gerbay and
living in London, are now the proud parents of
Ray’s new grandson, Louis August Gerbay, born on the 4th of July.
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The View: ICIS Top Distributor List, EPCA and Specialty & Agro Chemicals America

Special delivery update: European production is down in August due to vacation, please anticipate delays.


2016 results are in!

The Chemical Company has experienced another banner year. Our success is being amplified in the July 25 release of the ICIS Top Distributors List for 2016. Due to the unwavering dedication and outstanding performance of our team, of which many have been with us for decades, we moved up in the rankings in several categories, and we would like to thank them for their hard work.

Our overall placement amongst top distributors moved up from 128th to 114th. Sales by specific locations were also ranked. Competing in the North American Distributors category, we jumped 16 places from 58th in 2015 to 42nd in 2016. Lastly, we expanded our presence in Latin America this past year and experienced substantial growth in our Latin American operations. Our efforts are reflected by our move up in the rankings from 36th place in 2015 to the 31st spot this year.

As we continue to rise in the rankings through steady, carefully planned growth, we will reap the benefits with a successful future.

The Chemical Company Ranking Results By Year From ICIS

2016 2015
Overall 114 128
North America 42 58
Latin America 31 36
Europe 112 100

View ICIS Published Results Here


Visit Booth 709 at Specialty & Agro Chemicals America

TCC will be exhibiting at the annual Specialty Chem & Agro Show. Our sales team will be available at the two-day networking forum to discuss how to facilitate your unique chemical needs.

Where & When?

September 7th – 9th at the Belmond Charleston Place in Charleston, South Carolina

Why Attend?Charleston-South-Carolina

Specialty & Agro Chemicals America hosts this annual event to promote American based chemical manufacturing and domestic sales. The focus remains on chemical products and technologies with broad end uses to serve a wide range of industries.

Learn more about our extensive product offerings that includes coatings and adhesives and, plasticizers and polymer additives, composites, crop nutrition, and much more.

Contact khagan@thechemco.com to schedule a meeting with the TCC team.


See you at EPCA!

TCC will be attending the European Petrochemical Association’s annual meeting. Our team will be available throughout this event to discuss supply needs and product combinations to better improve your products and supply chain.

Where & When?

EPCA_banner

Why Attend?

This members only event, is an opportunity to join a strong and established association while networking and celebrating EPCA’s 50th year. The focus is on the petrochemical industry, which fuels a multitude of end uses including plastics, automotive parts, electronics and other every day products that serve our daily needs. The annual meeting serves as a unique assembly of industry executives to examine business development opportunities and gain knowledge about the petrochemical market.

Contact khagan@thechemco.com to plan a meeting with us!


Play Fore Playmakers Charity Golf Tournament

Commentary from Jay Munsey, Tournament Director

The 4th Annual Play fore Playmakers Charity Golf Tournament to benefit the Life is Good Kids Foundation (www.ligplaymakers.org) was held on Monday, Jul 18th at the Sterling National Country Club.

The Life is Good Kids Foundation is a non-profit social work organization with a mission to spread the power of optimism to help kids overcome poverty, violence, and illness.

The Chemical Company (TCC) started off the day by sponsoring the Tee-Off Breakfast. In addition, TCC standout Joe Daversa also sponsored a foursome and hosted customers at the day-long event.

Red Sox legend Luis Tiant was also in attendance playing a round of golf and staying for pictures & autographs during the 19th Hole Reception. Luis’ foursome was an online auction item leading up to the tournament and three gentlemen had the honor of being the highest bidders to join Tiant for the day. In addition, there was a professional long ball driver on a par 5 hole from Charity Golf International. Mike Watson, whose longest drive in competition is 447 yards would hit for each foursome as a fundraiser.

The tournament was able to raise about $34,000, thanks in part to sponsors like TCC!

The View: LATAM, Federal Regulations & More

Quote of the Day

“It is our choices that show what we truly are, far more than our abilities.”
—J. K Rowling


TCC Global Expansion—Latin America

Commentary from Javier Fernandez, LATAM Operations

LATAM-V1Over the last decade, The Chemical Company (TCC) has made Latin America a top priority. After considering the state of the industry, free trade agreements, country stability and geopolitical advantages, Central and South America offered a wealth of opportunities. The proximity to large petrochemical complexes on the Gulf Coast was an additional bonus and key factor in the decision to develop this potentially lucrative market.

Driven by a major capital expenditure, TCC placed resources behind hiring and training a team ready to offer personal service and technical expertise to this developing market. The company now offers multilingual service in English, Spanish and Portuguese, as well as other local languages to better serve clients and communicate with suppliers.

Our representatives, sales personnel, and technical support teams also offer years of experience in the chemical industry. They are knowledgeable and familiar with intermediates, polymer additives, active pharmaceutical ingredients (API), solvents and much more to support this development. Our technical team members are also available as a resource to formulate with our customers, giving technical presentations and working closely with R&D personnel.

This international presence has allowed TCC to offer a variety of products in an assortment of sizes with improved shipping and delivery. The expanded marketplace resulted in better bulk, rail, tank and repackaging capabilities in local markets with a network of offices, sales agents, convenient warehousing, and direct shipments to points around the globe.

TCC’s roots, although established firmly in the United States, have expanded to the global business arena. We are proud to have successfully integrated our team into the Latin American marketplace, allowing TCC to truly serve all of “The Americas”.


The Chemical Company and Federal Regulations

Commentary from Dennis Migneault, Regulator Affairs Manager

In the best interests of employees, clients, and everyone associated with the handling, packaging, transport, and use of our products, TCC makes every effort to adhere to current safety standards and comply with federal rules and regulations. All of the products that TCC offers are listed on the Toxic Substances Control Act Inventory. Whenever chemicals are listed on the TSCA Inventory, the substances must meet a number of conditions before they can be sold in the US. TCC staff always conducts thorough reviews designed to comply with federal guidelines.

TCC sent a senior staff member to Washington DC in April for a two-day review of TSCA requirements presented by Dentons US LLP, an international regulatory law firm that TCC has worked with in the past. The comprehensive program included more than ten different speakers. A talk by the acting director of the EPA Chemical Enforcement division reviewed a list of previous enforcement actions along with monetary fines assessed for being in violation of federal mandates. When the participants (40 in total) were asked how many had experienced an EPA audit, two hands went up, one of which was TCC’s, because we passed a successful audit and review of our records and procedures in 2013.


Upcoming Trade Shows & Conferences

SPI Vinyl Formulators Annual Conference
July 10th – 12th 2016 in Palm Beach, FL

Southwestern Fertilizer Conference
July 16th – July 20th 2016 in Austin, TX

Specialty Chem & Agro Show
September 7th – September 9th 2016 in Charleston, SC


June 2016 – TCC Annual Sales Meeting Recap

TCC hosted the Annual Sales Meeting this month in Mystic, Connecticut. Our international sales team, customer service representatives, and producing partners met for presentations and discussions at the Hilton Mystic hotel.

2016 TCC Sales ConferenceNumerous topics were covered during the conference, including:

  • Current Market Strategy
  • Future Expansion Opportunities
  • New Initiatives
  • Digital Marketing
  • Logistics

The event concluded with toasts to the team, producing partners & guests followed by dinner and dancing.

 

The team enjoyed a chance to unwind amongst the vines at Jonathan Edwards Winery Thursday night of the conference.

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During the TCC Sales Conference dinner the final night of the conference, Nick Roach, CEO gave a toast to the team, producing partners & guests congratulating everyone on a successful year! The evening concluded with music and dancing.

Final Night TCC 2016 Conference


The View: Market Commentary & Forecasting

Quote of the Day

“Yesterday’s home runs don’t win today’s games.”
Babe Ruth


New Product Addition: At TCC, we have continued to broaden our product portfolio with the addition of:
n-Butanol
Drums, rail cars and tank trucks are available. Please contact your sales representative for more details.


Market Commentary From TCC CEO, Nick Roach

Nearly fifty years in the oil and chemical industries have allowed me to experience just about every kind of market condition. Whenever a major market swing has occurred, varying forecasts range from dooms day to overly optimistic predictions. I have seen the pendulum swing both ways from the buyer’s side to the seller’s side. In both cases, some get far too greedy. Unfortunately, that is the dark side of the free enterprise system. In my experience, whenever this has occurred, capitalism has stepped in and the demand swing has rectified the situation.

If pricing doesn’t make sense, it won’t last, it’s just that simple. Anyone in business cannot lose money for very long and then start making excessively large returns. We all need to make a profit in order to pay our employees and continue to compete in the marketplace. However, only the companies that have placed themselves in a strong cost-efficient financial position will survive.

Forecasting Reasonable Increases

I believe that the cost reductions of the past two years directly related to oil have bottomed out. Consequently, chemicals will become more expensive. After years of sizeable purchasing savings, we are not planning for future decreases. In other words, I foresee that the markets will continue upward price pressure. In our forecasts, we are anticipating reasonable increases as the overall marketplace stabilizes.

While the market has recently been slower than many projected, my personal research with contractors, realtors, and retailers reveal that the market may have experienced a sudden swing. I sense that the second half of this year will bring an increase in demand. We are optimistic and trust that business will be picking up and the demand for chemicals will be stronger.

We look forward to supplying your requirements and will do everything possible to cover your demands.

Best regards,

Nick Signature

 


Upcoming Trade Shows & Conferences

 

TCC Annual Sales Convention
June 8th – June 11th 2016 in Mystic, CT

PLASTEC East
June 14th – 16th 2016 in New York, NY

SPI Vinyl Formulators Annual Conference
July 10th – 12th 2016 in Palm Beach, FL


LoveChemistry Logo

Campaign Update

TCC has recently held “Kids Be The Chemists Day” at TCC HQ!

Take a look at the event:


Love Chemistry Event

The View: Producing Partner Profile

Quote of the Day

“The secret of success is to do the common thing uncommonly well”.
John D. Rockefeller Jr.


12741984_994067050640966_4699867798735745569_n
Prop 65 Update
: A No Significant Risk Level (NSRL) for Diisononyl phthalate (DINP) will be established effective April 1, 2016. California’s OEHHA announced last week that the NSRL for DINP will be set at 146 micrograms per day.
More Information Here 


Producing Partner Profile: Emerald Kalama Chemical

Emerald Kalama Chemical is an internationally respected corporation focused on toluene oxidation chemistry. Today, Emerald Kalama Chemical is the leading global producer of benzoic acid, benzaldehyde, benzyl alcohol, sodium and potassium benzoate and specialty derivatives such as hexyl cinnamic aldehyde, linear aldehydes and performance additives such as K-FLEX®dibenzoate plasticizers and coalescents.The phthalate-free products are the solution to formulators seeking environmentally friendly options. Additionally, these plasticizers improve the performance of the end-product.


EMP Logo
K-FLEX® plasticizers, modifiers and coalescents are used because of their excellent performance and balance of properties. They are non-phthalate, low in VOCs, and have positive attributes from a product safety and health perspective compared to other choices.

TCC Dibenzoate plasticizers distributor
Pictured left to right: Robert N. Roach Jr. – CEO of TCC, Eric Post – Business Director of K-FLEX® Americas at Emerald Kalama, Jason Butt – Sales Manager of K-FLEX® NAFTA at Emerald Kalama, Robert N. Roach III – President of TCC

The K-FLEX® product line continues to grow, to develop new technology, to expand into new applications, and meet the evolving needs of numerous industries. Many of the products also maintain certain FDA clearances for use in indirect food-contact applications.

One of the key properties of K-FLEX® products is their compatibility with a wide range of polymers, particularly polar materials. This makes K-FLEX® products highly effective in many of the most widely used non-olefin based polymers: vinyl-acetate, ethylene vinyl acetate, acrylic, styrenated acrylic, styrene-butadiene, PVC, polysulphide, nitrocellulose, nitrile, and polyurethane.

These polymers are also used in many end-use applications, including adhesives, sealants, caulks, paint, coatings, graphic arts, resilient flooring, vinyl wall covering and artificial leather.

 

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TCC is proud to be named a distributor for Emerald Kalama Chemical, and we are eager to expand our product offerings to maintain one of the most comprehensive lines of plasticizers in the industry.

Click here to learn more about the TCC and Emerald Kalama relationship


 

Upcoming Trade Shows


2016 AFPM International Petrochemical Conference
March 20th – March 22nd 2016 in Dallas, TX

The Chemical Company will have meeting space available at the Fairmont Dallas Hotel. Please email khagan@thechemco.com to schedule a meeting with a TCC representative.

UTECH North America – Polyurethanes Tradeshow
April 6th – 7 2016 in Charlotte, NC
Visit TCC at booth #318

American Coatings Show
April 12th – 14th 2016 in Indianapolis, IN
Visit TCC at booth #1947

Watch Our Latest Tradeshow Video For More information!


LoveChemistry Logo

Campaign Update

 

TCC has recently launched Spreading the Love of Chemistry Scholarship.

Valentine’s Day has come and gone, but that doesn’t mean we stop spreading the Love of Chemistry. As of March 1st, TCC has successfully launched Spreading The Love Of Chemistry endowment to benefit students attending the Community College of Rhode Island (CCRI) and studying chemistry. This endowment will continue to provide a long-term source of support for students studying chemistry at CCRI and for students awarded this scholarship that continue to study chemistry at four-year institutions.

American Coatings Show Fun Run—Running For Our Love Of Chemistry

The American Coatings Show (ACS) will be hosting a Fun Run on Wednesday, April 13, 2016 from 7:15–8:30 a.m. to raise funds for student participation at future AC Conferences. Several members of the TCC team will be participating on behalf of our Love Chemistry initiative running in an effort to build student participation in chemistry-related events as well as networking with our fellow ACS attendees. We look forward to seeing you run with us.

The View: Product Update For Plasticizers and Polymer Additives


 Quote of the Day

“Always deliver more than expected.”

Larry Page, co-founder of Google


Product Updates: Plasticizers and Polymer Additives

Written by Tom Guadagno, Product Manager of Polymer Additives

DPHP

Perstorp, together with The Chemical Company (TCC), are cooperating in the bulk distribution of Emoltene™ 100 (DPHP) to the American market. Perstorp recently doubled their capacity of 2-propylheptanol to increase material availability and expand their supply footprint worldwide. Perstorp is committed to entering and expanding the American marketplace with Emoltene™ 100.

Click here to learn more

Based on the recent domestic retooling announcement from BASF, TCC will be the best choice to secure a dependable supply chain and avoid interruptions in supply. Lab scale and tote samples are available for approval. TCC will be offering domestically stocked Emoltene™ 100 (DPHP) starting in January 2016.

TOTM

The Chemical Company is the exclusive bulk distributor for Oxea’s TOTM, both stabilized and un-stabilized versions. Oxea is Europe’s largest producer of 2-EH alcohol and is continuously increasing ester capacity to tap into downstream markets. TOTM is a Trimellitate plasticizer based on the C8 alcohol 2-ethylhexanol. TOTM is a low migration plasticizer and is often utilized in high temperature and medical applications. Inventory is currently being built in the United States and bulk loads will be available from a domestic stock starting in January 2016.

TCC had been offering Oxea’s TOTM with door-to-door service up to this point, as baseload volumes were built up. We are excited to offer our customers, and the American market, a quality European source for TOTM. Currently, the America market is supplied through domestic sources and Oxea’s commitment will help diversify supply options for end users.

L9TM

Oxea is now producing n-nonanol (L9 alcohol), and is taking steps to register a linear C9 Trimellitate (L9TM) with the TSCA to supply the American market. Oxea’s C9 alcohol is significantly more linear than the existing material on the market. Therefore, TCC is working in combination with Oxea and TCC customers to register Oxea’s L9TM under a unique CAS number. Oxea believes their alcohol will become the standard for linear 9 alcohols used in plasticizers.

L9TM is being looked at as a replacement to 810TM which has been constrained based on alcohol supply. L9TM is an ideal plasticizer for high temperature applications such as wire and cables, as well as for synthetic leathers. The 8-10 alcohol had been made with coconut oil but recently switched to palm oil, inherently yielding less product. As yields have declined, demand on the 8-10 alcohol has increased as it is being used in higher value markets, such as cosmetics. Oxea’s L9TM is able to fill the gap between supply and demand and give customers a synthetic option which will not be constrained by palm oil harvests and yields. Oxea’s L9TM is showing superior performance based on linearity when compared side by side with the existing material on the market. Samples of L9TM are available for evaluation as TCC prepares to roll out this new product.

Products Immediately Available

Plasticizers

  • Vestinol 9 DINP
  • ChemFlexx DOTP
  • ChemFlexx 911P/ChemFlexx L9P
  • Epoxidized Soy Bean Oil

Acids

  • Adipic Acid: 25 kg, 500 kg and 1000 kg sacks
  • Bio- Succinic Acid: 25 Kg bags

Glycols

  • MEG, DEG, and TEG in Bulk

Silanes

  • Check out our full line here!

Upcoming Events

SOCMA Annual Dinner: The Society of Chemical Manufacturers & Affiliates will host their 94th annual dinner on Tuesday, December 7th at the Crowne Plaza Times Square in New York City. The evening will be full of fine dining and networking among hundreds of specialty chemical industry professionals. Ray Altenburger and Shel Gelman, Vice Presidents of Business Development, will be representing TCC at this event. To schedule a meeting, contact ray@thechemco.com or shel@thechemco.com.

What’s happening at TCC?

NACD Conference Video | TheChemCo.comNACD Certification: The Chemical Company has become an official member of the National Associations of Chemical Distributors. The mission of the NACD is to promote the significance of the chemical distribution industry. Ray Altenburger attended the NACD Annual Meeting in Florida earlier this month. His insight in the importance of responsible distribution is highlighted in the interview below.

 

TCC Takes on Colorado: Robb Roach led the TCC annual Colorado hunting trip this past October. The hunting group sought out elk and deer while capturing breathtaking moments along the way.

Sales Team Trip | TheChemCo.com

 

 

Employee Success (Raph) | TheChemCo.comCelebrations for Coach Cerrato: Raph Cerrato, husband of TCC Office Manager, Kerri McNamara, has been named the head coach of the University of Rhode Island baseball program. Cerrato served as interim head coach for the past year where he led a successful season, including a victory over 11th ranked North Carolina. Kerri and Raph also celebrated their one year anniversary on October 25th. Congratulations Kerri and Raph!

 

The New View From Jamestown: Oil & Petrochemical Pricing


 Quote of the Day
“Without continual growth and progress, such words as improvement, achievement, and success have no meaning.”
 Benjamin Franklin

Industry Update

Written by Tom Ultsch, Vice President of TCC Midwest Market

After bouncing from lows in August below $40, crude oil pricing has declined by 50% since the fourth quarter of 2014. The current price is “hovering” around $46/BBL. Average crude pricing was around $96/BBL during 2014 and should average around $49/BBL in 2015. The main factors causing this change include increased production in North America, worldwide currency shifts and a lackluster economic outlook for China.

The fall in commodity speculation on everything from gold to oil has also had a large impact on pricing. The lower price of crude oil and lower gasoline pricing has stimulated US demand. United States gasoline demand has increased by over 500,000 BBL/day since the same time last year. The slowing Chinese economy has been offset by their increase in strategic oil reserves. These factors are helping offset excess production and have recently caused oil markets to go sideways and stay in the $45-$50/BBL range.

The lower cost of oil has significantly affected petrochemical prices. Olefin values have dropped by 30-40% since early this year, resulting in customers and suppliers closely watching their inventories. Currency changes and relatively stronger North American demand allowed US petrochemical prices to remain higher than in other areas of the world. Over the last month, this disparity has begun correcting itself and any arbitrage opportunities that existed are closing. All of these factors have masked true US demand during the third quarter of this year.

Another factor that has been driving pricing in the petrochemical industry is the dominant role that natural gas and Natural Gas Liquids (NGLs) are playing in North America. The shale gas revolution has transformed the face of the petrochemical industry over the last few years. Stable political and monetary policy has also attracted projects back to North America. This new production is starting to come online and has created more opportunity for downstream production of products. The current dip in crude oil pricing is offsetting some of this economic enthusiasm. The differential in crude oil/naptha values versus the new NGLs has decreased substantially and is causing producers to reexamine remaining with heavier feeds versus converting to lighter NGL feeds for basic olefin production. These discussions are highly dependent on propylene and butylene downstream requirements and their relative values.

 

Products Immediately Available

ChemFlexx DPHP: Bulk loads available for direct shipment

Methanol: Bulk Trucks and Railcars available in North America

Phenol: Available in Bulk and Drums

 

Upcoming Events

APLA: November 7th to the 10th in Cancun, Mexico

2015 NACD Annual Meeting: November 9th to the 12th in Bonita Springs, FL

2015 Chem Show: November 17th to the 19th in New York, NY

 

What’s happening at TCC?


Road Trip To The West:
CEO Nick Roach and his wife, Fran, spent a week travelling west to explore the sights of four different states. Highlights of their trip include visiting Mount Rushmore, Yellowstone National Park, and the Grand Tetons National Park.

Midwest Landscape | The Chemical Company

EPCA: TCC was well represented at the European Petrochemical Association (EPCA) earlier this month in Berlin, Germany. President Robb Roach was among the TCC representatives attending the five-day conference to meet with petrochemical industry professionals.

New to the TCC Team: Alex Azeredo is the Logistics Coordinator for TCC. Alex earned his bachelor’s degree at King University in Bristol, Tennessee. He now oversees freight. His responsibilities include researching reliable carriers to transport our products from warehouse to consumers.

TCC Newlyweds: Javier Fernandez and Angela Diaz were married August 29th in the Dominican Republic. Angela has been with TCC for 6 years and Javier for 5 years. Congratulations to the happy couple!

Wedding | The Chemical Company

Shale Oil & Gas

Athabasca Oil Sands

 

Overview

Shale oil and gas production and prices have dominated the news as they both profoundly affect the global economy and life, as we know it on this planet.

Congress is poised to vote for approval of the long awaited XL pipeline that will bring Canadian crude to southern refineries. Plastics and other industries that produce oil byproducts are taking advantage of the windfall produced by falling crude prices and warehouses are burgeoning with inventory. The price at the pump has consumers ecstatic. For the first time in nearly a decade, they have felt relief from soaring gas prices, leaving them a few extra dollars to spend on other necessities.

But what is happening with this North American oil boom? How long will it last? Does it have a down side?

As all good things, it will not last forever. And yes, it can and does have a down side. Read the opinions of the experts and pundits in the business world to get the picture from their lofty positions in luxurious skyscraper offices.

For an overall realistic view, read the Boston Globe report by Evan Horowitz that addresses the effects of oil prices on all areas of the economy around the globe. How today’s prices could effect the future might surprise you.

 

House Passes Bill to Speed Natural Gas Pipelines
An article by Cristina Marcos in the Hill reports that earlier this week, Congress passed 253-169, the bill allowing automatic approval of natural gas pipelines if federal agencies don’t act within defined timeframes. Under the measure, the Federal Energy Regulatory Commission (FERC) would be ordered to approve or deny a pipeline application within 12 months.

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U.S. Shale Production Hurting OPEC as well as Canadians
A Bloomber article by Robert Tuttle and Dan Murtaugh reports that OPEC isn’t the only victim of the growth in the U.S. shale oil. The increase in Texas and North Dakota shale production is also hurting Canadian producers that are upgrading heavy oil sands into light crude that fetches more from refiners. “The U.S. refining market is being flooded with the light crude, and they wouldn’t necessarily want our light stuff,” said Dinara Millington, vice president for research at the Canadian Energy Research Institute.

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“U.S. Shale Industry May Shrink by 30%,” Ross Perot, Jr.
According to a CNN article by Alanna Petroff the son of the legendary oil magnate Henry Ross Perot Sr. said the recent U.S. shale gas boom was “unsustainable,” and now it’s time for a bust.

Perot predicts that crude oil prices could slip below $40 per barrel. That would shut down 20-30% of the U.S. shale industry as the falling price makes production to expensive.

“Crude prices are trading around $47 per barrel, but were trading over $100 in June” Perot said.

His comments come as a growing number of oil companies announce cuts to jobs, production and investment.

Baker Hughes (BHI) revealed plans to slash 7,000 jobs and cut capital spending by 20%.

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As IMF Cuts Forecast, Oil Continues to Fall; Iran Hints at $25 Oil
A Reuters report by Barani Krishnan said that oil fell as much as 5 percent after the International Monetary Fund cut its 2015 global economic forecast and key producer Iran hinted prices could drop to $25 a barrel without supportive OPEC action.

Traders said that Genscape, an analytics firm monitoring U.S. oil stocks reported a 2.6 million-barrel build last week in Cushing, Oklanhoma, the delivery point for the U.S. crude futures contract, adding to the market’s bearish sentiment.

The trade group American Petroleum Institute and the government’s Energy Information Administration will release issue their data tally a day late, delayed by a holiday on Monday.

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Speaker: Shale Oil, Gas Has Transformed the Plastics Industry
Senior staff reporter for Plastics News, Jim Johnson, wrote in an article that Phillip Karig is not saying that the shale gas boom is over.

Nonetheless, the managing director of Mathelin Ba Associates LLC, a plastics industry consulting firm, wants people to know that today’s truths are not necessarily the same as tomorrow’s.

Karig remembered life in the plastics world a decade ago to prove his point that things can, and do, change.

“Think back 10 years ago. Common knowledge back then was U.S. energy production had peaked. There was nowhere for oil and gas prices except up. Imported resins were going to flood the U.S. Plants were going to shut down. And no one in their right mind was going to invest anything in new polymer production capacity,” Karig said.

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Declining Oil Prices: A Windfall for Plastic Packaging
A Zacks Equity Research article said “Falling oil prices” are ruling the headlines nowadays, a paradigm shift from oil prices hovering around $100 per barrel for the past few years supported by surging global demand, particularly in China.

While falling oil prices have created mayhem for industries like energy, the plastic packaging industry enjoys a strategic position in the marketplace to capitalize on the situation. Deteriorating oil prices will not only provide a cost tailwind but will also boost demand due to the increasing disposable income at the consumer level.

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What’s Really Happening to Oil Prices?
Boston Globe staff writer Evan Horowitz reports with an impartial, realistic hand concerning the state of the oil market. The article covers the ecstatic cheers from consumers as oil dipped under $50 and gave the entire economy a booster shot, leaving everyday people with a few leisure dollars to squander as they wish.

However, Horowitz was quick to present the dark side as well. Falling prices are having a profoundly negative effect on the largest business of all, the oil industry itself. And the repercussions are being felt around the globe. The oil industry in the big oil-rich countries like the United States cannot function without high prices. Additionally, cheap oil reduces any incentive to go green, and will surely slow the transition to renewable energy.

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