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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.


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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.

DOW stock - The Chemical Company | Chemical Distributor

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!

 

Crane at sunset - The Chemical Company | Chemical Distributor

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.

Full Story 

 

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.

Full Story

 

“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%.

Full Story


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.

Full Story

 

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.

Full Story

 

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.

Full Story

 

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.

Read the Full Story

Chemical Industry News – September

The View from Jamestown - The Chemical Company

Scotland Votes ‘No’ to Independence—Good News for the Chemical Industry

Early Friday morning, Sept. 19, the announcement was made denying Scotland a majority vote for independence. The ‘No’ vote was good news for the chemical industry because business can continue without the interruption of a changing government. Establishing laws and policies concerning everything from taxes and duties to trade agreements and a new currency could have caused a serious downturn in business for the duration of the transition.

Scotland has quietly grown to be a major player in the chemical industry on a global scale, boasting more than 200 chemical companies employing 14,000 people. These companies manufacture £9 billion and export around £3.7 billion worth of goods to the rest of the world every year, making it Scotland’s second top exporter.

FULL ARTICLE

Bayer Announces Plans to Float Bayer MaterialScience as Independent Company

Natasha Alperowicz, a reporter for Chemweek, wrote and article announcing Bayer’s plans to separate its polyurethanes and polycarbonates unit, Bayer MaterialScience (BMS), and float it on the stock exchange as an independent company. If all goes as plans the company will be listed within the next 12-18 months.

Bayer CEO Marijn Dekkers said, “”Our intention is to create two top global corporations: Bayer as a world-class innovation company in the life sciences businesses, and MaterialScience as a leading player in polymers.”

According to Chemweek, Dekkers went on to say that both companies have excellent prospects for success in their respective industries. Employment levels are expected to remain stable over the next few years, both globally and in Germany.

FULL ARTICLE

$3 Billion Natural Gas Project Proposed by Spectra for the Northeast

A Bloomberg article by Jim Polson and Alex Nussbaum announced that Spectra Energy Corp. and Northeast Utilities proposed a $3billion pipeline expansion in New England. This is the latest attempt to fix a natural-gas bottleneck that sent energy prices soaring during a frigid winter.

Tom May, chief executive officer of Boston and Hartford Connecticut-based Northeast Utilities, said in today’s statement, “New England wholesale electricity costs were nearly double compared to the previous year, largely due to pipeline constraints.” He went on to say, “These challenges will remain the same for the next several years, and our customers will feel the effects, if we do not act.”

FULL ARTICLE

Polyethylene—Prices, News and Analysis

Polyethylene (PE) production in Europe has been cut back for many months to avoid oversupply in a fragile market. In China PE prices may strengthen during the third quarter on improved downstream demand, particularly in the food, gift packaging and agricultural sectors. In Southeast Asia, tightness in supply for imported PE resins is expected to continue and could exert upward pressure on prices. In the U.S., PE prices are expected to remain relatively flat.

FULL ARTICLE