Chemical Markets Update August

The Chemical Company

The View from Jamestown”
Chemical Markets Update, August 2013

Jamestown Summer Sunrise – Photo by: Robb Roach

 

Chemical Producers Squeezed

WTI Oil pricing has strengthened since early July and despite many pundits opinions about a downward correction, pricing has remained firm.

 

Source: INO.com

Chemical pricing has been relatively stable despite almost two months of a 10-15% higher oil price. The level pricing in chemicals is likely due to a general slow-down in demand on a macro level. Less demand in China and the Summer season along with its shut downs, for those of us in the Northern Hemisphere, on a more micro level. But cost pressure eventually leads to price increases and it appears this cycle has begun.

The strength of oil pricing has started its progress down the chain. Price increase notifications for September have been announced and producers feel they can no longer afford to keep pricing stable. If demand also improves we will likely see the trend of increased pricing continue.

– A Short Message from Robb Roach, TCC President

 

Quote of the Month:

“It is an unfortunate human failing that a full pocketbook often groans more loudly than an empty stomach.”

– Franklin D. Roosevelt

 

In 2013 The Chemical Company is celebrating our 25th year in business and looking forward to 25 more!



 

 

Upcoming Events

www.epca.eu

 

Connect with TheChemCo!

facebook.com/thechemicalcompany
@thechemicalco

 

 

 

 

Downloadable Brochures:

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

 

Product News

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

ChemFlexx 206: Linear phthalate functional replacement for long term outdoor weatherability in vinyl. Avaialable in bulk, split loads, totes and drums.

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

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

Melamine: 25 Kg. Bags and 2,000 lb. Supersacks

Vestinol 9 DINP: TCC offers bulk trucks and split loads (w/ eso or dop) of DINP to North America.

Zinc Borate: TCC now offers Zinc Borate in 25 Kg. Bags in Stock and Immediately Avail.

Ammonium Bromide: 25 Kg. Bags in Stock and Immediately Available

 

Products In Transit/ Available Soon

Bio- Succinic Acid

 

New/ Updated Technical Information:

Alumina Trihydrate

Calcium Nitrate

Dimethyl Terephthalate

Epoxidized Soybean Oil

Maleic Anhydride

Silanes

TDI 80/20

Vestinol 9 DINP

For more updated technical information please visit the Featured Chemicals page.

Please contact Robb Roach at robb@thechemco.com

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

We appreciate your taking the time to review this newsletter. We welcome your comments as well as contributions regarding our readers’ company/industry activities. Please send them to Robb Roach at Robb@thechemco.com

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

 

CRITICAL RAW MATERIALS MARKETS

Benzene: U.S. benzene contracts for August settled up $.10/ gallon to US$4.17/ gallon from US$4.07/ gallon in July. Spot prices are in the $4.35- $4.38/ gallon range so we expect an increase for September. UP

n-Butane: Normal Butane prices are trading in the mid-low to mid US$1.40’s per gallon. Pricing has been trending higher since July. UP

Ethylene: U.S. Contract Price for July has settled at US$.455/ lb. a roll over from June. August has not yet settled. Spot pricing has drifted slightly higher and is currently trading in the mid $.50’s per lb. UP

Natural Gas: The Natural Gas pricing trend continues lower. Prices fellbelow $3.40/ mmbtu in Early Augst. Current pricing is in the $3.60 – $3.655/ mmbtu range. UP

Oil: Current WTI crude has climbed above US$108.00/ barrel! Possibly driven by tensions over Syria and the Middle East?? Oil Trader speculation? Is this the last gasp before a correction? UP

Orthoxylene: August contracts settled up $.03/ lb. to $.64/ lb. UP

Propylene: Contract pricing for August settled at $.70/ lb. for Polymer Grade and $.685/ lb. for Chemical Grade. This reflects an increase of US$.05/ lb. for both Polymer and Chemical grade from July. UP

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

 

CHEMICALS MARKETS

Adipic Acid

Adipic Acid pricing is under some pressure as Benzene prices trend higher. Despite massive over-capacity in China availability in the western hemisphere is balanced. TCC has Adipic Acid in stock and immediately available in 1,000 Kg. Sacks, 500 Kg. Sacks and 25 Kg. bags. UP

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

 

Ammonia

August pricing in Tampa decreased US$55/ ton to $470/. Ammonia pricing has decreased each month for the last 9 months.

 

Antimony Trioxide:

Demand for antimony trioxide remains weak and availability good. Current offers are in the mid $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 strengthened as producers are under pressure and levied an increase. Sea Freight has also increased by 6% effective August 1, 2013. The Chemical Company has both bags and sacks in stock and immediately available. UP

For more information please contact AJ Petrarca aj@thechemco.com.

 

Epoxidized Soybean Oil:

Soybean prices have spiked since mid- August, check thechemco.com for real time soybean pricing on our commodities ticker. Epoxidized Soybean Oil Supply is healthy with competitive activity from new suppliers driving prices.

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

 

Fumaric Acid:

Fumaric Acid Pricing is stable and availability on both domestic and imported material is balanced to tight. No new increases are noted.

For more information please contact AJ Petrarca aj@thechemco.com.

 

Glycol (Mono, Di and Tri):

General: Chinese pricing is up and above the US contract level creating a short term export opportunity. This will likely push prices up in September.

Ethylene: U.S. Contract Price for July has settled at US$.455/ lb. a roll over from June. August has not yet settled. Spot pricing has drifted slightly higher and is currently trading in the mid $.50’s per lb. UP

MEG – Some U.S. producers announced a $.02/ lb. increase for August. Spot prices are up and currently $.48/ lb. fob Gulf. UP

DEG- One U.S. producer announced a $.01/lb. increase for August. Spot prices are in the high $.40’s per lb. fob Gulf. UP

TEG- U.S. producers announced no price change for August. Spot pricing has dropped to the low $.70’s/ lb. range but the downward momentum has stopped as availability tightens on good off-season demand and at least one producer’s turnaround.

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

 

Isophthalic Acid:

PIA pricing has been stable. Supply and demand also remain stable.

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

 

Maleic Anhydride:

Supply is balanced in North America due to turnarounds and producer interruptions. Molten Prices have remained stable despite buyer pressure for reductions. Briquette prices have moved lower on less demand and good product availability. TCC offers Molten Maleic Anhydride to North America and has 25 Kg. bags of Maleic Anhydride Briquettes in stock.

For more information please contact AJ Petrarca aj@thechemco.com.

 

Melamine:

Melamine supply has tightened considerably with OCI on a Force Majeure in July and still struggling to get inventories up. Supply and Demand is the most recent driver of pricing. UP

For more information please contact Javier Fernandez Javier@thechemco.com

 

Malic Acid:

Malic Acid Pricing is stable and availability on both domestic and imported material is tight. 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 August was unchanged at US$1.65/ gallon. Demand is very good. Spot pricing is currently approx. US$1.35- $1.40/ gal. and stable. September pricing is expected to be up slightly or unchanged.

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

Notes:

Gas curtailments in Trinidad are expected to increase in September from their current 5-10%.

YPF (Argentina) has a 45 day maintenance beginning in mid- July.

Lyondell has re-started their Methanol plant (idled 2005) and expects on-spec product starting Q4 2013.

 

Nitric Acid:

Nitric Acid pricing is stable and availability is good.

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 are stable with a quiet methanol market.

For more information please contact Jim Cahill at jimcahill@thechemco.com

 

Phthalic Anhydride:

Phthalic Anhydride pricing will increase by $.03/ lb. in September in line with the August orthoxylene price increase. Orthoxylene will likely continue to increase as oil and aromatics pricing are trending higher with Oil. UP

For more Information please contact Javier Fernandez at javier@thechemco.com

 

Styrene monomer:

Styrene pricing increased slightly for August in line with higher benzene values (up $.10/ gallon). NA demand remains slow. We expect styrene prices to remain stable to slightly up in September. UP

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

 

Urea:

Current Urea granular barge pricing is US$287 – $300/ ton and looking forward firming to $300/ ton for September. Prills are a premium at $330- $335/ ton fob Gulf. Chinese exports have pushed US pricing lower but the export opportunity from China will soon close.

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

 

Zinc Borate:

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

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

 

Plasticizers and Plasticizer Alcohols:

Plasticizer demand world-wide has been stable despite the seasonal Summer slow down. Pricing is under pressure but increases are difficult to pass on due to excessive Asian import offerings. A new increases has been nominated by majors for September 1, 2013. Additional increases are expected as ethylene and propylene pricing continue to move up.

Plasticizer alcohol pricing is stable with lack luster demand and healthy supply.

For more information please contact Forest Goodman at forest@thechemco.com

 

TCC Plasticizers Available:

Note: Some plasticizers have limited availability. Please contact The Chemical Company for further details.

Non – 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

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

Oxsoft DUO 1

Oxsoft DUO 2

Non Ortho Phthalate

ChemFlexx DOTP (DiOctyl Terephthalate)

 

Phthalate:

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)

DMTP (DiMethyl TerePhthalate)

Brominated DOP

ChemFlexx 9 11 Phthalate

ChemFlexx L9 Phthalate

 

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

ATTENTION: TCC will be moving November of 2013. Our new address will be:

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

Leave a Reply

Your email address will not be published. Required fields are marked *