Chemical Industry News – June

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A Message from CEO Nick Roach

The Chemical Company regularly imports chemicals from around the world.  When doing so there are numerous regulations that must be adhered to in each country.   So prior to any import we have to do the research to assure that we are in compliance with all regulations.  In the USA there are chemicals where it is quite simple to confirm which regulations apply and we can complete importation rather promptly.  There are other chemicals that are banned substances that cannot be imported.  Finally there are chemicals that require very special procedures in order to import.

In all there are as many as ten federal departments that could be involved when importing products into the US.  The fines can run into astronomical numbers if you are in violation.  One federal department has fines of $37,000 dollars per day for violations and a minimum fine of $2,600.00 if you don’t check the correct box on the import form.  It is extremely important that experts handle documentation when importing any quantity of chemicals or chemical blends

The Chemical Company has bolstered our regulatory department with the addition of Dr. Dennis Migneault a PhD chemist.  Dr. Migneault is on staff to review and qualify imports world-wide.  Dennis works with all levels of our company at making sure that we conform to all regulations when shipping a product in the US or internationally.  This not only protects our company, it also protects our customers and suppliers.

The Chemical Company provides additional protection to companies dealing with us so we won’t make a mistake that could cost you millions of dollars.  So when customers request information on us for an import your patience is appreciated.   This is part of our effort to protect our company, your company, and our suppliers from the consequences of improper chemical handling.

Welcome Dennis Migneault
V.P. International Compliance

The Chemical Company Enhances Regulatory Support

The Chemical Company has taken two steps to enhance support of Regulatory Compliance in company activities.  Dennis Migneault has been brought on board in a regulatory compliance support position of  VP International Compliance.  Dennis formerly worked in a Quality Control/Quality Assurance positions at Pfizer Inc. for 23 years.  Dennis’s responsibilities will include reviewing supply decisions for compliance with TSCA and FIFRA as well as developing product specifications, MSDS’s, and COA’s for TCC products.

Pat King and Dennis Migneault attended a two day TSCA program in Washington D.C.  The program was offered by McKenna, Long and Aldrich, a firm which served as consultants during the recent EPA audit of TCC.  Topics covered included EPA Enforcement actions, the TSCA existing substances list, and reporting requirements.  Weekly TCC staff meetings will start with a brief Compliance/Safety presentation.

Welcome David Xue
V.P. of Asia Operations

The Chemical Company bolsters it’s Asia Operations

The Chemical company has added David Xue as V.P of Asia Operations to enhance our established relationships and grow new relationships with dignity and respect for the cultures of Asia.  David will help manage Growth in our Asian Product portfolio and greater demand from our customer base to service their chemical requirements with safety and competitive pricing.  David is a native of China but has lived in the United States since College.  He has worked for some of the largest chemical companies in the world during his career but courted The Chemical Company for a long term position focused on growth with the countries of Asia.  David is a China expert but has relationships beyond main land China.  Welcome David! 

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Product News

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

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

Bio- Succinic Acid:                                              2,000 lb. supersacks and 25 Kg. Bags Available Now!

Citric Acid:                                                        Food Grade 25 Kg. bags and 1,000 Kg. sacks in stock and available now.

Dicyandiamide:                                                    25 Kg. Bags and 2,000 lb. supersacks in stock and available now!

Epoxidized Soy Bean Oil:                                      TCC offers bulk trucks, drums and totes to North America.  In stock and available now.

DiOctyl Terephthalate (DOTP):                              TCC offers bulk trucks of DOTP to North and South America.

Malic Acid:                                                        25 Kg. Bags in Stock and Available Now!

Maleic Anhydride:                                                25 Kg. bags of USA produced briquettes available now!

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

Phthalic Anhydride:                                              25 Kg. Bags and 1,000 Kg. sacks in stock and available now.

Tetrabromo Phthalic Anhydride (TBPA):                  1,000 Kg bags in stock and available now!

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

Urea:                                                                 Prilled and Feed Grade in 25 Kg. and 1,000 Kg. bags in stock and available now.

 

CRITICAL RAW MATERIALS MARKETSRaw Materials Legend - The Chemical Company

Benzene: U.S. benzene contracts for June settled down $.09/ gallon to US$4.48/ gallon from US$4.57/ gallon in May.  Despite the decreased pricing U.S. pricing remains the highest in the world.  Less avail. due to lighter feeds.  

n-Butane:  Normal Butane prices are currently trading in the low US$1.20’s/ gallon.  Pricing has trended slightly lower recently.  

Ethylene:   U.S. Contract Price for May settled up $.0025 to $.47/ lb.  UP

Natural Gas: June NYMEX Henry Hub settled at $4.619/ mmbtu.  Pricing has seen strength over May’s $4.359/ mmbtu.  Current NYMEX pricing is US$4.736/ mmbtu.  UP

 

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Oil: WTI crude pricing is strong and trending higher.  Current pricing is trading above $105/ barrel.  Will the US begin to export crude?   UP

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Orthoxylene: June contract pricing rolled at US$.575/ lb.  

Propylene: May contract pricing settled down $.005/ lb. to $.705/ lb. for Polymer Grade and $.69/ lb. for Chemical Grade.    

Chemical Markets Update – December

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Prices and Lead Times Rising in China

Our office in Nanjing has passed along information that should be of concern for any companies sourcing in China.  Lead times are increasing for shipments on good local demand and production issues.  Also freight pricing has increased sending the cost of landed goods higher.  Finally increasing regulatory awareness and the costs associated with filing and keeping records up to date has also pushed prices higher.

Please keep in mind that the Chinese Spring Festival Holiday is Feb 9th  to the 15th this year.  Shipments from China are often affected for weeks prior to and after this very important holiday.

We suggest filling the pipeline with orders now!

The Chemical Company has operated our Nanjing office for 10 years now.  Our pricing and service from China are second to none.  If you are currently sourcing in China or considering it please confer with The Chemical Company.

 

The Chemical Company will be closed on New Year’s Day.

Otherwise we are open every day!

 

Potential Reforms in China

It is no surprise that much of Asia was interested in what might come of China’s Third Plenum, a high level meeting in November among China’s top leadership. First impressions from clients in Asia (as well as our own initial thoughts) was that while plans may sound good, it initially sounded like more of the same rhetoric. That observation may not prove to be entirely true.

It was initially reported that Chinese leaders decided to pursue various financial reforms, including a resolve to have the market “play a decisive role in allocating resources.” In addition there is talk of land reform and expanding urbanization of the society. Presumably this will help to reduce the disparities between rural and urban Chinese, while at the same time encouraging domestic consumption. While this is all interesting, there is little that is new in this discussion. Typical of large bureaucracies, the party statement (as quoted by Reuters) indicated that a team would be “designing reform on an overall basis, arranging and coordinating reform, pushing forward reform as a whole, and supervising the implementation of reform plans” with results expected by 2020. Our client feedback was that it was perhaps just the creation of one more bureaucracy.

There are a number of reforms, which if properly implemented may alter the current landscape. The reform that has been noted very generally, but has garnered a lot of attention, is the reduction of government input regarding resource allocation and letting the market “play the decisive role.” However, on the other side of that discussion, there are reportedly efforts to take on the problems of industrial overcapacity. Requests to acquire land for the production of products when there are already low plant operating rates (such as in the steel industry) would be denied.

We will see how this plays out in the markets, particularly since so much of the current situation in China continues to weigh on the rest of Asia. China walks a fine line between needing strong growth to create jobs, while at the same time trying to control inflation and fence in a speculative real estate sector. While plans may sound good, proper execution is needed to make a difference between achieving the stated goals for 2020 versus the entire effort simply becoming more of the same.

Reprinted with permission from RXN Petrochemical Consulting Inc.

Copyright ©2013 by RXN Petrochemical Consulting Inc.  All rights reserved.

For more information please email info@rxnpetrochem.com.

 

 Quote of the Month:

“No amount of experimentation can prove me right; A single experiment can prove me wrong.”

– Albert Einstein

The Chemical Company Celebrating our 25 Year Anniversary!

 

 

December is the final month of The Chemical Company celebrating our 25th year in business!  Looking forward to 25 more!

 

 

 

 

 

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Informex January 2014

 

 

Product News

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

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!)

Maleic Anhydride:            25 Kg. bags of USA produced briquettes available early 2014.

Bio- Succinic Acid:          2000 lb. supersacks and 25 Kg. Bags Available Now!

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

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

 

 

New/ Updated Technical Information

Alumina Trihydrate

Calcium Nitrate

Dicyandiamide

Epoxidized Soybean Oil

Maleic Anhydride

Silanes

TDI 80/20

Vestinol 9 DINP

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 hyperlinked to their own information page.**

Critical Raw Materials Markets Raw Material Trends Legend

Benzene:   U.S. benzene contracts for December settled up $.385/ gallon to US$4.485/ gallon from US$4.10/ gallon in November.  Spot prices are in the $4.76- $4.94/ gallon range.  Contract pricing for January is expected to increase some $.30- $.40/ gallon.  UP

n-Butane:  Normal Butane prices are trading in the US$1.30’s per gallon going as low as $1.31/ gallon in December.  Pricing has trended lower throughout December and maintained its price below November’s price average of US$1.45 per gallon.  

Ethylene:  U.S. Contract Price for November increase $.0125/ lb. to $.4625/ lb.  Recent trades are in the mid $.50’s per lb.  UP

Natural Gas: NYMEX NG pricing has steadily moved higher throughout December.  Current NYMEX pricing is US$4.43+/- per mmbtu. January NYMEX settled at $4.46/ mmbtu the highest settlement since July 2011.  Low inventories due to cold weather is blamed.   UP

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

Oil: WTI crude has moved steadily higher in recent weeks to the current US$100.57/ barrel.  Demand is good in North America but less demand in Asia is noted.  UP

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

 

Orthoxylene: December contracts settled at US$.60/ lb. a rollover from November.  It is speculated that prices will remain flat for January but increase as the driving season approaches.  

Propylene: Contract pricing for December settled at $.705/ lb. for Polymer Grade and $.69/ lb. for Chemical Grade.  Up US$.04/ lb. from November.   UP

 

 

Chemicals Markets

Acids:  Most acids remain relatively balanced.  Adipic pricing has moved higher with benzene price increases.  Malic and Fumaric remain tight on excellent demand and limited butane based availability.  Recent increases in Naptha in China has pushed their production costs higher.

Methanol:      MNDRP remains at US$1.90/ gallon for January.   

Plasticizers:   Increases for branched plasticizers of US$.03 and US$.05/ lb. have been announced for 1/1/14. UP

Urea/ Ammonia: Ammonia is set to roll over for January at $450/ met ton cfr.  Urea pricing has risen steadily to its current US$340/ ton fob.  Pricing is expected to continue to rise as we move into high demand season. UP