Chemical Industry News – June


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! 



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



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


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.    

Economy Shrinks for the First Time in Three Years



GDP contracts 1 percent

For the first time in three years, the economy contracted in the first quarter due to a harsh winter according to a Reuter newswire report. However, economists say that it is rebounding and shows promise of 4 percent growth in the April-June quarter.

Last Thursday the Commerce Department slashed its estimate of gross domestic product to show that the economy shrank at an annual rate of 1.0 percent.

According to the report this was the worst performance since the first quarter of 2011. It reflected a far slower pace of inventory accumulation and a larger trade deficit than previously estimated.

Weather-related factors are expected to fade and inventories are expected to swing higher, which will boost the output in the current quarter.

Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York said: “The race isn’t over yet for the economy. Things are better than you think. We are still expecting a strong finish to the year.”

The initial GDP estimates predicted a 0.1 percent growth rate. However, it is not unusual to see dramatic revision to GDP numbers from the government, as it does not have comprehensive data when it makes its initial estimates.

Reports from economists estimate that the severe weather could have been responsible for chopping off as much as 1.5 percentage points from GDP growth. The economy grew at a 2.6 percent pace in the fourth quarter of last year.

As investors focused on the brighter second-quarter growth prospects, U.S. stocks traded higher. Prices for U.S. Treasury debt rose, but the dollar fell against most competing currencies.

Liquefied Petroleum Gas (LPG)—U.S. Supplies China

Liquefied petroleum gas tanks

If the pump jacks and wells seen operating in an oil field near McKittrick, California are any indication, the Monterey Shale formation is on the verge of a boom using hydraulic fracturing, or fracking to extract gas and oil.

Sinopec & Pillips Deal

Huge finds of shale oil and gas in the U.S. resulted in a deal between China’s most productive refiner Sinopec and Phillips that could make the U.S. one of the top suppliers of liquefied petroleum gas (LPG) to the world’s biggest user and second-biggest economy.

Although Washington restricts crude oil exports and limits liquefied natural gas (LNG) shipments, sales of liquefied petroleum gas have no constraints.

However, like the U.S. and Europe, China has ambitions to wean itself from energy imports and reduce its overwhelming dependence on coal that has made China the world’s largest contributor to global warming.

Unfortunately for China, the path to energy independence is fraught with obstacles and pitfalls. In China, companies must drill two to three times as deep as in the U.S., making the process significantly more expensive and dangerous. China’s energy companies operate in strict secrecy and accidents allegedly claim a high death toll.

 Jiaoshizhen Valley Rig Explosion

Villagers reported that eight people died when a rig exploded in the middle of the night in the Jiaoshizhen valley, an area so remote that residents speak a dialect that is different from anywhere else in China. Village leaders and Sinopec officials ordered them not to discuss the event.

Until China can overcome these hurdles or find more favorable oil and gas fields, the trade deal between Sinopec and Phillips to supply liquefied petroleum gas could be its best hope of reducing its carbon footprint and dependence on coal.