ADNOC’s agreement to buy Covestro ahead of next week’s European Petrochemical Association (EPCA) annual meeting highlights the challenges and opportunities facing Europe’s beleaguered chemical industry.

- Abu Dhabi National Oil Co (ADNOC) to acquire Covestro for equity value of €11.7 billion

- ADNOC diversifies downstream from oil and gas

- Covestro global leader in polycarbonate (PC) and polyurethenes (PU)

- PC and PU struggles with poor demand from automotive, construction

- Covestro operating profit slumped from around Euros3bn in 2021 to near euros 1bn in 2023

- Covestro boasts strong sustainability-related product portfolio

- More M&A likely in Europe petrochemicals thanks to cheap bottom of cycle valuations

- Oil prices may collapse to $30/bbl if OPEC goes for market share

Connect with ICIS at EPCA 2024 in Berlin. ICIS will host a presentation at 2pm on Wednesday 9 October at Potsdam I, InterContinental Hotel.

Ahead of the approaching European Petrochemical Conference (EPCA) in Berlin 7-10 October, ICIS editors discuss market conditions in a variety of solvent markets.

- Market updates on methyl ethyl ketone (MEK), methyl isobutyl ketone (MIBK), isopropanol (IPA), phenol, acetone, toluene, mixed xylenes, glycol ethers and propylene glycol ethers, butyl acetate and ethyl acetate.

- Trade flows and impact of freight rate movements

- Overcapacity versus low demand levels

- Upcoming maintenance programmes

In this episode, Jane Massingham talks to editors Nick Cleeve, Jane Gibson, Zubair Adam, Cameron Birch and Marion Boakye.

Ahead of the approaching European Petrochemical Conference (EPCA) in Berlin 7-10 October, ICIS editors discuss market conditions in the olefine and derivative chain.

- Market updates on propylene, ethylene, polypropylene (PP), polyethylene (PE), monoethylene glycol (EG), ethylene oxide (EO), polyvinyl chloride (PVC), acrylonitrile, monopropylene glycol (MPG) and oxo-alcohols

- Trade flows and impact of freight rate movements

- Overcapacity versus low demand levels

- Upcoming cracker turnarounds

In this episode, Jane Massingham talks to editors Nel Weddle, Vicky Ellis, Melissa Hurley, Chris Barker, Nazif Nazmul and Nicole Simpson.

LONDON (ICIS)--Players down the oxo-alcohols value chain are preparing for EPCA where discussions are set to take place against a backdrop of low visibility, economic concern and persistently subdued demand.

· Post-summer demand disappointing across the board

· General availability sufficient although individual producers face some supply constraints

· Players’ expectations for 2025 closely linked to outlook for general economy and key construction and automotive industries

Oxo-Alcohols editor Nicole Simpson speaks to Acrylate Esters editor Mat Jolin-Beech, Glycol Ethers editor Cameron Birch and Butyl Acetate editor Marion Boakye about the current market and expectations for early 2025.

With some economists now forecasting a recession in China, chemicals executives should analyze the possible impact on their businesses.

- China’s economy at a turning point, possibility of recession in 2025

- New government stimulus measures announced today

- Lack of domestic demand makes China reliant on export-driven growth

- Other markets increasingly resistant to Chinese exports, put up trade barriers

- Further slowing of China’s economy will increase global overcapacity pressure

- Chemical companies need to plan for scenario of stagnant China economy

• Volatile gas prices illustrate a finely balanced market
• Tight ammonia availability; some scheduled maintenances expected
• Unexpected gas related shutdowns in Egypt short-lived; India urea tenders boost sentiment
• Certain factors support global urea market despite thin demand in Europe
• Demand in China showing signs of recovery before National Day holiday (1-7 October)
• China's average melamine operating rates hovering around 60%, market to track urea costs

Additional reporting from market reporter Joy Foo, Senior Editor Sylvia Traganida, Deputy managing editor Deepika Thapliyal, Markets Reporter Joy Foo and Energy Market Reporter Lars Hoeylo Kjoellesdal.

SINGAPORE (ICIS) -- Asia's fatty alcohol mid-cuts prices may be near the ceiling as demand from Europe is expected to wane after October, given the looming EUDR or EU Deforestation Regulation which starts on 30 December 2024.

Meanwhile, east Asian and south Asian linear alkylbenzene (LAB) markets remained in the doldrums despite expectations of an improvement in September. The weak performance of the crude oil and upstream markets since July have weighed on sentiment and led to caution among buyers.

• Limited spot availability to lend support to the mid-cuts C12-14 prices near term
• Heavy fatty alcohol plant shutdown schedule in September-November in Asia
• LAB market could potentially improve on upstream revival
• Elevated mid-cut alcohols market could prompt switching to LAB

In this chemical podcast, ICIS editors Helen Yan and Clive Ong discuss recent market conditions with an outlook ahead in Asia.

September’s hoped-for post-summer revival has been a blowout for Europe’s polyethylene (PE) and polypropylene (PP) markets, and this upturning of what used to be a surefire seasonal trend is typical of 2024.

In this latest podcast, European PE and PP editors Vicky Ellis and Ben Lake take stock of the year so far and are joined by ICIS senior polymer analysts Lorenzo Meazza and Umberto Torresan to pick out key themes for the rest of 2024 and 2025.

They touch on the challenge of unpredictable events, changing demand trends, unplanned disruption, as well as the huge number of plants coming online around the world.