BASF Covestro and others smashed 100 billion yuan to seize the Chinese market, and Shengxiao considered closing more factories

With a profit loss, Shengxiao considered closing more factories, involving styrene, PC, PMMA, etc.
;

BASF, Covestro and other foreign giants smashed 100 billion yuan to seize the Chinese market
.

Trinseo considers closing more factories

Involving styrene, PC, PMMA, etc

U.
S.
producer of engineered materials and styrene Shengxiao warned on Tuesday that it was posting a net loss in the third quarter, so the company is considering closing more plants
.

Centrio said third-quarter results were negatively impacted
by several factors.
Historically high natural gas prices led to negative European styrene profits throughout the quarter; Very low customer demand in Europe and Asia, especially in consumer durables and construction applications; In addition, the sharp decline in raw material prices has led to a significant reduction in inventories by customers, mainly polystyrene (PS), acrylonitrile-butadiene-styrene (ABS) and polycarbonate (PC).

Third-quarter net income and adjusted EBITDA also include a one-time pre-tax charge of approximately $23 million
related to raw material contractual obligations and write-down of slow-moving inventory.

Trinsio may take the following actions:

1.
Centrio is currently considering closing its styrene plant in Bologn, Germany, as it has been losing money
for the past few quarters.
The company has begun talks
with Germany's Centrobio union over a possible closure.
Once the plant closes, the styrene required for Trinseo's downstream operations will be obtained
entirely through production at its Terneuzen plant in the Netherlands, as well as external sourcing.
In the 12 months to June 2022, the profitability of the Boehlen plant was approximately minus $30 million
.

2.
Trinseo is currently evaluating steps to optimize the
production and supply chain of polycarbonate (PC) and downstream PC compounds.
As part of the assessment, the company has begun discussions with the plant's working committee about the possibility of closing a PC production line at the company's Stade plant in Germany, which would reduce costs and greatly reduce the risk in the
cyclical commercial PC market.

3.
Due to overcapacity in Europe, the company plans to reduce its styrene-butadiene latex production capacity
in Hamina, Finland, from January 2023.

4.
Centrio is evaluating the restructuring of its polymethyl methacrylate (PMMA) sheet business in North America.

Bozich, President of Shengxio, said: "Despite the challenging macroeconomic situation, our current liquidity position and history of strong cash generation give us confidence
in our ability to continue investing in our growth and sustainability goals.
At the same time, we are evaluating measures to improve our cost position and optimize our global asset footprint to be in a better position
when market conditions improve.
”

Foreign giants smashed 100 billion

Grab the Chinese market

Citing the overseas media "Wall Street Journal", more and more European chemical companies have difficulty predicting their energy consumption and formulating budgets
.
Energy supply, geopolitical conflicts and the current state of the European economy are also affecting the investment plans of multinational chemical companies, and many chemical giants have increased investment in
Chinese projects.

BASF announced that its first plant in Zhanjiang, southern China, started operations in mid-early September, the largest overseas investment to date, totaling €10 billion (69.
3 billion yuan).

Covestro invested tens of millions of euros in two new plants at the Shanghai Verbund site to produce waterborne polyurethane dispersions (PUDs) and elastomers
.
The new PUD plant and accompanying polyester resin production line will be completed in 2024, and the new elastomer plant is expected to be operational
in 2023.

Nippon Bond is located in Zhenjiang Jurong Lingang Industrial Zone Nippon new materials East China regional production base project construction site, 16,000 square meters of steel structure workshop is being hoisted, it is expected that the steel structure of the plant will be topped out in October, and it is expected to be completed and put into production
in the middle of next year.

Evonik announces the upgrade of its R&D site in the Xinzhuang Industrial Park in Shanghai and the official name change to "Evonik Innovation Park Shanghai"
.
After the upgrade, the Shanghai Innovation Park will integrate
basic research, product development, process development, pilot plant, application technology, testing and analysis services and venture capital activities.

INEOS has signed a series of agreements with Chinese oil and gas company Sinopec that represent assets with a total capacity of 7 million tons per year worth nearly $7 billion, including the establishment of a 50:50 joint venture to produce acrylonitrile butadiene styrene
using its unique ABS technology.

AkzoNobel announced the official start of construction of its decorative paint East China logistics base in Songjiang, Shanghai, which will be officially opened in June 2023
.
With an investment of about 75 million yuan, the logistics base is located in Shanghai Songjiang Decorative Paint Factory and is expected to become AkzoNobel's largest logistics base
in China after completion.

PPG Coatings (Zhangjiagang) Co.
, Ltd.
, a wholly-owned subsidiary of PPG in China, is scheduled to complete the third phase of the project in June this year
.
With a total investment of 75 million US dollars (about 533 million yuan), the project covers an area of 174 mu, and will form an annual production capacity
of 145,000 tons of high-performance coatings and 5,000 tons of PVC sealant.

IN JULY, THE ROHM Group announced a new award to Shanghai-based plexiglas.
The molding compound plant is being expanded and is expected to be completed and put into operation
in the second quarter of 2023.

South Korean power battery company LG Chem (LGChem) said it had acquired a 40 billion won (about 200 million yuan) stake in Jiujiang Defu Technology, China's third-largest copper foil maker, to ensure a stable supply of
core battery materials.

South Korean chemical company SKchemicals said it was buying a 10 percent stake
in Chinese polyester waste recycler Shuye Environmental Protection for 23 billion won (about 115 million yuan).

According to the national technology announcement, the company's holding company Inner Mongolia Snow New Material Technology Co.
, Ltd.
signed a capital increase agreement with South Korea's POSCO and Zhejiang Huayou Cobalt, and South Korea's POSCO Chemicals subscribed for the newly added registered capital of the restructured Inner Mongolia Sino with RMB 141 million in cash and acquired 15% of the equity
of Inner Mongolia Sino after the transaction.

CSPC Huizhou Phase III ethylene project "cloud signed"
in China and the United Kingdom.

Total Energies China and Hainan International Economic Development Bureau signed a memorandum of understanding to jointly promote the development of
clean energy business and technology.

Merck's first OLED screen coating material production base in China was officially completed and put into operation
in Jinqiao, Pudong, Shanghai.

Mitsubishi Chemical (China) Management Co.
, Ltd.
signed a contract with the Administrative Committee of Suzhou High-tech Zone to set up a Mitsubishi Chemical Shared Service Center in the zone to intensively manage its business
in China.

According to incomplete statistics, in recent years, foreign capital has invested nearly 100 billion yuan in new chemical materials and other fields, and other chemical giants are also continuing to follow up with investment
.

Whether the heavy investment of foreign-funded enterprises will bring a pull to China's
chemical market, the answer is beyond doubt.
China's chemical industry is mainly concentrated in basic fine chemicals, and the profit is low
.
The support of these foreign-funded chemical leaders will introduce international high-end technology and management experience to help promote the development of domestic related industries, and can also stimulate market vitality, drive the domestic chemical market to improve simultaneously, and even subvert the current chemical industry structure
.
But the disadvantages are also obvious, for localized enterprises, it is a huge impact
.

Let's take a look at the market trend analysis
of 12 plastic raw materials market.

general

plastics

No.
1PP: Narrow range

PP| PE| ABS|PS| PVC| EVA

●Influencing factors●

The guidance of the spot market is limited by the volatile operation of futures, dragged down by the reduction of ex-factory prices of some petrochemicals, the quotations of holders in some regions are loosened, and the center of gravity of transactions has declined
slightly.
Although the market spot resources are not much, the downstream terminal is still cautious in taking orders, and it is difficult to improve
the transaction.

●Aftermarket forecast●

It is expected that today's domestic PP market is weak, taking East China wire drawing as an example to expect the price to run in the range of 7850-8100 yuan / ton
.

No.
2PE: Price falls

PP| PE| ABS|PS| PVC| EVA

●Influencing factors●

PE market prices fell
.
The linear part of North China fell by 50-100 yuan / ton, the high pressure part fell by 50-200 yuan / ton, the low pressure wire drawing fell by 50-100 yuan / ton, and the film material fell by 50 yuan / ton; The linear part of East China fell by 50 yuan / ton, the high pressure part fell by 100-200 yuan / ton, the low pressure film part fell by 50-100 yuan / ton, and the wire drawing, hollow and injection molding parts fell by 50 yuan / ton; The linear and high pressure parts of South China fell by 50 yuan / ton, and the low pressure fell by 30-50 yuan / ton.

Linear futures opened high and fluctuated downward, some petrochemicals lowered factory prices, the trading atmosphere in the market was cautious, traders accompanied the offer shipment, the terminal receiving intention was not high, and the real price focused on negotiation
.

●Aftermarket forecast●

It is expected that today's domestic PE market price is mainly weak, taking LLDPE as an example, the mainstream price is expected to be 7900-8600 yuan / ton
.

No.
3ABS: Weak run

PP| PE| ABS|PS| PVC| EVA

●Influencing factors●

The styrene market sentiment has been slightly repaired, and the low price offers in the ABS market have decreased, but the buying response is flat, spot negotiations are still insufficient, and transactions remain weak
.

●Aftermarket forecast●

It is expected that the short-term ABS market will continue to be weak, and the price of domestic materials will run in the range of 11550-12400 yuan / ton
.

No.
4PS: weak stalemate

PP| PE| ABS| PS| PVC| EVA

●Influencing factors●

The range of raw material styrene fluctuated, PS holders accompanied the market shipments, some grades in the area of poor transportation, related brand prices fell slightly, buyers purchased on demand, the trading atmosphere was acceptable
.

●Aftermarket forecast●

It is expected that the short-term domestic PS market or range will fluctuate, with ordinary GPPS operating range of 9600-10000 yuan / ton, and ordinary HIPS operating range of 10500-11200 yuan / ton
.

No.
5PVC: The atmosphere is calm

PP| PE| ABS|PS| PVC| EVA

●Influencing factors●

The domestic PVC market atmosphere is calm, futures fluctuate in a narrow range, spot trading is not good, participants have a strong wait-and-see mood, and price fluctuations are not large
.

●Aftermarket forecast●

It is expected that today's PVC price will be volatile, and the price range of East China SG-5 will be 6100-6300 yuan / ton
.

No.
6EVA: Weak finishing

PP| PE| ABS|PS| PVC| EVA

●Influencing factors●

Yesterday morning, the domestic EVA market offers were chaotic and downward, the price difference between the grades of soft materials widened, the atmosphere was difficult to boost, the transaction was difficult to increase, the demand did not improve much, and the procurement was mainly
demanded.

●Aftermarket forecast●

It is expected that today's EVA market price is difficult to improve, the price or continue the weak sorting trend, the initial expectation of VA18 content foaming source or 18000-20000 yuan / ton
.

engineering

plastics

No.
1PA6: Stabilize and tidy up

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

The raw material caprolactam spot market trend is weak, the cost side support is not good, the downstream demand is not strong, and the polymerization plant negotiates
shipments.

●Aftermarket forecast●

The short-term PA6 market is expected to remain weak.

No.
2PA66: Weak Run

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

East China's adipic acid market is weak and downward
.
The positive support in the market is limited, there is no news guidance from the supply side, the mainstream traders offer steadily, some profit-taking orders hit the mentality of the industry at low prices, the market center of gravity is soft, the demand side is cautious in entering the market, the atmosphere of inquiry and procurement is light, the willingness to buy is not high, and the trading is weak
.

●Aftermarket forecast●

The short-term PA66 market is expected to run
downward.

No.
3PC: Watch carefully

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

With the stabilization of the bisphenol A atmosphere, the domestic PC market is cautious and wait-and-see, and some prices of sporadic factories were raised in the morning, with a range of 200 yuan / ton
.
The mentality of merchants in various markets is divided and wait-and-see, and some mild atmospheres are presented, which makes some brand offers test higher, and the amount of high-level trading is limited
.

●Aftermarket forecast●

It is expected that the short-term market will continue to pay attention to the impact
of the recovery speed of the low-end market on the trading atmosphere.

No.
4PMMA: Organize the run

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

The center of gravity of raw materials remains stable, particle holders accompany the market offer, downstream just need to inquire, more real orders real talks, and the transaction is
follow-up.

●Aftermarket forecast●

The short-term PMMA particle market is expected to be
weak.

No.
5POM: Weak finishing

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

POM manufacturers have a relatively strong mentality, but in view of the slow circulation of goods in the market, the pressure on the industry's shipments, the mainstream offer fell by 100-300 yuan / ton, the downstream factory operating load is insufficient, there is no short-term procurement interest, and the purchase and sales atmosphere is flat
.

●Aftermarket forecast●

It is expected that the short-term domestic POM market will fall
in a narrow range.

No.
6PET: Weak operation

PA6| PA66| PC| PMMA| POM| PET

●Influencing factors●

Polyester raw material futures prices rebounded slightly, PTA closed up 14 to 5416, MEG closed up 34 to 4038, intraday polyester bottle flake factory quotation is stable, factory spot real order price reference 7700-7900, forward November to December real order price reference 7400-7650
.

●Aftermarket forecast●

It is expected that polyester bottle flakes may continue to be weak in the near future, and the market price negotiation refers to 7100-7500 yuan / ton
.

Source: EPP Materials

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