Issue 13/2022 - Global Chemicals Quick Review

Global Chemicals Quick Review

Geopolitical conflicts have become a new long-term risk for the chemical industry

Recently, retired General Stanley McCristow, who led the U.
S.
Joint Special Operations Command during the wars in Afghanistan and Iraq, said in a keynote address at the annual meeting of the American Chemistry Council (ACC) that local geopolitical conflicts are not an isolated event, they illustrate global turmoil
.
"It's a shift
from the old to the new," McCristor said.
The selection of an American general as the keynote speaker at the high-profile ACC Annual Conference highlights the impact
of geopolitical conflicts on the chemical industry.
McCristor pointed out that global hotspots and countries are dealing with serious economic challenges, the era of globalization and just-in-time supply chains is over, and the global chemical industry will continue to cope with the disruption
of oil, gas and feedstocks in a turbulent new era.

U.
S.
oil and gas midstream companies are investing in ethylene

Enterprise Products, a U.
S.
oil and gas midstream company, is evaluating a $5 billion investment in a 2 million mt/year ethane cracker
near Beaumont, Texas.
In April, Enterprise Products said that a new 1.
5 million mt/year ethane cracker in the U.
S.
would generate $1 billion more profit
than a naphtha cracker in Europe based on current economics.
Other oil and gas midstream companies are also considering entering ethylene production
.
In May, Energy Transfer Partners said it was evaluating a cracker project along the Gulf Coast and was in talks with customers to secure a long-term charging agreement
before making a final investment decision.
In March, KBR announced that it had received a contract from an undisclosed oil and gas midstream company to build a new world-scale olefin plant on the U.
S.
Gulf Coast capable of producing 2.
4 million tonnes of light hydrocarbons
per year.

The global plastics and rubber industry machinery market landscape is changing

Recently, data released by the European Plastics and Rubber Industry Machinery Manufacturers Association (Euromap) showed that global production of plastics and rubber machinery increased by 13% in 2021, with a market value of a record 38.
6 billion euros, of which China's cash realization was particularly prominent, with a 15%
increase in production.
European machinery manufacturers for the plastics and rubber industry achieved below-average growth of 11%, and although this means that they continue to account for the largest share of global production, the data also clearly shows that the global plastics and rubber industry machinery industry has changed
in recent years.
In the past, Europe's share was 45%; In 2021, China's exports of plastics and rubber industry machinery increased by 28.
2% year-on-year to 5.
7 billion euros, becoming the largest exporter of plastics and rubber industrial machinery for the first time, bringing Germany, which increased exports by 9.
4% year-on-year to 5.
2 billion euros, to second place
.

South Korea's base oil exports rose sharply in May

Recently, data released by the Korean Customs Administration showed that South Korea's base oil exports rebounded in May, increasing by nearly 20% year-on-year to 379182 tons, ending the trend of monthly exports in the first quarter of this year being flat or declining year-on-year, an increase of 10% from 344927 tons in April, and returning to about 379,520 tons in March, which was the highest level
this year.
South Korea's base oil exports also rose nearly 50 percent to $478.
4 million in May, up 25 percent from $381.
8 million in April and breaking the $400 million mark
for the first time this year.
As one of the major base oil exporters, most of South Korea's products are exported to markets around the world, generating considerable profits
for Korean refineries.