Issue 20, 2022 - Global Chemical Essentials Quick Facts

Global Chemical Highlights Quick Overview

The global rubber processing chemicals market is slowing down

According to Standard & Poor's Global's recently released Global Rubber Processing Chemicals Report, global rubber processing chemical consumption recovered slightly in 2021 – just over 1.
5 million mt with a market value of $6.
2 billion after the pandemic declined in 2020.

Geopolitical conflicts, ongoing global supply chain disruptions, and possible recessions in many economies around the world could hinder further recovery in the rubber processing chemicals market in 2022
.
In 2021, China was the world's largest consumer of rubber processing chemicals, accounting for nearly half of global consumption, and is expected to maintain this position
from 2022 to 2027.
However, due to China's increasing focus on sustainable development and environmental issues, the rubber processing chemicals, rubber industry, and downstream automotive, tire and other rubber products industries have slowed down, and the rubber processing chemicals market has entered a new stage
of development.

European chemical producers cut production in response to market difficulties

Recently, Hartwig Michels, president of the European Petrochemical Association (EPCA), said that the weak market environment, low production margins and the easing of supply chain problems may open Europe to cheaper imports, forcing more chemical producers in the European region to cut operating rates
.
Michels said weakness in many chemical markets is expected to continue into next year or beyond
.
On the one hand, after the planned and unplanned supply disruptions of chemical enterprises in the first half of this year, supply will return to normal in the second half of 2022; On the other hand, consumer confidence in the eurozone has fallen to record lows
.
The chemical market began to be oversupplied in the second half of 2022 and will continue into 2023, resulting in chemical production margins below the healthy levels reached in the first half of
the year.
As a result, producers may be forced to reduce operating rates
.

India has again extended import certification for chemicals and polymers

Recently, under pressure from domestic end-user industries that rely on imported raw materials, India has decided to extend the deadline for mandatory certification of imports by the Bureau of Indian Standards (BIS) for a wide range of chemicals to March-April
2023 。 Among them, acrylonitrile butadiene styrene copolymer (ABS), dichloroethane (EDC) and vinyl chloride monomer (VCM) will be postponed until March 12, 2023; paraxylene (PX), polycarbonate (PC) and polyurethane will be postponed until March 19, 2023; Ethylene-vinyl acetate (EVA) copolymers, linear alkylbenzene (LAB), polyethylene (PE) materials for molding and extrusion, synthetic microfibers and various types of polyesters will be postponed until April 3, 2023; Maleic anhydride (MA), styrene and acrylonitrile will be postponed until April 24
, 2023.
Previously, India had been delayed by a one-year BIS mandatory certification deadline for imported chemicals and petrochemicals as domestic companies said compulsory certification could lead to higher costs and delayed
import deliveries.

Demand for lubricants in Japan rebounded

Recently, data released by the Ministry of Economy, Trade and Industry showed that Japan's consumption of finished lubricants in August increased by 79% year-on-year to 122,000 tons, and production increased by 31% to 197,000 tons
.
From March to June this year, Japan's monthly lubricant production exceeded 203,000 tons, and then fell to 192,000 tons
in July.
Japan's imports of finished lubricants in August fell 31% year-on-year to 14,300 mt from 18,700 mt last year, the lowest level
since 14,500 mt in January.
Japan's lubricant exports fell 13 percent to 55,300 mt in August from 63,700 mt last year, the lowest level
since 57,300 mt in January.
The Bank of Japan said in its Q3 Economic Activity and Price Outlook that the Japanese economy has recovered as the impact of the coronavirus pandemic wanes, despite factors such as rising commodity prices
.