Issue 24/2021 - Global Chemicals Quick Facts

Asia will lead the growth of the global antioxidant market

IHS Markit's latest global antioxidant market report says the global antioxidant market will grow
at an average annual rate of 3.
5% by 2025.
India will be the fastest growing country in the global antioxidant market, followed by Africa, the Middle East, and Central and Eastern Europe
.
According to the report, China accounted for about 40% of the total global antioxidant consumption in 2020, and it is expected that China will remain the world's largest antioxidant consumer until 2025.
Together, rubber, latex and elastomer applications accounted for 58% of total antioxidant consumption in major regions globally in 2020, followed by applications
such as plastics, food and feed, and petroleum fuels.
Among them, rubber is China's largest downstream market for antioxidants, accounting for about 2/3 of China's total consumption, supporting China to continue to become the world's largest consumer of
antioxidants.

The outlook for the U.
S.
chemical industry in 2022 is promising

The American Chemistry Council (ACC) said in its year-end outlook for the chemical industry that despite the adverse effects of Winter Storm Yuri and Hurricane Ida, the surge in spending following the lifting of the coronavirus pandemic drove demand for chemicals and other commodities and materials, and U.
S.
chemical production increased
in 2021.
ACC forecasts that the U.
S.
chemical industry will be well-positioned for growth in 2022 due to stronger consumer demand and replenishment of inventories to drive expansion, with U.
S.
GDP expected to grow by 4.
4%
in 2022.
In 2021, U.
S.
GDP reversed the 3.
4% decline in 2020 and achieved growth of 5.
6%.

U.
S.
industrial production capacity will grow 5.
5 percent in 2021 and 4.
0 percent
in 2022, driven by a rebound in commodity demand.
Martha Moore, chief economist at ACC and author of the outlook, said: "While global economic risks remain, the U.
S
.
chemical industry will remain strong through 2022.
”

Russian lubricant base oil production rebounded

Recently, Moscow-based consulting firm B2X said that in the first nine months of 2020, Russia's lubricant base oil production was 943,000 tons, compared with a 14% increase to 1.
1 million tons
in the same period this year, driven by increased domestic and foreign demand.
"In September, Russia produced 131,000 mt of base oil, up 39%
from the same period in 2020," B2X said in its latest Lubricants Review.
According to Berlin-based base oil and commodities trading company DYM Resources, Russian base oil exports reached 871,000 mt in the first nine months
of 2021.
The data recorded by the company on the transportation of base oil from Russia overseas by rail and river is the main way in
which base oil is imported and exported to Russia.

Global renewable polyethylene production is insufficient

Pedro Freitas, chief financial officer of Brazilian polyolefin producer Brasco, said global demand for its renewable polyethylene (PE) far exceeds its current capacity
.
Brasco's production process for renewable PE starts with ethylene by dehydrating ethanol, and then polymerizes the ethylene in a conventional plant to make polyethylene
.
Brasco produces renewable ethylene at its Triunfo plant in the Brazilian state of Rio Grande do Sul and plans to expand its renewable ethylene capacity by 30% to 260,000 mt/year
by 2022.
Freitas said there is currently a demand
for 1 million tons in the renewable polyethylene market.
If the company can produce 1 million tons of polyethylene a year with its renewable ethylene, it will be sold out
.
Recently, the company signed a memorandum of understanding with Lummus Technologies to jointly license the technology to produce renewable ethylene
in projects in North America and Asia.