Asia VAM supply to grow in Nov; falling feedstock weighs on market

Asia’s vinyl acetate monomer (VAM) supply is expected to grow amid increased production in China, with further market pressure likely to come from falling prices of ethylene and acetic acid.

Europe LPG-based cracker margins drop, naphtha-based stay flat

European contract cracker margins based on liquefied petroleum gas (LPG) fell week on week on higher feedstock costs and lower ethylene prices. Margins for naphtha-based crackers were largely flat.

K 2019: Mechanical, chems recycling key to achieve circularity

Mechanical recycling has benefits over chemical recycling, but both will be required for a successful circular plastics economy, according to the CEO of Austria’s polyolefins and fertilizers major Borealis. Alfred Stern said lower processing temperature, less complexity and more developed infrastructure make mechanical recycling the first choice for Borealis, though limits on its use mean that chemical recycling will be required to further boost recycling rates.

Valuation gap between specialty and commodity deals widens

The valuation gap between specialty chemical and commodity chemical assets is widening as buyers become more selective, an investment banker said on Friday. “There is a pronounced valuation difference between specialty chemicals and everything else, and it’s getting wider as we get later in the cycle,” said Omar Diaz, managing director at investment bank Seaport Global Securities.

Asian Paints inks deal with Mahindra Logistics

Leading paints company, Asian Paints, has entered into an agreement with Mahindra Logistics to strengthen its supply-chain in Eastern India. According to a media release, Mahindra Logistics will be handling the regional distribution centre measuring one lakh square feet at Dankuni in West Bengal and the first leg of distribution from this facility. The services will be backed up by technologies for transport and warehouse management.

Pipeline transport of chlorine is here

The problems of the Indian chlor-alkali industry have remained largely unchanged for some time: the high cost of electricity, which accounts for a significant portion of operating costs; the inability to get a reasonable value for chlorine due the lack of options; the challenges on transportation of the hazardous gas, sometimes over large distances on dismal Indian roads; and the threat of cheap imports of caustic soda thanks to a lowering of tariffs.

Germany's hike in electricity levy ‘counterproductive’ for climate protection

Germany’s move to raise the surcharge it levies on electricity consumption ("EEG Umlage") by about 5.5% next year is “counterproductive for climate protection”, Frankfurt-based chemical producers’ trade group VCI said on Tuesday. The EEG-Umlage helps fund the country's transition towards renewable energy sources (Energiewende).

Eurozone, German economic sentiment continues to slip, chems post modest growth

Economic sentiment in Germany and the eurozone slipped in October, according to economic research group Zew on Tuesday. Zew said its indicator of economic sentiment for Germany fell 0.3 points compared with the previous month, to give a reading of minus 22.8 points, which is sell below the long-term average of 21.4 points.

Carlyle acquires 37% of Spain’s Cepsa, appoints CEO

US private equity fund The Carlyle Group has completed the acquisition of 37% of Cepsa, appointing Phillippe Boisseau as CEO of the Spanish energy and petrochemicals major. The transaction was announced in April. Cepsa was previously 100%-owned by Abu Dhabi’s investment fund Mubadala.

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