Crude Oil – PET-bottle-resin 08-02-2022 - Archive
Crude Oil – PET-bottle-resin
-Oil edges toward $100 per barrel
Main crude benchmarks hit their highest levels in seven years amid supply concerns
Oil prices continue to move toward the $100 a barrel threshold amid growing supply concerns, as OPEC and allied producers are slow to boost output. Ransomware attacks on German storage facilities and winter storms in the US are also pushing prices higher. Crude Oil – PET-bottle-resin
European benchmark Brent Crude closed around $92.8 per barrel on Friday, its highest level in more than seven years, surging 1.8%. European oil majors Shell and BP also rallied on Brent gains, jumping 3%. Shell earlier reported that its annual profits quadrupled in 2021.
The Brent rally followed ransomware attacks on two German fuel storage facilities, Mabanaft and Oiltanking, earlier this week. A number of other storage sites across Europe also reported IT issues, but those have not been confirmed as related to the attacks in Germany.
Meanwhile, US benchmark West Texas Intermediate (WTI) also hit its peak since 2014, jumping nearly 2% and topping $91.9 a barrel. Experts link the gains to the winter storm that enveloped central and northeast regions of the US on Thursday and partly stalled oil production in the Permian Basin, the US’ largest shale site. Both benchmarks on Friday were on course for a seventh consecutive weekly gain.
Cyberattacks reported by European energy companies
Oil has been on the rise recently amid supply concerns and growing tensions between Russia and Ukraine, which could threaten Europe’s energy supply. Also, investors have not been happy with cautious steps to boost oil output taken by the Organization of the Petroleum Exporting Countries and allies (OPEC+), including Russia. Crude Oil – PET-bottle-resin
-Renewed weakness period in US economy seen at 2022 start: IHS Markit
US gross domestic product (GDP) grew in the fourth quarter (Q4) of 2021 at an annualised rate of 6.9 per cent, up from 2.3 per cent in Q3. That translates into a 1.7 per cent quarter-on-quarter gain after a 0.6 per cent rise in Q3. IHS Markit feels though the US economy grew at an impressive pace in Q4 2021, a renewed period of weakness is being signalled at the start of 2022. Crude Oil – PET-bottle-resin
Growth should pick up again as the omicron wave fades, but the degree to which growth can accelerate is uncertain given various headwinds to the economy, London-based IHS Markit said in a note.
Barring the 33.8 per cent surge seen in Q3 2020 as the economy opened from the initial pandemic lockdowns, this was the fastest rate of expansion since 2000. The strong end to 2021 also closes off the United States’ best year since 1984 and lifts GDP by 3.1 per cent above its level reached just prior to the pandemic.
The upturn was broad-based, with solid expansions of both consumer spending and business investment. Exports and inventories also contributed to the impressive performance. Crude Oil – PET-bottle-resin
The growth spurt has already faded, however, according to flash purchasing managers’ index (PMI) survey data from IHS Markit, which slumped lower in January amid the omicron wave. Sharply rising COVID-19 infections led to a near-stalling of the economy in January according to the survey responses, with rates of expansion close to stagnation in both manufacturing and services.
-Supplies recovered for some materials to start 2022, others remain turbulent
North American prices for polypropylene and suspension PVC resins fell in January, after PP and polyethylene prices also declined to close out 2021. Regional prices for PET bottle resin, however, saw a surprisingly large price hike in January.
PP prices were down 3 cents in January after slipping a total of 28 cents in November and December. Market sources said the January drop came from lower producer profit margins because prices for polymer-grade propylene feedstock surprisingly were flat for the month. Crude Oil – PET-bottle-resin
PP prices were down a total of 40 cents in the last four months of 2021 after seeing huge price hikes since early 2020.
“We’re seeing customers have more [PP] inventory than they’ve had in the past,” said Gerard Selvaggio, a partner at New York City-area PP distributor Blue Clover LLC Polymer Solutions. “Plus they’re less concerned about supply being there because of weather issues.”
Market sources said that although capacity utilization for North American PP was only around 80 percent in November, record levels of PP imports are affecting prices and supplies. Some of this material was ordered earlier in 2021 but didn’t arrive until later because of shipping delays.
Even with the late-year declines, PP prices are up a net of 39.5 cents since December 2020. North American PP supplies will get a boost in 2022 when Inter Pipeline Ltd.’s Heartland Petrochemical Complex brings more than 1 billion pounds of new capacity online in Strathcona County, Alberta. Crude Oil – PET-bottle-resin
PVC recovering
Regional suspension PVC prices also dipped 3 cents in January after being flat in December and taking a surprising 5-cent jump in November. Prices for the material increased 31.5 cents in 2021 and a net of 47 cents since January 2020.
A major reason for tight second-half supply conditions was the PVC sector’s ongoing recovery from Hurricane Ida, which hit the Louisiana coast in late August. Major plants operated by Shintech Inc., Formosa Plastics Corp. USA and Westlake Chemical Corp. all were shut down for periods of time.
U.S. housing start activity slowed in late 2021. Construction activity is a main driver of PVC consumption. Units were started at a 1.52 million annual rate in October, according to the U.S. Census Bureau, down less than 1 percent vs. September and essentially flat when compared with October 2020.
A PET surge
North American PET prices surged upward 12 cents in January after being flat in December. That major hike was caused by severe supply tightness and higher feedstock costs as well as by freight and logistics challenges.
“Our balance is beyond tight right now,” one PET supplier said.
As with PVC, the impact of Hurricane Ida has been seen in PET. A resin plant operated by DAK Americas in Bay St. Louis, Miss., lost some production after the storm, tightening supplies in an already tight market. PET prices were up 26 cents in 2021.
PE, PS stable
Average selling prices for PE slid 5 cents per pound in December. That marked the third consecutive 5-cent drop seen in the PE market.
The October drop was the first seen in 17 months, as prices had jumped starting in early 2020 when pandemic-related demand couldn’t be met because of weather-related production outages. Crude Oil – PET-bottle-resin
“Demand is still strong [for PE], but some of it is a backlog from buyers who were holding off while waiting for lower prices,” one resin distribution executive told PN. Although PE prices dropped 15 cents in late 2021, the market finished the year up a net of 28 cents, according to the PN resin pricing chart.
Speed is of essence for an EU comprehensive semiconductor investment plan, as other regions move ahead.
CLEPA publishes a policy guide with concrete actions to ensure the success of the upcoming EU Chips Act. Crude Oil – PET-bottle-resin
The chips shortage continues to pressure industry and presents a significant to existential challenge for automotive suppliers, highlighting the need for a dedicated semiconductor strategy and tangible action from policymakers. European automotive suppliers welcome the European Commission’s initiative for an EU Chips Act, due to be published 8 February , and present four concrete actions to make the EU’s semiconductor strategy a success.
During 2021, the global production of 9.5 million vehicles was delayed due to a shortage of semiconductor chips[1]. Although this year could show a modest recovery of global light vehicle production, supplier and market estimates still forecast, on average, production losses of 4 to 6 million vehicles.
The EU’s automotive industry is disproportionately affected by the current semiconductor shortage.
One out of every four cars that wasn’t able to be produced last year due to the shortage, would have been produced in the EU. Crude Oil – PET-bottle-resin
As a result, the EU’s share in global light vehicle production dropped from 18.6% in 2019 to 15.8% in 2021[2]. Further to light vehicle production, disruptions in the production of trucks threatens essential areas of EU supply chains. Automotive is responsible for 37% of the demand for semiconductors in Europe [3], compared to 10% globally [4], highlighting that a successful strategy to foster a strong European industry for microelectronics should build on a central role for automotive suppliers.
The ongoing shortage highlights the need for a coordinated industrial and innovation EU policy that allocates substantial public investment and creates the right conditions for private investments to strenghten the semiconductor ecosystem and increase production capacity. CLEPA, the European Association of Automotive Suppliers, supports the EU’s commitment to adopt an EU Chips Act, but stresses the need for substantial investment beyond the commitment made so far. Where other regions have pushed ahead with comprehensive semiconductor investment plans, policy initiatives and investment commitments by EU governments are significantly smaller and lack in coordination and focus.
If the EU takes too long to provide clarity on the investment framework, companies interested to invest in the EU, may instead look elsewhere, and there are signs that this is already happening. Crude Oil – PET-bottle-resin
Global production shortfall of nearly 10 million vehicles in 2021 highlights urgent need for EU Chips Act
-Microban strikes distribution agreement with Rifra Masterbatches
Microban International, a developer of antimicrobial product protection technologies, has announced a new distributor agreement with Rifra Masterbatches, a producer of tailor-made additives – such as colour or various complexes – used to process plastic products. Crude Oil – PET-bottle-resin
The two companies share a goal of providing novel masterbatches with antimicrobial properties, to be able to offer their injection, blow moulding, extrusion, and compounding customers more choice in solutions.
Rifra Masterbatches has provided various additives to the packaging, building, medical device, E&E, and toy industries for over 40 years and, from its very earliest origins, has thrived on the philosophy of addressing the needs of its customers. The company has recognised an increasing interest in including antimicrobial technologies into plastics – especially in the heightened awareness of the current COVID-19 pandemic.
Antimicrobials have always been of interest for manufacturing companies but adding them into products can be challenging and is fraught with regulatory loopholes. Microban has a wealth of expertise in incorporating built-in antimicrobial protection into an array of products and has a similar customer-focussed approach to Rifra. The partnership will begin as a distributor agreement, but both parties look forward to exploring further opportunities for the co-development of unique additive products which will combine features and simplify formulations.
Giorgio Rimini, director of business development for Europe at Microban, said: “We are particularly excited about partnering with Rifra Masterbatches.
It is a global player in the plastic additives field with an extremely bright future, and we look forward to discovering some really exciting prospects on the horizon together.” Crude Oil – PET-bottle-resin
-KARL MAYER And Hua Yu Zheng Ying Group: Leading In China’s Warp Knitting Industry
Several Corona waves, supply chain bottlenecks and unforeseen problems such as sudden power rationing in China have caused difficulties in the global textile market in recent years. The highly competitive shoe fabric fabric market has been particularly affected by the difficulties. Crude Oil – PET-bottle-resin
Here, only those are successful who react quickly and flexibly meet customer requirements, combine quality with efficiency, hold their own in globalized markets and drive innovation. The Hua Yu Zheng Ying Group (Hua Yu) shows how this can be done. The RD 7/2-6 EN double needle bar raschel machine from KARL MAYER demonstrates what is needed to achieve this.
Hua Yu is a leading warp knitting company based in Jinjiang City, and is one of the first users of the high-performance RD machine. The RD 7/2-6 was launched in 2019 specifically to be more competitive in the shoe fabric market. Just two years later, the newcomer has established itself as the machine of choice among manufacturers worldwide.
Strengthening competitiveness with quality and efficiency
Hua Yu was founded in 1989 and produces warp knitted and knitted fabrics in a vertically integrated process chain with man-made fiber, yarn and textile production as well as finishing and dyeing. More than 400 modern warp knitting machines, including 170 double needle bar raschel machines from KARL MAYER, are running in the warp knitting mill. Crude Oil – PET-bottle-resin
The output is more than 20,000 t of functional textiles per year. This makes Hua Yu one of the leading companies in the warp knitting sector in China, and one of the largest producers of spacer fabrics in the country.
Crude Oil – PET-bottle-resin
