German-economy -Raw-materials 29-11-2022
Crude Oil Prices Trend
-Redundancy fund for Radici Group’s 318 employees. Causes: price increases and difficulty in finding raw materials
The Novara plant, world leader in the chemical sector, has ordered closure until 8 January
Radici Group has ordered layoffs for the 318 employees of the Novara office from 14 November to 8 January. The causes are to be found in the energy price increases and in the difficulty of finding the raw materials necessary for production.
The annus horribilis for energy prices has also hit the Novara plant, world leader in the chemical sector which over the years has aimed at going green with a 70% reduction in direct greenhouse gas emissions and with the aim of achieving 80% by 2030. Furthermore, in May, Radici Group distinguished itself by giving a gross gift of 1,000 euros to its employees in the Italian offices as support to deal with the increase in energy costs and the cost of living.
Now, however, the crisis has also presented the bill to the company in via Fauser: «The decision to resort to the ordinary zero-hour layoffs for employees is essentially related to the economic and market situation resulting from the persistence of the cost levels of raw materials and energy supplies – say the company -.
We are attentive to the needs of our employees and will continue to carefully monitor the international situation, in the hope that the conditions for restoring normal operations will return as soon as possible”. German-economy -Raw-materials
«Radici Group is a company that needs around 2,100 tons of ammonia per month to work – explains the CGIL general secretary of chemists, Cristian Bertuletti -. After the closure of the largest European supplier – Yara, another Italian company in crisis following the price increases – Radici was forced to turn to the United States, managing, however, to find only 1100 tons of ammonia per month. A situation that forced the 104 employees and 214 workers to Redundancy fund for a total of 318 employees».
-Northwest Europe ammonia-to-hydrogen production costs fall below €10/kg of hydrogen
The ICIS Northwest Europe ammonia-to-hydrogen assessment continued to fall in value on the back of demand for ammonia remaining weak, dropping back below the €10/kg mark for the first time since late June.
The ICIS Northwest Europe ammonia-to-hydrogen assessment fell by a further €0.07/kg to €9.99/kg, now over €2.50/kg lower than the assessment from early October and narrowing its premium to Dutch low-carbon hydrogen production costs .
Ammonia prices remain under pressure as supply outweighs demand on a global scale.
East of Suez, demand is flat and ammonia producers and consumers are not expecting to see any shift in the balance of the market moving through December. January remains a question mark in terms of demand, but a number of sources are bearish about the outlook for early 2023, owing to poor economics for downstream markets, including nylon and acrylonitrile. German-economy -Raw-materials
The US ammonia market also appears to be veering to a more bearish than bullish scenario since urea is so competitively priced against both ammonia and UAN. Unfavourable weather conditions across part of the Midwest have also stalled demand.
The ICIS Dutch TTF front-month contract garnered some support during the week due to cooler temperature expectations set to see a boost in heating demand for the commodity, with storage reservoirs having flipped into withdrawal mode in mid-November.
LNG supply into the region remains plentiful however, there is little rook for additional volumes and Russian pipeline gas flows remain much lower on an annual basis.
Data from ICIS showed that European Union gas stocks began the 24 November gas day with 1,056TWh (99.8 billion cubic metres) in stock, about 94% of total capacity and 34% (270TWh) higher on an annual basis.
-Turkish PE and PP markets to be flooded with Russian raw materials
Turkey’s polyethylene (PE) and polypropylene (PP) markets are expected to be flooded with an influx of Russian raw materials amid European sanctions, sources toldICISon the sidelines of the Plast Eurasia exhibition in Istanbul.
In 2022, the Turkish market saw a significant increase in Russian imports amid sanctions imposed on Russia by Europe after the start of the war in Ukraine.
One of the sources said: “In October, Russian producers sent 100,000 tons to Turkey, they could not find where to sell them.”
Players expect a further influx of imports until 2023, with different sources coming from different sources. German-economy -Raw-materials
There were talks about volumes from 30 thousand to 60 thousand tons of polyethylene and polypropylene, which are expected to be sent to Europe from Russia every month in the new year.
Russian prices have so far been broadly lower than Middle Eastern prices, and Russian producers have taken market share away from traditional suppliers to Turkey, such as the Middle East, the United States and Iran.
The Turkish market is saturated in terms of supplies, and demand is weak, so entering the market of Russian raw materials exacerbates the oversaturation of the market.
However, when receiving Russian materials, some logistical problems arose. One of the sources said they ordered the polymers for delivery in August, but by November they had not arrived.
“There are a lot of delays from Russia, recyclers buy material, but it does not come on time, so they have to buy on spot and pay more,” added one market participant.
-German economy robust, GDP rises by 0.4% in Q3 2022 on Q2
The German economy remains robust overall and the country’s gross domestic product (GDP) rose by 0.4 per cent in the third quarter (Q3) this year on the second, adjusted for price, seasonal and calendar variations, according to the Federal Statistical Office (Destatis). The Q3 2022 economic performance in the third quarter was mainly based on household final consumption expenditure.
The GDP increased, as had been the case in the first two quarters, despite difficult general conditions in the global economy such as the continuing pandemic, delivery bottlenecks, continuing price rises and the war in Ukraine. German-economy -Raw-materials
Gross fixed capital formation in machinery and equipment also supported the economy, Destatis said in a release.
Despite continuing sharp price increases and the expanding energy crisis, consumers took the opportunity to travel and go out more, for example, also in the third quarter of 2022 after nearly all COVID restrictions had been lifted.
Trade with foreign countries went up, despite the difficult international situation. Thanks to the continuing high stock of orders and improved supply chains worldwide, exports of goods and services were up by 2 per cent in Q3 2022 compared with Q2, after price, seasonal and calendar adjustment. The 2.4 per cent increase in imports was even higher than that of exports.
In Q3 2022, the price-, seasonally- and calendar-adjusted gross value added grew by 1.4 per cent in Germany. One of the reasons was the surprisingly positive development in manufacturing.
GDP in Q3 2022 was up a price-adjusted 1.2 per cent and a price- and calendar-adjusted 1.3 per cent from Q3 2021.
-LG Chem Targets Polycarbonate Production Via Carbon Capture
After constructing the 1,000-tonnes/year pilot facility in 2023, the Korean company plans to verify carbon mitigation values and catalyst performance with the intent to expand scope by 2026. German-economy -Raw-materials
Korea’s LG Chem plans to construct an innovative carbon mitigation facility that will produce raw materials for plastics using carbon dioxide to build its foundation to achieve 2050 Net Zero. The company will construct a Dry Reforming of Methane (DRM) facility, which can produce plastics using carbon dioxide captured at the plant and the byproduct gas, methane.
The DRM facility will be constructed as a 1,000-tonne/year pilot plant at the Daesan site of LG Chem in Chungcheongnam Province by 2023. After verifying the process technologies and catalysts developed using proprietary technologies, plans are to expand its scale by 2026.
DRM is a type of carbon dioxide, capture, and utilization (CCU) technology that reduces carbon dioxide emissions by more than 50% while producing resins such as polycarbonates. The company will build this DRM plant using proprietary technologies instead of externally licensed technologies, even developing catalysts essential for carbon dioxide conversion using its own methods. LG Chem is the first in Korea to commercialize DRM facilities using proprietary technology–based processes and catalysts.
Until now, it was challenging to commercialize DRM due to issues with catalyst performance dropping quickly during operation. However, LG Chem applied proprietarily developed processes and catalyst technologies to address this issue, thereby significantly strengthening the durability of catalysts. German-economy -Raw-materials
LG Chem established a new organization dedicated to the catalyst business to internalize catalyst production technologies in 2019. To date, the company has developed and launched catalysts for products such as polyolefin elastomers and carbon nanotubes.
Kuk Lae Noh, President of LG Chem’s Petrochemicals Co., stated, “LG Chem does intend to be bound within the traditional petrochemical industry structure but is continuously striving to take a leading role in carbon mitigation and sustainable innovative technologies in the global chemical industry.”
-Avient launches new tracer technology for garment fibers
In order to assist brands in verifying the information provided on labels, the sustainable material specialist Avient Corporation has introduced a new method to identify the origin of fibers in polyester and polyamide clothing.
Cesa™, a novel fiber tracer technology from Avient Corporation, is intended to assist in confirming the origin of fibers in a variety of applications, such as clothing, sportswear, and home textiles. German-economy -Raw-materials
According to the manufacturer, the new Cesa tracer contains unique taggants that are customized to be specific for each customer and product line and are inserted into fibers during the spin-dying process. Currently, polyester and polyamide (nylon) fibers, including recycled grades, can use it.
The presence of the taggant can then be detected in end-use fabrics and textiles using particular analytical procedures, thereby establishing the provenance of the fibers. Customers who buy tracer concentrates also have access to a testing service bundle.
Mauro Dallavalle, senior marketing manager, Global Fibers at Avient, said that the textile industry’s supply chain is complex, making it difficult for fiber producers and brand owners to trace the textile goods back to them.
He added that this could be a problem when labeling textiles for specific features like “recycled content” or the certificate of origin (e.g., “produced in…,” he continued), as well as in cases of claims. For businesses searching for low-investment taggant technology that doesn’t necessitate the acquisition of specialized equipment but nevertheless offers good traceability and aids in brand protection, our tracer concentrates present an appealing solution.
For recycled grades, fiber producers can use the tracer concentration pellets earlier in the manufacturing process by including them with the recycled polymer content (such as crushed nylon fishing nets or polyethylene terephthalate bottle flakes) before the pellets are extruded. German-economy -Raw-materials
-TES and EWE to build 500MW electrolyser at Wilhelmshaven
Tree Energy Solutions (“TES”), a world-scale green hydrogen company with a mission to deliver on a net-zero future by decarbonising the energy chain, and EWE, one of Germany’s largest integrated utilities, announce the signing of a Memorandum of Understanding (MoU) to build an electrolyser in TES’ Green Energy Hub in Wilhelmshaven, according to TES’s release. German-economy -Raw-materials
The electrolyser is to be installed and operated starting in 2028. The planned capacity of the electrolyser is 500MW and one more unit is planned to reach a total capacity of 1GW. This MoU is in line with Germany’s strategic energy policy to develop clean energy generated by the North Sea and broaden the possible supply for hydrogen. The signing marks a joint interest in delivering national energy security as Germany continues to diversify its energy supply from renewable energy sources.
The hub in Wilhelmshaven is strategically placed on the North Sea coast and can accommodate up to 2GW capacity electrolysers with renewable energy sources such as offshore wind in order to generate locally produced green hydrogen. TES and EWE will both benefit from the synergies like the joint connection to the grid or the utilization of oxygen in other green energy processes.
Tree Energy Solutions (TES) is a global green hydrogen company supplying long term nonintermittent carbon-neutral energy on-demand at industrial scale. TES aims to accelerate the energy transition by unlocking the potential of existing global energy infrastructure to reach customers with green hydrogen, green gas and green power while accelerating the phaseout of fossil fuels from the energy system worldwide and adopting a circular carbon economy. TES is currently developing energy supply and import terminal locations across the Americas, Middle East, Australia and US in volumes that will truly help to decarbonise global markets.
As an innovative service provider, EWE is active in the business areas of energy, telecommunications and information technology. With over 9,500 employees and a turnover of 6.1 billion euros in 2021, EWE is one of the largest energy companies in Germany. The company, headquartered in Oldenburg in Lower Saxony, is predominantly municipally owned. German-economy -Raw-materials
It supplies around 1.4 million customers with electricity, around 0.7 million with natural gas and around 0.7 million with telecommunications services in northwest Germany, Brandenburg, Rügen and parts of Poland. EWE plays a pioneering role in the areas of supply security, climate protection and digital participation.
To this end, the Group is investing over one billion euros in the expansion of the fibre optic infrastructure in the coming years, four billion euros in the construction of new wind power plants and is a leader in the expansion of the hydrogen infrastructure.