China manufacturing activity slumps to two-year low - Caixin PMI

Caixin’s China manufacturing purchasing managers’ index (PMI) fell to 48.1 in March from 50.4 in February, as output faltered on the back of lockdowns in several cities to curb COVID-19 outbreaks, said the company.

A PMI reading above 50 indicates expansion in the manufacturing economy, while a lower number denotes contraction. March production at Chinese factories posted its steepest contraction in 25 months, while new orders fell at the sharpest rate since February 2020 on waning domestic and foreign demand, Caixin said.

"The pandemic, and difficulties shipping items to clients, as well as greater market uncertainty due to the Ukraine war had dampened sales," it said. Greater market uncertainty and lower sales led firms to cut back on their purchasing activity, though the rate of contraction was only marginal, Caixin said.

At present, China is facing the most severe wave of outbreaks since the beginning of 2020," said Wang Zhe, senior economist at Caixin Insight Group. "Policymakers are facing double challenges of ‘precision’ - improving the level of precision of epidemic control measures, to strike a balance between maintaining the normal order of production and life and guarding safety and health of the people; ensuring fiscal policy and monetary policy are implemented precisely,” Wang added.

Both domestic and overseas demand fell. A subindex for new orders declined at the sharpest rate since February 2020 when China grappled with the first wave of virus outbreaks, leading to a 6.8 per cent contraction in gross domestic product in the first quarter of 2020.

We remind, the Caixin China General Manufacturing PMI unexpectedly rose to 50.4 in February 2022 from 49.1 in the previous month, which was the lowest reading in 23 months, beating market consensus of 49.3. The improvement came as output expanded for the third time in the past four months.

Also, the Caixin China General Manufacturing PMI fell to a 23-month low of 49.1 in January 2022 from 50.9 in December, missing market consensus of 50.4.
mrchub.com

North American chemical railcar traffic rose for a seventh straight week, according to data for the week ended 26 March from the Association of American Railroads (AAR).

For the first 12 weeks of 2022 ended 26 March, North American chemical railcar traffic was up 5.2% year on year to 562,331 railcar loadings.

With the exception of chemicals, coal and nonmetallic minerals, railcar shipments in all other commodity categories fell for the first 12 weeks.

In the US, chemical railcar loadings represent about 20% of chemical transportation by tonnage, with trucks, barges and pipelines carrying the rest. In Canada, producers rely on rail to ship more than 70% of their products, with some exclusively using rail.

We remind, the Association of American Railroads (AAR) reported U.S. rail traffic for the week ending March 19, 2022. For this week, total U.S. weekly rail traffic was 499,362 carloads and intermodal units, down 2.7 percent compared with the same week last year. Total carloads for the week ending March 19 were 232,770 carloads, up 1.1 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 266,592 containers and trailers, down 5.7 percent compared to 2021.

Also, the Association of American Railroads (AAR) reported U.S. rail traffic for the week ending March 12, 2022. For this week, total U.S. weekly rail traffic was 496,134 carloads and intermodal units, down 4.7 percent compared with the same week last year. Total carloads for the week ending March 12 were 232,388 carloads, up 0.9 percent compared with the same week in 2021, while U.S. weekly intermodal volume was 263,746 containers and trailers, down 9.1 percent compared to 2021.
mrchub.com

Omya enters an agreement to acquire Hall Technologies, Inc., a specialty chemical distributor headquartered in St. Louis, Missouri, with sales reach throughout the Midwest and Southern United States, according to SpecialChem.

The acquisition will enhance Omya’s distribution network in North America, further bolstering its position amongst the top-ranked global specialty distributors. Omya will be positioned to better serve both its customers and principals throughout the United States and beyond.

Hall Technologies, led by a strong sales and management team, is a highly regarded company with a well-established reputation for excellence in the specialty chemical market. Together, Omya and Hall will continue to reinforce and expand their customer and principal relationships.

Rainer Siedler, CEO Americas at Omya, noted, “We are very excited to welcome Hall Technologies to the Omya Group. Under Jeff Laurent’s leadership, Hall has built a leading position in the Midwest specialty chemical distribution market.”

The closing of the transaction is expected to take place within the next four weeks.

As MRC reported earlier, Songwon Industrial Co., Ltd., has announced that it has entered an exclusive partnership for Latin America with Omya. As part of the agreement, effective January 2022, Omya will provide marketing and sales, customer service as well as distribution and logistics for SONGWON’s complete range of polyvinyl chlorie (PVC) additives to customers across the Latin American region.

According to MRC's ScanPlast report, Russia's overall production of unmixed PVC did not exceed 169,700 tonnes in the first two months of 2022, which virtually corresponds to the last year's figure. At the same time, three producers reduced slightly their output.
MRC

Clariant, a focused, sustainable and innovative specialty chemical company, has announced that it has joined the Renewable Carbon Initiative (RCI), as per the company's press release.

The aim of the RCI is to support and accelerate the transition from the use of fossil carbon to the use of renewable carbon in the chemical industry. Switching to renewable carbon sources prevents additional fossil carbon entering the atmosphere and thus addresses a core problem of climate change.

“I am convinced that the chemical industry plays a central role in tackling climate challenge and in shaping progress toward a more circular and bio-based economy. This journey can only be achieved through strong commitment to sustainability-driven innovation, ambitious goals, and a close collaboration with partners along the value chain,” said Conrad Keijzer, Chief Executive Officer of Clariant.

Clariant offers a range of bio-based solutions. Its recently launched Vita range of bio-based surfactants offer a 100% Renewable Carbon Index score coming from a fully segregated supply chain, providing a viable alternative to their fossil-based counterparts.

Another example are Glucamides- these surfactants are readily biodegradable and have a Renewable Carbon Index score of up to 96%. The company’s Licocare RBW Vita range, used in plastics and coatings applications, are derived from a natural, non-food competing by-product of the rice oil production and are based on at least 98% Renewable Carbon Index content.

Another innovative solution that Clariant offers is the sunliquid® technology, which enables the valorization of agricultural residues for the production of cellulosic ethanol, an advanced biofuel that can be used as a drop-in solution for fuel blending and offers further downstream application opportunities into bio-based chemicals and sustainable aviation fuel. The bioethanol produced by the sunliquid technology process helps decarbonize the transport sector by providing up to 96% CO2 savings compared to fossil fuel, and by as much as 120% if carbon sequestration is considered and used as part of the production process.

The membership in the RCI allows Clariant to expand on its own solutions in the field of renewable carbon as well as collaborate more closely with partners, suppliers and the industry at large in driving this matter forward. The RCI was launched in September 2020 and is led by the nova-Institute.

As MRC wrote previously, Clariant has recently announced that its StyroMax UL3 catalyst is demonstrating successful results at Risun’s new styrene monomer (MS) plant located in Tangshan, China.

We remind that in October 2020, Clariant announced the construction of a new state-of-the-art catalyst production site in China. This project represents a significant investment which further strengthens Clariant’s position in China and enhances its ability to support its customers in the country’s thriving petrochemicals industry.

The new facility will be primarily responsible for producing the Catofin catalyst for propane dehydrogenation, which is used in the production of olefins such as propylene. Thanks to its excellent reliability and productivity, Catofin delivers superior annual production output compared to alternative technologies, resulting in increased overall profitability for propylene producers, says the company. Construction at the Dushan Port Economic Development Zone in Jiaxing, Zhejiang Province was scheduled to commence in Q3 2020, and Clariant expects to be at full production capacity by 2022.

Clariant AG is a Swiss chemical company and a world leader in the production of specialty chemicals for the textile, printing, mining and metallurgical industries. It is engaged in processing crude oil products in pigments, plastics and paints.
MRC

Brenntag, a global market leader in chemicals and ingredients distribution, has opened a new Innovation Center at its site in Duisburg, according to Coatings World.

It is the first application center for the Coatings, Adhesives and Construction industries in Germany and the seventh in Brenntag's entire EMEA region.

The new Innovation Center will be used jointly by Brenntag and BCD Chemie, a Brenntag Group company, for projects in Coatings, Adhesives and Construction applications.

Customers in Germany, Austria and Switzerland can now benefit from formulation of new products and evaluation of new materials in a wide range of applications.

As MRC informed before, earlier this month, Brenntag expanded its distribution agreement with UK-based Elementis Specialties in India, Nepal, Sri Lanka and the Philippines. This distribution agreement will be effective starting 1 April, 2022. Brenntag will distribute Elementis Specialties’ specialty chemicals and additives for the coatings, adhesive and sealant industries.

BCD Chemie, a Brenntag Group company, is headquartered in Hamburg, Germany. It focuses on the pan-European marketing of industrial and performance chemicals. As a link between manufacturers of high-quality chemical raw materials and users from many industries, BCD Chemie provides B2B sales solutions for a wide range of industries and applications. Profound market knowledge, competent product and application consulting as well as comprehensive expertise in chemical-technical and market-analytical contexts form the basis of its philosophy of modern chemical distribution.
MRC