Polypropylene spot prices rise sharply in Europe

This week, PP spot prices marched higher, while PP contract prices remained steady in the European region, said Polymerupdate.

In the contract markets, PP injection moulding grade prices were assessed at the Euro 1510-1515/mt FD NWE Germany and FD NWE France levels, both steady week on week. PP injection moulding grade prices were assessed at the Euro 1500-1505/mt FD NWE Italy levels, stable from the previous week. Meanwhile, PP injection moulding grade prices were assessed at the GBP 1275-1280/mt FD NWE UK levels, quoting flat from last week.

In the contract markets, PP block copolymer grade prices were assessed at the Euro 1580-1585/mt FD NWE Germany and FD NWE France levels, both unchanged week on week. PP block copolymer grade prices were assessed at the Euro 1570-1575/mt FD NWE Italy levels, rolled over from the previous week. Meanwhile, PP block copolymer grade prices were assessed at the GBP 1335-1340/mt FD NWE UK levels, remaining steady from last week.

FCA Antwerp PP homopolymer prices were assessed at the Euro 1160-1190/mt level, a week on week increase of Euro (+30mt), while FCA Antwerp PP copolymer prices were assessed at the Euro 1210-1240/mt levels, higher by Euro (+30/mt) week on week.

Upstream propylene spot prices on Thursday were assessed at the Euro 930-940/mt FD Northwest Europe levels, left unchanged week on week.

European propylene feedstock contract price for June 2024 settled at the Euro 1105/MT FD North West Europe levels. This price represents a decline of Euro 30/mt from its May 2024 settlement levels.

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BASF SE has announced that it will not further evaluate a potential investment in a nickel-cobalt refining complex at Weda Bay, Indonesia. The company added that it will stop all ongoing evaluation and negotiation activities for the project, said tht company.

In 2020, BASF and Eramet (Paris, France), a global mining and metallurgical group, signed an agreement to jointly assess the potential of such a project.

“After a thorough evaluation, we have concluded that we will not execute the nickel-cobalt refining project in Weda Bay. Since the inception of the project, the global nickel market has changed significantly. In particular, the supply options have evolved and with that BASF’s availability of battery grade nickel. Consequently, BASF no longer sees the need to make such a substantial investment to ensure a resilient metals supply for its battery materials business,” said Anup Kothari, board member of BASF.

Meanwhile, Daniel Schonfelder, president of BASF’s catalysts division said that a secure, responsible and sustainable supply of critical raw materials for the production of precursor cathode active materials, which may also originate from Indonesia, remains crucial for the future development of BASF’s battery materials business.

BASF’s battery materials business operates a dedicated sourcing team, which focuses on metals and precursor management as well as trading and has already developed a robust network of partners to ensure a resilient supply of critical raw materials necessary for its growing global cathode active materials business, the company said.

We remind, that in the first quarter of 2024, BASF reduced revenue by 12%. From January to March it amounted to EUR17.55 billion compared to EUR19.99 billion for the same period the previous year. The group's profit decreased from EUR1.56 billion to EUR1.36 billion.

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Sumitomo Corp. announced that its affiliate Alcedo S.R.L. (Bucharest, Romania) has acquired Naturevo S.R.L., a distributor of agricultural ingredients, said the company.

Financial details of the transaction were not disclosed. Sumitomo said that Naturevo’s core product, “high-performance fertilizers” reduce the use of chemical fertilizers while maintaining production output. According to Sumitomo, high-performance fertilizers include slow-release fertilizers that produce the same effect with smaller quantities and fewer applications than general compound fertilizers, and biostimulants that use seaweed extracts, amino acids and other substances to maintain higher productivity.

Sumitomo said that as the global population increases, sustainable food supply has become an important issue. It said: “There is growing demand for stable, efficient agricultural production dependent on agricultural material supplies including agricultural materials, seeds and fertilizers, as well as guidance for farmers on proper farm management.”

It added that amid concerns over the environmental burden caused by increased crop production, the European Commission has set targets for reducing the use of pesticides and chemical fertilizers, calling for the establishment of a sustainable agricultural and food system with minimal environmental impact.

In 2011, Sumitomo acquired Alcedo, a major distributor of agricultural materials in Romania to launch a crop production support business that offers crop protection technology and all materials necessary for crops and crop procurement.

Sumitomo also operates similar business models in Ukraine, Brazil, Australia and Japan.

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New Energy Blue (Lancaster, Pennsylvania) said the construction company Arco/Murray (Downers Grove, Illinois) will build New Energy Blue’s biomass refinery, New Energy Freedom, at Mason City, Iowa, which will sustainably process corn stalks into second-generation fuel ethanol and clean lignin at large commercial capacity, said the company.

The partners have agreed to a USD650 million construction contract, New Energy Blue said.

“In 2023, New Energy Blue completed the design engineering, obtained local permits to proceed, and conducted field trials of new harvesting methods and machinery; in 2024, the project entered the final investment decision FID phase. The partners plan to break ground later this year and start up the refinery in 2026,” New Energy Blue said.

New Energy Blue and Arco/Murray have agreed to extend their partnership to four more biomass refineries in the next five years, following the successful completion of New Energy Freedom, the company said. They will be clustered near New Energy Freedom to take advantage of the area’s superabundance of corn stover, it said. “Harvesting within a 30-mile radius of each operation makes it possible to build refineries with twice the output of Freedom,” the company added.

New Energy Blue is a clean-energy developer whose technology converts agricultural waste into lowest-carbon biofuels and biochemicals. The company said it purchased exclusive rights to its Inbicon technology from Orsted, Denmark’s largest energy company, in 2019.

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The Extraordinary and Plenipotentiary Ambassador of the Republic of Kazakhstan to the People's Republic of China, Shakhrat Nuryshev, met with Zhang Xinmin, General Director of Sinopec Engineering Group. During the meeting, the current state of Kazakhstan-China cooperation in the petrochemical industry, issues of oil and gas production and processing, as well as the progress of ongoing and prospective projects being implemented by the Chinese company in Kazakhstan, were discussed, DKnews.kz reports.

In addition to discussing current projects, the parties exchanged views on the prospects of cooperation in building new raw material processing facilities in Kazakhstan. This includes the potential for implementing large infrastructure projects aimed at modernizing and developing the country's petrochemical industry.

Sinopec Engineering Group is the engineering division of Sinopec Group and one of the leading international companies in the field of designing and constructing oil refining and petrochemical facilities. Since its establishment in 2005, the company has completed more than 30,000 projects in China and over 200 projects abroad, demonstrating its high level of professionalism and technical competence.

In Kazakhstan, Sinopec Engineering Group has made a significant contribution to the development of the petrochemical industry. From 2011 to 2017, the company, as part of a consortium, built a deep oil refining complex at the Atyrau Oil Refinery. For this project, the company was awarded the prestigious "Luban" Prize in China in the category of "construction of a high-tech enterprise abroad," highlighting its high professional level and contribution to international cooperation.

This meeting between Shakhrat Nuryshev and Zhang Xinmin is an important step in strengthening bilateral relations between Kazakhstan and China in the petrochemical sector. Both countries are interested in developing and deepening cooperation, which contributes to the economic growth and development of both nations. Mutually beneficial partnerships in the petrochemical industry open up new opportunities for the implementation of large-scale projects aimed at increasing the efficiency and sustainable development of the petrochemical industry.

These efforts also play a crucial role in strengthening economic ties and strategic partnerships between Kazakhstan and China, contributing to the creation of new jobs, the development of infrastructure, and the enhancement of technological knowledge in the region.

We remind, Uzbekistan's largest private oil and gas company Sanoat Energetika Guruhi (Saneg) is working with Chinese state-owned energy giant Sinopec to build the world's first gas chemical plant to produce olefins from methanol outside China. The USD3.3 billion plant will be able to process 1.3 billion cubic meters by 2026. m of natural gas to 1.11 million tons of polymers per year. It is expected that about 44% of production will be exported, with China and Turkiye becoming the main importers.

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