India extends BIS certification deadline for methanol, acetic acid and aniline

India has deferred the deadline for the implementation of mandatory import certification for acetic acid, methanol and aniline to Aug. 3, 2025, as shown in a gazette issued by the Indian government on Aug. 5.

The enforcement of Bureau of Indian Standards (BIS) certification for acetic acid, methanol and aniline was due on Aug. 3, 2024.

Slight delay in the issuance of extension notification led to a significant spike in Indian domestic methanol prices on Aug. 5 and Aug. 6.

“Extension [has been] approved, [but there are] some technical issue in loading it up,” said a methanol trader.

BIS is the National Standard Body of India established under the BIS Act 2016 for the harmonious development of the activities of standardization, marking and quality certification of goods, according to the BIS website.

Adani Group has announced plans to commission part of its $4 billion polyvinyl chloride (PVC) project by December 2026. The initial capacity will be 1 million tonnes per year. The project aims to bridge the supply and demand gap for the polymer.

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The major propylene export enterprise in South Korea will undergo 2-month maintenance from the beginning of September, which might largely dampen the exports of South Korea in H2 2024, said Mysteel.

Furthermore, the supplies of Japan and Taiwan (China) will intensively recover around September due to the production resumption, and their exports will inch up in H2 2024.

According to China's new import tariff policy in 2024, the propylene import cost of South Korean resources inches down, while those from Taiwan (China) and Japan gain obviously. As the main propylene export destination in the Northeast Asian region, the tariff adjustment in China changes the propylene export situation in surrounding areas.

In detail, South Korean propylene export volume to China rose by 18,000 tonnes year on year over January-June in 2024, that of Japan dropped by 57,000 tonnes or 23.60% year on year, and that of Taiwan (China) plunged by 144,000 tonnes or 95.20% year on year.

The new import tariff policy in China influences the propylene trade flows in surrounding areas, and market insiders should pay attention to the unit operation of the export enterprises in the Northeast Asia region.

It was previously reported that in May 2024, the production of plastics in primary forms in Russia amounted to 937 thousand tons, which is 2.7% more than in the same month of 2023. The total volume for five months exceeded the result of 2023 by 2.9%. Polyvinyl chloride was produced at 81.3 thousand tons (-8.7%), in January-May there was an increase of 6.8%.

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Net sales in Idemitsu Kosan Co.’s basic chemicals segment increased 25.9% year over year to ?159.4 billion (USD1.1 billion) in the fiscal first quarter ended June 30.

Sales were higher mainly due to an increase in sales volume following the results of periodical repairs in the previous fiscal year. The chemicals business swung to an operating profit of ?7.4 billion, from an operating loss of ?1.3 billion in the corresponding period of the previous year. The sector manufactures products including para-xylene (p-xylene), ethylene and styrene.

Operating income in Idemitsu's functional materials business was ?27.6 billion, higher by 41.8% year over year. Revenue grew by 4% year over year to ?127.3 billion on higher prices. Products in this sector include engineering plastics, adhesive materials, performance chemicals, lubricants, agricultural biotechnology, and electronic materials.

The company’s other business segments are petroleum, power, and renewable energy and resources.

Idemitsu Kosan plans to resume production at its naphtha-fired steam cracker in Tokuyama, Japan, on August 11. The cracker was shut down on July 15 due to technical problems. The cracker can produce 623,000 tons of ethylene per year and 450,000 tons of propylene per year.

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Sabic signed a potential investment agreement with China’s Fujian government to build an engineering thermoplastics compounding plant “under the auspices of the Saudi ministry of energy, said the company.

The planned compounding plant would be at the Gulei Port Economic Development Zone in Zhangzhou, Sabic said.

The plant is intended to primarily produce pelletized polycarbonate (PC) and PC/acrylonitrile-butadiene-styrene blends for use in electrical and consumer electronics, automotive and emerging sectors such as solar energy, electrification and 5G, it said.

A production capacity was not provided in the statement. It also did not explain what more needs to be done for an investment to be made.

Sabic already has a technology office in Shanghai and three compounding plants at Guangzhou, Shanghai and Chongqing.

The new plant may be used with Sabic’s two existing joint ventures in China: Sinopec Sabic Tianjin Petrochemical Co. and Sabic Fujian Petrochemicals Co.

In the second quarter of 2024, Sabic's net profit increased by 85% compared to the same period of the previous year, from SR1.1 billion (USD313.7 million) to SR2.1 billion (USD580.7 million).
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Chlorine output in Europe rose 13.3% year over year to 4.11 million metric tons in the first half of 2024 as the average chlor-alkali plant utilization rate improved to 68.8%, according to data from regional industry body Euro Chlor (Brussels).

The utilization rate was up from an average of 62.1% in the prior-year period. Average daily chlorine production in June of 22,168 metric tons was up slightly month on month, by 0.3%, but improved by 11.7% compared to last year, it said. Total European volumes for the month increased to 665,033 metric tons from 595,554 metric tons in June 2023. The average plant utilization rate in June was almost flat sequentially, rising to 67.5% from 67.4% a month earlier.

Caustic soda stocks in June increased year over year and sequentially, rising to 216,235 metric tons from 206,773 metric tons a year earlier and 211,704 metric tons in May.

Euro Chlor represents 38 member companies that produce chlorine at 62 manufacturing locations in 19 countries.

European chlorine and caustic soda spot prices have been pressured by weak demand and oversupply since the start of the year, although tightening supply prompted an uptick in caustic soda spot prices towards the end of July due to a combination of planned turnarounds in August and September and production glitches, according to S&P Global Commodity Insights. Demand typically decreases in August due to lower customer orders.

We remind, European chlorine and caustic soda production fell in March from the previous month after rising consistently for the past four months, according to data from EuroChlor. However, production in March rose compared with the same period last year.

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