Indonesia proposes final anti-dumping duty on PP copolymer resins

Nearly sixteen months after initiating an investigation, Indonesia's foreign trade governing authority has recommended imposing a substantial anti-dumping duty (ADD) on imports of polypropylene (PP) block copolymer resins from five countries: South Korea, Vietnam, the United Arab Emirates, Malaysia, and Singapore, as per Polymerupdate.

The move aims to combat illegal dumping and protect the interests of domestic producers. The Anti-Dumping Committee of Indonesia (KADI), the designated foreign trade authority, has proposed final ADD levies ranging from 7.17 to 29.01 percent on products under HS code 3902.30.90, which includes PP block copolymer resins. However, the authority has not specified a timeline for implementing the ADD. Traders anticipate its enforcement within the next two months. PP block copolymer is widely used in applications such as automotive parts, electronic devices, packaging, and various other goods requiring enhanced flexibility and rigidity.

A copy of the ADD recommendation proposal reviewed by Polymerupdate revealed a significant reduction in the duty rates for South Korean imports, ranging from 7.17 to 19.58 percent, compared to the previously proposed rates of up to 82.83 percent. Additionally, the authority has recommended ADD rates of 11.4 percent for Vietnam, 21.02 percent for the United Arab Emirates, 13.45–29.01 percent for Malaysia, and 11.6–13.06 percent for Singapore.

KADI initiated an anti-dumping duty (ADD) investigation on imports of PP block copolymer resins in July 2023, following a complaint filed by Indonesian producer Chandra Asri. The investigation focused on select exporters from South Korea, Singapore, Malaysia, Vietnam, and the United Arab Emirates, which collectively accounted for a significant 84 percent of Indonesia’s PP block copolymer resin imports in 2022. The scope of the investigation was later expanded to include five local Indonesian importers.

Chandra Asri provided import data for PP block copolymer resins from various countries covering the period between 2020 and 2021, with the primary contentious period being the 12 to 18 months ending in 2021. Exporters were instructed to submit their responses to KADI by August 27, 2023. As is often the case, some foreign suppliers submitted their export data through their respective embassies in Indonesia, but the data provided was insufficient to substantiate their claims of innocence.

The complainant argued, “The increasing imports of PP block copolymer resins into Indonesia have threatened the margins of domestic producers, as the landed cost of these imports is cheaper than the prevailing local market prices. Consequently, the profitability and sustainability of local producers have been jeopardized due to illegal dumping. Domestic producers claim to have lost substantial market share over the past two years.”

Southeast Asian polymer producers faced significant challenges between 2020 and 2022, starting with weak demand during the Covid-19 lockdowns, followed by a slower-than-expected recovery in the post-pandemic period. Higher feedstock costs and supply risks, exacerbated by the Russia-Ukraine war, acted as a multiplier effect, further eroding profit margins and raising concerns about sustainability. Additionally, an oversupply in the Asia-Pacific region since 2021 intensified competition among regional producers, putting additional pressure on prices.

Meanwhile, China rapidly expanded its PP production capacity during this period, significantly reducing its import requirements. As a result, global producers began seeking alternative export markets. Indonesia, which imports more than half of its PP demand, emerged as an attractive destination for regional producers, especially since the country is not expected to commission any new PP plants until at least the end of 2025.

KADI has recommended a 7.17 percent anti-dumping duty (ADD) on South Korea's S-Oil Corp and SABIC Asia Pacific (Singapore). An 11.4 percent duty has been proposed on PP block copolymer resin imports from Vietnam's Hyosung Vina Chemicals Co and other companies. The authority has also recommended a 14.81 percent ADD on South Korea's HD Hyundai Chemicals and Lotte Chemicals Corp, along with a 15.81 percent levy on Polymirae Co, Ulsan PP Co, and Daelim Co. South Korean exporters, including Basell Asia Pacific Ltd (Hong Kong), Hanwha TotalEnergies Petrochemical Co, and others, face an ADD levy of 19.58 percent.

The recommendation letter suggests a 21.02 percent ADD levy on Abu Dhabi Polymers Co (Borouge) – Sole Proprietorship LLC and other companies in the United Arab Emirates. Meanwhile, Malaysia's Lotte Chemical Titan (M) and Lotte Chemical Titan Corp are proposed to attract an ADD of 13.45 percent, while other companies in Malaysia would face a levy of 29.01 percent. In Singapore, The Polyolefin Company (Singapore) is proposed to be subjected to an 11.6 percent ADD, while ExxonMobil Asia Pacific and other companies would attract a levy of 13.06 percent.

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The Turkmenneft state concern has commissioned a new well, no. 85, at the Uzynada field in western Turkmenistan, the newspaper Neutral Turkmenistan said Interfax.

The well, with a depth of 6,830 meters, has a daily output of 70 tonnes of condensate and 75,000 cubic meters of natural gas, it said.

As previously reported, Turkmenneft drilled the first exploratory well at the Uzynada field in May 2017, reaching a depth of 7,150 meters. At that time, the well yielded a commercial flow of 200 tonnes of condensate per day and 500,000 cubic meters of gas.

On March 28, 2019, Turkmenneft signed a memorandum of understanding with the Areti international group of companies (formerly Itera), which provided for Areti's potential participation in projects for developing the Uzynada field.

Under the memorandum, Areti was expected to study the information about the field provided by the Turkmen side throughout 2019. The two companies then planned to negotiate a final contract. However, this was not signed.

To date, approximately ten exploratory and production wells have been drilled at the Uzynada field by Turkmenneft and the state corporation Turkmengeology, all of which have yielded commercial hydrocarbon flows.

According to Turkmen specialists, the discovery of this site, located near the Turkmen sector of the Caspian Sea, significantly increases the potential for discovering new offshore fields, which enhances the attractiveness of prospective license blocks for foreign investment.

Turkmenneft's core activities are concentrated in western Turkmenistan, an area that ranks among the world's oldest oil-producing regions, with industrial extraction dating back to the late 19th century.

Currently, Turkmenneft's oil assets comprise more than 30 fields at various stages of development. Almost all sites in western Turkmenistan feature multi-layered structures which contain several dozen separate deposits.

Development is carried out while taking into account the geological structure's characteristics, and with modern equipment and technology allowing for the drilling of wells deeper than 7,000 meters in search of hydrocarbons.

Turkmenneft is implementing a comprehensive production modernization program to extract hard-to-reach oil at long-developed fields and to tap previously inaccessible deep-lying oil horizons. The concern collaborates with Schlumberger, Yug-Neftegaz Private Limited (Singapore), Tatneft (Tatarstan, Russia) and other companies.

At a government meeting on February 7, it was reported that Turkmenistan produced 8.28 million tonnes of oil in 2024, down 0.4% compared to 2023, when 8.317 million tonnes were extracted.

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Petroleos Mexicanos (Pemex; Mexico City) intends to invest 20 billion Mexican pesos (USD1 bn) over the next six years to revive its petrochemical business, as per Chemweek.

The investments are part of the state-owned oil company's 2025-2030 Work Plan, presented by senior officials at a press conference on Feb. 12. Pemex identified three projects aimed at the production of aromatics, ethylene derivatives and urea.

Pemex said it will “reactivate” its Cangrejera complex at Coatzacoalcos, Mexico, “under the concept of a petrochemical refinery” with a goal of producing 30,000 barrels of gasoline components per day and 330,000 metric tons per year of aromatics by 2030.

The company said it will over the same period reactivate the production of ethane derivatives at both the Cangrejera complex and the nearby Morelos complex with a goal of producing 250,000 metric tons per year of ethylene oxide and 690,000 metric tons per year of polyethylene. The two facilities together have capacity to produce 815,000 metric tons per year of polyethylene and 380,000 metric tons per year of ethylene oxide, according to data from S&P Global Commodity Insights.

Pemex also plans to modernize its Escolin complex at Poza Rica, Mexico, to increase urea production to 750,000 metric tons per year. The facility currently has capacity to produce 360,000 metric tons per year of urea, according to data from Commodity Insights.

Beyond petrochemicals, Pemex’s Work Plan also targets increased liquid hydrocarbon and natural gas production, maximizing production at the Olmeca and Deer Park oil refineries, and reducing reliance on fertilizer imports.

The financing for all these projects will come mainly from Pemex’s own investment budget, complemented by resources from other companies through mixed public-private projects. Sources in the market said that achieving these milestones will require an enormous investment.

Most of these energy objectives were previously outlined by the current federal government during the November 2024 presentation of its National Strategy for the Hydrocarbon and Natural Energy Sector and in the announcement of the Plan Mexico investment portfolio in January.

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Oil and gas condensate exports through the Sangachal terminal in Azerbaijan fell 2.2% to 225 million barrels in 2024, the press service of BP in Azerbaijan, the terminal's operator, said Interfax.

"Shipments of oil from the Azeri-Chirag-Gunashli block, as well as condensate and natural gas from the Shah Deniz field, through the Sangachal terminal were carried out as usual in 2024. The terminal exported around 225 million barrels of oil and condensate, of which 224 million barrels was transported by the Baku-Tbilisi-Ceyhan (BTC) pipeline and 1 million barrels by the Baku-Supsa pipeline," the company said.

The terminal currently has the capacity to handle 1.2 million barrels of crude oil and condensate and about 81 million cubic meters of Shah Deniz gas per day, while overall processing and export capacity for gas, including ACG associated gas, is around 100 million cubic meters per day.

Gas is predominantly exported through the South Caucasus Pipeline under Stage 1 and South Caucasus Expansion Pipeline under Stage 2 of the Shah Deniz project, and through SOCAR pipelines that connect the terminal to the Azerigas national gas distribution network.

On average, around 76 million cubic meters of Shah Deniz gas was exported from the terminal daily during 2024, an increase of 7%.

The Sangachal terminal, located 55 kilometers to the south of Baku, is one of the most important facilities of the oil and gas industry in Azerbaijan. The terminal has an area of around 550 hectares, making it one of the largest oil and gas terminals in the world. The terminal was designed to receive, process, store, and export oil and gas from all existing offshore fields operated by BP in the Caspian basin, and it has the potential to be expanded.

The terminal includes oil and gas processing facilities, the first pumping station of the Baku-Tbilisi-Ceyhan pipeline, a compressor station of the South Caucasus Pipeline and others.

Eight different pipelines deliver oil and gas to the terminal from offshore facilities, and eight pipelines from the terminal deliver Azerbaijani it to world markets via various routes. The terminal also takes in oil from sources in Kazakhstan and Turkmenistan.

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On Tuesday, SM prices climbed in Asia, said Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, "Prices rose on the back of higher upstream energy values coupled with improved buying sentiments in the Asian market."

The source added, "Higher upstream benzene values further pushed SM prices up in Asia."

On Tuesday, FOB Korea SM prices were assessed at the USD 1050-1060/mt levels, higher by USD (+15/mt) from Monday.

CFR China SM prices were assessed at the USD 1060-1070/mt levels, a gain of USD (+15/mt) from Monday's assessed levels.

Meanwhile, upstream benzene prices on Tuesday were assessed at the USD 915-925/mt FOB Korea levels, day on day up USD (+5/mt).

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