Repsol chemical margin widens in Q1

Repsol SA’s (Madrid) chemical margin indicator ticked higher in the first quarter compared to the previous quarter but remains below its prior-year level, the company said in a trading statement April 7, as per Chemweek.

The indicator, which takes into account variable costs such as energy and CO2, widened by 22% sequentially from €153 per metric ton to €187 per metric ton. However, the margin narrowed by 9% year over year from €205 per metric ton.

The company announced in February that its full-year chemical margin indicator averaged €210 per metric ton in 2024, up 3% compared to the previous year. Repsol CEO Josu Jon Imaz said at that time that it expected its chemicals business performance to improve in 2025 and potentially return the loss-making business segment to profit in 2026.

Repsol did not provide any guidance on its chemical earnings for the first quarter or an outlook for its margins in the second quarter.

Repsol, which operates 4.8 million metric tons per year of base and derivative petrochemical capacity in Spain and Portugal, is scheduled to release its first quarter financial results on April 30.

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Solvay SA said it has inaugurated a rare earths production line for permanent magnets at its La Rochelle facility in France, as per Chemweek.

The facility will source rare earths and recycled materials from a diverse range of suppliers and mining partners, as mandated by the EU Critical Raw Materials Act, the company said in a statement April 8.

The investment enhances an established facility that is the largest plant outside China capable of separating all rare earth materials, Solvay said, adding that the addition of this production line enables it to start delivering rare earth materials for permanent magnets, reinforcing its position as a global leader in the rare earths market.

The La Rochelle plant serves the automotive emissions control and semiconductors markets, and with this new investment that has expanded and upgraded an existing unit of the plant, it has added the production of separated rare earth oxides for permanent magnets to the site, Solvay said.

This first phase of commercial production of rare earths for permanent magnets is a step toward meeting the objective of satisfying 30% of European demand by 2030, the company said.

Solvay added that it is committed to leveraging its expertise and scale to support green technologies and contribute to Europe’s autonomy in rare earths production, aligning with the EU Clean Industrial Deal.

The company is partnering with emerging mining and recycling players to accelerate the establishment of a robust, reliable and sustainable supply chain, crucial for Europe’s competitiveness and industrial and technological sovereignty, it said.

“Solvay is reinventing its process at La Rochelle that leverages its know-how in rare earths separation to reduce CO2 emissions by 40% and halve water consumption by 2030,” said An Nuyttens, president/special chem business at Solvay.

Permanent magnets are essential components in electric vehicle motors, renewable energy, advanced electronics and defense systems.

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Econic Technologies (Macclesfield, UK), a renewable CO2 technology firm, has signed a global license agreement for Saudi Aramco Technologies Company’s (SATC) CO2 polymer technologies, as per Chemweek.

By incorporating the technology into its existing portfolio, Econic will expand its overall product offering, allowing it to better serve new and existing customers in coatings, adhesives, sealants, and elastomers (CASE) and other market segments.

Econic’s catalyst and process technology allows manufacturers to produce polymers using CO? instead of petrochemicals. It licenses its technology to manufacturers of polyols and surfactants, which are used in various consumer products such as cars, clothes, construction materials. SATC’s CO?-based polyols technology, known as Converge®, converts waste CO? into high-value polyols. The technology was acquired from Novomer Inc in 2016.

“We see an opportunity to take Aramco’s CO2 polyol technology to its potential, complementing and strengthening our existing offering. With this addition, we are excited to help a broader range of industries improve their products and reduce their carbon emissions,” Keith Wiggins, CEO of Econic, said in a press statement.

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Ethylene prices were assessed lower in Asia on Monday, as per Polymerupdate.

An industry source in Asia on condition of anonymity informed a Polymerupdate team member, "Prices trended downward amid weaker energy values coupled with bearish purchasing activity in the Asian markets."

On Monday, CFR North East Asia ethylene prices were assessed at the USD 820-830/mt levels, down USD (-15/mt) from Friday's assessed levels.

CFR South East Asia ethylene prices on Monday were assessed at the USD 905-915/mt levels, a decrease of USD (-10/mt) from Friday.

In plant news, Haldia Petrochemicals ltd (HPL) is likely to shut its petrochemical complex in mid-April 2025 for a maintenance turnaround. The shutdown is expected to remain in force until end May 2025. Located in Haldia in the eastern Indian state of west Bengal, the complex comprises a cracker with an ethylene capacity of 700,000 mt/year.

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Sika AG said it has opened its fourth plant in Kazakhstan, at Ust-Kamenogorsk, which is in the eastern part of the country. The plant has production lines for mortar and concrete admixtures, as well as a modern laboratory, said the company.

This is an important strategic milestone that will further expand Sika’s presence in the country, where the company is involved in large-scale projects, Sika said.

Kazakhstan is one of the richest countries in mineral resources, with an expanding mining industry and many companies in the chemical, energy, and automotive sectors located in the eastern part of the country, Sika said.

As these industries continue to grow, so does the need for residential housing, both market segments driving a strong demand for Sika’s solutions, the company added.

"The new production plant in eastern Kazakhstan will enable us to meet the growing demand from the mining and construction industries for high-performance mortars and concrete admixtures. With an abundance in minerals, Kazakhstan presents significant opportunities, and we are committed to serving this region with our innovative solutions," said Christoph Ganz, regional manager EMEA at Sika.

The construction industry in Kazakhstan is projected to grow at an average annual rate of 4.2% up to 2028, driven by investments in energy projects, water storage reservoirs, transportation infrastructure, and industrial parks, according to Sika.

The current value of construction projects across the country is estimated at nearly CHF160 billion, it added.

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