Ethylene prices continue to quote stable in Asia

Ethylene prices were assessed flat in Asia last Wednesday, as per Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, 'Prices were assessed flat across the Asian markets on account of steady purchasing trends and a holiday-induced slowdown.'

CFR North East Asia ethylene prices on Wednesday were assessed at the USD 785-795/mt levels, steady from Tuesday.

CFR South East Asia ethylene prices on Wednesday were assessed at the USD 865-875/mt levels, rolled over from Tuesday's assessed levels.

We remind, Kazanorgsintez (KOS, part of SIBUR) has begun testing samples of the new HD 03380 RT brand of heat-resistant low-density polyethylene (HDPE) of the PE-RT (polyethylene of raised temperature, PE-TS) class, intended for pipe extrusion. It is planned that Kazanorgsintez will produce about 9 thousand tons of heat-resistant polyethylene per year at its facilities, which, according to SIBUR, will allow it to meet 95% of the needs of the Russian market and replace imported products.

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The European General Court (Luxembourg) has decided to dismiss the action taken by Symrise AG against the EU Commission’s cartel-related inspections at the company’s facilities in 2023, and ordered Symrise to pay the costs of the proceedings, according to a filing in the EU Official Journal on April 30, as per Chemweek.

Symrise expressed its disappointment about the General Court’s judgement in a statement April 30, in which it said it is reviewing the decision and considering its options. The General Court is a constituent court of the European Court of Justice (Luxembourg).

“In any event, this decision does not constitute a finding of wrongdoing; it merely confirms the legality of the raid. Symrise firmly maintains that it was not involved in any improper agreements with competitors in the fragrance and fragrance ingredients sector and continues to cooperate with the European Commission in order to clear its name,” Symrise said.

Symrise had asked the General Court in July 2024, to annul the commission’s decision of Feb. 10, 2023, ordering an inspection at Symrise and all its directly and indirectly controlled subsidiaries and order the commission to pay all costs of the proceedings

The Commission’s inspection was related to suspicions that several major flavors and fragrances companies, including Symrise, Givaudan International SA, Firmenich International SA and International Flavors & Fragrances Inc., have violated cartel law.

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Shares of Synthomer climbed 5% today following the company’s first quarter trading update, which revealed an increase in EBITDA supported by improved pricing and cost savings, said the company.

The update, presented ahead of the Annual General Meeting (AGM), indicated that Synthomer’s EBITDA and margins for the first quarter outperformed those of the same period last year, despite slightly lower volumes.

The company attributed its positive performance to a combination of better pricing, cost savings, and a decrease in raw material prices. Organic sales growth and margin improvement within the Adhesive Solutions and Health & Protection and Performance Materials (HPPM) divisions contributed significantly to the EBITDA rise.

However, the Coatings & Construction Solutions division faced challenges due to a slowdown in US end markets, which was partly mitigated by an uptick in European construction activity.

Synthomer’s management also commented on the company’s strategic approach to manufacturing, which is designed to withstand a protectionist market environment with minimal direct impact from tariffs. This strategy has been particularly advantageous for the Malaysian glove manufacturers, a key customer segment for the company’s nitrile latex products in the HPPM division, as they potentially benefit from US tariff disparities affecting their main competitors in China.

Looking forward, Synthomer’s management reiterated their fiscal year 2025 guidance, which was initially set forth in the second half of 2024 results. They expect limited improvement in end-market demand, with cost reductions estimated to be between ?25-30 million and cost headwinds projected to be lower than in 2024.

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The anticipated positive free cash flow (FCF) for 2025 is primarily driven by these cost savings. To achieve the consensus estimate for FY25 EBITDA of ?166 million, the company acknowledges that some recovery throughout the year will be necessary, given the annualized second-half 2024 EBITDA implies an estimate of approximately ?144 million for 2025.

UBS analysts have weighed in on the trading update and guidance, stating, "We would expect the share price to react positively to the trading statement and the reiteration of the 2025 guidance."

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Chinese exports of diammonium phosphate (DAP) dropped 45.1% year over year to 77,583 metric tons in the first three months of the year, as per Chemweek.

Ethiopia was the largest importer during the period, with 41,980 metric tons, while Japan imported 11,709 metric tons of DAP, down 57.6% compared to the same period last year.

Guatemala and Ecuador each imported 10,000 metric tons of DAP, while India and Pakistan imported 513 metric tons and 163 metric tons, respectively, the data showed.

Thailand and Vietnam imported 801 metric tons and 715 metric tons, down 97.8% and 95%, respectively, year over year.

Chinese ammonium phosphate exports were suspended effective Dec. 1 for an indefinite period.

The country’s absence from the international DAP fertilizer market has led to rising global prices, Platts reported. Platts is part of S&P Global Commodity Insights.

”China’s absence is a major reason for rising DAP prices,” a China-based source said to Platts, adding that sulfur prices and demand for phosphate fertilizers have also risen.

The source said demand from Southeast Asia can be expected in the near term.

We remind, Russia's capacity of special fertilizer plants in Russia was more than 700,000 tonnes per year. Most of them are water-soluble fertilizers.

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Coromandel International Ltd. (Hyderabad, India) announced a year-over-year sales increase of 28% for the fiscal fourth quarter ended March 31, bringing it to 51.1 billion Indian rupees ($603.2 million), as per Chemweek.

Its net profit more than doubled to 5.7 billion rupees from 1.6 billion rupees in the prior-year quarter. It did not disclose reasons for higher profit.

Revenue in the company’s nutrient and other allied businesses stood at 43.2 billion rupees, up 28% year over year. Operating profit grew 18% on year to 2.9 billion rupees. The sector produces diammonium phosphate, potash, single superphosphate, urea and specialty nutrients.

Operating profit in the crop protection business was 1 billion rupees, up 60% year over year, and sales also rose by 23.7% year over year to 6.9 billion. The unit manufactures insecticides, fungicides, herbicides and plant growth regulators.

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