Hengli Petrochemical shuts styrene unit on cracker issue

Hengli Petrochemical has shut its 720,000 metric tons per year styrene unit in Dalian, China, on May 13, due to cracker issues, with the shutdown expected to last for around a month till mid-June, as per Chemweek.

According to market sources, the styrene unit had restarted recently in April after a scheduled turnaround. The duration of the unit shutdown this time round is dependent on the upstream cracker restart plan, market sources added.

Styrene prices have surged sharply this week, aided by improving sentiments after the US-China trade deal, short squeeze in the paper market, as well as news of Hengli’s cracker facing issues.

Platts assessed the styrene monomer CFR China and FOB Korea markers at $952 per metric ton and $942 per metric ton on May 14, respectively, both up $22 per metric ton day over day.

Platts’ attempts to confirm details with the company sources were unsuccessful.

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Sojitz Corp., Sumitomo Chemical Co., Ltd. and Mitsui Chemicals, Inc. have concluded a share purchase agreement in which Sojitz will acquire shares of Nippon A&L Inc, as per Chemweek.

Following the necessary share acquisition procedures, Sojitz is expected to purchase 66.5% of shares in Nippon A&L in July 2025. Financial details of the transaction were not disclosed.

Sumitomo Chemical currently owns 85% stake in Nippon A&L and Mitsui Chemicals, 15%. As a JV of Sumitomo Chemical and Mitsui Chemicals, Nippon A&L is a global supplier with advanced technology in styrene butadiene rubber (SBR) latex used as anode binders for lithium-ion batteries, for which demand is expanding due to the widespread adoption of electric vehicles, said the companies.

In the field of SBR latex for paper processing, the company boasts one of Japan’s leading supply chains. Additionally, in ABS resin used for automobiles and home appliances, Nippon A&L has a stable customer base both domestically and overseas, it added.

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Yasuhara Chemical Co. Ltd’s (Fuchu, Japan) revenue for the fiscal year ended March 31 rose by 11% to Yen14.6 billion ($100.9 million), as per Chemweek.

The company’s operating income more than doubled to Yen1.8 billion, from Yen681 million from the year-earlier period. Profit also more than doubled to Yen1.3 billion, from Yen583 million in the corresponding period of the previous year.

In the company’s terpene chemical products business, sales stood at Yen11 billion, up 12.3% and operating income also rose by 50.5% to Yen2.4 billion. In adhesive and bonding resins, sales increased due to the favorable performance of terpene resins and modified terpene resins for automotive products, as well as terpene phenol resins for civil engineering applications. In chemical products, sales of wax for woodworking applications were sluggish, but sales increased due to positive performance in the electronic materials field.

Sales in the hot melt adhesives unit grew by 8.5% to Yen3 billion and the unit swung to an operating profit of Yen256 million, compared with an operating loss of Yen59 million in the year-earlier period. The sector reported higher volumes of extrusion grades for food applications.

In Yasuhara’s laminated business, operating profit stood at Yen25 million, from an operating loss of Yen5 million in the previous-year period on sales that were 2.7% higher to Yen511 million. It reported firm sales of laminated films for glossy chemical paper.

According to the company, the adhesive, bonding, fragrance, electronic material and laminate industries continue to face a tough business environment due to rising manufacturing costs led by soaring raw material and energy prices, and price competition for products.

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Tosoh Corp. reported a rise of 5.7% in sales for the fiscal year ended March 31 to Yen1.0 trillion ($6.7 billion), as per Chemweek.

The increase was attributable to improved sales because of higher demand. The resolution of the previous year’s plant troubles at the Yokkaichi complex in Japan, the rise in production volume because of the protracted time spans between scheduled maintenance at the Nanyo complex in Japan, the depreciated yen, and an increase in naphtha prices that led to higher selling prices also contributed. Operating income increased by 23.9% to Yen98.9 billion, due to the increase in volume and the expansion of sales in the engineering group. Net profit was Yen58 billion, up by 1.2%.

The petrochemical segment’s sales increased by 11.5% to Yen204.8 billion. Operating income also rose by 33% to Yen14.3 billion. Sales of chloroprene rubber and ethylene grew, and terms of trade for polyethylene resin improved. The company said ethylene production and shipments increased because of the resolution of the previous year’s plant troubles at the Yokkaichi complex. Naphtha prices also rose, pushing up the selling prices of ethylene and propylene. Cumene shipments increased, and improved market conditions overseas, along with favorable exchange rates, raised the selling prices for cumene.

It said domestic polyethylene (PE) resin demand remained essentially unchanged from the corresponding period of the previous year. PE resin selling prices rose, however, because of rising naphtha feedstock prices. It said exports particularly of ethylene vinyl acetate (EVA) resin fell amid deteriorating market conditions overseas. Conversely, demand for chloroprene rubber began to recover, resulting in increased shipments, albeit at varying rates depending on the region.

Operating income at Tosoh’s chlor-alkali segment more than doubled to Yen9.5 billion, on sales growth of 3.9% to Yen373.4 billion. The higher income was due to improved terms of trade for caustic soda and methylene di-para-phenylene isocyanate (MDI), namely, heightened market prices and favorable exchange rates.

The company said protracted time spans between scheduled maintenance at the Nanyo complex resulted in increased production volume for caustic soda, which in turn drove upward caustic soda shipments, and caustic soda export prices rose because of higher overseas market prices and a weakened yen. Although shipments of vinyl chloride monomer (VCM) increased in line with a production volume increase amid extended intervals between scheduled maintenance at the Nanyo site, selling prices decreased due to worsening conditions in overseas markets.

Domestic shipments of polyvinyl chloride (PVC) resin fell. Despite worsened conditions in overseas markets, PVC selling prices increased due to the weakened yen.

Sales volumes and the prices of hexamethylene diisocyanate (HDI) hardeners declined as market conditions deteriorated amid sluggish global demand.

Operating income in Tosoh’s specialty segment increased by 1.9%, to Yen38.6 billion. Sales rose by 4.2% to Yen270.5 billion. Despite rising fixed costs, this is attributed to the increase in the sales volume of separation-related products and ethyleneamine, as well as the influence of exchange rates.

The company said demand for ethyleneamine — particularly in Asia — resulted in increased ethyleneamine shipments. But the decline in overseas market conditions caused ethyleneamine selling prices to decline.

Among separation-related products, shipments of liquid chromatography packing media for the US and China increased. In diagnostic-related products, shipments of automated hemoglobin analyzer reagents increased both domestically and abroad. High-silica zeolite (HSZ) shipments, primarily for automotive applications, declined, as did selling prices due to factors such as changes in the product mix.

Shipments of zirconia for decorative and dental applications likewise were down, but the depreciated yen raised zirconia selling prices. Weak semiconductor demand contributed to decreased silica glass shipments, but the depreciated yen and price corrections elevated silica glass selling prices. Shipments of electrolytic manganese dioxide (EMD) rose domestically and to Asia.

The company’s other business unit is engineering.

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Chemtrade Logistics Income Fund (Toronto) reported first-quarter net income of C$49 million, up 17% year over year from C$42 million, on sales of C$466 million, up 11%. Adjusted EBITDA came to C$120 million, up 9% year over year, mainly on currency exchange effects but also owing to higher selling prices for several products, including water solutions products, sulfuric acid and caustic soda, as per Chemweek.

Adjusted earnings per share came to C$0.30, up 20% year over year and ahead of the analysts’ consensus estimate of C$0.21, as compiled by S&P Capital IQ.

“Despite persistent macroeconomic and geopolitical volatility, we have not seen any material negative impacts on our business to date,” said Scott Rook, president and CEO. “While we are concerned with economic uncertainty, we are confident in our improved expectation that 2025 adjusted EBITDA will be at the higher end of our previously communicated guidance range” of C$430 million-C$460 million. Chemtrade reported 2024 adjusted EBITDA of C$471 million.

The sulfur and water chemicals segment turned in adjusted EBITDA of C$60 million, up 16% year over year, on sales of C$271 million, up 18%. Chemtrade cited higher selling prices and volumes of merchant acid, regen acid and water solutions products in addition to the beneficial impact of the weaker Canadian dollar.

The electrochemicals segment turned in adjusted EBITDA of C$88 million, up 7% year over year, on sales of C$195 million, up 4%. Chemtrade cited higher selling prices for caustic soda, hydrochloric acid and sodium chlorate offset by lower sales volumes of caustic soda, lower sales volumes and selling prices for chlorine, and lower revenue in Brazil in addition to the beneficial impact of the weaker Canadian dollar.

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