Russia to increase pipeline, liquefied gas exports to China, particularly from Arctic LNG 2, Sakhalin-2

Russia, which signed a number of documents in early September to increase gas exports to China through pipelines, also plans to ramp up exports of liquefied natural gas (LNG) to the country, particularly from the Arctic LNG 2 and Sakhalin-2 projects, Energy Ministry Sergei Tsivilev said in an interview with the journal Expert, as per Interfax.

"We are having very substantial joint progress here," he said. "Therefore, Russia's prospects for cooperation in the energy sector with India and China are very good. Among other things, a lot of work has been done to switch to mutual settlements between countries in national currencies. This is a dynamic process, payments in national currencies are constantly increasing. For example, Gazprom now receives payment for gas in a ratio of 50 to 50 in rubles and yuan," Tsivilev said.

He also said that India has not stopped buying Russian despite the fact that the United States has imposed an additional duty on its goods for doing so.

"The prospect of using the Northern Sea Route for shipments of energy resources - oil, coal, LNG - to India is being discussed. I'll also recall that Russia is participating in the construction of the largest Indian nuclear power plant, Kudankulam, and is planning new projects in the field of peaceful nuclear technology," Tsivilev said.

Russia is also expanding cooperation with African countries "through the line of intergovernmental commissions, the number of which is growing," the minister said, adding that he headed the intergovernmental commission with Mali and held its first meeting in July during a visit to members of the Alliance of Sahel States, which was formed in September 2023 by Mali, Niger and Burkina Faso.

"We are counting on completing the creation of intergovernmental commissions with Burkina Faso and Niger by the end of the year," he said.

"We agreed with the energy ministers of the Sahel countries to expand cooperation. And we're not limiting ourselves to the fuel and energy sector, but are considering a whole set of measures aimed at the balanced and efficient development of African countries' economies. Specifically, there is a possibility to implement joint projects that benefit several countries at once. This is joint use of ports, construction of railways, refining plants and so on," Tsivilev said.

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The Indian plastics pipes industry, facing infrastructure spending setbacks and volatile PVC prices, is transitioning towards an organized sector focusing on water supply and sanitation, as per Devdiscourse.

Expected stability in PVC prices and government initiatives could drive future market growth, projecting a 10-12% CAGR through FY30.

The Indian plastics pipes industry encountered significant challenges in FY25 due to reduced infrastructure spending, liquidity pressures, and fluctuating PVC prices. A JM Financial report reveals that this historically fragmented sector has begun transitioning towards a more organized system, pivoting to serve water supply, sanitation, plumbing, and industrial needs.

Despite the difficult FY25 landscape, the industry is optimistic, anticipating short-term relief from channel restocking and stabilizing PVC costs, which have balanced at approximately INR 79 per kg as of September 2025. The global stage saw dampened demand, exacerbated by sluggish construction activity in China and developed economies, coupled with surplus exports from China, South Korea, and Taiwan.

The report underscores persistent structural demand drivers, bolstered by government initiatives like the Jal Jeevan Mission, expected to drive adoption of plastic piping systems. With India's plastic piping market estimated at INR 600-650 billion, growth projections remain robust at a 10-12% CAGR from FY25 to FY30, further buoyed by potential BIS quality norms enhancing domestic market strength.

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The expected petrochemical shakeout, a 13.5-million-ton reduction, will be a turning point in the sector's push to exit years of losses, as per Kedglobal.

East Asia’s petrochemical industry is entering its largest restructuring in decades, with planned closures of aging naphtha cracking facilities in China, Japan and South Korea expected to remove more than 13 million tons of ethylene capacity by 2027.

The long-awaited shakeout could finally restore balance to a sector that has been battling overcapacity for most of the past decade, analysts said.

“If all goes to plan, regional ethylene capacity will fall by 13.5 million tons a year from forecasts by 2027,” said an industry executive on Wednesday. “That could be the turning point that allows the industry to finally exit years of losses.”

The expected cuts, equivalent to more than the combined production of nine major Korean producers, including LG Chem Ltd. and Lotte Chemical Corp., underscore the scale of the shift, analysts said.

China, Japan and Korea account for 45% of the global ethylene production.

Ethylene, a building block for plastics, fibers and packaging, is the sector’s key profitability measure.

Signs of an industry rebound are already looming.

The spread between ethylene and its main feedstock, naphtha, has climbed 21% over the past three months to $211 a ton, according to Korea’s industry ministry. The spread rose 33.2% from the average in January.

While still below the $250 threshold typically needed for profits, the recovery has fueled expectations that petrochemical firms such as Lotte Chemical and LG Chem could swing back into the black as early as next year.

China’s planned retrenchment will have the biggest impact.

Beijing’s National Development and Reform Commission and four other ministries have signaled plans to eliminate crackers more than 20 years old.

Analysts expect about 7.4 million tons of capacity to be retired from China’s annual production capacity of 78.2 million tons by 2027, with further cuts possible if plants with capacity below 300,000 tons a year are consolidated, according to a research report by Seoul-based Shinyoung Securities Co.

Industry restructuring is also underway in Korea, where a detailed plan to reduce ethylene production by as much as 3.7 million tons is scheduled for release next month.

Korea is one of the world's largest importers of naphtha, an oil product that is broken down into chemicals used in plastics for automobiles, electronics, clothing and construction.

However, Korean companies have been among the hardest hit by Beijing’s aggressive capacity buildout. With Chinese plants producing generic products at significantly lower costs, Korean firms have been under increasing financial strain.

Last month, Korea’s 10 largest petrochemical companies agreed to restructure their operations, including up to 25% cuts to their naphtha-cracking capacity, as the government has called for rigorous restructuring to save the bleeding sector from total collapse.

Under their plan, petrochemical makers aim to reduce their annual naphtha-cracking capacity by between 2.7 million and 3.7 million tons, which means shutting down as much as 25% of the country's annual capacity of 14.7 million tons.

The government said it won’t provide any state support unless petrochemical firms draw up sweeping self-rescue measures, including specific production cuts and fresh equity injections by controlling shareholders.

Japan, which has already been rationalizing its petrochemical sector since 2014, plans to cut an additional 2.4 million tons by 2028.

“If the reduction plans by the three countries are implemented as scheduled, that would be the biggest consolidation in industry history, reducing around 8% of global capacity,” said Shinyoung Securities analyst Shin Hong-ju.

The wave of closures comes as the petrochemical cycle turns.

After the COVID-19 boom of 2020–2021 spurred overbuilding, producers entered an investment lull but are now seeing a pickup in demand.

The industrywide reduction plans bode well for petrochemical firms’ earnings.

Lotte Chemical is forecast to swing to an operating profit of 241.9 billion won in 2026 from an estimated loss of 685.2 billion won this year.

LG Chem is projected to post a total operating profit of 3.22 trillion won next year, with its petrochemicals arm turning to a profit of 127.6 billion won from this year’s estimated loss of 243.5 billion won.
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This week, PP prices declined in the European region, as per Polymerupdate.

An industry source in Europe informed a Polymerupdate team member, "The European polypropylene (PP) market faced pressure in September, as prices continued to decline due to ongoing weak demand. Market participants had anticipated a seasonal resurgence throughout the month; however, the expected recovery did not occur. A trader stated that the typical September restocking did not occur this year, leading to an oversupply. Due to subdued buying interest, spot prices slipped as producers found it hard to achieve sales at elevated rates. The decline closely followed the softness in homopolymer injection grade, where prices decreased as anticipated, while premiums stayed largely consistent.”

Upstream, the supply of propylene continued to be strong, with no significant alterations to the fundamentals throughout the week. Robust feedstock availability sustained the negative sentiment in downstream polypropylene, allowing limited potential for price recovery in the short term.

In the spot markets, PP injection moulding grade prices were assessed at the Euro 915-925/mt FD North West Europe mark, a week on week drop of Euro (-10/mt), while PP block copolymer grade prices were assessed at the Euro 1015-1025/mt FD Northwest Europe levels, a marginal fall of Euro (-5/mt) from the previous week.

Meanwhile in the contract markets, PP injection moulding grade prices were assessed at the Euro 1350-1355/mt FD NWE Germany and FD NWE France levels, both decreased by Euro (-10/mt) week on week. PP injection moulding grade prices were assessed at the Euro 1340-1345/mt FD NWE Italy levels, down Euro (-10/mt) from the previous week. Meanwhile, PP injection moulding grade prices were assessed at the GBP 1175-1180/mt FD NWE UK levels, a fall of GBP (-5/mt) from last week.

In the contract markets, PP block copolymer grade prices were assessed at the Euro 1450-1455/mt FD NWE Germany and FD NWE France levels, both stable from last week. PP block copolymer grade prices were assessed at the Euro 1440-1445/mt FD NWE Italy levels, steady from the previous week. Meanwhile, PP block copolymer grade prices were assessed at the GBP 1265-1270/mt FD NWE UK levels, a week on week gain of GBP (+10/mt).

Sentiment in Europe’s polypropylene (PP) market stays wary, as participants keep a close watch on October events. Although a few analysts noted a minor uptick in activity, expectations primarily depend on the October propylene contract, which might provide minimal cost relief for manufacturers. Nevertheless, fundamental vulnerabilities in important downstream industries, along with ongoing import strain, are expected to limit any significant rebound. Demand is weak, and the market continues to be oversaturated, one source noted, highlighting the ongoing difficulties confronting European PP manufacturers.

The majority of participants held a pessimistic view for October, observing that expectations for a recovery were not apparent in pre-buying behaviour, which has stayed subdued. Numerous buyers persisted in taking a wait-and-see stance, postponing their purchasing choices due to a lack of stronger indicators from both feedstock and downstream markets. Nonetheless, a small group of players conveyed measured hope, indicating that a seasonal increase in consumption, if it occurs, might offer short-term assistance to the market. Nonetheless, few anticipate that this will lead to a lasting recovery without a wider enhancement in fundamentals.

FCA Antwerp PP homopolymer prices were assessed at the Euro 900-940/mt level, a decrease of Euro (-10/mt) from the previous week, while FCA Antwerp PP copolymer prices were assessed at the Euro 995-1025/mt levels, a fall of Euro (-5/mt) from last week.

Upstream propylene spot prices on Thursday were assessed at the Euro 775-785/mt FD Northwest Europe levels, week on week up Euro (+5/mt).

European propylene contract price for September 2025 settled at the Euro 1005/MT FD North West Europe levels. This price represents a rollover from its August 2025 settlement levels.
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USA Rare Earth Inc. (USAR; Stillwater, Oklahoma) has agreed to acquire metal and alloys manufacturer Less Common Metals Ltd. (LCM; Ellesmere Port, UK), the world's largest producer of rare earth metals and alloys outside mainland China, as per Chemweek.

In a statement Sept. 29, the Nasdaq-listed USAR said it had agreed to acquire LCM for $100 million in cash and 6.74 million shares of USAR common stock under the terms of a definitive agreement signed by the two parties.

The acquisition will enable USAR to process recycled rare earth materials, creating a closed-loop system that can reuse end-of-life magnets and manufacturing waste. This new capability will help address growing sustainability concerns in rare earth processing while providing access to alternative lower-cost feedstock sources.

The deal also positions USAR as the only company outside mainland China capable of offering end-to-end rare earth processing, addressing a critical supply-chain bottleneck that has limited Western magnet manufacturing capabilities.

LCM operates a 67,000 square foot production facility at Ellesmere Port and is the sole proven producer outside mainland China capable of manufacturing light and heavy rare earth permanent magnet metals and alloys at commercial scale.

The company produces critical materials, including samarium, samarium cobalt, neodymium, praseodymium, dysprosium, terbium, yttrium and gadolinium, serving defense, automotive, electric vehicle and industrial sectors across the US, UK, France, Germany, Japan and Taiwan.

According to USAR, LCM’s extensive operational expertise and established supply relationships with raw material providers outside mainland China will strengthen the company’s access to feedstock for its planned 5,000 metric tons per year magnet production facility at Stillwater.

The deal also provides USAR with access to LCM’s government relationships and defense contracts, including recent awards from the Defense Logistics Agency to expand samarium metal production capacity. LCM recently announced plans to expand into France, with anticipated support from the French government’s 2030 investment plan, and maintains relationships with government agencies in the US, UK, France, Australia and Japan.

USAR Chairman Michael Blitzer described the acquisition of LCM as “a bold and transformative leap forward” for the company.

“The combination of USAR-LCM will establish rare earth metal making in the United States for the first time in decades, as we move quickly to integrate these capabilities in Stillwater, Oklahoma, to provide all of the feedstock for the buildout of our 5,000-ton magnet production facility,” he said. “Our ambition is also to expand LCM’s capabilities in both the United Kingdom and Europe, supporting the broader ex-China industry with a wide range of defense and industrial applications.”

The deal is expected to close in the fourth quarter, subject to customary closing conditions, including UK regulatory approval.

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