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Special Issue In association with SPECIAL PMMA OUTLOOK BRENNTAG CEO ICIS forecasts global Christian Kohlpainter ISSUE demand falling 15% in prepares for tough Q2 2020 amid crisis 36 with cost measures 40 22-28 May 2020 MAKING SENSE OF CHEMICAL PRICES ICB_220520_301.indd 1 5/20/20 6:59 PM Empowering a Circular Future The Recycling & Sustainability Hub At ICIS, we have spent the last four decades helping the petrochemical, energy and fertilizer markets make decisions that matter. Our intelligence connects key players, enables innovation and helps you see what is coming, so you know where to invest and where to transform. We are committed to connecting global markets to optimise the world’s resources, now and in the future. Find out how ICIS can help you make the decisions that count: ICIS.com/recycling&sustainability Untitled-2 1 20/05/2020 13:00 Volume 297 Number 19 22-28 May 2020 In association with SPECIAL PMMA OUTLOOK BRENNTAG CEO ICIS forecasts global Christian Kohlpainter ISSUE demand falling 15% in prepares for tough Q2 2020 amid crisis 36 with cost measures 40 22-28 May 2020 MAKING SENSE OF CHEMICAL PRICES I in Ning/RB in L Cover story Presenting the ICIS Top 100 Chemical Distributors, in association with the Fecc. For full story see P27 Shutterstock Coronavirus pandemic has accelerated trend away from PMMA for auto headlights hit by fall in globalisation P10. US housing starts fell by 30.2% month demand, but other markets see rises P36 on month and 29.7% year on year in April P8 NEWS Pricing briefs Plants & projects 12 MA lake down on slowing demand 25 New projects and permanent plant Brie ing 13 Sinopec raises east China propylene shutdowns, 11-17 May 2020 6 Dow shuts units in Midland on loods Pricing snapshot Chemical pro ile 7 Arkema re-appoints Le Henaff as CEO 15 ICIS news evening snapshots, 96 Demand for Europe fatty acids 8 CNOOC, Shell plan third cracker in reported Wednesday 20 May 2020 from personal care is strong, Huizhou Prices & markets automotive weak Focus 17 China policy shift to lift methanol. 97 Typical peak season for US MEG is 9 Plastics recycling industry faces Asia polyester boosted by rising in doubt amid pandemic restrictions low demand and closures amid upstream pandemic 18 Spain chems plea for rescue packs REGULARS 19 Supply length to persist for US TDI as demand dips 5 Commentary TRENDS 20 Global PE margins could surprise in Q2. 94 What’s on Market intelligence Asia acetone sentiment weakens 95 Conferences & events 10 Trend away from globalisation has 21 Next steps for chemicals amid virus been accelerated by coronavirus Global plant status update SPECIAL REPORTS pandemic 22 Major plant disruptions, shutdowns 27 ICIS Top 100 Chemical Distributors 11 Crude prices are pushing petchems and restarts reported by ICIS, The leaders of this important element prices up but demand remains weak 14-20 May 2020 of the chemical supply chain unveiled Independent pricing information, news and analysis for more than 120 global commodities Sign up for free market updates at www.icis.comICIS-pricing_ad_173x25_v2.inddBanner Market sign up.indd 1 1 22-28 May 2020 | ICIS Chemical01/05/201903/09/2012 Business 18:0613:24 | 3 ICB_220520_003.indd 3 5/21/20 11:18 AM Transform this year and increase sales 35th International Exhibition for Fine and Speciality Chemicals Koelnmesse, Cologne, Germany 11 – 12 November 2020 Europe’s No 1 trade fair for the fine and speciality chemicals industry Chemspec Europe 2020 is the place to be. Get back on track with your business and present new products and solutions to an expert audience from various industries: • custom synthesis • colourants & dyestus • plastics additives Book your stand now • pharmaceuticals • flavours & fragrances • cosmetics and benefit from: • fine chemicals • green chemicals • polymers • chemical intermediates • household & industrial • surfactants Over 4,000 potential • agrochemicals cleaning • petrochemicals buyers on-site* • adhesives & sealants • biocatalysts • electronic chemicals Smart Matchmaking Programme • paints & coatings • bio-based chemicals • and much more Extensive online marketing opportunities Global PR & advertising campaign *Show results 2019 Get more information: Organisers: www.chemspeceurope.com Untitled-2 1 20/05/2020 13:00 CSE20-Exh-Advert-A4-EN_v2.indd 1 15/05/2020 13:01 COMMENTARY Joseph Chang New York Distribution resilience The sheer diversity in product portfolios is a true strength in these challenging times. Look for an accelerated drive towards digitisation coming out of the crisis More than ever, the role of chemical distribution as an essential component of industrial and consumer supply chains is in the spotlight. Coming out on the other side of the coronavirus crisis, distributors are set to become even more e icient with an acceleration towards digiti- sation as well as a renewed focus on ESG (environmen- tal, social, governance). We are delighted to bring you this special Top 100 Chemical Distributors issue of ICIS Chemical Business, in association with the European Association of Chemi- cal Distributors (FECC). During the crisis, many distributors have quickly piv- oted to sourcing and supplying more cleaning chemi- Shutterstock cals and inished products such as hand sanitizer and Chemical distributors are an essential part of the PPE (personal protective equipment) to where they’re supply chain needed - to health professionals, irst responders, es- sential workers and consumers. panies to ind innovative ways to serve customers while The sheer diversity in product portfolios for distribu- many employees are working from home. tors is a true strength in these challenging times, as in- “This move - all of us moving into our home o ices - creased demand for food ingredients and packaging, worked out very well and conirmed that we do live up pharmaceuticals, cleaning chemicals and medical sup- to the aspiration to also be a digital leader in our indus- plies partially offsets broad weakness in automotive, try,” said Hans Joachim Muller, CEO of Belgium-based construction, oil and gas, and consumer durables. distributor Azelis (see page 46). Distributors like Azelis are developing digital tools to During the crisis, many distributors have interact more e iciently with their customers and quickly pivoted to supplying more speed up their time to market by leveraging the dis- cleaning chemicals and inished products tributor’s capabilities. to where they’re needed Sustainability in focus The coronavirus crisis will no doubt cast a brighter “Especially in our business sector, diverse product light on supply chains, and this greater scrutiny will portfolios, thorough market know-how, supply chain ex- also apply to sustainability. cellence and the agility to respond quickly to emerging With security of supply chains at the forefront of priori- challenges and dynamic situations are key to success. ties, suppliers and customers will want to deal with dis- This has helped us greatly to navigate the crisis,” said tributors demonstrating a commitment to sustainability, Dorothee Arns, director general of the FECC (page 29). the circular economy and responsible distribution. Global and local sourcing is also critical to meeting “Mid- and long-term, they will have a huge, long-last- these needs. The shift in supply chain requirements ing impact on the chemical value chain and the way we amid the pandemic - from “just-in-time” to “just-in-case” do business. Not only regulators, but also many chemi- - demands resilience on the part of distributors, notes cal players see Covid-19 as an opportunity to accelerate Robert Stuyt, secretary general of the International a transition which was anyhow underway,” said the Chemical Trade Association (ICTA). FECC’s Arns. “Companies will want to make their supply chains In this special issue, we have commentaries from the more robust and disruption-proof… Countries and com- heads of all the major distributor associations - Europe’s panies will prevent dependence on only one geograph- FECC, the US National Association of Chemical Distribu- ic region or organisation,” said Stuyt (see page 32). tors (NACD), the Brazilian Association of Chemical and While there will be a trend towards more regional Petrochemical Distributors (Associquim), Canada’s Re- supply chains for certain essential products such as sponsible Distribution Canada (RDC), the UK’s Chemical pharmaceuticals and PPE, the coronavirus pandemic Business Association (CBA) and the ICTA. will not lead to full-scale de-globalisation, he maintains. We also feature interviews with the CEOs of key chem- ical distributors to see how they’re handling the coronavi- Drive to digital rus crisis, and to get their outlook for the overall business. Have you seen the ICB web- And the coronavirus crisis will only accelerate the drive And our ICIS Top 100 Chemical Distributors listing is site? Get the latest stories at to digitisation for chemical distributors to more e i- as robust as ever, with participation from distributors icis.com/subscriber/icb ciently serve customers. It’s provided a test run for com- worldwide - both large and small. ■ www.icis.com 22-28 May 2020 | ICIS Chemical Business | 5 ICB_220520_005.indd 5 5/21/20 9:13 AM NEWS For real-time news and analysis from our global team of reporters, visit: icis.com/about/news Brieing AMERICAS this year’s downturn will be worse than Brazil’s deep recession in Dow shuts units in Shutterstock 2015-2016 when GDP fell 3.55%. Midland on loods Dow has started shutting down Braskem, ALM launch facilities as part of emergency PP for sintering plans activated at its Midland, Brazilian polyoleins producer Michigan, US, facilities, after two Braskem and US irm Advanced dams collapsed due to heavy Laser Materials (ALM) have an- rainfall. Midland Country was de- nounced the availability of a new clared under state of emergency polypropylene (PP) powder for by Michigan’s governor Gretchen use in selective laser sintering Whitmer.
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