This week on petrochemicals

1-Accelerating?the circular economy?

During the World Economic Forum Annual Meeting in Davos, Switzerland, SABIC, a global leader in the chemicals sector, underlined its commitment to advancing the circular economy by announcing its goal to produce 1 million t of TRUCIRCLETM solutions annually by 2030. SABIC showcased its latest developments in its sustainability journey at a reception with influential business people from across the world and policymakers held in the company's iconic ICEhouseTM (Innovation for the Circular Economy).

2-India Nayara Energy polypropylene plant?

Nayara Energy of India expects to start up its greenfield 450,000 tonne/year polypropylene (PP) plant between October and December 2023.?"The PP plant is part of the company's vision of transforming its Vadinar refinery into a world-class integrated refinery petrochemical complex," Nayara Energy said in a statement on December 30.?

The Nayara Energy refinery in Vadinar, Gujarat, is India's second largest. It has an annual capacity of 20 million tonnes, accounting for about 8% of India's total refinery capacity.

3-Arcelik to acquire Whirlpool’s assets in Europe

To create additional value for European consumers, the newly formed standalone business will combine both companies' European manufacturing expertise, strong supply chains, effective distribution and sales networks, and innovative product pipelines.?

The new company will bring together approximately 20,000 employees from various European countries, as well as many of the industry's most well-known brands.?The new entity's strategy will place an emphasis on innovation and sustainability leadership.

4-China’s import PP markets climb to 6-month highs prior to Lunar New Year

Import PP prices in China have been stable to firmer since the middle of December 2022, reaching their highest levels since August 2022. While limited overseas supply has been cited as a major factor driving up prices, low sales pressure at home due to producers' reduced run rates, as well as the yuan's appreciation, have also contributed to the trend.?

On the demand side, while PP has an advantage over other polymers at some point due to the fibre grade being used in the manufacturing of surgical masks, overall demand has been hampered by the Covid battle. Market activity has recently slowed further as the holiday season has already begun due to the Lunar New Year, which falls on February 5th.