- LyondellBasell has agreed to acquire full ownership of Germany's APK AG, enhancing its technological portfolio and circular economy efforts. LyondellBasell had previously invested in APK AG and collaborated on scaling its technology. This acquisition is a key step in achieving LyondellBasell's 2030 goal of producing 2 million tons of recycled and renewable polymers annually.
- In Europe, PVC producers are aiming to improve their profit margins by pushing for higher prices in September, even though contract ethylene prices are expected to decline. The reduced availability of imports could support this pricing strategy. However, converters are concerned that weak demand may make it challenging to implement these price increases.
- The global petrochemicals market is facing difficulties due to a slow economic recovery, excess capacity driven by China, rising crude oil prices, and geopolitical tensions, which are expected to affect Southeast Asian operators in 2024 and beyond. The U.S. and Middle East, benefiting from cheaper energy feedstock, are better positioned to navigate these challenges. Southeast Asian producers need to address regional disadvantages and develop a strategic plan to remain competitive.
- According to Drewry, spot freight rates on major routes continued to decline this week, marking the sixth consecutive week of decreases. The composite index fell by 3% to $5,181 per 40-foot container. The market anticipates further declines and hopes to stabilize at more sustainable levels by October-November 2024.
