This week on petrochemicals

1. At the NPE 2024 event in Orlando, Florida, PVC exporters foresee minimal, if any, further decline in prices despite potential oversupply and weak global demand. Looking ahead to the latter part of the year, PVC producers may be reluctant to lower prices significantly below $700/t FAS Houston.

2. Danish shipping giant Maersk anticipates a 15-20% reduction in industry capacity on routes from the Far East to North Europe and the Mediterranean in the second quarter due to delays and equipment and capacity shortages. To mitigate recent disruptions, Maersk plans to increase its container capacity by over 125,000 units and continue rerouting shipments around the Cape of Good Hope.

3. Shell announced its agreement on Wednesday to divest its refinery and petrochemical assets in Singapore, a key oil hub in Asia, to a joint venture between Indonesian chemicals company Chandra Asri and Swiss commodities trader Glencore. This move is part of Shell's broader global strategy to transition towards a lower-carbon operation.

4. China's exports saw a 1.5% growth in April compared to the previous year, surpassing earlier expectations of 1% growth. Additionally, imports increased by 8.4% year-on-year in April, exceeding economists’ projections of a 5.4% rise. These positive figures indicate a recovery in both domestic and international demand.