June 2013 Market Commentary

Please find attached some comments on where we think the markets will go in QI 2013. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions.

If you have any comments or we can help with anything else, please let us know.

 

 

General:

Demand for most products continues to prove weak and producers are determined to cap

production levels. We are working in a European downturn and producers are relying on growth in emerging markets but Asian demand still remains weak. As one commentator said "we are just moving product around at the moment, rather than earning anything".

 

Methanol:

Methanol Q2 contract price was increase by €20 per tonne due to continuing tighter gas

supply chain caused by natural gas feedstock curtailments  in Trinidad, where around 15ºZo of the global supply originates and the inability to move Iranian molecules into Europe (about 12º7« of the global supply originates there). No major outages are forecast and plants are running normally.  European demand is stable and Q3 contract prices are expected to rollover or have a slight increase

 

Acetic Acid:

All major productions units are working normally and the market is well supplied. This good supply position has mitigated any Methanol price increases and resulted in a roll-over or slight increase in Acetic Acid prices for Q2. Barring any unforeseen outages or large increase in Methanol then Acetic Acid prices are expected to remain stable for most of 2013.

 

Ethanol:

Ethylene contract prices have dropped in April and May from the highs seen in March.

Producers have not passed on these decreases yet but are under pressure to do so. We may see a decrease going into Q3. Many US producers have cut production rates or idled plants

as a result of higher feedstock costs (corn) and this will result in higher Ethanol prices in the US. High quality synthetic material remains tight and this situation will continue through 2013.

 

Ethyl Acetate:

Even though Europe is structurally short on Ethyl Acetate, as it is limited to only one major

local producer, regular imports are expected to continue from India and Brazil and keep the market balanced. Prices have remained relatively stable during Q2 despite higher feedstock costs as suppliers try to gain market share. The new plant in Saudi Arabia has started during Q2 and this will balance possible shortages of Indian material as the government has decided to blend ethanol into fuel thus tightening raw material supplies. Q3 expectation is continuing stability.

 

Butyl Acetate market is balanced and prices remain stable.

 

Isopropanol

lPA supply/demand is balanced and will continue in that manner. Prices firmed at the end of

Q1 and into the middle of Q2 but are starting to fall back again which is more or less the

 

same pattern as 2012. Prices are expected to soften slightly going into Q3 and then take an upturn.

 

Acetone  & Ketones

Acetone market and prices are driven by Phenol production (co-product). Phenol production

rates are running at c.70% as demand is quoted as stagnant. There is upward pressure on Phenol prices as the key raw material, Benzene, is in tight supply and Benzene prices are at a record high. Acetone prices are expected to follow the same pattern as 2012 but from a higher base, therefore price increases are expected as supply tightens. New Acetone builds planned in Asia will not affect the European market. Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK/MIBK demand has improved. Prices are expected to increase slightly going into Q3.

 

Toluene, Hydrocarbons and White Spirits

European Hydrocarbons and aromatics will continue to remain volatile and prices could continue on a bumpy road upwards. Lighter crude feedstock into crackers has reduced output and Toluene could be diverted into producing Benzene which is in short supply. There have been fewer imports into Europe and therefore Toluene, Xylene and other hydrocarbons  are expected to fluctuate throughout 2013.

 

Mono Ethylene Glycol (MEG)

MEG prices have started to fall back again coming into the summer as the seasonal demand slackens off. European trade sanctions against IRAN have resulted in reduced imports and some plant closures.

 

TBF  (Tetra Hydro Furan)

New capacity in Asia has yet to come on stream. Prices increased slightly during Q2 and are

expected to remain stable for the rest of the year. The new global capacity may lead to price reductions towards the end of the year.

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to

remove high levels of Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Acrylonitrile demand is very weak and needs a global economic recovery. This will result in a tightening supply as producers reduce output, which in turn could tighten the Acetonitrile market.

 

Methylene  Chloride

All plants are running normally and no major changes are expected at this time.

 

 

AdBlue'  Urea Solution  and Automotive  Products

Urea prices have stabilised which will see a levelling of prices for AdBlue" Urea Solution.

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx

 

emissions. We are the only licensed Irish manufacturer of this product, and we have begun producing product in Australia through a franchise partner.

 

Other News Items

Brockley Group (Eirchem) now have added TOLUENE from ESSAR OIL (Formerly Shell

Stanlow) to their portfolio of products and principals. If you require more information please

contact me.

 

If you require any product or catalysts, please call us and we will try to source it for you.

 

Patrick Short 30"May 2013

 

 

Best Regards

Pat Short

Brockley Group

Mob: +353 87 2426720
Tel: +  353 1 8392016
www.brockleygroup.com
www.bluecat.ie

 

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Q1 2013 Market Commentary

Please find attached some comments on where we think the markets will go in Q1 2013. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q1 contract price has increase by €30 per tonne due to a tighter gas supply chain caused by natural gas feedstock curtailments in Trinidad, where around 15% of the global supply originates and the inability to move Iranian molecules into Europe (about 12% of the global supply originates there). No major outages are forecast and plants are running normally.

 

Acetic Acid:

All major productions units are working normally and the market is well supplied. This good supply position has mitigated the Methanol price increase and resulted in a roll-over or slight decline in Acetic Acid prices for Q1. Barring any unforeseen outages or large increase in Methanol then Acetic Acid prices are expected to remain stable for most of 2013.

 

Ethanol:

Ethylene contract prices have rolled over 3 months in a row resulting in stability in Ethanol pricing. In the US, expiration of tax credits and a drought-hit corn crop, with resultant higher feedstock costs have resulted in producers working to very slim margins. Consequently many producers have cut production rates or idled plants and this will result in higher Ethanol prices in the US. High quality synthetic material remains tight and this situation will continue through 2013.

 

Ethyl Acetate:

Even though Europe is structurally short on Ethyl Acetate, as it is limited to only one major local producer, regular imports are expected to continue and keep the market balanced. Prices will remain relatively stable or with slight increases and demand is slow. 

 

Butyl Acetate market is balanced and prices remain stable.

Automotive coatings are a major market for solvents especially Butyl Acetate and if exports pick up then this could affect pricing.

 

Isopropanol

IPA supply/demand is balanced will continue in that manner. Prices are expected to follow the same pattern as 2012. Propylene prices are expected to remain firm and there may be increases towards the end of Q1 as there are several cracker shutdowns planned.

 

Acetone & Ketones

Acetone market and prices are driven by Phenol production (co-product). Phenol production rates are running at c.70% as demand for resins is very subdued and is expected to remain weak. There is also upward pressure on Phenol prices as the key raw material, Benzene, is in tight supply and Benzene prices are at a record high.  Acetone prices are expected to follow the same pattern as 2012 but from a higher base, therefore price increases are expected as supply tightens. New Acetone builds planned in Asia will not affect the European market.  Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK/MIBK demand is low due to the overall poor economic conditions and MIBK has had a particularly quiet second half of 2012. Prices are expected to remain flat and there may be increases towards the end of Q1 as there are several cracker shutdowns planned which may force up raw material prices.

 

Toluene, Hydrocarbons and White Spirits

European Hydrocarbons and aromatics will continue to remain volatile and prices could continue on a bumpy road upwards. Lighter crude feedstock into crackers has reduced output and Toluene could be diverted into producing Benzene which is in short supply. There has been fewer imports into Europe and therefore Toluene, Xylene and other hydrocarbons are expected to fluctuate throughout 2013.

 

Mono Ethylene Glycol (MEG)

MEG prices have started to increase again as the seasonal demand has begun and there are higher feedstock costs. US & European trade sanctions against IRAN have resulted in reduced imports and some plant closures.

 

THF (Tetra Hydro Furan)

New capacity in Asia is due to come on stream in Q1 2013, but prices have rolled over for Q1. The new global capacity may lead to price reductions later in the year. 

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels of Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Acrylonitrile demand is relatively weak and this will result in a tightening supply as producers reduce output, which in turn could tighten the Acetonitrile market.

 

Methylene Chloride

Ineos ChlorVinyls restarted its plant towards the end of November after a slightly longer scheduled maintenance turnaround. No major changes are expected at this time. 

 

AdBlue^® Urea Solution and Automotive Products

Urea prices have stabilised which will see a levelling of prices for AdBlue^® Urea Solution. 

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only licensed Irish manufacturer of this product, and we have begun producing product in Australia through a franchise partner.

 

Other News Items

Brockley Group (Eirchem) now have added TOLUENE from ESSAR OIL (Formerly Shell Stanlow) to their portfolio of products and principals. If you require more information please contact me.

 

If you require any product or catalysts, please call us and we will try to source it for you.

 

 

Best Regards

Pat Short

Brockley Group

Mob: +353 87 2426720
Tel: +  353 1 8392016
www.brockleygroup.com
www.bluecat.ie

 

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Q3 2012 Market Commentary

Q3 2012 Market Commentary

Please find attached some comments on where we think the markets will go in Q3 2012. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q3 contract price has been rolled over from Q2. Producers were seeking an increase due to the weaker euro and lost supply routes due to trade sanctions, whereas buyers were seeking a reduction due to poor state of the European and global economy. A roll over appears to be a good result, although there may be an increase in Q4. No major outages are forecast and plants are running normally. Methanex are planning to move an idled plant from Chile to US to avail of abundant natural gas supplies.

 

Acetic Acid:

BP has exited their force majeure after a syngas leak at the reformer in Hull during May and production is now returning to normal. Celanese are planning to build a Methanol plant in Clear Lake, Texas to take advantage of abundant natural gas supplies to provide feedstock to its acetyls complex. Q3 prices are expected to fall by €20-30 per tonne on the back of cheaper energy costs. Some Asian Acetic Acid plants are closed due to weak global demand

 

Ethanol:

Ethylene spot prices are falling after reaching a 4year record high in March 2012 due to a soft supply-demand balance. Producers have not passed on these decreases yet although there is pressure on them to do so. Bio-ethanol plants in US are shutting down as tax credits and tariff barriers are removed. High quality synthetic material remains tight and this situation will continue through 2012.

 

Ethyl Acetate:

INEOS Ethyl Acetate plant is running normally now after BP's FM on Acetic Acid in Q2. Prices are falling due to lower feedstock costs and sluggish demand. 

 

Butyl Acetate is in an oversupply situation and consequently prices are falling.

 

Isopropanol

IPA supply/demand is balanced will continue in that manner. Prices have fallen by c. €100 per tonne in the last 6 weeks and further decreases can be expected due to weaker propylene costs although the rate of decline will slow. Stocks are low but balanced, so any unplanned outage could have negative impact on prices

 

Acetone & Ketones

Ineos have restarted their plant after a scheduled shutdown in Q2. Borealis have a planned maintenance shutdown for 6 week in Q3 and there are also some scheduled maintenance shutdowns of smaller Acetone units in Europe during the quarter. Prices have fallen by €3-400 per tonne due to weak propylene and soft supply-demand balance although demand into the main markets (bis-Phenol-A and MMA) remain strong as does demand in China. New Acetone builds planned in Asia will not affect the European market.  Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK/MIBK is in tight supply in Europe and there is strong demand which is driving prices upward

 

Toluene, Hydrocarbons and White Spirits

Toluene, Xylene and other hydrocarbons are falling due to fall in energy prices and weaker demand.  They reached a six year record high at the end of Q1 2012 and are still €120-140 per tonne higher than they were 12 months ago

 

Mono Ethylene Glycol (MEG)

MEG prices have fallen steadily during Q2 and into Q3 due to a weak seasonal demand and lower feedstock costs. MEG plants in IRAN have closed due to US & European trade sanctions.

 

THF (Tetra Hydro Furan)

Lower raw material prices have reduced prices going into Q3 by c. €150-200 per tonne. New capacity in Asia is expected to come on stream in Q4 2012/Q1 2013 and this will lead to further price reductions towards year end.

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels of Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Acrylonitrile demand is relatively strong which should mean a balanced Acetonitrile market while Asahi Kasei are planning to build a new Acetonitrile plant in South Korea.

 

Methylene Chloride

DOW chlorinated solvents plant is still down after scheduled maintenance and customers have been put on allocation.  Producers are pushing for increases of €30-50 per tonne in Q3, while buyers are resisting this pressure for the moment. 

 

AdBlue^® Urea Solution and Automotive Products

Urea prices have stabilised which will see a levelling of prices for AdBlue^® Urea Solution. 

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only Irish manufacturer of this product. If you want any more information, please contact me.

 

Brockley Group Ltd also offer a range of automotive products in bulk and packed, including antifreeze, screen-wash, traffic film remover and will shortly add brake fluids also.

 

Industry News

TOTAL have bought out remaining shareholders of Fina Antwerp Olefins (FAO). The FAO site in Antwerp is now fully owned by TOTAL

BP has published their Statistical Review of World Energy and they have also published BP Energy Outlook 2012-2030.

If you would like more info on how to access these reviews, please contact me

 

Other News Items

Brockley Group (Eirchem) now have added TOLUENE from ESSAR OIL (Formerly Shell Stanlow) to their portfolio of products and principals. If you require more information please contact me.

 

If you require any product or catalysts, please call us and we will try to source it for you.

 

 

Best Regards
Pat Short
Brockley Group Ltd
Mob: +353 87 2426720
Tel: +  353 1 8392016
www.brockleygroup.com
www.bluecat.ie
www.ibec.ie/cdi

 

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Market Commentary Q2 2011

Q2 2011 Market Commentary

 

Please find attached some comments on where we think the markets will go in Q2 2011. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions and it has been very difficult to forecast given the natural disaster in Japan and political unrest in Middle East/N. Africa.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q2 contract price has been settled early, down €10 per tonne due in part to the earthquake in Japan reducing demand and cheaper gas prices in US resulting in mothballed plants being restarted.   The Q2 contract price reflects the need to bring European prices in line with Asia.No major outages are forecast and plants are running normally.

 

Acetic Acid:

BP has exited their force majeure which was in force for all of Q1, however Celanese have declared force majeure due to some issues at their Nanjing plant. This will tighten supply severely for all of Q2 and will lead to major increases in Acid and all acetyl derivatives. The issue will be securing product rather than price negotiation.

 

Ethanol:

Ethylene spot prices have increased by €400 since January and contract prices also have increased significantly. Producers are forcing through these raw material increases onto Ethanol resulting in monthly increases. April prices are €50-60 per tonne higher than January and  approx. €125 per tonne higher than December  2010. Food versus Fuel, the bio-fuel debate continues although some ethanol biofuel plants are due to commence production during 2011. High quality material remains tight and this situation will continue through 2011.

 

Ethyl Acetate:

INEOS Ethyl Acetate plant is running normally now after BP's FM on Acetic Acid in Q1 although material is very tight. Celanese have announced force majeure (see Acetic Acid above). A price increase of €60 per tonne in line with raw material increases and tight supply occurred in April and further increases are expected throughout Q2 while there is a restriction on raw materials. Imports from Brazil, Sweden and Russia have slowed as there were concerns for use in the high quality and Pharma sector. 

Butyl Acetate is on Force Majeure since October 2010 and there is no immediate sign of improvement in the supply chain.

 

Isopropanol

Planned maintenance shutdowns and production issues at European producers have tightened the supply chain dramatically and IPA supply/demand will continue to remain tight during Q2. Prices have increased by €4-500 per tonne since December 2010 and further increases can be expected.

 

Acetone & Ketones

Planned shutdowns in Spain and Italy have tightened the European market and consequently higher prices in the Med region has driven up prices across Europe. Prices are up nearly 50% since January. Demand into the main markets (bis-Phenol-A and MMA) remain strong as does demand in China. Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK/MIBK is being shipped from Europe to Asia to meet demand there after the earthquake in Japan stopped production. There are also some production issues in Europe resulting in limited supply and strong demand which is driving prices ever upward

 

Toluene, Hydrocarbons and White Spirits

Volatile Oil and Gasoline markets continue therefore making projections very difficult. Demand into gasoline and aviation pool has been strong and therefore limiting product available to the chemical markets.  Prices are expected to increase as product is exported to Asia to cover shortfall from Japan.

 

Mono Ethylene Glycol (MEG)

MEG prices will increase during Q2 and also in the 2^nd half of 2011 due to a variety of factors. High demand, planned maintenance shutdowns in the Middle East and at least 2 plants closed in Japan has resulted in very tight supply. This is further compounded by restrictions by Western Governments on trading with IRAN.

 

THF (Tetra Hydro Furan)

Increasing raw material prices and exports to Asia are tightening supply in Europe resulting in prices increasing by €100-150 per tonne.

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Ineos have been able to introduce new technology after the global shortage in 2008 and can now produce Acetonitrile as first intent product along the traditional route.

Acrylonitrile demand is relatively strong which should mean a balanced Acetonitrile market. Raw material increase will put upward pressure on prices.

 

Methylene Chloride

Production issues in Japan  and delays in restarting plants in Europe have tightened the European market and are aiding pricing increase initiatives. Sellers have been pushing for increases of  €50-75 per tonne in Q2. 

 

AdBlue^® Urea Solution

Urea prices have stabilised which will see a levelling of prices for AdBlue^® Urea Solution. 

 

Other News Items

Brockley Group (Eirchem) is continuing to add to their portfolio of products and principals and we will keep you updated on developments.

If you require any product or catalysts, please call us and we will try to source it for you.

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only Irish manufacturer of this product. If you want any more information, please contact me.

 

Brockley Group Ltd also offer a range of automotive products in bulk and packed, including antifreeze, screen-wash, traffic film remover and will shortly add brake fluids also.

 

 

Best Regards

Pat Short

Brockley Group Ltd

Mob: +353 87 2426720

Tel: +  353 1 8392016

www.brockleygroup.com

www.bluecat.ie

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Market Commentary Q1 2011

Q1 2011 Market Commentary

 

Please find attached some comments on where we think the markets will go in Q1 2011. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions and it has been very difficult to forecast given the fluctuations in Global markets we are all seeing.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q1 contract price has been settled early, up €38 per tonne. Some of the reasons behind the increase are as follows: Increased Chinese demand has increased Asian prices but more importantly is the restrictions by Western Governments on trading with IRAN. 33% of Methanol traded in Europe is of Iranian origin and therefore these restrictions have led to fears that there will be reduced trade in Methanol and therefore driving prices up. These fears have increased spot prices in Europe and subsequently increased global spot prices. No major outages are forecast and plants are running normally.

 

Acetic Acid:

No problems with supply. Acetic Acid prices should increase by €20-30 per tonne due to increased raw material costs.

 

Ethanol:

Ethylene spot prices have increased by €150 and January contract has increased by €105. Producers are forcing through these raw material increases onto Ethanol resulting in an increase of €65-90 per tonne. Food versus Fuel, the bio-fuel debate continues and Brazil are rumoured to be seeking higher prices. High quality material remains tight and this situation will continue through 2011.

 

Ethyl Acetate:

INEOS Ethyl Acetate plant is running at maximum rates with no production issues. However Raw material increases (Ethylene & Acetic Acid) will result in an increase of between €50-90 per tonne. Celanese have announced price increase of €70 per tonne in line with raw material increase. Imports from Brazil, Sweden and Russia have slowed as there were concerns for use in the high quality and Pharma sector. 

Butyl Acetate is on Force Majeure since October 2010 and there is no immediate sign of improvement in the supply chain.

 

Isopropanol

Propylene contract price has increased by €110 which would mean an increase of €80-90 per tonne on IPA. Supply/demand is balanced and this is expected to continue.

 

Acetone & Ketones

As a result of the Propylene price increase Acetone prices will increase by €80-90 per tonne. Planned shutdowns in the US and Asia during the year will also cause some tightening of availability. Demand into the main markets (bis-Phenol-A and MMA) remain strong as does demand in China. Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK/MIBK prices can also be expected to increase €70-80 and there is limited supply and strong demand.

 

Toluene, Hydrocarbons and White Spirits

Volatile Oil and Gasoline markets continue therefore making projections very difficult. Demand into gasoline and aviation pool has been strong and therefore limiting product available to the chemical markets.  Prices are expected to increase.

 

Mono Ethylene Glycol (MEG)

MEG prices have steadily increased during the 2^nd half of 2010 due to high demand and tight supply in Europe as the antifreeze season is in full swing. Restrictions by Western Governments on trading with IRAN will also cause a tightness of material in Q1. Q1 prices are expected to increase by €100.  

 

 

THF (Tetra Hydro Furan)

ISP's new plant is fully operational and they have no problems with supply. There are strong rumours that both BASF and Lyondell are having supply difficulties in the USA and this will have an immediate impact on pricing. Q1 prices are expected to increase by €100-150 per tonne.

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Ineos have been able to introduce new technology after the global shortage in 2008 and can now produce Acetonitrile as first intent product along the traditional route.

Acrylonitrile demand may fall due to sluggish demand for downstream products and if producers' cutback production then this may cause tightening of the Acetonitrile market and therefore push up prices from their normal levels.

 

Methylene Chloride

Unplanned outages have tightened the European market and are aiding pricing increase initiatives. Sellers have been pushing for increases and these outages will support plans to increase prices by €50-75 per tonne in Q1. 

 

AdBlue^® Urea Solution

Urea prices have continued to rise due to raw material increases and production issues in Europe. As a consequence of the prices for AdBlue^® Urea Solution are expected to increase by 3 cents per litre where supply agreements permit. 

 

Other News Items

Brockley Group (Eirchem) is continuing to add to their portfolio of products and principals and we will keep you updated on developments.

If you require any product or catalysts, please call us and we will try to source it for you.

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only Irish manufacturer of this product. If you want any more information, please contact me.

 

Brockley Group Ltd also offer a range of automotive products in bulk and packed, including antifreeze, screen-wash, traffic film remover and will shortly add brake fluids also.

 

 

Best Regards

Pat Short

Brockley Group Ltd

Mob: +353 87 2426720

Tel: +  353 1 8392016

www.brockleygroup.com

HYPERLINK "http://www.bluecat.ie"

 

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Q3 2010 Market Commentary

Q3 2010 Market Commentary

 

Please find attached some comments on where we think the markets will go in Q3 2010. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions and it has been very difficult to forecast given the fluctuations in Global markets we are all seeing.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q3 contract price has not yet been settled. Latest information to hand is that there is no real desire to settle the Q3 price quickly from either buyers or producers.  At present buyers are favouring a rollover of the Q2 price, whilst producers were indicating increases of EUR25-35/te as being an appropriate Q3 price. My guess is there will be a small increase of €5-10 per tonne. Demand for Methanol is quiet and no major outages are forecast.

 

Acetic Acid:

Supply has returned to normal and no major problems with supply. Acetic Acid prices have increased by €90-100 per tonne due to increased raw material costs.

 

Ethanol:

Food versus Fuel, the bio-fuel debate continues. Prices are expected to remain stable for H2 2010 even though there have been minor movements in ethylene prices. Brazil are rumoured to be seeking higher prices. High quality material remains tight and this situation will continue through 2010.

 

Ethyl Acetate:

INEOS (former BP Ethyl Acetate business) Ethyl Acetate plant is running at maximum rates with no production issues after their problems at the start of the year. Celanese have announced price increase of €50 per tonne in line with raw material increase and are trying to release more product into the market but there are some delays in shipping. Imports from Brazil, Sweden and Russia have slowed as there were concerns for use in the high quality and Pharma sector. 

 

Isopropanol

Prices have reduced slightly at start of Q3 due to faltering feedstock costs. Supply/demand is balanced and no major changes are expected.

 

Acetone & Ketones

As a result of much improved Acetone availability in Europe coupled with imports from USA and Asia, prices are starting to fall for the first time in several months. Demand into the main markets (bis-Phenol-A and MMA) remain strong although this could slow going into the holiday season. The net effect is that increased imports and slight fall in demand will result in a further erosion of prices during Q3. Pharmacopeia grade Acetone is said to carry a 10-20% premium over normal-grade acetone.

 

MEK is at record price levels due to limited supply and strong demand pushing prices up by a further €100 per tonne

 

Toluene, Hydrocarbons and White Spirits

Volatile Oil and Gasoline markets continue therefore making projections very difficult. Demand into gasoline and aviation pool has been strong and therefore limiting product available to the chemical markets.  Prices are expected to fall slightly

 

Mono Ethylene Glycol (MEG)

MEG prices dropped slightly at the end of Q2 due mainly to a reduction in Asia spot prices and exchange rate factors. European supply is currently tight as we prepare to enter the antifreeze season and shutdowns at several EO plants could tighten supply. If MEG follows its cyclical pricing then there will be some increase in Q3. 

 

 

THF (Tetra Hydro Furan)

ISP's new plant is fully operational and they have no problems with supply. There are strong rumours that both BASF and Lyondell have declared Force Majeure in the USA and this will have an immediate impact on pricing. Q3 prices are expected to increase by €400 per tonne.

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Ineos have been able to introduce new technology after the global shortage in 2008 and can now produce Acetonitrile as first intent product along the traditional route.

Acrylonitrile demand may fall due to sluggish demand for downstream products and if producers' cutback production then this may cause tightening of the Acetonitrile market and therefore push up prices from their normal levels.

 

Methylene Chloride

Two unplanned outages have tightened the European market and are aiding pricing increase initiatives. Sellers have been pushing for increases but due to high stock levels have limited this. These outages will support plans to increase prices by €50-75 per tonne in Q3. 

 

Other News Items

Brockley Group (Eirchem) is continuing to add to their portfolio of products and principals and we will keep you updated on developments.

If you require any product or catalysts, please call us and we will try to source it for you.

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only Irish manufacturer of this product. If you want any more information, please contact me.

 

Brockley Group Ltd also offer a range of automotive products in bulk and packed, including antifreeze, screen-wash, traffic film remover and will shortly add brake fluids also.

 

 

Best Regards

Pat Short

Brockley Group Ltd

Mob: +353 87 2426720

Tel: +  353 1 8392016

www.brockleygroup.com

Q1 2010Market Commentary

Q1 2010 Market Commentary

 

Please find attached some comments on where we think the markets will go in Q1 2010. Information is from a variety of sources including suppliers. These are just indications rather than exact predictions and it has been very difficult to forecast given the Global recession we are all facing.

If you have any comments or we can help with anything else, please let us know.

 

Methanol:

Methanol Q1 contract price has increased by €11 from Q1. Sellers wanted a higher increase due to increased gas costs. Demand for Methanol is quiet and no major outages are forecast. Methanol is seeing slow growth of new sources of demand - dimethyl ether (DME), direct blending of methanol into gasoline, biodiesel and fuel cells.

 

Acetic Acid:

Supply has returned to normal and Acetic Acid prices have rolled over from Q4. No major problems with supply.

 

Ethanol:

Food versus Fuel, the bio-fuel debate continues. Prices are expected to remain stable for H1 2010 even though there have been minor increase in ethylene prices. Brazil are rumoured to be seeking higher prices. High quality material remains tight and this situation will continue through 2010.

 

Ethyl Acetate:

INEOS (former BP Ethyl Acetate business) have declared Force Majeure on Ethyl Acetate. They delayed their shutdown from mid 2009 to December 2009. However the plant failed to restart and they were supplying customers from built up stock, which is now depleted. Plant is due to start back up in late January or early February. Prices have increased substantially (over €150 per tonne) in January and higher prices are forecast for February/March until the plant is fully operational. Celanese are trying to release more product into the market but there is a delay in shipping. Imports from Brazil, Sweden and Russia have been seen but there may be concerns for use in the high quality and Pharma sector. 

 

Isopropanol

Producers have achieved small increases in Q1 on the back of higher feedstock and further increases may be sought on the back of strong demand and lower imports.

 

Acetone

As the recession affects the construction industry, the demand for phenolic resins is expected to decline sharply. Hence producers have cut back Phenol reduction and therefore shift the supply/demand balance of Acetone and consequently the acetone market will remain tight. Consequently prices are expected to rise slightly through Q1. EP-grade acetone is said to carry a 10-20% premium over current normal-grade acetone.

 

Toluene, Hydrocarbons and White Spirits

Volatile Oil and Gasoline markets continue therefore making projections very difficult. Oil prices are at a low for several years and while hydrocarbons would be expected to fall, this has not been the case. Deamnd into gasoline and aviation pool has been strong and therefore limiting product available to the chemical markets.

 

Mono Ethylene Glycol (MEG)

The MEG market is very tight as demand has increased significantly. Asian and Chinese prices have increased significantly in recent months and high prices are forecast well trough Q1 and into Q2. 

 

Glycerine

Glycerine prices are stable and European demand is balanced against production output and exports have decreased to China and US.

 

THF (Tetra Hydro Furan)

ISP's new plant is fully operational since November 2008 and any increased demand has been met by this increased production. Q1 has had a slow start and prices are falling slightly but are expected to recover in Q2 due to raw material increase. Lyondell have ceased direct production of THF and while they continue to market product, it is believed that they are taking material directly from another producer. Demand into the pharmaceutical area is ever increasing.

 

Acetonitrile

Acetonitrile is a co-product in the production of Acrylonitrile and needs to be purified to remove high levels Hydrogen Cyanide. This is normally done alongside the Acrylonitrile production unit as crude Acetonitrile is difficult to transport because of the HCN content. Most Acrylonitrile plants actually burn the crude Acetonitrile rather than purify it. Once purified the Acetonitrile output is approximately 2.5-3% of Acrylonitrile output and consequently the Acetonitrile supply/demand balance is totally governed by Acrylonitrile output. Ineos have been able to introduce new technology after the global shortage in 2008 and can now produce Acetonitrile as first intent product along the traditional route. Prices have returned to their normal levels.

 

Other News Items

Brockley Group (Eirchem) is continuing to add to their portfolio of products and principals and we will keep you updated on developments.

If you require any product or catalysts, please call us and we will try to source it for you.

 

As mentioned in our previous commentaries, we are producing Adblue® under our BlueCat® trademark. Adblue® is required in all new trucks using SCR technology to reduce NOx emissions. We are the only Irish manufacturer of this product. If you want any more information, please contact me.

 

Brockley Group Ltd also offer a range of automotive products in bulk and packed, including antifreeze, screen-wash, traffic film remover and will shortly add brake fluids also.

 

Best Regards

Patrick Short

Brockley Group Limited

Tel +353 1 8392016

www.brockleygroup.com