Chemical industry news from Foodcom S.A. [October 2024]

In October 2024, global commodity markets show volatile price and production trends. Price stability for some industrial products contrasts with sharp increases in natural rubber and ethanol prices. India is looking at an increase in silver and platinum imports from the UAE, and disruptions in rubber production in Asia are impacting global prices. All these developments point to dynamic changes in international trade and industry.

Tripropylene Glycol Monobutyl Ether

Tripropylene Glycol Monobutyl Ether (TPnB) prices remain stable, thanks to the balance between supply and demand, particularly in Europe. Although the global cost of raw materials, such as petrochemicals, used in the production of TPnB can affect some price volatility, TPnB currently maintains a competitive price position compared to other solvents. Its popularity is growing, especially in industries seeking more sustainable solutions, helping to mitigate any price volatility, as companies prefer the product for its environmental compatibility and high performance in various industrial applications.

Terephthalic acid

As of October 2024, terephthalic acid (PTA) prices remain relatively stable, but increased demand for polyester and plastics, particularly in the Asia-Pacific region, is putting pressure on producers, which could lead to higher prices in the coming months. China and India are increasing their production capacity to meet the growing needs of the packaging and textile industries, which is helping to keep prices stable in the short term. However, investments in more sustainable production technologies that reduce emissions and improve efficiency may slightly increase operating costs, which could ultimately affect PTA prices in the long term.

Ferric chloride

As of October 2024, ferric chloride (FeCl₃) prices remain stable, although local fluctuations may be driven by raw material costs and changing demand in the wastewater treatment and electronics industries. Increasing demand for ferric chloride in regions such as Latin America and Asia-Pacific, associated with investments in water infrastructure and environmental standards, may lead to moderate price increases in the future. At the same time, the growth of the electronics industry, especially PCB production, is increasing demand for the compound, which is having a positive impact on the market, although cost pressures in the chemical industry may affect ferric chloride prices in some regions.

Copper sulphate

As of October 2024, the copper sulphate market is seeing varying price trends by region and sector. In North America, prices are falling due to lower demand in the agrochemical sector and higher transport costs. In Europe and Asia-Pacific, on the other hand, prices remain more stable, driven by increasing demand in the agriculture, electrochemical and textile industries. Copper sulphate is widely used as a fungicide and algaecide in agriculture and in flotation processes in mining, further sustaining its demand. Despite stability in some regions, rising production costs, due to inflation and raw material price increases, may drive prices higher in the future.

NEWS

India has extended the mandate for imported coal-fired power plants, committing them to operate at full capacity until 31 December 2024, in view of the projected increase in energy demand. The decision was taken despite a decline in coal-fired power generation in September, driven by slower growth in power consumption and increased solar generation. In the first half of the fiscal year (April-September), coal power generation increased by 5% compared to the same period a year earlier, highlighting coal’s still crucial role in India’s power sector.

In October 2024, production of natural rubber, a key raw material for tyres, drops significantly due to extreme weather conditions in the leading producing countries. Thailand, the world’s largest rubber producer, has experienced excessive monsoon rainfall following an earlier drought, reducing crop productivity. Conversely, in China, the world’s fifth largest producer, typhoons have also negatively impacted yields. Global rubber production is forecast to fall by up to 4.5 per cent in 2024, contributing to a price rise of more than 50 per cent, reaching 13-year highs. Thai export block rubber has become 31% more expensive since the beginning of the year, mainly due to severe weather conditions and crop damage.

US ethanol stocks fell more than 5% in October 2024, reaching their lowest level since December, despite record high production. The decline in stocks is due to a surge in gasoline demand, which reached three-year highs, and record exports, which were 30% higher in the last five months than in the same period in 2018. Canada and the UK were the main customers for US ethanol, driven by global pressure to reduce emissions through the use of biofuels. Despite a 20% drop in ethanol prices in 2024, exports and production remain high thanks to cheap corn and low gas prices

The UAE has agreed to investigate India’s concerns about a surge in imports of silver, platinum alloys and dried dates from the UAE. These issues were raised at the recent Joint Committee meeting held under the Comprehensive Economic Partnership Agreement (CEPA), concluded in 2022 after record-short negotiations of just 88 days. India has called for verification that the goods meet the standards of origin to avoid circumventing regulations. In response, the AUE has promised to look into the matter. Growing trade between the two countries is strengthening economic ties, but India has highlighted the need for better monitoring of trade flows, particularly in the precious metals sector.