The Economy

Overview

The economy, as a subject of discussion, appears to have lost its appeal. Not long ago it was a favorite topic of conversation, giving life to dull office parties and enjoying a solid reputation as a dependable standby for columnists experiencing dry spells. Now, it is little more than an annoying overweight elephant in the room that everyone is stumbling around trying to avoid. How can that be?

A bad economy brings drama to the table and usually a promising future as the oligarchs manipulate the marketplace to bring stability to their substantial investments. A good economy gives reason to celebrate and discuss the possibilities of an even longer and brighter future as the top moneymakers strut their stuff and build empires that defy challenge. But no economy is something new. How do we deal with it? There is nothing to discuss, no substance, no drama, it appears to have . . . well . . . stopped, or gone into a serious lull. One thing for sure, it is indeed frightening. The experts are not making predictions, good or bad. The pundits are actually asking, “Are we in a recession of some kind?” Nobody seems to know.

According to one respected analyst, the economy is in a “stall” mode, not exactly a recession, but far from a growth spurt. Consumers are confused and have put the brakes on spending, manufacturers have taken advantage of low oil prices, and warehouses are full of products waiting to be distributed. Is it the proverbial still before the storm, or a false alarm? Although opinions vary, the consensus is that the economy is at best, fragile. Read on, and draw your own conclusions.

 

Is the Economy Actually in a Recession?
According to respected Washington Post analyst Matt O’Brien, that is a possibility. In a recent article he said, “The U.S. economy barely grew at the start of the year, and it’s barely growing any more than that now. It’s bad enough that it’s not completely crazy to wonder whether we’ve somehow slipped back into a mini-recession.

“It’s only mostly crazy. And even then, it depends on what you mean by “recession.” If you’re talking about the usual rule-of-thumb of two consecutive quarters of negative growth, then, yes, there’s probably a 5 percent chance that we’ve fallen into one. But if you mean an economic decline that actually makes unemployment go up, then, no, we don’t have to worry about the r-word. We just have to worry about a new normal of slow growth that might dip into negative territory every now and then even during the good times. In other words, about turning Japanese.

“Now, once again, the economy has fallen into a funk that only evokes words like “stall speed” or “anemic” or “disappointing.” The extreme winter weather helped pushed growth down to 0.2 percent in the first quarter, and the Atlanta Fed’s GDP Now model only thinks it’s up to 0.9 percent now. That’s even worse than last year, when another polar vortex-induced slump at least gave way to a strong bounce back thereafter.”

Read More

 

U.S. Economy Probably Shrank in the First Quarter
Fiscal Times executive editor, Yuval Rosenberg, wrote that recently released March trade deficit data revealed that the the gap between U.S. imports and exports surged 43 percent to $51.4 billion, the highest since 2008. This likely means that the economy shrank a bit in the first quarter rather than growing at even the weak 0.2 percent annual rate the government initially estimated. But that surge in the trade gap, the largest since 1996, is more likely a result of a short-term hit to the economy than a signal of some new long-term concern.

Economists say the troublesome new numbers reflect the impact of the labor dispute that saw traffic through West Coast ports slow to a crawl for months until an agreement was struck in late February. The protracted and contentious contract negotiations and resulting disruptions left ships loaded with goods floating at sea and retailers frustrated about a lack of shipments needed to keep their businesses operating as usual.

Full Story

 

Banker Survey Says Energy Loans are Expected to Deteriorate Further
Bloomberg business analyst Dakin Campbell wrote in a recent article that the condition of oil and gas loans held by U.S. banks is poised to worsen if commodities fall in line with futures prices, according to a Federal Reserve survey of bankers.

About 59 percent of senior loan officers in the U.S. surveyed in April said the quality of loans made to drilling and extraction firms in the oil and natural gas industry is likely to “deteriorate somewhat,” according to the Fed’s quarterly survey. Loan restructurings, reductions in the size of outstanding credit lines and demands for additional collateral may mitigate losses, the loan officers said.

The swift decline in U.S. oil prices caught many market participants by surprise and made it harder for borrowers to repay debt taken out during the multiyear expansion.As lenders moved to reexamine the loans they made to the firms, bankers have sought to ease the concerns of analysts and investors.

Full Story

 

Chevron Selling More Marcellus Acreage
According to Pittsburgh Business Times staff reporter Sam Kusic, Chevron Corp.’s Appalachia business unit is continuing to restructure its operations, putting about 11,700 Marcellus Shale acres in Pennsylvania on the market.

A listing on EnergyNet says that Chevron (NYSE:CVX) is accepting sealed bids on the acreage in Clearfield and northern Cambria counties until May 21. The acreage, about 52 percent of which is held by production, includes six producing Marcellus wells.

In February, Chevron listed for sale about 15,600 gross acres in Cambria, Blair and Bedford counties.

Chevron has been reorganizing the business unit, laying off 162 people and consolidating its headquarters into one building at Cherrington Corporate Center. The company also has delayed a decision on building a headquarters campus in Moon.

Chevron spokeswoman Brenda Cosola said the acreage is being put up for sale as it is not part of its core development area in the Marcellus. She added the company regularly evaluates and prioritizes its portfolio of assets.

Read More

 

Dow Chemical Fires 3% of Employees, CEO Takes No Pay Cut
A harsh article by 24/7 Wall Street reporter Douglas A. McIntyre said that Dow Chemical management announced that the company has shifted its portfolio toward targeted, integrated high-value markets, and as a result the Company is taking additional actions to further enhance its organizational effectiveness — with a focus on driving geographic market engagement coupled with global efficiency — to deliver maximum value from its growth investments.

The Company will take charges totaling approximately $330 million – $380 million in the second quarter of 2015 for asset impairments, severance and other costs related to these measures, which are expected to be completed during the next two years. Once fully implemented, these actions are expected to result in approximately $300 million of annual operating cost savings.

McIntyre said that the story is as old as publicly traded companies. Dow Chemical Co (NYSE: DOW) will cut 3% of its workforce. Nothing in the corporation’s press release mentioned whether Andrew N. Liveris, Dow’s president, chairman and chief executive officer, will cut his own pay by a dime.

Full Story

 

Toxic Status Quo Fails to Protect Consumers
Washington Post columnist, Ruth Marcus, suggests that the highly contested current Toxic Substances Control Act (TSCA) that was allegedly designed to protect the public from dangerous chemicals, falls far short of the task. Updated legislation could significantly affect the economics of the chemical industry.

“For example, before a new chemical enters the market, the manufacturer must demonstrate its safety and the substance must win approval from federal regulators, right?

Not even close,” Marcus writes.

She went on to say: “When it comes to new medications, the Food and Drug Administration conducts a rigorous review. Same for pesticides and the Environmental Protection Agency. But chemicals — even chemicals used in everyday household products — are presumed safe until proven otherwise. Companies don’t even have to test chemicals before using them in consumer products.

“Not only that: The EPA, which is responsible for overseeing chemical safety, is all but toothless even when serious questions are raised about substances already in use. If you think this is hyperbole, consider the example of asbestos, classified as a “known human carcinogen.” It’s banned, right?

Nope.

In 1989, after studying the issue for 10 years and concluding that asbestos posed “an unreasonable risk to human health,” the EPA moved to prohibit most products that contain asbestos. Two years later, it was shot down by a federal appeals court, which concluded that the agency had overstepped its authority.

Since then, the EPA has not proposed regulating a single additional toxic substance. Not a single one, despite the emerging evidence that an alphabet soup of chemical substances — BPA in plastic baby bottles, PFCs in nonstick surfaces for pans, PBDEs in flame retardants for furniture — collect in the human body and are linked to health problems, particularly in children.”

Full Story

 

Chemical Industry News

Overview

The condition and influences of the oil market on a global scale continues to lead the news when discussing the chemical industry because of the tremendous impact that resonates throughout the leading economies when the oil market is unstable. The delicate balance between realistic prices, production, and consumption is more difficult to maintain than ever before. And the lack of accurate predictions is frustrating everyone from purchasing agents to consumers.

Another key chemical industry issue concerns the new legislation that is up for vote this week on the reformed Toxic Substances Control Act (TSCA) of 1976 introduced by Rep. John M. Shimkus (R-Il.). Although the bill could lead the way out of a huge political snarl that has lasted for years, everyone is not happy with the outcome. Some say it does not do enough. Read the opposing views.

Although the global chemical industry has grown significantly despite downturns in the overall economy, emerging economies drove a large share of those gains. The role of the industry in the marketplace also appears to be changing from the inventive blockbuster breakthroughs of the late 20th century to a more curative and corrective role targeting particular problems. To accommodate these changes in the marketplace, chemical companies are changing their focus and strategic thinking.

Read on, and see what the analysts, pundits, and market experts have to say as they weigh in on the important issues that are re-shaping the landscape of the chemical industry.

 

Baker Hughes: Cheap Shale Gas, Record U.S. Chemical Industry Growth, Natural-Gas Rig Count Down by 22
A Marketwatch article by market commodities reporter Myra P. Saefong said that industry support giant Baker Hughes reported that the number of U.S. rigs actively drilling for oil and natural gas as of April 24 fell 22 rigs to 932. The count is down 929 rigs from last year. The number of oilrigs fell 31 for the week to 703. June oil CLM5 was last at $57.27, down 47 cents or 0.7%, on the New York Mercantile Exchange.

Full Story


ACC Welcomes U.S, House Draft Legislation to Reform TSCA
A press release written by Scott Jensen for the American Chemistry Council announced that ACC Vice President of Regulatory and Technical Affairs Mike Walls testified before the House Energy and Commerce Subcommittee on the Environment and the Economy in support of the bipartisan discussion draft of the “TSCA Modernization Act of 2015.” The draft seeks to modernize key aspects of our nation’s primary chemicals management law, the Toxic Substances Control Act (TSCA). It was released by Subcommittee Chairman John Shimkus in an effort supported by Committee Chairman Fred Upton and Committee Ranking Member Frank Pallone.

ACC stated that our nation’s primary chemicals management law must be updated to keep pace with scientific advancements and to ensure that chemical products are safe for intended use—while also encouraging innovation and protecting American jobs.

The Senate Environment and Public Works Committee will mark up the Udall/Vitter Toxic Substances Control Act reform bill and its potential amendments this week.

Full Story


Draft Bill May Pave Path for Reform of Federal Chemical Control Law
A Chemical and Engineering News article by Britt E. Erickson concurs with the ACC in support of the new draft legislation in the House of Representatives that could lead the way out of a political snarl that for years has stalled Conogress’s efforts to modernized the federal law governing commercial chemicals. The chemical industry is backing the draft bill, and environmental groups say that with a few changes they too could support it.

Rep. John M. Shimkus (R-Ill.), who on April 7 unveiled the draft measure to reform the outdated Toxic Substances Control Act (TSCA), says, “I believe that this is the year we can finish the job.”

Shimkus’s draft bill omits controversial provisions—notably one that would override state chemical laws—found in Senate legislation (S. 697) to revise TSCA.

The American Chemistry Council and other chemical industry groups say the draft represents progress toward finding common ground on key issues in the long debate on TSCA reform.

Full Story

 

Shimkus Bill Won’t Fix Big Flaws in Our Main Chemical Safety Law
According to Katie Weatherford in a Center for Effective Government article, the Shimkus Bill for TSCA reform does not even come close to addressing all of the necessary issues. Weatherford says that every day, we are exposed to chemicals in our shampoo, body wash, hand sanitizer, toothpaste, lotion, and much more. We expect our government to ensure that the chemicals in products have been tested and are safe for us and our families.

The truth is that the U.S. Environmental Protection Agency (EPA) has only tested about 250 of the 84,000 chemicals registered for use in the U.S. Of those, it has imposed restrictions on only nine.

This is due to significant shortcomings in our country’s main chemical control law, the Toxic Substances Control Act (TSCA) of 1976.

This law is vastly out of date and needs to be updated and strengthened to protect our families, friends, and communities from toxic chemicals. Legislators on both sides of the aisle agree, but they have far different approaches to revising the law.

Full Story

 

2015 Chemical Trends
According to a Strategy& article titled Footprints & Competition, chemical companies can no longer afford to be passive about restructuring their business models or technological transformations.

The article goes on to say that Global sales of chemicals more than doubled over the last decade, hitting a record US$5.2 trillion by 2013 (americanchemistry.com). Emerging economies drove a large share of these gains, most notably in China, where chemicals sales expanded at an average compound annual rate of 26 percent over that period. Growth in basic chemicals, which make up nearly two-thirds of the industry, also benefited from the general uplift in oil and gas prices.

But at the same time, the chemicals industry is going through a tremendous period of change that will help define opportunities and challenges in both the short and the long term . . .

To succeed in this shifting landscape, chemicals companies need to focus their strategic thinking on three areas: (1) adapting and refining their business models and manufacturing footprints; (2) identifying growth opportunities in emerging markets — which, especially for Western companies, will require a new mind-set; and (3) harnessing the potential of digital technologies to capitalize on the next wave of value creation.

Full Story

 

Chemical Industry News

Overview

Cheap shale gas, $20 oil, and the feds not raising the interest rate, at least not immediately, means exciting news for the chemical industry. Economists, analysts and financial pundits appear to concur that the chemical industry will enjoy in the neighborhood of 4% growth this year if all indices bear fruition.

Chemical companies are taking advantage of the low prices brought on by the confluence of near-perfect market conditions as the proverbial tide could turn at any time when oil prices recover. Meanwhile, the cheap gas is creating jobs while the cheap oil is shutting down wells and causing layoffs. The marketplace is highly volatile in every sense of the word, and everyone from investors to manufacturers and consumers is proceeding with caution as many enjoy the respite from a recessive economy.

The economic boom does not, however, come without a price. The constant battle between industry and government regulators is alive and well and showing no signs of subsiding any time soon. Instead of reconsidering projects like the Keystone XL pipeline, our lawmakers are proposing the strengthening of freight rail regulations. Apparently, the disasters of the last two months weren’t enough to initiate the introduction of common sense. And, of course, the EPA wouldn’t want to be upstaged, so it is flexing its muscles by proposing more pending regulations on the chemical industry under the guise of anti-terrorism precautions. But the new rules are uncertain, pending, and being discussed and rehashed, making it difficult for manufacturers to make the necessary investments required to comply with possible new rules.

Critics Oppose New Regs for Fracking On Federal Land
A recent Fox news article reported that new regulations by the Obama administration required fracking companies drilling on federal lands to disclose the chemicals they use in the controversial process. GOP lawmakers blasted the announcement saying it was “yet another attack on American jobs”. The mandate could slow the U.S. energy boom.

 Full story


NACD Urges DOT to Withdraw Proposal
A National Association of Chemical Distributors (NACD) article announced that they filed comments with the U.S. Department of Transportation’s Pipelne and Hazardous Materials Safety Administration (PHMSA) urging the agency to withdraw a proposed rule that would prohibit the shipment of two or more chemicals in the same vehicle.

The proposal specifically would prohibit the transportation or offering for transportation materials in the same transport vehicle (e.g., a trailer, a rail car), with another material that could cause a dangerous evolution of heat or flammable or poisonous gases or vapors or produce corrosive materials if mixed.

Full Story

Congress Moves to Strengthen Freight Rail Regulation
According to an article in Roll Call, a bipartisan proposal by Sen. John Thune, R- S.D. and Sen. Bill Nelson, D – Fla., the chairman and ranking member of the Commerce, Science, and Transportation Committee, is in response to complaints that Bakken oil from North Dakota, which is shipped by rail, is causing shipments of other commodities from cherries to corn to iron ore to be delayed.

Their bill would expand the board from three to five members, give it new investigatory authority, and require the board to create a database of shippers’ complaints and quarterly reports.

National Association of Chemical Distributors president Eric Byer said, “Chairman Thune has worked hard over the years to ensure a level playing field for rail shippers, which includes 40 percent of all chemical distributors. NACD thanks him for being committed to holding the railroad industry accountable….”

Full Story

Consumer Spending Boosts Chemical Industry Growth
According to an ICIS Chemical Business report, the American Fuel & Petrochemical Manufacturers predicted that the U.S. chemical industry should grow by 4% this year – its best rate in years – because key end-use markets will either continue to expand or start to recover. However, not all end-use markets will prosper this year.

The decline in oil prices has caused a sharp drop in oilrig count, which will lower demand for oilfield chemicals. The decline could leave some companies with high-cost inventory on their books.

Meanwhile, the strengthening dollar will make exports more expensive – although US producers will likely maintain their feedstock advantage.

Full Story

EPA Rules Threaten U.S. Petrochemicals Sector
An ICIS Chemical Business report announced that the legislative outlook for the US chemicals sector looks better in 2015 than it has for years, but the horizon is still clouded by multiple pending rules from the US Environmental Protection Agency (EPA).

Even before the New Year dawned, the industry secured an important legislative goal when the House in December 2014 gave final congressional approval to legislation extending the federal mandate for chemical facility anti-terrorism precautions for a full four years. President Barack Obama has since signed the measure into law.

However, since 2007 the CFATS program had been renewed chiefly with annual votes by Congress, a practice that chemical manufacturers complained has created continuing uncertainty about the rules, making it difficult for plant operators to make long-term investments to meet those federal standards.

Full Story

Cheap Shale Gas Means Record Growth for U.S, Chemical Industry
A Bloomberg article by Jack Kaskey reported that Dow Chemical is among companies planning to build crackers, industrial plants typically costing $1.5 billion apiece that process hydrocarbons into ethylene and other synthetic materials. The new crackers will be the first to be built in the U.S. since 2001 and the largest wave of additional capacity, John Stekla, a director at Chemical Market Associates Inc., a Houston-based consultant, said in an interview.

Driving the renaissance is the plunge in the price of natural gas, used in crackers as a raw material, to a nine-year low.

“The U.S. now has investment-grade economics, and because of shale we are going to lock those economics in,” Dow Chief Executive Officer Andrew Liveris said. “We can grow our Americas base off our U.S. Gulf Coast assets. That is a big change.”

Full Story

A MARKET UPDATE for August, 2012

“THE VIEW FROM JAMESTOWN
A MARKET UPDATE for
August, 2012
From
THE CHEMICAL COMPANY.

Contact:

The Chemical Company
P.O. Box 436
19 
Narragansett Ave.
Jamestown, RI 02835
Phone: (401) 360-2800

Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message:

From Nick Roach CEO:

As I get older I tend to reflect on the past a bit more. I clearly remember the most dramatic events, such as the loss of my wife to cancer. But I also reflect on how I got to where I am and what brought me to a position of overseeing the operation of a fairly substantial chemical distributorship.

Reviewing the past brings up memories of being placed on probation at Gulf Oil when I criticized their position to stay out of the radial tire market. I also remember when I was almost fired for dropping out of their fast track management program.  I finally left out of frustration thinking I was nuts to leave. It wasn’t long before Gulf no longer existed and all the people who encouraged me to stay had lost their jobs.

Why was I perceptive and why did things eventually turn out well for me? I often wonder if it was divine intervention. I wasn’t a great student and if you had known me in my youth you would have probably described
me as crazy. So what is the formula for my success? I believe it is about caring for the people in my life. I truly care about every employee, every customer, and every supplier.

I hate failure. Why?  Because our employees wouldn’t be secure if I failed often. Failure means I would put my customers, suppliers and employees at risk.  All of them deserve my diligent attention to detail. I have always envisioned my employees, customers and the suppliers as my family. Hands on personal service are what will secure the future of our friends and family. Each of you is so important to me and The Chemical Company.

So, at times I have been great to work for and at other times I was a jerk and demanded more of the people in my life. I have always done it for the benefit of everyone and continue to do so. In reality I’m not here to make demands even if I do at times.  I’m here to listen to you and follow up on your requests and needs. 

Pay attention to the details and changes.  It could be the way someone talks on the phone, technology changes, life changes, ownership changes, whatever the change is¦  Pay attention to the details.

It’s been my job to serve you all and better understand what is necessary to improve every aspect of our company. Management goals at TCC are to serve the customer, suppliers and the employees. We need a vision of the future and understanding of the past. It can only happen if we listen to all of you. I am here to serve you, pay attention to details and improve the company.

Finally I understand after reflecting on my life, it is management’s job to listen carefully and be fair. I would like to thank you personally for your support, we will continue to listen.

Quote of the Month:

People never lie so much as after a hunt, during a war, or before an election.
Otto von Bismarck, quoted in the Montreal Gazette

From: Quimica y Derivados August, 2012

TCC Videos:
http://www.vimeo.com/24834423
http://vimeo.com/38459394
http://vimeo.com/38459041

Upcoming Events:

EPCA 46th Annual Meeting 2012 6
“ 10 October 2012 “ Budapest 
Please contact Robb Roach at Robb@www.baojishu.com for an appointment.

Links and Social:

Want to exchange links??
Contact us!

For immediate updates on Chemical Industry News be sure to follow us on Twitter @thechemicalco or our facebook page here: 

Habla Español??? The TCC website is available in multiple languages!

TCC Downloadable Brochures:
The Chemical Company Brochure
TCC Plasticizers and Plastics Additives
Iron Oxides Composites
Flame Retardants

 

New Products In Stock

Tetrabromo Phthalic Anhydride: TCC now offers TBPA in Small Bags (25 Kg.) and Supersacks (2,000 lb.)

Zinc Borate:TCC now offers Zinc Borate in 25 Kg. Bags

Malic Acid25 Kg. Bags (In Stock and Available Now!)

Adipic Acid25 Kg., 500 Kg. and 1,000 Kg. Bags (In Stock and Available Now!)

Products In Transit/ Available Soon
Neo- Pentyl Glycol (NPG) 500 Kg.
Sacks
Tetrakis-(hydroxymethyl)-phosphonium chloride 2200 lb. Totes
Bio- Succinic Acid 2000 lb. supersacks and 25 Kg. Bags
AntimonyTrioxide High Tint, Supersacks

New/ Updated Technical Information (hyperlinked):

Antimony Trioxide
ATBC “ Nature-Flexx 509
Chemflexx 206
Chemflexx DOA
Chemflexx TOTM
Citric Acid
Dicyandiamide Diisononyl Phthalate
Epoxidized Soybean Oil
Fumaric Acid
Malic Acid
Methanol
Succinic Acid
Tartaric Acid
Urea

Please contact Robb Roach at robb@www.baojishu.com or Tel: (401) 423- 3100 for more information.

We appreciate your taking the time to review this newsletter. We welcome your comments as well as contributions regarding our readers’ company/industry activities. Please send them to Bob Beavins at chemcobob@comcast.net

**Please note that all products are now in Alphabetical Order and many products are hyperlinked to their own information page.**

At the end of each paragraph you will notice a symbol and the meaning of these symbols are as follows:

+ Denotes upward pricing momentum

\ Denotes stable pricing momentum 

Denotes downward pricing momentum

CRITICAL RAW MATERIALS MARKETS

Benzene: U.S. benzene contracts for August settled higher to US$4.60/ Up $.30/ gallon from US$4.30/ gallon in July. Spot prices are in the $4.25- $4.3o/ gallon range. +

N Butane: Butane prices have strengthened to US$1.50’s per gallon up from the $1.30’s per gallon at the beginning of August. Current pricing in the $1.52- $1.55/ gallon range. +

Ethylene: U.S. Contract Price for July increased by $.02/ lb. to $.41/ lb. Current spot is in the Mid $.50’s so we expect an increase for August. +

Natural Gas: Natural Gas pricing has declined at many trading locations although a few Northeast points recently saw upward movement due to extreme hot weather and air conditioning demands. September futures pricing is less than $3.00/mmbtu. –\

Check www.baojishu.com for up to the minute info.

Oil: Crude Oil pricing has increased approximately $13/bbl in the past month. Current WTI Crude price is at $96.00/ barrel range and moving up. +

Check www.baojishu.com for up to the minute info.

Orthoxylene August contracts settled $.06/ lb. higher at $.65/ lb. This is the second August in a row that orthoxylene reflected a large increase; both August 2011 and August 2012 contracts settled at $.06/lb. +

Propylene August contracts settled at a reduction of $0.015/lb from July at $.505/lb. for polymer Grade and $.49/lb. for chemical Grade. Current trades are contract – $.01- $.02/ lb. /

CHEMICALS MARKETS

Adipic AcidAdipic Acid pricing is flat with good demand and stable supply. Ram material prices are flat but pressured due to an increasing oil price. There is considerable risk of outages  during the Atlantic hurricane season due to the locations of major producers. Building inventory is recommended. /

For more information please contact Robb Roach at robb@www.baojishu.com

Ammonia: August pricing in Tampa has rolled at US $690/ ton Del. Availability is tight to balanced. Spot transactions are in the $655/ ton range. /

For more information please contact Robb Roach at robb@www.baojishu.com

Ammonium Nitrate: Ammonium Nitrate producers announced a $45/ ton increase for July due to increased feedstock costs and limited availability. No announcements for August or  september. The major feedstocks ammonia and nitric acid are having some supply issues. Demand remains very good. /

For more information please contact AJ Petrarca aj@www.baojishu.com

Antimony Trioxide:     

Demand for antimony trioxide remains relatively weak and new availability from South America has helped relieve pricing. Current offers are in the upper $4.00/ lb. range. Buyers continue to keep inventories to a minimum and use alternate chemistries where possible.

For more information please contact AJ Petrarca aj@www.baojishu.com

Dicyandiamide:  Pricing has strengthened on energy costs in China.  Normal seasonal pressures due to increased energy demand are pushing prices higher.  Product is in stock and immediately available.

For more information please contact AJ Petrarca aj@www.baojishu.com

Epoxidized Soybean OilSoybean prices have stabilized. Pricing hasn’t changed much despite a higher trend for soybean pricing. Supply is very good keeping prices low and margins in the
red.
/

For more information please contact Robb Roach robb@www.baojishu.com

Fumaric AcidFA Pricing has pushed slightly lower. Lower Butane pricing and lower priced import offers are now affecting Fumaric pricing.

For more information please contact AJ Petrarca aj@www.baojishu.com

 Glycol (Mono, Di and Tri): Ethylene: U.S. Contract Price for July increased by $.02/ lb. to $.41/ lb. Current spot is in the Mid $.50’s so we expect an increase for August. +

MEG “ At least one producer has announced a 5 cts/ lb. increase for September. Availability is limited due to turnarounds. +

DEG- A price increase of $.03/ lb. has been announced for September. Availability is limited due to turnarounds. +

TEG- Despite seasonally slow demand a price increase of US $.04/ lb. has been announced for September. +

For more information please contact Robb Roach at robb@www.baojishu.com

Isophthalic Acid: PIA pricing has leveled in response to stregthening raw material costs. Supply and demand remain stable. /

For more information please contact Robb Roach at robb@www.baojishu.com

Maleic Anhydride: The Maleic Anhydride market is quiet and demand remains seasonally slow. Supply is balanced to long in North America. Prices have leveled after erosion in July due to lower butane values. /

For more information please contact AJ Petrarca aj@www.baojishu.com

Melamine:  Melamine supply is long world-wide on massive new capacities in Trinidad and Qatar. Urea prices have moved lower and therefore no longer pressuring Melamine cost. /

For more information please contact Javier Fernandez  Javier@www.baojishu.com 

Malic Acid: Malic Acid pricing has been pressured and retreated slightly on lower butane values and good availability. TCC has Malic Acid in stock and available.

For more information please contact AJ Petrarca aj@www.baojishu.com

MethanolThe Methanex Non-Discounted Reference Price for August has rolled at US$1.32/ gallon. Spot pricing is currently approx. US$1.08- $1.09/ gal. and up slightly. /

For more information please contact Robb Roach at robb@www.baojishu.com

Notes:

OCI has begun producing Methanol at their Beaumont, TX facility. Operating rates improving.

Methanex has re-started their #2 Montunui plant in New Zealand

Gas curtailments in Trinidad could reach 30% for September and beyond due to platform maintenance.

Embargo on Iranian Methanol cantinues to cause a re-shuffling of volumes world- wide.

Nitric Acid: Nitric Acid pricing increased by US$50/ ton (100% basis) for July due to high ammonia cost and availability due to an explosion and intense damage at the site of a major producer (El Dorado/DSN). Demand is good. /

For more information please contact Robb Roach at robb@www.baojishu.com

Phenolic Resins: Phenol pricing has leveled, demand is good and supply is healthy. Formaldehyde prices remain stable with methanol prices unchanged. /

For more information please contact John Santini at john@www.baojishu.com

Phthalic Anhydride: Phthalic Anhydride pricing will increase by $.06/ lb. in September in line with the August orthoxylene price increase. Orthoxylene will likely continue to increase as oil  and aromatics pricing has strengthened. +

For more Information please contact Javier Fernandez at javier@www.baojishu.com

Plasticizers and Plasticizer Alcohols: Plasticizer demand world-wide has been slow seasonally but the base raw material costs, especially orthoxylene, have started to increase. Plasticizer alcohol demand has also been weak but recent strengthening is noted. INA is balanced, 2-EH has had some recent strengthening, and higher alcohols remain balanced.

Plasticizer and plasticizer alcohol pricing is stable due to slow seasonal demand and a sizeable uptick in import activities. Increases are expected in the coming weeks/ months if oit continues to strengthen.

For more information please contact Forest Goodman at forest@www.baojishu.com

Note: Some plasticizers have limited availability. Please contact TCC for further details.

TCC Plasticizers available:

Non- Phthalate:

ChemFlexx Dibenzoate Esters

ChemFlexx DiOctyl Succinate (DOSX)

ChemFlexx NP 500 Non- Phthalate Replacement for General Purpose Plasticizers

ChemFlexx NP 600 Non- Phthalate Replacement for DIDP

NatureFlexx 509 Phthalate Free General Purpose (ATBC)

Epoxidized Soybean Oil

ChemFlexx TOTM (TriOctyl Trimellitate)

ChemFlexx DOA (DiOctyl Adipate)

ChemFlexx 8 10 Trimellitate

Phthalate:

Vestinol 9 DiIsononyl Phthalate (DINP)

ChemFlexx 206 Functional Linear Phthalate Replacement

ChemFlexx 208 Low Temp Functional Linear Phthalate Replacement

ChemFlexx DOP (DiOctyl Phthalate)

ChemFlexx DUP (DiUndecyl Phthalate)

DMP (DiMethyl Phthalate)

ChemFlexx DOTP (DiOctyl Terephthalate)

Brominated DOP

ChemFlexx 9 11 Phthalate

ChemFlexx L9 Phthalate

Styrene monomer: Styrene Pricing increased slightly for August in line with higher benzene values (up $.30/ gallon). NA demand remains slow. +

For more information please contact Robb Roach at robb@www.baojishu.com

Urea: Urea prilled pricing is trading in the mid- $400’s per ton. Current granular pricing is US$435/ ton. No major movement has taken place in recent weeks . /

For more information please contact Robb Roach at robb@www.baojishu.com

Notes: 

Low water levels on the Mississippi are a continuing problem.

Seasonal demand has slowed.

Zinc Borate:
Pricing has been relatively steady but demand has increased as consumers scramble to replace a portion of their Antimony Trioxide usage where possible. Product is in stock and immediately available.

For more information please contact Robb Roach at robb@www.baojishu.com

For more information on these or any of the products and services provided by TCC please contact Robb Roach directly at Robb@www.baojishu.com or go to our web site at www.baojishu.com

Environmental, Health, Safety and Sustainability (EHS&S)

 

CHEMICAL INDUSTRY NEWS

The American Chemistry Council (ACC) US Chemical Production Index dropped by 0.1% in June, following a revised 0.5% decline in May. Chemical production fell in the Gulf Coast, Midwest, Southeast and West Coast regions and was flat in the Ohio Valley, Mid-Atlantic, and Northeast regions. Chemistry output is anticipated to rise by 0.5% in 2012 before
attaining a 2.3% growth rate in 2013.

The ACC’s Chemical Activity Barometer (CAB,) was unchanged at 88.5 in July after dropping by a revised 1.0% in June. The published data suggest that the US economic recovery is slowing. The chemicals industry generated about $760 billion last year.

The House of Representatives is considering a bill that would add judicial oversight to scientific assessments generated by federal agencies, as well as require agencies to prioritize
information based on well-established scientific processes.

The US chemicals and plastics industries added workers in July, according to the Department of Labor. The department said that chemicals industry added 1,100 workers, an increase of 1.3%,
bringing the total to 798,600 jobs. 

The ACC and the University of Texas at Austin released a new study indicating how non-recycled plastics can serve as an affordable, clean and abundant energy source.

The US Chamber of Commerce filed a friend of the court brief in order to challenge the Environmental Protection Agency (EPA) Utility MACT rule which aims to reduce emissions of mercury and other hazardous air pollutants from coal-fired power plants. The Chamber said that the EPA violated the Clean Air Act by using a flawed methodology to set emissions standards that are unachievable for coal plants because the necessary pollution control technologies do not exist. It has been estimated that coal fired power plant shutdowns could cause major  blackouts in the US.

A bipartisan group of US Senators cautioned the EPA not to misuse the Clean Air Act to regulate security at chemical facilities. They pointed out that existing laws and regulations adequately
address what should be done in the case of a terrorist attack on these facilities. About a week later the Senate Environment and Public Works Committee voted along party lines to approve a measure that would toughen chemical safety laws overseen by the EPA. The measure would require safety testing of all industrial chemicals and force chemical makers to show that new compounds are safe. Under current law, the EPA can only call for safety testing after evidence is submitted showing that a chemical is dangerous.

Sunoco’s idled propylene splitter in Marcus Hook, PA was acquired by Braskem, and the company will direct production to a nearby facility that it owns. Pennsylvania will provide financial
assistance with $15 million in financing so long as the company invests at least $56 million at the site. The deal is also contingent on Braskem creating a minimum of 28 new jobs and retaining 119 existing workers for at least five years.

PPG and Georgia Gulf announced on July 19 that PPG plans to separate its commodity chemicals business and merge it with Georgia Gulf. Initial information indicates that PPG shareholders would receive 50.5% of shares of the new company, with Georgia Gulf shareholders holding 49.5%.

Bayer MaterialScience LLC will be closing its Baytown, TX facility later this year in order to complete a $120 million upgrading. This is expected to improve the site’s safety and reliability while increasing capacity.

On July 17 the federal government announced that baby bottles and sippy cups can no longer contain bisphenol-A (BPA). In October, the ACC had asked the Food and Drug Administration (FDA) to phase out rules allowing BPA in these products after determining that all manufacturers of these products had abandoned the use of BPA.

The ACC expects to complete its review of the Responsible Care program prior to 2013, intending to revamp its product safety code and continuing to emphasize energy efficiency and sustainability elements.

The EPA chose not to revise the permitting thresholds for greenhouse gas emissions (GHG) in a final rule issued on July 3. The EPA said that it is retaining existing rules because state
permitting authorities need more time to develop infrastructure necessary to issue GHG permits.

US chlor-alkali operating rate for June rose to 84% of capacity, from the 74% number seen in May.

Saudi Basic Industries (SABIC) and ExxonMobil recently predicted that their joint venture Kemya  synthetic rubber plant will have an immediate earnings impact when it comes on line in
the second half of 2015. The project cost is estimated at $3.4 billion.

Germany’s seasonally adjusted unemployment rate remained at 6.8% in July. The German economy grew by 0.5% in the first quarter, but concerns over the euro crisis have led to a cautious approach to hiring.

Clariant plans to invest $35 million in a new cellulose ethanol plant in Straubing, Germany which is expected to produce about 1,000 MT/year of cellulose ethanol biofuel and chemical raw
material. The company said that this plant represents the interim stage necessary prior to moving to full production plants capable of producing up to 150,000 MT of ethanol annually.

Unemployment in the eurozone was reported at 11.2 % in June and was the same as an upwardly-revised May number. This was the 14th consecutive monthly increase and the highest in the history of the currency.

Japan posted its biggest first half trade deficit, reflecting the economic consequences of the country’s decision to discontinue nuclear energy and increase dependence on imported fossil fuels. The Ministry of Finance reported a trade deficit of 2.92 trillion yen, or $37.3 billion. Japan’s Prime Minister Noda has lobbied about the need to resume the use of nuclear power.

New information shows China’s second quarter growth slowing. Increase in GDP dropped to 7.6% year to year in Q2 down from 8.1% in Q1 and the lowest level since early 2009. China’s consumer price index fell 2.2% after an increase of 3% in May. China posted a trade surplus in July of $35.2 billion, up from June’s $31.7 billion.

China’s Sinopec and Japan’s Mitsui Chemicals established a joint venture to build a 750,000 MT/year ethylene-propylene-diene terpolymer unit in Shanghai, China with an estimated cost of $316 million. The new company, named Shanghai Sinopec Mitsui Elastomers, will be held equally by the partners. Start-up is projected for the first quarter of 2014.

China Petroleum and Chemical (Sinopec) and BASF signed a preliminary agreement to build a world scale iso-nonanol plant in China’s Guangdong province. China currently relies entirely on imports of the material, with a volume of 318,000 MT in 2011. The companies will each have a 50% interest in the joint venture.

Growth in China’s gross domestic product slowed to 8.1% year-on-year in the first quarter of 2012. This is the lowest rate of economic growth since the first quarter of 2009. Chinese government GDP growth projections are less than 8% for the year.

The American Trucking Association reported that tonnage increased 1.2% in June, after falling 1.0% in May. Compared with June 2011, the tonnage index was up 3.2%. Year-to-date, tonnage was up 3.7% compared with the same period last year.

The US Postal Service is nearing a first-ever default on billions in payments due to the Treasury, raising concerns about its solvency. USPS officials have decided not to pay $5.5 billion due in
early August and a similar amount due in September. The Postal Service has projected a loss of $14.1 billion for the year and it may avoid bankruptcy by defaulting on these payments.

In the second quarter, international container volume in North America reached 1,951,571 units, up 3.9% compared with second quarter 2011.

Intermodal volume in 2Q totaled 3,716,321 units, up 5.2% year over year.

Shale oil and gas-related:

Duke University scientists completed a study regarding salty deposits found in northeastern Pennsylvania’s drinking water and concluded that hydraulic fracturing operations are not responsible.

Williams Partners is joining forces with Caiman Energy and private equity firms in order to invest $800 million in pipelines and processing facilities for oil and natural gas production in the Utica Shale. Williams, based in Tulsa, OK, will contribute approximately $380 million to the venture in the next several years. The funds will be used in Ohio and northwestern Pennsylvania.

An ethane tax credit has become law in Pennsylvania as an attempt to attract petrochemical plants to the state. Pennsylvania would provide tax credits to any company that purchases ethane for use in making ethylene in the state. A company must invest $1 billion to build a plant and create at least 2,500 full-time jobs during the construction phase. The tax credit
is performance-based with the company receiving $2.10 for each barrel of natural gas containing ethane. A state representative said that the credit is primarily to offset taxes for the petrochemical company.

According to a new study by Bank of America Merrill Lynch, the economic benefits of the far-reaching finds of oil and natural gas are approaching $1 billion per day. More than 1,400 US oil and natural gas midstream and upstream projects are backed by more $163 billion in investments.

Proposed rules for fracking on federal lands would add approximately $1.5 billion in annual costs to the natural gas industry according to a study published by the Western Energy Alliance.
Various estimates indicate that close to 1.5 million US jobs will be generated by the shale gas boom by 2015 and 2.4 million by 2035. The rules are expected to be finalized by year-end.

Texas is the projected home to twelve or more planned chemical facility projects, including an expansion of Dow Chemical’s Freeport complex. This will be the biggest chemical industry growth since the 1980’s. Louisiana is also attracting projects.

An increasing number of corporations are canceling new investments and putting off new hires because they fear paralysis in Washington will force hundreds of billions of dollars in tax increases and budget cuts in January, 2013, undermining economic growth in the future.

THE ECONOMY

The Congressional Budget Office reported that the federal government incurred a budget deficit of $975 billion for the first ten months of fiscal 2012, $125 billion less than the deficit recorded in the same period in fiscal 2011. This practically guarantees that the deficit for fiscal 2012, which ends September 30, will be above $1 trillion. The Treasury Department reported that the federal debt was $15.9 trillion as of July 31, 2012. It stood at $5.7 trillion in 2001.

The Bureau of Economic Analysis reported an advance estimate for the second quarter 2012 Gross Domestic Product growth at an annual growth rate of 1.5%, that is, from the first quarter to the second quarter. This is a reduction from the initial estimate of 2.2%. In the fourth quarter of 2011, real GDP increased 3.0%. Current-dollar GDP, the market value of the nation’s output of goods and services, increased at a rate of 3.1% or $117.6 billion in the second quarter to a level of $15,595.9 billion. Revised fourth quarter increase was reported as 4.2% or $157.3 billion.

The Conference Board’s Leading Economic Index declined 0.3% in June to 95.6 (2004=100) following a 0.4 % decrease in May and a 0.1 % decrease in March.

The Conference Board Consumer Confidence Index which had declined in June increased slightly in July. It stands at 65.9 (1985=100) up from an adjusted 62.7 in June. April and May were reported as 64.4 and 68.7 respectively.

The Institute for Supply Management’s Manufacturing Index registered 49.8%, an increase from 49.7% in June and indicated contraction in this sector for the second consecutive month after 34 consecutive months of expansion. May was reported at 53.5%. A reading below 50% indicates that the manufacturing economy is generally retracting. The Non-Manufacturing Report for July was 52.6%, higher than June’s 52.1% indicating continued growth at a slower rate.

In June, retail and food services sales adjusted for seasonal variations were $401.5 billion, a decrease of 0.5% from May but 3.8% above June 2011. Total sales for the April through June 2012
period were up 4.7% from the same period a year ago. 

Privately owned housing starts in June of 760,000 were 6.9% above the revised May estimate of 711,000 and 23.6% above the revised June 2011 rate of 615,000. Single family housing starts in
June were at a rate of 539,000 or 4.7% above the revised May figure of 515,000. New home sales decreased 8.4% in June, to a seasonally adjusted annual rate of 350,000, and were 15.1% above the June 2011 figure of 304,000.

The National Association of Realtors reported that sales of existing homes declined 5.4% in June to a seasonally adjusted annual rate of 4.37 million from May’s adjusted level of 4.62 million. Home prices rose in June, up 7.9% from a year earlier. June’s gain was the strongest since February 2006.

US foreclosures held steady in June after an increase in May. There were 60,000 finished foreclosures in each month. The level was down from a year earlier.

New orders for manufactured durable goods in June increased $3.4 billion or 1.6% to $221.6 billion. This increase, up for two consecutive months, followed a 1.6% May increase.

June unfilled orders for manufactured durable goods increased $3.7 billion or 4.0% to $988.6 billion. This followed a $2.3 billion increase in May.

Consumer Price Index for all urban consumers was unchanged in June on a seasonally adjusted basis. Over the last twelve months, the index increased 1.7 % before seasonal adjustments. The energy index continued to fall and declined 1.4% in June on a seasonally adjusted basis and offset increases in the other major indexes. The gasoline index decreased 2.0% in June.

The Producer Price Index for finished goods increased 0.1% in June, seasonally adjusted, following a reduction of 1.0% in May, and a decline of 0.2% in April. On an unadjusted basis, prices for finished goods increased 0.7% for the twelve months ended June 2012.

Interest rate: Prime at 3.25%, unchanged since 12/16/08.

Inflation: Inflation rate was 1.7% in June following May at 1.7%. An average rate of 2% is projected for 2012.

A relentless drought in approximately 55% of the US is obliterating crop production and will send food prices rising, experts warn. This is the highest number since 1956. The US Department
of Agriculture has reduced crop projections for corn by 12%. It’s expected that food and fuel prices will impacted. 

Unemployment: The July 2012 rate rose slightly to 8.3% as reported by the Bureau of Labor Statistics and marked more than three years of unemployment at or above 8%. The BLS stated that the long-term unemployed, i.e., jobless for 27 weeks and over was little changed at 5.2 million. Those individuals accounted for 40.7% of the unemployed. North Dakota led the nation with the lowest unemployment rate in June of 2.9%, attributable to the Bakken shale oil activity.

The Associated Press surveyed a number of economists and found a broad consensus that the official poverty rate will rise from 15.1% in 2010, climbing as high as 15.7%. An increase of 0.1% would put poverty at the highest level since 1965.

Trade Deficit: For May 2012 the goods and services deficit decreased to $48.7 billion from a revised April figure of $50.6 billion as exports increased and imports
decreased. 

Crude Oil: Volatile due in part to Iranian crisis and a strike in Norway. Present WTI spot price ~$94/bbl.

Natural Gas: Henry Hub spot price closed on August 8 at $2.96/MMBTU. Working natural gas in storage remains above the five year average.

Industrial production increased 0.4% in June, after having declined 0.2% in May. At 97.4% of its 2007 average, total industrial production in June was 4.7% above the level of a year earlier. June capacity utilization rate for total industry increased to 78.9%. This was 4.7% above the rate of a year earlier but 1.4% below 1972 “ 2011 average.

The US dollar trading at 78.4 Japanese yen; $1.24 = euro. The British pound sterling = $1.56. Canadian dollar trading at US$1.001.

Current US gold price quoted at $1604.40/ounce compared to the record price of $1920/ounce in September, 2011.

Website

A MARKET UPDATE for July, 2012

THE VIEW FROM JAMESTOWN”
A MARKET UPDATE for
July, 2012
From
THE CHEMICAL COMPANY.

Contact:
The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message:

The Chemical Company has a new website!! www.baojishu.com

Not only is it a new look and feel but there is much more information than ever!

The TCC website has always been at the forefront of our industry and our new site continues this legacy. We have a commodities bar on our homepage, a translator for most languages, easier movement within the site, a large and growing “featured chemicals” list and much, much more.

Our featured chemicals list for example includes product information, applications, specifications and ordering and transport information. We encourage you to visit it at: http://www.baojishu.com/chemicals/featured/

Please keep in mind this page does not include all of TCC’s products, but the list is growing daily.

The site will continue to include our free publication “The View from Jamestown.” The subscriptions to this publication continue to grow and the feedback from our customers, suppliers and friends is overwhelming. Please keep it coming!

As always we appreciate your business and interest in The Chemical Company. We work hard every day to improve how we do business to benefit our customers and suppliers. Our goal is to provide our customers with the most competitive, safe and service oriented chemical supply possible.

We hope you are enjoying the Summer season to our friends in the Northern Hemisphere and the Winter to our friends in the Southern Hemisphere.

Quote of the Month:

A man is not judged by what he drives, or how sharp his sword is. He is judged by his actions and his heart.”

Jamestown Resident Pio Moretti

When your children are teenagers, it’s important to have a dog so that someone in the house is happy to see you.”
Nora Ephron, quoted in NYTimes.com

A man should not be judged by the

From Icis Magazine (Page 77) w/o July 16, 2012

TCC Videos:

http://www.vimeo.com/24834423

http://vimeo.com/38459394

http://vimeo.com/38459041

Upcoming Events:

EPCA 46th Annual Meeting 2012

6 – 10 October 2012 – Budapest

Please contact Robb Roach at Robb@www.baojishu.com for an appointment.

 

Links and Social:

Want to exchange links?? Contact us!

For immediate updates on Chemical Industry News be sure to follow us on Twitter @thechemicalco or our facebook page here: 

We are also on Twitter @thechemicalco

Habla Español??? The TCC website is available in multiple languages!

TCC Downloadable Brochures:

The Chemical Company Brochure
TCC Plasticizers and Plastics Additives
Iron Oxides
Composites
Flame Retardants


New Products In Stock

Tetrabromo Phthalic Anhydride: TCC now offers TBPA in Small Bags (25 Kg.) and Supersacks (2,000 lb.)

Zinc Borate:TCC now offers Zinc Borate in 25 Kg. Bags

Malic Acid: 25 Kg. Bags (In Stock and Available Now!)

Adipic Acid: 25 Kg., 500 Kg. and 1,000 Kg. Bags (In Stock and Available Now!)

Products In Transit/ Available Soon

Neo- Pentyl Glycol (NPG) 500 Kg. Sacks

Tetrakis-(hydroxymethyl)-phosphonium chloride 2200 lb. Totes

Bio- Succinic Acid 2000 lb. supersacks and 25 Kg. Bags

Antimony Trioxide High Tint, Supersacks

New/ Updated Technical Information (hyperlinked):

Antimony Trioxide

ATBC – Nature-Flexx 509

Chemflexx 206

Chemflexx DOA

Chemflexx TOTM

Citric Acid

Dicyandiamide

Diisononyl Phthalate

Epoxidized Soybean Oil

Fumaric Acid

Malic Acid

Methanol

Succinic Acid

Tartaric Acid

Urea

Please contact Robb Roach at robb@www.baojishu.com

or Tel: (401) 423- 3100 for more information.

We appreciate your taking the time to review this newsletter. We welcome your comments as well as contributions regarding our readers’ company/industry activities. Please send them to Bob Beavins at chemcobob@comcast.net

**Please note that all products are now in Alphabetical Order and many products are hyperlinked to their own information page.**

At the end of each paragraph you will notice a symbol and the meaning of these symbols are as follows:

+ Denotes upward pricing momentum

\ Denotes stable pricing momentum

Denotes downward pricing momentum

CRITICAL RAW MATERIALS MARKETS

Benzene U.S. benzene contracts for July settled higher to US$4.30/ Up $.19/ gallon from US$4.11/ gallon in June. Spot prices are in the $5.10’s/ gallon. +

N Butane Butane prices remain in the $1.30’s per gallon. Current pricing in the $1.35- $1.38/ gallon range.

Ethylene U.S. Contract Price for June decreased by $.0725/ lb. to $.39/ lb. Current spot is in the Upper $.40’s so we expect an increase for July. -/+

Natural Gas Natural Gas pricing has escalated for most of June and throughout July. Pricing is now threatening to break $3.00/ mmbtu. +

Oil Crude Oil pricing has escalated dramatically in July. Current WTI Crude price is at $92.40/ barrel range and moving up. +

Check www.baojishu.com for up to the minute info.

Orthoxylene July contracts settled $.05/ lb. lower at $.59/ lb. Aromatics are dirving price and we expect an increase of $.03- $.05/ lb. for August. -/ +

Propylene July contracts settled as a roll from June at $.52/ lb. for Polymer Grade and $.505/ lb. for Chemical Grade. /+

CHEMICALS MARKETS

Adipic Acid: Adipic Acid pricing is expected to climb on strengthening benzene. Also there is considerable risk of outages during the Atlantic hurricane season due to the locations of major producers. Building inventory is recommended. +

For more information please contact Robb

Roach at robb@www.baojishu.com

Ammonia: May pricing in Tampa has increased again and substantially up $65/ ton to $690/ ton. Tampa is trading at $690- $710/ ton and NOLA at $655/ ton. +

For more information please contact Robb

Roach at robb@www.baojishu.com

Ammonium Nitrate: Ammonium Nitrate producers announced a $45/ ton increase for July due to increased feedstock costs and limited availability. The major feedstock ammonia continues to move up on agricultural demand. Demand remains very good. +

For more information please contact AJ Petrarca aj@www.baojishu.com

Antimony Trioxide:     

Demand for antimony trioxide remains relatively weak and pricing has moved lower by $100/ ton recently. Current offers remain barely in excess of $5.00/ lb. Buyers continue to keep inventories to a minimum and use alternate chemistries where possible.

For more information please contact AJ Petrarca aj@www.baojishu.com

Dicyandiamide:       

Pricing has strengthened on energy costs in China.  Normal seasonal pressures due to increased energy demand are pushing prices higher.  Product is in stock and immediately available.

For more information please contact AJ Petrarca aj@www.baojishu.com

Epoxidized Soybean Oil: Soybean prices have pushed up dramatically due to a major draught in North America. Despite competitive offers of eso from new market players and imports, most U.S. Producers are pushing for higher pricing on ESO. With the soy bean prices approaching $1700 cbot and very little rain relief there will likely be further strengthening in price. +

For more information please contact Robb Roach robb@www.baojishu.com

Fumaric Acid: FA Pricing has pushed slightly lower. Lower Butane pricing and lower priced import offers are now affecting Fumaric pricing.

For more information please contact AJ Petrarca aj@www.baojishu.com

 Glycol (Mono, Di and Tri):

June Ethylene Contracts settled at US$.39/ lb. Down 7.25 cts from May. Spot is trading in the upper $.40’s per lb.

MEG – North America producers have announced a 2 cts/ lb. increase for August. Benchmarks for August will be in excess of $.60/ lb. +

DEG- DEG price increase of $.03- $.05/ lb. have been announced for August. +

TEG- Seasonally slow demand continues. Buyers are seeking low US$.60’s per lb. and sellers are in the upper US$.60’s per lb. /

For more information please contact Robb Roach at

robb@www.baojishu.com

Isophthalic Acid:

PIA pricing has moved down by US$.03/ lb. for June in response to lower raw material costs. Supply and demand remain stable. /

For more information please contact Robb

Roach at robb@www.baojishu.com

Maleic Anhydride:

The Maleic Anhydride market is quiet and demand is seasonally slow. Supply is balanced to long in North America. Prices have declined $05- $.08/ lb. on lower butane values. –

For more information please contact AJ Petrarca aj@www.baojishu.com

Melamine:    

Melamine supply is long world-wide on massive new capacities in Trinidad and Qatar but raw material pricing has pushed prices higher. Increases of US$.08/ lb. + are noted despite robust availability. +

For more information please contact Javier Fernandez  Javier@www.baojishu.com 

Malic Acid: Malic Acid pricing has been pressured and retreated slightly on lower butane values and good availability. TCC has Malic Acid in stock and available.

For more information please contact AJ

Petrarca aj@www.baojishu.com

Methanol: The Methanex Non-Discounted Reference Price for July has declined US$.06/ gallon to US$1.32/ gallon. Spot pricing is currently approx. US$1.07- $1.09/ gal. and stable. +

For more information please contact

Robb Roach at robb@www.baojishu.com

Notes:

OCI has begun producing Methanol at their Beaumont, TX facility.

Methanex has re-started their #2 Montunui plant in New Zealand

Gas curtailments in Trinidad could reach 30% for September and beyond due to a platform maintenance.

Embargo on Iranian Methanol has caused a “re-shuffling” of volumes world- wide.

Nitric Acid:

Nitric Acid pricing has increased by US$50/ ton (100% basis) on July 1st due to high ammonia cost and availability due to an explosion and intense damage at the site of a major producer (El Dorado/ DSN). Demand is good. /

For more information please contact Robb

Roach at robb@www.baojishu.com

Phenolic Resins:

Phenol will certainly increase for August on higher Benzene values. Formaldehyde prices remain stable with methanol prices unchanged. +

For more information please contact John

Santini at john@www.baojishu.com

Phthalic Anhydride: Phthalic Anhydride pricing will decrease by $.05/ lb. in August in line with the July orthoxylene price decrease. Orthoxylene will likely increase for August as oil and aromatics pricing has strengthened.

For more Information please contact Javier

Fernandez at javier@www.baojishu.com

Plasticizers and Plasticizer Alcohols:

Plasticizer demand world-wide has been slow seasonally but the base raw material costs have started to increase and this has caused some slight inventory building. Propylene and Ethylene spot prices are trading higher than contract levels so increases are expected. Orthoxylene pricing is also expected to follow.

Plasticizer alcohol demand had been weak but recent strengthening is noted. Rumors of an INA outage have been circulating and higher alcohols remain balanced.

Plasticizer pricing is a stable but increases are expected in the coming weeks/ months.

For more information please contact Forest Goodman at

forest@www.baojishu.com

Note: Some plasticizers have limited availability. Please contact TCC for further details.

TCC Plasticizers available:

Non- Phthalate:

ChemFlexx Dibenzoate Esters

ChemFlexx DiOctyl Succinate (DOSX)

ChemFlexx NP 500” Non- Phthalate Replacement for General Purpose Plasticizers

ChemFlexx NP 600” Non- Phthalate Replacement for DIDP

NatureFlexx 509” Phthalate Free General Purpose (ATBC)

Epoxidized Soybean Oil

ChemFlexx TOTM (TriOctyl Trimellitate)

ChemFlexx DOA (DiOctyl Adipate)

ChemFlexx 8 10 Trimellitate

Phthalate:

Vestinol 9 DiIsononyl Phthalate (DINP)

ChemFlexx 206” Functional Linear Phthalate Replacement

ChemFlexx 208” Low Temp Functional Linear Phthalate Replacement

ChemFlexx DOP (DiOctyl Phthalate)

ChemFlexx DUP (DiUndecyl Phthalate)

DMP (DiMethyl Phthalate)

ChemFlexx DOTP (DiOctyl Terephthalate)

Brominated DOP

ChemFlexx 9 11 Phthalate

ChemFlexx L9 Phthalate

Styrene monomer: Styrene Pricing increased slightly for July in line with higher benzene values (up $.19/ gallon). NA demand remains slow. +

For more information please contact Robb Roach at robb@www.baojishu.com

Urea: Urea pricing is a moving target with short term surging followed by a temporary retreat. Current pricing is US$455/ ton. Granular barges are pegged at US$445- $455/ ton and prilled at US$445- $455/ ton also. /

For more information please contact Robb

Roach at robb@www.baojishu.com

Notes:

Seasonal demand has slowed.

Corn acreage this year should top 96 million acres!

Zinc Borate: Pricing has been relatively steady but demand has increased as consumers scramble to replace a portion of their Antimony Trioxide usage where possible. Product is in stock and immediately available.

For more information please contact

Robb Roach at robb@www.baojishu.com

For more information on these or any of the products and services provided by TCC please contact Robb Roach directly at Robb@www.baojishu.com or go to our web site at www.baojishu.com

Environmental, Health, Safety and Sustainability (EHS&S)

 

CHEMICAL INDUSTRY NEWS

The American Chemistry Council (ACC) US Chemical Production Index dropped by 0.3% in May, following a downwardly revised 0.5% decline in April. Chemical production fell across all regions and is flat regarding year over year comparisons. Overall, chemistry output is anticipated to rise by 0.5% in 2012 before attaining a 2.3% growth rate in 2013.

The ACC recently released the first monthly report of its Chemical Activity Barometer (CAB,) a “new leading macroeconomic indicator.” The published data suggest that the US economic recovery is slowing. Preliminary June data from the CAB showed a decrease of 1.3% compared to the previous month and that demand for chemical products fell for a third straight month. The chemicals industry generated about $760 billion last year.

Thanks to a deal between The Carlyle Group and Sunoco the oldest and largest East Coast refinery will stay open in Marcus Hook (Philadelphia), PA. A joint venture will make an investment in the facility in order to enable it to utilize lower cost crude oil from North Dakota’s Bakken formation. The joint venture, to be known as Philadelphia Energy Solutions, expects to save all the 850 current refining jobs and to create 200 more as the refinery is updated and expanded. Union leaders praised the action and local members voted 98% in favor of a reworked contract. Product mix will be shifted to a higher percentage of ultra-low sulfur diesel fuel. A high speed train unloading facility, receiving up to 140,000 bbls/day of Bakken crude is planned.

Sunoco’s idled propylene splitter in Marcus Hook, PA has been acquired by Braskem, and the company will direct production to a nearby facility that it owns.

Rep. Ed Markey, D-MA petitioned the FDA to evaluate the use of bisphenol A (BPA) in baby food containers. The FDA recently denied two other petitions from him related to BPA. As recently as March, the FDA reviewed the best available science and supported the use of BPA in food-contact materials.

Cytec Industries, Elevance Renewable Chemicals and Codexis are three recipients of the EPA’s Presidential Green Chemistry Challenge Award for 2012. Cytec was honored for its scale inhibitor technology used in aluminum production.

Cytec will restart expansion work at its facilities in South Carolina and Texas in order to increase capacity for composite materials production geared towards the aerospace industry.

The EPA chose not to revise the permitting thresholds for greenhouse gas emissions (GHG) in a final rule issued on July 3. The EPA said that it is retaining existing rules because state permitting authorities need more time to develop infrastructure necessary to issue GHG permits.

The Department of Agriculture has made $25 million in private bond placement available for Myriant Technologies’ bio-succinic facility in Louisiana, which is expected to start up early in 2013.

US chlor-alkali operating rate for May fell to 74% of capacity, from the mid-80% range seen from January to April of this year.

BASF plans to build a butadiene extraction facility in Antwerp, Belgium and have it in operation by 2014. BASF is also constructing with Sinopec a superabsorbent polymers facility in Nanjing, China, which will include acrylic acid and butyl acrylate plants.

US-based chemical manufacturer Dyno Nobel International is developing a feasibility study regarding construction of a 750,000 MT/year anhydrous ammonia plant in Waggaman, LA. Cost is estimated at $800 million. The proposed plant would be integrated with Cornerstone Chemical’s existing Waggaman complex, which produces acrylonitrile, melamine, and sulfuric acid.

At the UN Conference on Sustainable Development (Rio+20) the International Council of Chemical Associations (ICCA) reported the chemical industry’s contributions to sustainable development and the green economy. Andrew Liveris, CEO of Dow Chemical, is president of the ICCA.

Saudi Aramco’s joint venture refinery project called Saudi Aramco Total Refining and Petrochemical (Satorp) is expected to start up in December, 2012. Saudi Aramco has a 62.5% interest, with the remaining 32.5% held by France’s Total. The 400,000 bbl/day facility will be the first producer of paraxylene in Saudi Arabia.

A thirteen hour summit in Brussels on June 29 created immediate relief for Spanish and Italian banks, which had been near collapse. Banks’ direct access will be available to the two European bailout funds. In the past only governments could borrow from these rescue funds. The EU will create a new banking supervisory agency within six months, eventually leading to a European banking union. It was reported that Italy and Spain threatened to block “everything” unless Germany and other eurozone countries backed their demands for help.

Demand for US debt has risen because investors are worried about Europe’s worsening crisis. US government debt is considered one of the safest investments. China increased its holdings to $1.15 trillion in April; Britain, Brazil, and Germany increased holdings as well. In June Standard and Poor’s reaffirmed the lowered Treasury rating of AA+.

German power giant RWE will build no more nuclear power stations, not only in Germany, where nuclear power is to be phased out by 2022, but anywhere in the world.

Germany’s seasonally adjusted unemployment rate increased to 6.8% in June, up slightly from 6.7% in May, and essentially the same as April’s 6.8%. The German economy grew by 0.5% in the first quarter, but concerns over the euro crisis have led to a cautious approach to hiring.

The new French Socialist government proposed €7.2 billion ($9 billion) of tax increases in order to meet deficit reduction goals. The measure, approved at a cabinet meeting, indicated larger tax increases and spending cuts next year. The largest single action is a one-time surcharge on wealthy individuals’ assets. France’s national auditor said on July 2 that the government needs between six and ten billion euros in savings this year to meet its 2012 target of a deficit equal to 4.5% of economic output.

Unemployment in the eurozone was reported at 11.1 % in June and is the highest in the history of the currency.

A new Russian polypropylene plant under the name PolyOm is expected to start up in July following government regulatory approval. This facility was supposed to have come on line in 2006 but financial issues created delays.

China’s industrial production grew 9.6% in May compared to a year earlier, versus 9.3% growth in April. China’s consumer price index rose 3% in May, lower than April’s 3.4%. The country’s producer price index fell 1.4% in May after a reduction of 0.7% in April. For the April period, China posted a trade surplus of $18.42 billion, much higher than forecast.

China’s Sinopec and Japan’s Mitsui Chemicals established a joint venture to build a 750,000 MT/year ethylene-propylene-diene terpolymer unit in Shanghai, China with an estimated cost of $316 million. The new company, named Shanghai Sinopec Mitsui Elastomers, will be held equally by the partners. Start-up is projected for the first quarter of 2014.

A Chinese construction company that highlights its fast building technique has announced a plan to build the world’s tallest building in nine months. Broad Group says the skyscraper, called Sky City, will be located in the company’s home city of Changsha in central China’s Hunan province. It will be 838 meters high, with 220 floors, ten meters higher than the current tallest building, the Burj Khalifa in Dubai. .

Sinopec and Sibur (Russia) plan to manufacture nitrile rubber and isoprene rubber in Shanghai in two plants, each with a 50,000 MT/year capacity.

Growth in China’s gross domestic product slowed to 8.1% year-on-year in the first quarter of 2012. This is the lowest rate of economic growth since the first quarter of 2009. Chinese government GDP growth projections are less than 8% for the year.

On June 29 Congress approved legislation that will extend federal highway programs through 2014. A low student loan interest rate was approved for one year, and the National Flood Insurance Program for five years. It’s likely that this will be the last major piece of legislation approved by Congress until after the November elections. A provision calling for construction of the Keystone XL pipeline was not included.

The American Trucking Association reported that tonnage decreased 0.7% in May, after falling 0.6% in April. Compared with May 2011, the tonnage index was up 4.1%. Year-to-date, tonnage was up 3.8% compared with the same period last year. Trucking represents 67.2% of tonnage carried by all modes of domestic freight transportation.

Each day, about 43 million tons of goods valued at $29 billion move on the US network of ports, roads, rails, and inland waterways, according to the US Chamber of Commerce. The goods travel on 26,000 miles of navigable waterways and through 360 ports. The American Society of Civil Engineers says that there are 4,095 “unsafe” dams that are susceptible to failure. The Army Corps of Engineers says that most lock sites are beyond life expectancy. As the economy picks up, demands on the system will increase and so will delays and bottlenecks.

Shale oil and gas-related:

According to a recent KPMG report, large scale production of natural gas has resulted in a “wholesale transformation” of the chemical sector, encouraging exports and growth in the industry.

Celanese Corp., the world’s largest manufacturer of acetic acid, plans to produce methanol in Clear Lake, TX in order to supply its plants with the material derived from low cost natural gas. The facility is expected to start up after July 1, 2015 and will be capable of producing 1.3 million MT of methanol per year. Celanese uses methanol to make acetic acid but also plans to acquire a partner to take some of the supply. Celanese is one of a number of chemical companies to announce new plants aimed at utilizing inexpensive US gas. For example, Methanex Corp., the world’s biggest maker of methanol, has announced the relocation of a Chilean plant to Louisiana.

Proposed rules for fracking on federal lands would add approximately $1.5 billion in annual costs to the natural gas industry according to a study published by the Western Energy Alliance. Various estimates indicate that close to 1.5 million US jobs will be generated by the shale gas boom by 2015 and 2.4 million by 2035. The rules are expected to be finalized by year-end.

Apache Corp. recently announced what it believes may be one of the world’s largest shale gas discoveries in British Columbia, containing as much as 48 trillion feet of gas. The company also announced that its holdings in Kansas and Nebraska could contain as much as 2 billion barrels of oil.

Gov. Tom Corbett recently signed the 2012 – 2013 Pennsylvania $27.7 billion budget which includes tax credits designed to encourage Royal Dutch Shell to build a massive new petrochemical refinery in order to utilize Marcellus shale deposits.

Ohio’s Utica Shale development may require additional pipeline construction, creating a number of jobs, as seen by optimistic labor union officials in Ohio.

ShaleNet initiative, which funds training programs at state colleges and institutions in order to prepare workers for the natural gas industry is helping to employ low income adults in Pennsylvania.

THE ECONOMY

The Congressional Budget Office reported that the federal government incurred a budget deficit of $845 billion in the first eight months of fiscal 2012, $80 billion less than the deficit recorded in the same period in fiscal 2011.

The Treasury Department reported that the federal debt was $15.8 trillion as of June 30, 2012. It stood at $5.7 trillion in 2001.

The Bureau of Economic Analysis reported the revised first quarter 2012 Gross Domestic Product unchanged at an annual rate of 1.9%, that is, from the fourth quarter to the first quarter. This is a reduction from the initial estimate of 2.2%. In the fourth quarter of 2011, real GDP increased 3.0%. Current-dollar GDP, the market value of the nation’s output of goods and services, increased at a rate of 3.9% or $148.4 billion in the first quarter to a level of $15,467.8 billion. Fourth quarter increase was reported as 3.8% or $143.3 billion.

Republican and Democrat congressional leaders are considering whether or not to delay automatic federal spending cuts until March 2013. The $1.2 trillion cuts over ten years are scheduled to begin January 2013. At the same time, lawmakers must decide what action to take about income tax cuts and other tax breaks scheduled to expire at year-end. Leaders in both houses are discussing whether to propose a catch-all bill that would delay the automatic cuts, fund the government through March or later and temporarily extend the George W. Bush-era tax cuts and other tax laws. Such a measure would follow a short-term spending bill to keep the government operating after October 1.

The Conference Board’s Leading Economic Index increased 0.3% in May to 95.8 (2004=100) following a 0.1 % decrease in April and a 0.2 % increase in March.

The Conference Board Consumer Confidence Index which had decreased in May fell further in June. It stands at 62.0 (1985=100) down from 64.4 in May and 68.7 in April.

The Institute for Supply Management’s Manufacturing Index registered 49.7% in June, a decrease from May’s 53.5% and the first contraction since July, 2009. A reading below 50% indicates that the manufacturing economy is generally retracting. The Non-Manufacturing Report for June was 52.1%, lower than May’s 53.7% indicating continued growth at a slower rate.

In May, retail and food services sales adjusted for seasonal variations were $404.6 billion, a decrease of 0.2% from April but 5.3% above May 2011. Total sales for the March through May 2012 period were up 5.7% from the same period a year ago.

Privately owned housing starts in May of 708,000 were 4.8% below the revised April estimate of 744,000 and 28.5% above the revised May 2011 rate of 551,000. Single family housing starts in May were at a rate of 516,000 or 3.2% above the revised April figure of 500,000. New home sales increased 7.6% in May, to a seasonally adjusted annual rate of 369,000, and were 19.8% above the May 2011 figure of 308,000.

The National Association of Realtors reported that sales of existing homes rose declined 1.5% in May to a seasonally adjusted annual rate of 4.55 million. Home prices rose in May, up 7.9% from a year earlier and the highest since June 2010. The increase is seen as a bright spot in a generally slow recovery.

US foreclosures rose in May for the first time in more than two years as banks resumed dealing with distressed properties. Overall foreclosure activity, which includes default notices, scheduled auctions, and bank repossessions increased 9.1% from April.

New orders for manufactured durable goods in May increased $2.3 billion or 1.1% to $217.2 billion. This increase followed a O.2% April decrease and a 3.7% March decrease.

May unfilled orders for manufactured durable goods decreased $0.4 billion to $984.5 billion. This followed decreases in March and April.

Consumer Price Index for all urban consumers decreased 0.3% in May on a seasonally adjusted basis. Over the last twelve months, the index increased 1.7 % before seasonal adjustments. The energy index, which had declined 1.7% in April after a series of increases in each of the previous months, declined in 4.3% in May on a seasonally adjusted basis and offset increases in the other major indexes. The gasoline index decreased 6.8% in May, leading to a sharp decrease in the energy index and the decline in the all items index.

The Producer Price Index for finished goods fell 1.0% in May, seasonally adjusted, following a reduction of 0.2% in April, no change in March and a 0.4% February increase. On an unadjusted basis, prices for finished goods increased 0.7% for the twelve months ended May 2012.

Interest rate: Prime at 3.25%, unchanged since 12/16/08.

Inflation: Inflation rate was 1.7% in May following April at 2.3%. A rate of 2% is projected for 2012.

Unemployment: The June 2012 rate was essentially unchanged at 8.2% as reported by the Bureau of Labor Statistics and marked more than three years of unemployment at or above 8%. The BLS reported that the long-term unemployed, i.e., jobless for 27 weeks and over remained at 5.4 million in June. Those individuals accounted for 41.9% of the unemployed.

Trade Deficit: For April 2012 the goods and services deficit decreased to $50.1 from a revised March figure of $52.6 billion as imports decreased more than exports.

Crude Oil: Volatile due in part to Iranian crisis. Present WTI spot price ~$87/bbl.

Natural Gas Henry Hub price closed on July 6 at $2.90/MMBTU. Working natural gas in storage remains above the five year average.

Industrial production decreased 0.1% in May, after a gain of 1.0% in April. At 97.3% of

its 2007 average, total industrial production for May was 4.7% above the level of a year

earlier.

May capacity utilization rate for total industry decreased to 79.0%. This was 4.7% above the rate of a year earlier but 1.3% below 1972 – 2011 average.

The US dollar trading at 79.4 Japanese yen; $1.24 = euro. The British pound sterling = $1.55. Canadian dollar trading at US$1.03

Current US gold price reported as $1553/ounce compared to the record price of $1920/ounce in September, 2011.

As reported by the NY Post US citizens are leaving the country in record numbers in order to avoid high taxes. This year about 8,000 citizens are expected to renounce their citizenship, versus approximately 3,800 in 2011. It was stated that they want to avoid much higher tax bills with the expiration of the Bush-era cuts at the end of this year.

A MARKET UPDATE for June, 2012

THE VIEW FROM JAMESTOWN”
A MARKET UPDATE for
June, 2012
From
THE CHEMICAL COMPANY.

Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message:

From THE WEEK Magazine June 12, 2012:

The median American family — the exact middle between the wealthiest and the poorest — had the same amount of money in 2010 as it did in 1992, according to the Federal Reserve’s Survey of Consumer Finance, an extensive and detailed look at American wealth undertaken every three years. While the latest data is 18 months old, it underscores the astonishing economic devastation wreaked by the Great Recession, which, beginning in 2007, swept away a chunk of the wealth accumulated since the early 1990s. (The Fed defines “wealth” as income plus assets — like homes, cars, and stocks — minus debts.) Here, a numerical look at the average family’s struggles: Continue reading “A MARKET UPDATE for June, 2012”

A MARKET UPDATE for May, 2012

THE VIEW FROM JAMESTOWN”
A MARKET UPDATE for
May, 2012
From
THE CHEMICAL COMPANY.

 Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

 Special Message:

Recently Delta Airlines entered into an agreement to buy the 185,000 barrel per day ConocoPhillips refinery in Trainer, PA.

Trainer, PA and the soon to be “Delta Airline Refinery” (Actually bought by their subsidiary Monroe Energy) lies just South of Philadelphia roughly half way between Philadelphia and Wilmington. More importantly it is front and center on the Delaware River. Access to offshore crude feeds the refinery where Delta intends to make as much Jet Fuel as possible and the rest will become gasoline. BP has agreed to take this gasoline and market it in exchange for jet fuel in other parts of the country.

Wow! For the price of a new wide body jumbo jet, Delta is now integrated into their most crippling cost factor. Assistance from the state of Pennsylvania made up around 20% of the $180 Million purchase price. What a deal! Or is it? Continue reading “A MARKET UPDATE for May, 2012”

A MARKET UPDATE for April, 2012

THE VIEW FROM JAMESTOWN”
A MARKET UPDATE for
April, 2012
From
THE CHEMICAL COMPANY.

Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message:

 Each Spring at the end of March and beginning of April the TCC crew has made the journey South (or in some cases North) to the city of San Antonio, TX. It is a fantastic time to visit this beautiful and historic city. But the agenda is usually full, so sightseeing and enjoying the weather are secondary to the matter at hand. Continue reading “A MARKET UPDATE for April, 2012”

A MARKET UPDATE for March, 2012

THE VIEW FROM JAMESTOWN”
A MARKET UPDATE for
March, 2012
From
THE CHEMICAL COMPANY.

Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message from TCC CEO Nick Roach:

One of the many reasons I believe The Chemical Company has been successful throughout the years is the fact that we have stuck to our ethics and high principles.   Not only does The Chemical Company practice good ethics and high principles but we insist that our customers and suppliers do as well.  Continue reading “A MARKET UPDATE for March, 2012”

A MARKET UPDATE for February, 2012

THE VIEW FROM JAMESTOWN”
MARKET UPDATE for
Frbruary, 2012
From
THE CHEMICAL COMPANY.

Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: www.baojishu.com
Email: Info@www.baojishu.com

Special Message:

 For those of us who have been in the Chemical Industry for the last 10- 20 years we have grown used to the fact that Oil and Natural Gas share similar paths when it comes to cost/ pricing. This is now simply a part of history. As we begin our voyage into 2012 it is clear that there will be two completely different journeys for the basics of our industry. Continue reading “A MARKET UPDATE for February, 2012”