The Chinese isopropanol market fluctuated up this week. Up to April 26, 2018, the closing prices for isopropanol in Jiangsu were in the range of RMB 7,150-7,200/mt, up RMB 150/mt or 2.13% week on week. The supply was tight and isopropanol producers held firm offers. Some traders were reluctant to sell goods at low prices. Moreover, acetone prices moved up, which supported the isopropanol market. Market prices continued moving up, and the mainstream negotiation prices followed the uptrend. The downstream demand remained flat. chemical solvents
Saturday, April 28, 2018
Chinese Titanium Dioxide Market Moved Marginally This Week
The Chinese rutile titanium dioxide market remained largely stable. Up to april 26, 2018, mainstream negotiation prices for rutile titanium dioxide were in the range of RMB 15,700-18,000/mt. The average price was RMB 16,700/mt, unchanged from last week. Producers’ offers were stable and the overall operating rate was largely stable. List of titanium dioxide
The Chinese anatase titanium dioxide market remained stable this week. Up to April 26, 2018, mainstream negotiation prices for anatase titanium dioxide were in the range of RMB 13,200-14,800/mt. The average price was RMB 14,042/mt. The operating rate was stable. The overall trading was cautious.
Forecast:
The supply and demand in the Chinese rutile titanium dioxide market will be stable. Raw materials prices will move weakly and the downstream demand for titanium dioxide will be flat. It is predicted that the Chinese titanium dioxide market will continue to move marginally.
Chinese Cyclohexanone Market Saw Thin Tradings This Week
Market Review: The Chinese cyclohexanone market moved firmly this week. Benzene prices moved marginally at lows, and the support to cyclohexanone producers was weak. Some units were shut and the inventory was consumed to a low level. Producers’ sentiments were fairish. Traders operated flexibly. Up to April 26, 2018, prices for cyclohexanone in Shandong were in the range of RMB 11,500-11,700/mt, up RMB 80/mt. Prices for cyclohexanone in East China were in the range of RMB 11,800-12,000/mt, up RMB 80/mt.
Forecast: The benzene market will continue to move marginally in the short term. The support to the cyxlohexanone market is not ample. Producers will hold firm offers in the short term. However, the downstream demand will continue to be weak, especially in the chemical fiber market. It is predicted that the cyclohexanone market will continue to move weakly in the short term.
List of cyclohexanone: https://www.echemi.com/searchGoods/pid_Seven3075-cyclohexanone.html
Tuesday, April 17, 2018
New Fluorescent Dyes Could Advance Biological Imaging
With a new technique to craft a spectrum of glowing dyes, chemists are no longer chasing rainbows. Pigment Suppliers
Swapping out specific chemical building blocks in fluorescent molecules called rhodamines can generate nearly any color scientists desire—ROYGBIV and beyond, researchers report September 4, 2017 in the journal Nature Methods.
The work offers scientists a way to adjust the properties of existing dyes deliberately, making them bolder, brighter, and more cell-permeable too. Such an expanded palette of dyes could help researchers better illuminate the inner workings of cells, says study leader Luke Lavis, a group leader at the Howard Hughes Medical Institute's Janelia Research Campus in Ashburn, Virginia. His team lit up cell nuclei, made larval fruit fly brains shine, and highlighted visual cortex neurons in mice that had tiny glass windows fitted into their skulls.
Scientists used to concoct different dyes mostly by trial and error, Lavis says. "Now, we've figured out the rules, and we can make almost any color." His team's method could allow chemists to synthesize hundreds of different colors.
A bright history
Until about 20 years ago, scientists relied on chemical fluorescent dyes to make biological molecules visible. For peeking inside cells, staining organelles, and other imaging experiments, "chemistry was king," Lavis wrote in a July 13, 2017 perspective in the journal Biochemistry. And then, the king was kicked off the throne—by a glowing green jellyfish protein called GFP.
In 1994, scientists reported the use of a genetic trick to tack GFP, the green fluorescent protein, onto other cellular proteins; it's like forcing the proteins to hold a glow stick. That trick gave researchers a simpler way to trace proteins' movements under a microscope—without using expensive synthetic dyes. The innovation blazed through the field of biological imaging. In 2007, scientists' mixing of GFP and two other fluorescent proteins let them paint mouse neurons a parade of vivid colors in a technique known as the "Brainbow." A year later, the discovery and development of GFP earned the Nobel Prize in chemistry for three scientists, including the late Roger Tsien, an HHMI investigator.
But GFP has some dark sides too. It's a relatively clunky molecule built out of the limited set of natural amino acids. So GFP isn't always bright enough to reveal what scientists are trying to see.
So researchers turned back to chemistry. Scientists had developed cutting-edge microscopes and new techniques to label cellular contents, Lavis says, but the dyes for marking molecules inside cells were still stuck in the nineteenth century. His team focused on rhodamines, because they're especially bright and cell-permeable—so they easily slip into cells and make them glow. But despite working with rhodamines for more than 100 years, chemists had created only a few dozen colors, and most were similar shades ranging from green to orange.
Swapping out specific chemical building blocks in fluorescent molecules called rhodamines can generate nearly any color scientists desire—ROYGBIV and beyond, researchers report September 4, 2017 in the journal Nature Methods.
The work offers scientists a way to adjust the properties of existing dyes deliberately, making them bolder, brighter, and more cell-permeable too. Such an expanded palette of dyes could help researchers better illuminate the inner workings of cells, says study leader Luke Lavis, a group leader at the Howard Hughes Medical Institute's Janelia Research Campus in Ashburn, Virginia. His team lit up cell nuclei, made larval fruit fly brains shine, and highlighted visual cortex neurons in mice that had tiny glass windows fitted into their skulls.
Scientists used to concoct different dyes mostly by trial and error, Lavis says. "Now, we've figured out the rules, and we can make almost any color." His team's method could allow chemists to synthesize hundreds of different colors.
A bright history
Until about 20 years ago, scientists relied on chemical fluorescent dyes to make biological molecules visible. For peeking inside cells, staining organelles, and other imaging experiments, "chemistry was king," Lavis wrote in a July 13, 2017 perspective in the journal Biochemistry. And then, the king was kicked off the throne—by a glowing green jellyfish protein called GFP.
In 1994, scientists reported the use of a genetic trick to tack GFP, the green fluorescent protein, onto other cellular proteins; it's like forcing the proteins to hold a glow stick. That trick gave researchers a simpler way to trace proteins' movements under a microscope—without using expensive synthetic dyes. The innovation blazed through the field of biological imaging. In 2007, scientists' mixing of GFP and two other fluorescent proteins let them paint mouse neurons a parade of vivid colors in a technique known as the "Brainbow." A year later, the discovery and development of GFP earned the Nobel Prize in chemistry for three scientists, including the late Roger Tsien, an HHMI investigator.
But GFP has some dark sides too. It's a relatively clunky molecule built out of the limited set of natural amino acids. So GFP isn't always bright enough to reveal what scientists are trying to see.
So researchers turned back to chemistry. Scientists had developed cutting-edge microscopes and new techniques to label cellular contents, Lavis says, but the dyes for marking molecules inside cells were still stuck in the nineteenth century. His team focused on rhodamines, because they're especially bright and cell-permeable—so they easily slip into cells and make them glow. But despite working with rhodamines for more than 100 years, chemists had created only a few dozen colors, and most were similar shades ranging from green to orange.
Researchers Discover an Evolutionary Stepping Stone to Beet-Red Beets
For 100 years, the food industry has resolved consumers’ competing demands for processed, shelf-stable foods with fresh-looking colors by relying on synthetic colorants. On an ingredient label, these dyes appear as Blue 1, Red 40, Yellow 5, and others. Dye Intermediates
However, consumers have become increasingly concerned about the potential negative health effects of such synthetics. For example, the synthetic dye Red 2 was identified as a carcinogen by the FDA in the 1970s and taken off the market—the ensuing consumer fear of red dyes in general led candy companies to eliminate red from their products for more than a decade. The FDA determined that another dye, Red 3, contributed to skin cancer, and they banned it in products used on the skin, though it remains legal for use in foods.
The food industry’s use of natural pigments has been hampered by these ingredients’ degradation during many common food processing techniques: Beet root extract, for example, is already used extensively in beverages, dairy, and fruit products, but its color degrades when exposed to heat, light, or changes in pH.
The new technique developed by Cornell food scientists uses the state-of-the-art Hiperbaric high-pressure processing unit at Cornell’s New York State Agricultural Experiment Station in Geneva. Normally the unit—which subjects foods to pressure up to 87,000 pounds per square inch—is used in place of heated processing to kill bacteria in fresh foods. But Abbaspourrad, Padilla-Zakour and their colleagues discovered that it can also be used to assimilate and stabilize colorant.
“When you take beet juice, formulate it with hydrocolloids and apply high pressure, it actually affects the way these complexes are formed and creates a stable color, which you can’t obtain by common techniques,” Abbaspourrad said.
In contrast to some synthetic dyes, beet juice is decidedly healthy. It has been found to have anti-cancer, antioxidant, anti-inflammatory, and neuroprotective properties.
However, consumers have become increasingly concerned about the potential negative health effects of such synthetics. For example, the synthetic dye Red 2 was identified as a carcinogen by the FDA in the 1970s and taken off the market—the ensuing consumer fear of red dyes in general led candy companies to eliminate red from their products for more than a decade. The FDA determined that another dye, Red 3, contributed to skin cancer, and they banned it in products used on the skin, though it remains legal for use in foods.
The food industry’s use of natural pigments has been hampered by these ingredients’ degradation during many common food processing techniques: Beet root extract, for example, is already used extensively in beverages, dairy, and fruit products, but its color degrades when exposed to heat, light, or changes in pH.
The new technique developed by Cornell food scientists uses the state-of-the-art Hiperbaric high-pressure processing unit at Cornell’s New York State Agricultural Experiment Station in Geneva. Normally the unit—which subjects foods to pressure up to 87,000 pounds per square inch—is used in place of heated processing to kill bacteria in fresh foods. But Abbaspourrad, Padilla-Zakour and their colleagues discovered that it can also be used to assimilate and stabilize colorant.
“When you take beet juice, formulate it with hydrocolloids and apply high pressure, it actually affects the way these complexes are formed and creates a stable color, which you can’t obtain by common techniques,” Abbaspourrad said.
In contrast to some synthetic dyes, beet juice is decidedly healthy. It has been found to have anti-cancer, antioxidant, anti-inflammatory, and neuroprotective properties.
Coloring That Can't Be Beet: New Food Process Replaces Synthetic Dyes
Consumers are fickle creatures: We want to have our red-hued strawberry cake and eat it two weeks later. But the natural colorants that give fresh foods a pleasing color can degrade dramatically when exposed to common food processing techniques. This has led manufacturers to rely on synthetic dyes, to consumers’ increasing displeasure. Dyes and Pigments Chemicals
Now, a team of Cornell University food scientists has discovered a way to process natural beet juice so that it maintains its bright red color and will allow food manufacturers to use it in place of synthetic dyes in a much greater variety of foods.
Combining beet root extract with locust bean gum, sodium alginate, or gum arabic and then subjecting it to very high pressure improves the stability of red colorant during heated food processing, as well as during up to six weeks of cold storage, according to a recent paper.
“Our goal is to provide clean ways of modifying ingredients, using chemistry knowledge and technology that we develop in the lab, to help the food industry create healthier, more palatable foods,” said lead author Alireza Abbaspourrad, the Youngkeun Joh Assistant Professor of Food Chemistry and Ingredient Technology in the Department of Food Science. “We’re looking at how we can use natural ingredients, stabilize them, make them last longer, and incorporate them in our diets.”
Abbaspourrad and co-author Olga Padilla-Zakour, professor and chair of the Department of Food Science, along with postdoctoral researchers Michael Joseph Selig, Giovana Bonat Celli, and Chen Tan, filed a provisional patent for the new processing technique through Cornell’s Center for Technology Licensing.
Now, a team of Cornell University food scientists has discovered a way to process natural beet juice so that it maintains its bright red color and will allow food manufacturers to use it in place of synthetic dyes in a much greater variety of foods.
Combining beet root extract with locust bean gum, sodium alginate, or gum arabic and then subjecting it to very high pressure improves the stability of red colorant during heated food processing, as well as during up to six weeks of cold storage, according to a recent paper.
“Our goal is to provide clean ways of modifying ingredients, using chemistry knowledge and technology that we develop in the lab, to help the food industry create healthier, more palatable foods,” said lead author Alireza Abbaspourrad, the Youngkeun Joh Assistant Professor of Food Chemistry and Ingredient Technology in the Department of Food Science. “We’re looking at how we can use natural ingredients, stabilize them, make them last longer, and incorporate them in our diets.”
Abbaspourrad and co-author Olga Padilla-Zakour, professor and chair of the Department of Food Science, along with postdoctoral researchers Michael Joseph Selig, Giovana Bonat Celli, and Chen Tan, filed a provisional patent for the new processing technique through Cornell’s Center for Technology Licensing.
Tuesday, April 10, 2018
CPhi Japan to See Increased Participation of International Generic API Firms
The 2018 edition of CPhI Japan expo is set to witness increased participation of international generic API companies and suppliers even though the market is regarded as an innovative drug focussed one. This is because, as revealed in the CPhI Japan 2018 report, after years of gradual reforms, the Japanese pharma economy is becoming extremely welcoming for generics and overseas manufacturers – particularly those that can combine exemplary regulatory records with competitive pricing. By joining the Pharmaceutical Convention Inspection (PIC/S) scheme in 2014, Japan has opened its doors to new entrants.
The pharma exhibition will take place at the Big Sight Exhibition Centre, Tokyo, Japan from 18-20 April, 2018. CPhI Japan features companies working across ingredients, contract services, biopharmaceuticals, machinery, technology, and packaging. The event will also feature a finished dosage formulation zone (FDF) for 2018, building on the increasing diversity of the API supplier base.
Over 21,000 visitors from 56 countries and 550 exhibitors from 30 countries are expected to participate in the event highlighting the country’s growing internationalisation.
The CPhI Japan conference will feature insights from the Ministry of Health, Labour and Welfare (MHLW), the Pharmaceuticals and Medical Devices Agency, the Japanese Society of Generic and Biosimilar Medicines, and the Japan Pharmaceutical Traders’ Association. Another major development in Japan, especially for new market entrants, is the implications of the 2018 ‘Pricing system reform and introduction of cost-effectiveness assessment’ on which the conference will host a keynote address. Conversely, for buyers in the region, information and access to the international partners will be integral to establishing a robust supply chain, with the event also hosting an ‘International API Procurement Forum’ – specifically designed to empower the Government’s requirement for 80% generic market penetration by 2020.
pharmaceutical chemicals“CPhI Japan is an accurate bellwether of the wider market trends in the country, and this year we are seeing an acceleration of interest in generics and biologicals, particularly biosimilars – which the market has been previously resilient towards. But there is also more generally increased international interest and investment in all product classes –including innovative medicine – thanks to deregulation and streamlined new drug approval processes,” commented Ms. Laura Murina, Brand Manager, CPhI Japan at UBM.
China to Impose 25% Tariffs on Plastic Products from U.S.
The Ministry of Commerce of China has announced that it will impose 25% tariffs on imports of agricultural products, automobiles, chemicals and aircraft from the U.S. Final measures and effective time will be announced separately. By marshalling the list, the related plastic products are LDPE, PVC, PC, POE, BOPET, PE wrapping film and adhesive tape jumbo roll.
BOPET, PE wrapping film and adhesive tape jumbo roll are the downstream products. The supply of these products is ample in China, and the import volume from U.S. is small. Thus the impact of 25% tariffs on these products will be small.
LDPE, PC, PVC and POE are upstream materials. Although POE is totally dependents on imports in China, the major import origins are Thailand, Singapore and South Korea. The import volume from the U.S. is small and unstable. Thus the influence of tariff on POE will be small.
China imported 307kt of PVC from the U.S. in 2017, taking up 39.7% of the total PVC import volume. However, China has imposed anti-dumping duties on PVC from the U.S. for many years. Most imported PVC from the U.S. is via the trade mode of processing trade with imported materials and processing and assembling trade provided with raw materials. Thus the influence of tariff on PVC will be small.
At present, the LDPE resources from the U.S. have strong price advantages. The trade mode is mainly general trade. After imposing 25% tariffs, the prices of imported LDPE from the U.S. will exceed the mainstream LDPE prices in China obviously. It is estimated that the traders will stop trading with the U.S. LDPE producers in the future. China imported 154.9kt of LDPE from the U.S. in 2017. However, the U.S. is not the largest import origin. The largest import origins are Iran, Saudi Arabia, UAE, Qatar and South Korea.
Chloroacetic Acid Market: Exporters Should Be Cautious
In February 2018, the export volume of Chinese chloroacetic acid List shrank to 1,558.66/mt, down 37.25% month on month. Unstable prices in the Chinese market influenced the negotiation sentiments in trading.
In February 2018, the export volume of chloroacetic acid was 1,558.66mt, down 37.25% month on month and down 10.88% year on year. The average export price was $964.08%, being equivalent to RMB 6,555/mt. The overall trading in the Chinese chloroacetic acid market was not active influenced by the Spring Festival holiday. Mainstream prices moved down obviously. Exporters saw high profits. buy Chloroaceticacid - Industrial Grade
Russia and Turkey are the major export destination of China’s chloroacetic acid.
As for the producers, Shandong Minji was still the major exporter. Moreover, the proportion of exported goods from Henan and Jiangsu increased.
Restricted by the high prices, foreign users purchased chloroacetic acid cautiously. Pesticide Intermediates Meanwhile, the production cost was high and many Chinese chloroacetic acid producers may face losses. Chinese exporters won’t make long-term orders without careful consideration. It is predicted that the export volume in March and April will decline.
Sunday, April 8, 2018
March is passed, can REACH Registration dossiers still be submitted?
The deadline for
the 1-100 tonne chemical substance REACH (Annex VII / VIII) is May 31, 2018.
Related companies need to submit registration dossiers before this date so that
their substances can continue to be produced and imported into the EU market.
The main registrant should submit the main file by the end of March 2018 so that
other SIEF members have sufficient time to submit their files by May 31, 2018.
REACH requires
registrants to make every effort to agree on data sharing and joint submission.
But if the negotiation fails, you can file a dispute with ECHA. ECHA will
evaluate your case and see if you and your peers are doing their best to reach
a fair, transparent and non-discriminatory agreement.
If you have
recently filed a dispute with ECHA and your dispute is still pending on May 31
(ie, the deadline for registering small quantities of chemicals), this means
that you cannot successfully submit your file before the deadline. REACH
registration is completed before the deadline. REACH Search
If you happen to
be in this situation, ECHA will contact you by May 31st and provide
instructions on how to submit your application so that you can continue
business operations until the dispute is finally decided.
If the final
dispute decision is in your favor, ECHA will inform you that it can complete
the submission. If the final dispute is unfavorable to you, ECHA will reject
your application. You must succeed in submitting a new registration dossier
before you can continue to produce or import more than one ton per year into
the EU market.
OCP Group in Morocco May Become the World's Largest Fertilizer Exporter in 2018
The Jorf Fertilizers Company 3 (JFC 3), the third comprehensive fertilizer production plant of the OCP Group in Morocco, invested 5.2 billion dirhams and is now fully operational on the Jorf Lasfar industrial platform. It is reported that the plant will strengthen the production capacity of OCP Group and it is expected that the Group will become the world's largest exporter of chemical fertilizers in 2018. Agrochemicals on Echemi.com
OCP Group in Morocco May Become the World's Largest Fertilizer Exporter in 2018
Founded in March 2017, the JFC 3 unit reached its rated capacity in October. The production capacity of the fertilizer plant is set at 1 million tons per year, which will significantly increase the overall production capacity of the OCP Group. With the commissioning of JFC 4, it is expected that the total capacity will reach 12 million tons in 2018.
Specifically, JFC 3 also includes a sulphuric acid production line with an annual output of 1.4 million tons and a phosphoric acid production line with an annual output of 450,000 tons. The chemical reactions that produce these acids are exothermic reactions. For optimization, the released heat is recovered to a thermoelectric power plant with a power of 62 MW, which makes JFC 3 fully autonomous in terms of energy consumption.
In addition, JFC 3 has a storage facility with a capacity of 200,000 tons of fertilizer, equivalent to more than two months of reserves.
In response, JFC 3 director Ahmed Mahrou stated that the experience and skills of OCP Group over the years, as well as the progress made in designing production units, have enabled this new plant to achieve “the Group’s best environmental performance and reduce SO 2 in sulfuric acid reactors. (Sulfur dioxide) content, treatment of wastewater before discharge, and reduction of fluoride discharge into the sea.
"Incorporating a number of technological innovations, JFC 3 has strengthened the OCP Group's international strategic positioning while meeting the needs of foreign customers," said Ahmed Mahrou. "The group conducts major green investment each year, especially to promote water resources and energy economy. Reducing the environmental impact of their activities in the value chain."
The China-Africa Trade Research Center analyzed that, with the commissioning of the JFC 3 production plant, Morocco's OCP Group will become the world's largest exporter of chemical fertilizers in 2018, with an annual production capacity of 12 million tons. This will not only consolidate the OCP Group's international status in the global fertilizer production chain, but also corroborate Morocco as a veritable “phosphate kingdom”.
OCP Group in Morocco May Become the World's Largest Fertilizer Exporter in 2018
Founded in March 2017, the JFC 3 unit reached its rated capacity in October. The production capacity of the fertilizer plant is set at 1 million tons per year, which will significantly increase the overall production capacity of the OCP Group. With the commissioning of JFC 4, it is expected that the total capacity will reach 12 million tons in 2018.
Specifically, JFC 3 also includes a sulphuric acid production line with an annual output of 1.4 million tons and a phosphoric acid production line with an annual output of 450,000 tons. The chemical reactions that produce these acids are exothermic reactions. For optimization, the released heat is recovered to a thermoelectric power plant with a power of 62 MW, which makes JFC 3 fully autonomous in terms of energy consumption.
In addition, JFC 3 has a storage facility with a capacity of 200,000 tons of fertilizer, equivalent to more than two months of reserves.
In response, JFC 3 director Ahmed Mahrou stated that the experience and skills of OCP Group over the years, as well as the progress made in designing production units, have enabled this new plant to achieve “the Group’s best environmental performance and reduce SO 2 in sulfuric acid reactors. (Sulfur dioxide) content, treatment of wastewater before discharge, and reduction of fluoride discharge into the sea.
"Incorporating a number of technological innovations, JFC 3 has strengthened the OCP Group's international strategic positioning while meeting the needs of foreign customers," said Ahmed Mahrou. "The group conducts major green investment each year, especially to promote water resources and energy economy. Reducing the environmental impact of their activities in the value chain."
The China-Africa Trade Research Center analyzed that, with the commissioning of the JFC 3 production plant, Morocco's OCP Group will become the world's largest exporter of chemical fertilizers in 2018, with an annual production capacity of 12 million tons. This will not only consolidate the OCP Group's international status in the global fertilizer production chain, but also corroborate Morocco as a veritable “phosphate kingdom”.
Which country in Europe will be the most troubled guest? Authoritative statistics come!
This data refers to the “2017 European Payment Report” prepared by Swedish collection agency Intrum Justitia AB (the largest debtor in Europe). Help You Get More Trust & Opportunities in EU Chemical Market
The report pointed out that the solvency of Greece, Portugal, Spain, Italy, and Ireland can be said to be the worst in Europe. The average number of days of payment between Greek companies exceeds 2 months, reaching 63 days, and the general contract requires 49 days. This is also one of the longest paid records in European countries. Among the 29 member states of the European Union, only Portugal exceeds Greece for 68 days. REACH Search
The following is a list of the European Union's contractual B2B contract reimbursement period and how long it takes for the recipient to actually receive the money.
Greece
The average number of payment days for B2B transactions was 63 days. In addition, the number of days that Greek government agencies paid suppliers was even more on average 103 days. In 2016, the “champion” was Italy, 131 days.
Portugal
The average number of payment days for B2B transactions is 66 days.
Spain
The average number of payment days for B2B transactions is 55 days.
Italy
The average number of payment days for B2B transactions is 52 days.
Ireland
The average number of payment days for B2B transactions is 50 days.
France
The average number of payment days for B2B transactions is 46 days.
Netherlands
The average number of payment days for B2B transactions is 32 days.
United Kingdom
The average number of payment days for B2B transactions is 26 days.
Germany
The average number of payment days for B2B transactions is 19 days.
In terms of repayment risk, Portugal, Greece, Italy, and Iceland have the highest risk, and the Czech Republic, the United Kingdom, and Croatia are also on the list.
In addition, Justinia’s CEO Eriksson pointed out that the most disturbing finding was that low interest rates have lost their usefulness. Only 13% of respondents said that low borrowing costs prompted them to increase their investment while 81% of respondents The company said no effect.
This means that the cash flow of European companies is rapidly declining, which leads to a sudden increase in accounts receivable and overdue payments. In addition, although low interest rates no longer have an impetus for companies, interest rate increases will certainly have an adverse effect on them, further exacerbating this disturbing trend. Unless problems are repaired immediately, a large number of companies will default. Echemi.com
Tuesday, April 3, 2018
US Ethanol Exports Would Take Major Hit from China's Tariff Threat
China's proposed 45 percent tariff on US ethanol imports would block an estimated 20 million gallons/month of shipments, deal a blow to US producers' export ambitions and make China's own E10 target unreachable, according to S&P Global Platts Analytics. quality Fertilizer on Echemi
US ethanol exports to China have been on the rise in recent months, despite an existing 30 percent tariff imposed in January 2017.Proposed 45 percent tariff could block 20 million gallons/month Drop in US imports would make China's E10 target impossible US ethanol group urges White House to expand domestic demand.
China proposed adding an additional 15 percent tariff in retaliation to US President Donald Trump's trade action targeting China's technology and manufacturing industries. The proposed hike was part of a wider statement by China's Ministry of Commerce listing 128 commodities representing $3 billion in trade that could be subject to duties.
"I think that would probably cut us off most of the time," Bruce Pickover, Platts Analytics' senior director for global biofuels, said of US ethanol exports to China.
While US ethanol producers defend their 15 billion gallons/year domestic mandate, they are looking to exports for growth, said Neelesh Nerurkar, a biofuels analyst for ClearView Energy Partners.
"They have been looking to overcome or reverse barriers that some of their largest markets adopted in 2017," he said. "This is not the direction they were looking for things to go."
And on China's side, the tariff hike would likely make it impossible to meet its own ambitious target to blend 10 percent ethanol into nationwide gasoline supplies by 2020, Pickover said. China currently blends about 2-2.5 percent.
China's E10 target
Pickover added that even without the higher tariff, China will likely fall short of the 10 percent target by 2020. "They claim they can do it without importing much ethanol, but we think that's not possible," he said.
The US exported 24.6 million gallons of ethanol to China in 2017, a sharp drop from the 198.1 million gallons sent in 2016 before the 30 percent tariff was imposed, according to Platts Analytics and US Department of Agriculture data. Most of the 2017 shipments--22.2 million gallons--happened in December when an arbitrage opened. The US sent no ethanol to China in January, however.
China was the 11th-leading destination for US exports in 2017, dropping from third place in 2016, according to Platts Analytics.
"The US has the cheapest ethanol in the world and has 10 markets where it sends more ethanol to than China," said Corey Lavinsky, Platts Analytics director of global biofuels. "If China adds more barriers to trade, there are still plenty of other destinations where the US can send its ethanol."
Bob Dinneen, president of the Renewable Fuels Association US ethanol trade group, said China's tariff retaliation was predictable. He urged the Trump administration to take steps to expand domestic ethanol demand in response.
Accusing the Environmental Protection Agency of "consistently and aggressively destructing biofuel demand," Dinneen said: "That must stop, and meaningful action to expand biofuel demand must begin by allowing the year-round use of E15 nationwide."
'Unnecessary barriers'
The ethanol industry was hoping recent talks on reforming the Renewable Fuel Standard would result in an EPA waiver allowing year-round sales of gasoline blended with 15 percent ethanol. While some refiners backed the proposal, they wanted a cap on Renewable Identification Numbers in return--something ethanol supporters refused.
Emily Skor, CEO of biofuel trade group Growth Energy, said China has been an important market for ethanol and distiller grains.
"We want to remove any of these unnecessary barriers as soon as possible," she said. "We will work closely with our government to keep this important market open to the benefit of both American agriculture and Chinese consumers."
China's ethanol imports surged to a 13-month high of 120,702 cubic meters in January, from 33 cubic meters in December, according to data from China's General Administration of Customs. Of China's 91,287 cubic meters of denatured ethanol imports in January, 91,283 cubic meters was imported from the US.
"The hike in import duty to 45 percent will kill the imports into China, much like it did in 2017," a trader said.
Chinese importers booked cargoes for Q1 2018 late in December and early in January when prices in the US were at multi-year lows and the arbitrage window to move the fuel from the US to China was open despite the existing 30 percent import duty, market sources said.
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