Issue 7/2022 - Global Chemicals Quick Facts

Latin American PS producers face a double pressure

At present, Latin American polystyrene (PS) producers are facing the dilemma of rising raw material costs, on the one hand, they have proposed to raise PS prices in Argentina and Brazil, and on the other hand, import restrictions have led to tight supply in some parts of Latin America, but demand has slowed
due to economic problems.
The IMF has recently lowered its economic outlook
for Latin America in general, and Argentina and Brazil in particular.
High inflation and currency volatility have affected PS demand
in Latin America.
A Brazilian producer had to adjust to the March price increase due to currency depreciation
.
Since the end of 2021, Argentina has been under the price control imposed by the government, which has had an indirect impact on
the packaging industry.

Global demand for refining catalysts may rebound

While the impact of the pandemic is still lingering, refinery capacity utilization and demand for refining catalysts are gradually returning to pre-pandemic levels
as the world economy recovers.
In addition, increasingly stringent environmental requirements are driving innovation and R&D in the refining catalyst industry, which in turn is driving a rebound in demand for refining
catalysts.
Market analysts believe that the epidemic has severely damaged the refining industry and affected the refining catalyst industry, but this impact is coming to an end and the demand for refining catalysts will also recover
.
Stringent fuel environmental standards are a driver of innovation, contributing to the development of advanced refining catalysts and driving growth for
the industry.
Fuel desulfurization regulations are ripe in most developed economies, and the challenge for future fuel desulfurization is to reduce the carbon footprint of production plants, which will place higher demands
on catalyst performance.

The EIA expects U.
S.
renewable diesel supply to surpass biodiesel

The U.
S.
Energy Information Administration (EIA) expects the supply of renewable diesel (domestic production plus net imports) in the U.
S.
market to exceed biodiesel supply in the near term, increasing to 130,000 bpd in 2022 and 145,000 b/d in 2050, reflecting a significant recent increase
in renewable diesel capacity.
Bio-based diesel includes biodiesel and renewable diesel, both of which are derived from the same types of fats, fats and grease
feedstocks.
EIA expects further growth
in renewable diesel supply due to renewable diesel compatibility with existing distribution infrastructure and engines, higher state and federal targets for renewable fuel production, incentives for tax breaks, and conversion of existing refineries to renewable diesel refineries.

South Korea's base oil exports were flat year-on-year for the second consecutive month

South Korea's base oil exports were 346,900 mt in February, up slightly from 345,800 mt in the same period last year, and unchanged year-on-year for the second consecutive month, 5% lower than January (365,700 mt), the lowest level since August last year (338,200 mt), and the average export volume in the last four months of last year exceeded 408,000 mt
, according to data released by the South Korean Customs Agency.
South Korea's lowest base oil exports last year were May, at 321,100 mt
.
South Korea's base oil exports in February were $346.
3 million, up 27% from $272 million in the same period last year and the lowest monthly export since
May last year ($332.
6 million).
South Korea is one of the world's largest base oil exporters, exporting most of its base oil to global markets
.
Refiners such as SK Lubricants, S-Oil, GS Caltex and Hyundai Shell Base Oils have also made huge profits
.