Issue 9/2022 - Global Chemicals Quick Facts

Global chemical industry leaders chart a "net zero" path

At present, industry insiders are generally optimistic about the prospects of net zero in chemical production
.
At the 2022 World Petrochemical Congress in Houston, Texas, in late March, industry leaders such as Jim Fittling, chairman and CEO of Dow Chemical, Karen McKee, president of ExxonMobil Chemical Company, Brudermüller, chairman of the board of directors of BASF, and Yousuf Albayan, vice chairman and CEO of SABIC, said that the chemical industry can achieve net-zero carbon emissions without sacrificing growth, but this will require strong government support , extensive collaboration between the private sector, and a deeper public understanding
of emissions trading.
If the risks of low-carbon technologies are not eliminated today, the chemical industry will not be able to use these technologies
in the future.

The increased supply of ethane will help the development of Canada's petrochemical industry

If current demand for thinners used to produce oil sands continues to grow, Canadian chemical companies are likely to receive more and more ethane supply
.
The prospect of increased ethane supply will open up the possibility
of new ethylene capacity in Canada.
In addition, Canada's carbon policy and sustainability benefits such as carbon capture infrastructure have helped attract companies to build more petrochemical plants
in the country.
Canada's carbon capture infrastructure and carbon pricing system are also one of
the reasons Dow Chemical chose Alberta's new 1.
8 million mt/year ethane cracker.
Greg Moffat, vice president for policy at the Canadian Chemical Industry Association, said Canada needs policy certainty and predictability to attract investment to expand the advantages and development
of the petrochemical industry.

South Korea's base oil exports fell year-on-year in March

Recently, data released by the Korean Customs Administration showed that after two consecutive months of year-on-year flatness, South Korea's base oil exports in March were 379,559 tons of base oil, down 2% from 389,052 tons in the same period last year, but still higher than in January and February, which is also the highest value
since exports of 408,826 tons in December last year.
South Korea's base oil exports reached $398.
7 million in March, up 17 percent
from $339.
5 million in the same period last year.
As one of the largest base oil exporters, South Korea sells most of its base oil products to global markets, generating huge profits
for its refineries.
South Korea's base oil imports in March were 23,387 mt, down 59% year-on-year and one of the lowest in the past 12 months, up only from 19,699 mt in November and 22,736 mt
in June last year.
South Korea's base oil imports fell 50% year-on-year to US$
23.
9 million in March.

The global additives industry has recovered strongly

Even in the context of the coronavirus pandemic, last year was a brilliant year
for the additive industry.
Global operating income increased by 19.
5% year-on-year in 2021, a significant increase from 7.
5% in 2020, but still not reaching pre-pandemic levels, with an average growth rate of 27.
4%
in the first 10 years of 2020.
Terry Wohlers, head of advisory services and market intelligence at Wohlers Associates, said: "As expected, the additive industry has returned to the development and investment phase
.
This expansion spans aerospace, healthcare, automotive, consumer products, energy, and other industries
.
"The global additives industry also witnessed a number of M&A deals and other signs that show market health in 2021: 75 M&A and IPO transactions occurred in 2021, which is almost double that of 2020
.
While not directly related to growth, it is indeed an indirect sign
of an industry's prosperity.