ECSA Trade Industrial Chemicals | Market report preview

ECSA TRADE
INDUSTRIAL CHEMICALS
MARKET REPORT

October 2019
products
ACETIC ACID
At the beginning of August 2019, listing prices increased of 100 EUR/t in EMEA region. Rumors
suggest lack of supply from Asia but also some difficulties for European manufactures.
During August demand has reached its peak compared to the past months demand.
ETHYL ACETATE
The availability of the solvent is this short on the market that some producers just sell the
product to their best customers. This shortage is caused by an unplanned and the scheduled
shutdown of UK’s biggest ethylene crackers at the same time. They would have produced the
starting material for ethyl acetate at Ineos Oxide plant, which is the only producer in the European
Union. The other importers were also not able to import enough material on time. Therefore, the
price is increasing steadily since summer. The political situation cause by the Brexit does also
not enlighten this situation in the near future.
METHANOL
The ICIS Europe and Methanex announced listing price for Q3 2019 at 315 EUR/t EXW (instead of
360). The reduction is due various factors such as US - China trade war and the tension between
the US and Iran. Buyers are prudent and prefer not to make big stocks as prices might fluctuate
in the next months.
economy
WORLD: Difficult global background: global economy slow-down
and growing investment uncertainty
After a decade of moderate economic growth, global growth has clearly slowed down in all
regions in the first semester of 2019. However, most large economies still face limited risk of
recession. So far, the slowdown seemed to be provoked by long-term factors such as stagnant
labour supply and weak productivity growth rather than by a broad decrease in investment.
Labour markets are tight in most major industrialized countries.
Global growth lacks demand drivers and there is increasing uncertainty (US-China escalating
tensions in trade and technology sectors, the Brexit-issue). Further to spreading to nationalsecurity
and domestic political issues, trade (and currency) dispute could disadvantage both the
involved parties and the global economy.
With the deterioration of economic growth, the public debt issue could become an urgent
problem in certain countries, adding financial instability to an already precarious economic
situation.
According to the World Bank, global trade growth should fall from 4.1% last year to 2.6%
this year. The weakness in trade has affected mainly capital goods. The current trade disputes
uncertainties and other geopolitical issues impact the global business confidence.
Companies are more hesitant to program large capital expenditure plans. While investment in
construction is strong, investment in equipment and machinery is weaker than last year.
Industrial countries face decreasing demand, lower inflation rates and decreasing inflation
expectations. The economic slowdown was followed by a shift in monetary policies by the world’s
largest central banks toward greater easing. Economic actors are increasingly concerned by the
economic impact of increased extreme weather (hurricanes, floods, wildfires).
INDUSTRIAL CHEMICALS

October 2019
news
ECSA improved safety of special waste storage
with full sprinkler coverage of this area
In order to continuously improve safety, in August 2019 ECSA extended the Sprinkler system in
all dedicated areas to the collection and storage of special waste.
Now the 95% of the warehouses are fully protected from fire with a foam/water sprinkler plant
and recovery basin for the extinguishing water.
This investment was not required by any law or external demand but it was an ECSA decision in
order to reinforce our safety systems.
With this new system ECSA increase its SQAS Ranking from an average of 92% to 95% (compared
to an European average percentage of 86%).
INDUSTRIAL CHEMICALS

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