Engineering Aesthetics

Sumitomo Corporation and Nippon Steel Corporation have secured a significant nine-year contract with Equinor ASA, a leading Norwegian energy company, to supply Oil Country Tubular Goods (OCTG). This partnership, spanning 35 years, emphasizes their commitment to supporting oil and gas development and Carbon Capture and Storage (CCS) projects aimed at reducing greenhouse gas emissions. Equinor, at the forefront of European energy supply and decarbonization efforts, values the high quality and reliable delivery of OCTG from Sumitomo and Nippon Steel. The collaboration underscores their joint dedication to sustainable, low-carbon steel solutions and human rights. Equinor's strategic initiatives in CCS, hydrogen production, ammonia utilization, and offshore wind energy highlight its proactive approach to addressing climate challenges while ensuring energy security. This partnership not only enhances supply chain resilience but also fosters innovation in low-carbon technologies, driving

In June, the European Quicklime market saw a notable price increase despite adequate supply and moderate demand. This uptick occurred against the backdrop of a struggling downstream construction sector, which continues to face order shortages despite slight improvements in the construction index. The rise in Quicklime prices can be attributed significantly to escalating global logistics costs. Port congestion in the Mediterranean and Asia, exacerbated by the conflict in the Red Sea region, has led to equipment shortages and increased shipping expenses. These logistical challenges have disrupted supply chains, pushing operational costs higher across industries, including Quicklime. The construction industry, a major consumer of Quicklime, remains subdued due to economic uncertainties such as high interest rates and inflation. These factors are dampening new orders, limiting the sector's ability to drive substantial demand for Quicklime even during the typical peak construction seaso

On July 2, 2024, Wuhuan Engineering Co., a subsidiary of China National Chemical Engineering Group Corporation, signed an EPC contract with KazAzot for Kazakhstan's first large-scale, modern nitrogen fertilizer complex in Astana. This project aims to bridge Kazakhstan's domestic fertilizer gap, enhance its basic and chemical industries, and contribute significantly to economic transformation. Wuhuan Engineering, based in Wuhan East Lake High-tech Development Zone (Optics Valley of China), is a state-owned leader in chemical design and construction. The company has completed over 3,000 design projects and 300 EPC projects, including over 200 overseas in countries like Vietnam, Zambia, and Tunisia. This new venture further solidifies Wuhuan's global presence and commitment to advancing the chemical industry.

Throughout the second quarter of 2024, the chemicals industry witnessed varied price trends, with significant impacts on key commodities. While Benzene prices surged, prices for Propylene, Acetone, and Phenol remained stable. In Europe, the downturn in residential construction has led to reduced employment and the exit of small enterprises, affecting market dynamics. Phenol prices settled at USD 1550 per ton by late June, prompting cautiousness among manufacturers amid anticipated reduced inquiries from the terminal market. The European construction sector, traditionally resilient, is projected to decline by 2.3% in 2024, potentially impacting Phenol demand in applications like adhesives and insulation materials. In the USA, moderate inquiries from downstream industries such as construction and automotive had a minimal impact on Phenol demand. Similarly, Chinese market demand remained steady, supported by consistent upstream raw material costs and ample finished goods inventories. Rece

In the beginning of the third quarter, Methionine prices in Western markets are poised for an increase driven by robust demand from food and feed industries downstream. Market participants are expected to raise prices to boost profitability, supporting the upward trend. Supply chain disruptions originating in Asia, including equipment shortages and port congestion, continue to constrain Methionine availability. Despite signs of improvement, these challenges persistently fall short of meeting high demand levels. Anticipated blank sailings in July and August will exacerbate supply constraints, coinciding with the peak season months that traditionally see heightened demand. Moreover, significant Peak Season Surcharges announced by carriers in July will escalate shipping costs, further lifting Methionine prices in Western markets. Rising ocean freight rates in U.S. corridors, driven by global container demand, will add to import costs from Asia, likely passed on to consumers reliant on the

In June 2024, the MTBE (Methyl Tert-Butyl Ether) market in China encountered bearish sentiments, leading to a significant downtrend and lowered prices. This decline was primarily driven by high operating rates in Methanol production, reducing production costs, and sluggish downstream demand from the gasoline sector. MTBE prices decreased by 4.1% compared to May 2024, settling at USD 930/MT FOB Dalian, China. The revival of idle production capacities during this period, including facilities like Qixiang Tengda and Maoming Shihua, contributed to supply outpacing demand. Despite these restarts, operating rates remained cautious, indicating ample existing stockpiles. The oversupply situation was exacerbated by increased Methanol production from major enterprises, a key feedstock for MTBE, which further lowered production costs. Weak demand from downstream industries, particularly in gasoline production, contributed to limited market enthusiasm. Downstream users adopted a conservative purch