Mexico’s Orbia has decided to put a pause on the expansion plans for its polyvinyl chloride (PVC) production capacity due to a challenging market situation that adversely impacted its profits in 2023. The company’s polymer division, which includes PVC, faced a substantial setback in the fourth quarter of the previous year, reporting a 54% year-on-year decline in earnings before interest, taxes, depreciation, and amortization (EBITDA), amounting to USD47 million. Additionally, sales within this division experienced a 21% year-on-year decrease, reaching USD577 million. The overall decline in total revenue for the October-December 2023 period was primarily attributed to reduced sales volumes and prices for both specialty PVC and caustic soda. This downturn was a consequence of weak demand and oversupply prevailing in the market. Notably, PVC production also witnessed a decline due to planned repairs and associated delays at the ethylene joint venture during this timeframe. In...

Earlier this month, we explored how chemical value chains are shifting, adapting and evolving to navigate geopolitical, societal and world welfare issues. Our blog post Retreat of Western investment in – and reliance on – China considered the views of key brand representatives on the issue and Davos thinking alongside the insights of our own consultants.  Today, we are flipping the coin to present the thinking of our colleagues and industry partners within the Asia region.  ANALYSIS BY GRACE SHEN, TECNON ORBICHEM’S CHINA-BASED ORTHOXYLENE, PHTHALIC ANHYDRIDE, UPR & AROMATICS EXPERT From an aromatics import/export perspective, globalisation strategy seems to be making a comeback. ‘Trading volumes apparently increased in the second quarter of 2022,’ says senior consultant Grace Shen. Aromatics, including toluene, mixed xylenes, benzene and styrene are being actively exported from Asia to the US and Europe,’ adds Shen. The western region’s shortages have...