Wacker, a leading player in the chemical and biotech industry, has announced its financial results for Q3 CY2024.

he chemical company generated sales of around EUR 1.43 billion in the reporting quarter (Q3 2023: EUR 1.52 billion), down 6 percent. This decline was mainly due to significantly lower volumes sold by the Polysilicon division. Compared with Q2 2024 (EUR 1.47 billion), sales decreased 3 percent.

The EBITDA (earnings before interest, taxes, depreciation and amortisation) came at EUR 152 million (Q3 2023: EUR 152 million), EBITDA margin was 10.6 percent, after 10 percent a year earlier and 10.9 percent a quarter earlier. The net income for the reporting quarter amounted to EUR 34 million (Q3 2023: EUR 34 million).

Wacker has confirmed its full-year forecast for 2024. Its sales guidance remains in the range of EUR 6 billion to EUR 6.5 billion. EBITDA is likely to come in between EUR 600 million and EUR 800 million; it continues to expect it to be in the upper half of this range.

Christian Hartel, Group CEO, Wacker, said, “The economic environment and the level of demand in the chemical industry remain challenging for Wacker. In view of this, the strong performance in our chemical business is impressive. Despite considerable headwind here, our earnings after the first three quarters of this year are higher than in the previous year.”

“Many companies with direct sales to end consumers have curbed their production: the automotive and construction industries in particular are weak at the moment. This has repercussions for us,” continued Hartel.

In view of the current business trend, he stated that ‘the majority of its customers are continuing to exercise caution when placing orders because they are facing weak demand.”

He further explained that the lower demand for solar-grade polysilicon had impacted Wacker’s Polysilicon division.

“The USA’s ongoing antidumping investigations into solar imports from some countries in Southeast Asia has led to market uncertainty. By contrast, the hyperpure semiconductor-grade polysilicon business performed well. This shows that our long-term strategy is paying off.”

Wacker is said to have focused firmly on efficiency and cost discipline for some time now in order to tackle the challenges posed by the ongoing difficult market environment.

The CEO remains optimistic about the company’s long-term prospects.

“We confirmed our growth and sustainability targets for 2030 at our Capital Markets Day in mid-September. We are investing extensively to be able to meet the needs of our customers in the various industries and regions. Even though we are currently in a difficult economic environment, we are convinced that we are well positioned for the future: we have a committed team of experts, high innovative strength, and products and solutions that address the megatrends of our time,” he said.

To grow even further, Wacker is pursuing a comprehensive investment program to expand its capacities in all its business divisions and regions

Nouryon, a leading supplier of organic peroxides and a developer of organic peroxide solutions, has formally announced the completion of capacity expansion of its organic peroxides manufacturing facility in Ningbo, China.

The company's production capacity for Perkadox 14 and Trigonox 101 organic peroxide products, which are crucial components for altering polymer characteristics and crosslinking rubbers and thermoplastics, has increased to 6,000 tonnes each as a result of this capacity expansion. Furthermore, by improving the qualities of recycled polypropylene (R-PP), these solutions can also allow consumers to employ recycled polymers in applications that were previously exclusive to virgin plastics.

Alain Rynwalt, Senior Vice President – Performance Materials, Nouryon, said, “Nouryon is a world leader in essential ingredients for the polymer industry and this expansion highlights our dedication to supporting our customers’ growth across the entire polymer cycle. Customer interest in improving the properties of recycled polypropylene continues to rise, in line with increased consumer awareness and more stringent regulations.”

Sobers Sethi, Senior Vice President – Emerging Markets and China, Nouryon, said, “Asia Pacific is a key region for Nouryon and our most recent expansion in China strengthens our supply position even more in this growing region. Our customers rely on our existing network of manufacturing facilities and innovative technologies, and we are pleased to build more capacity to meet growing customer demand around the world.”

Trinseo, a speciality materials solutions provider, has signed agreements to supply its polycarbonate technology license as well as all proprietary polycarbonate production equipment in Stade, Germany to Deepak Chem Tech Ltd, a wholly owned subsidiary of Deepak Nitrite Limited, a diversified chemical intermediates company based in Vadodara, Gujarat, India.

The combined deals are worth USD 52.5 million. Subject to significant milestones, the business anticipates receiving around USD 9 million by the end of 2024 and an additional USD 21 million in the first part of 2025. The firm has made the decision to leave Stade, Germany, with this disposal of the production assets.

Frank Bozich, President and Chief Executive Officer, Trinseo, said, “While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilised in India by Deepak. These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India.”

China's butadiene exports have experienced significant growth in recent years, particularly in 2021 and 2024. According to Sublime China Information (SCI), this surge is primarily driven by supply constraints in key regions, including the US and Southeast Asia.

Export Volume and Price Trends

In 2021, China's butadiene exports reached a historic high due to a supply gap in the US market. According to SCI, this trend continued in 2024 as reduced deep-sea cargo shipments and production challenges in Southeast Asia further tightened global supplies. From January to September 2024, China's total butadiene exports surged by 111 percent year-over-year to approximately 120.8 kilo tonnes.

The average export price of butadiene has fluctuated over the past five years. In 2023, weak demand in South Korea and competition from deep-sea cargoes led to a significant decline in export prices. However, in 2024, supply shortages from key regions drove prices to a five-year high. As of September 2024, the average export price reached USD 1,391 per metric ton, a 35 percent month-over-month increase, added SCI.

Export Destinations and Regional Dynamics

The majority of China's butadiene exports are directed to South Korea and Taiwan. In 2024, South Korea accounted for 74 percent of total exports, a significant increase from the previous year. This surge was driven by factors such as limited domestic supply and increased demand for spot butadiene.

While China's butadiene exports have been strong, the long-term potential for significant growth in deep-sea exports remains limited due to established supply chains and regional demand dynamics. Most of China's exports are currently concentrated in Northeast Asia, with limited opportunities for expansion into other regions.

Future Outlook

SCI added that 2025 China's butadiene supply is expected to be relatively sufficient, and export volumes may increase further. However, the sustained growth of exports will depend on various factors, including downstream demand in key markets, the availability of deep-sea cargoes, and the development of new production capacities in other regions.

Despite these uncertainties, China's butadiene industry is well-positioned to capitalize on global supply-demand imbalances and continue to play a significant role in the global market.

Cabot Corporation, a global speciality chemicals and performance materials company, has announced through an official statement that it will raise prices globally for carbon black products sold by its speciality carbons business. The price rise will be global and will come into effect for all shipments on or after 1 December 2024, or as contracts allow.

The company claims that the price rise is necessary owing to the impact of inflation on labour, maintenance and other production activities, as well as supply chain-related expenditures. The price increase will vary depending on the product and region.

The statement further elaborates that these price adjustments will help the company remain a dependable, long-term provider of high-quality products and services to its consumers. Cabot also underlined its commitment to guaranteeing supply security and the best service standards for its clients, as well as providing technological and process improvements and moving forward with its environmental goals.