Chemical Market Weekly | 2026-10-18: World's largest wood-based biorefinery starts up, India's green ammonia investment lands three deals, Asian paraxylene rises to USD 1,283

How should this week's overseas market be read? Three threads show new chemical industry trends

Here is the conclusion first: this week's overseas chemical market shows three main threads - bio-based materials are moving from demonstration to scaled production, green ammonia investment is landing densely across Asia, and petrochemical capacity continues to expand toward Southeast Asia and the Middle East. For equipment buyers, these movements mean that custom demand for stainless steel reactors, mixing tanks and storage tanks is extending from traditional petrochemicals to biorefining, green hydrogen-ammonia and battery materials, and material and structural configurations need to be re-evaluated according to feedstock characteristics and process routes.

### Biorefining: Why did the world's largest wood-based biorefinery choose Germany?

On October 17, UPM started up the world's largest wood-based biorefinery in Leuna, Germany, with an investment of about EUR 1.37 billion, a planned annual capacity of 220,000 tonnes, and about 200 direct jobs. The plant uses beech wood and sawmill residues within 200 km as feedstock, converting wood into industrial sugars and lignin through an enzymatic hydrolysis route, targeting textiles, packaging, cosmetics, building materials and tyres downstream. The enzymatic hydrolysis, fermentation and sugar-syrup concentration stages place high demands on corrosion resistance and cleanliness for stainless steel reactors and mixing tanks, a typical scenario for non-standard customization. Source: Indian Chemical News

### Petrochemical investment: Why does BASF want to build India's first MDI complex?

BASF announced plans to build its first integrated MDI production base in Dahej, India, currently at an advanced stage of feasibility study with industrial land secured. MDI is a key feedstock for polyurethane, and growing demand from the automotive, construction and appliance sectors in India and Southeast Asia is the main driver. New MDI units place high requirements on corrosion resistance and sealing in reaction and storage links, and equipment suppliers need mature capabilities designed to international codes. Source: Sina Finance

### Southeast Asia expansion: Why does SCG raise its Long Son petrochemical investment?

SCG has raised its investment in the Long Son petrochemical project in Vietnam to USD 6.16 billion, showing that ethylene-chain expansion in Southeast Asia is still advancing. The project is located in Ba Ria-Vung Tau Province, Vietnam, with supporting port and downstream derivative units. For domestic equipment makers, new Southeast Asian petrochemical projects bring export opportunities for storage tanks, reaction and mixing equipment, with a clear need for turnkey and complete-line integration. Source: Global Flow Control

### Feedstock prices: Why has Asian paraxylene risen to USD 1,283/tonne?

On October 14, Asian paraxylene (PX) spot quotes rose to USD 1,283/tonne, strengthening notably from earlier levels. PX is the starting point of the PTA and polyester chain; firmer quotes usually reflect concentrated aromatics plant turnarounds and recovering downstream polyester operating rates. Feedstock volatility transmits to downstream unsaturated resins and coating solvents; monitoring upstream cost changes during procurement and scheduling helps time equipment investment. Source: Procurement Resource

### Green ammonia: Why did Indian green ammonia projects secure three investments in one week?

Capital landed densely in India's green ammonia track this week. ADB and Japan made the first investment commitment through the ACCEL mechanism to the AM Green Ammonia Kakinada project, providing a USD 100 million loan, with a planned annual output of about 1.09 million tonnes of green ammonia and Phase 1 targeted for commissioning in March 2029; Avaada announced plans to invest INR 4 trillion in green ammonia and methanol capacity; NTPC is building a green ammonia hub in Andhra Pradesh with a planned daily capacity of 1,500 tonnes, targeting exports to Japan, South Korea and Germany. Green ammonia projects are generally equipped with electrolysers, high-pressure storage tanks and ammonia synthesis units, amplifying custom demand for high-pressure storage and sealing links.

Sources: Bioenergy Business, HT Syndication, futurefuels.in

### Energy engineering: Why is Saudi Aramco expanding gas facility investment now?

On October 17, Saudi Aramco awarded about USD 3.3 billion in gas facility contracts to Sinopec and Tecnicas Reunidas, covering LNG distillation and storage facilities; it previously awarded KBR the Marjan offshore contract supporting a 300,000 bpd expansion. Middle East energy investment remains high, and large EPC projects are often tendered on a complete-line basis, offering opportunities for equipment makers with whole-line integration capabilities. Source: SaudiPress

### What do this week's movements mean for domestic equipment buyers?

Summarizing this week's overseas developments, three points deserve attention. First, bio-based and green hydrogen-ammonia projects are shifting demand from traditional petrochemicals to corrosion-resistant, clean and high-pressure scenarios, requiring re-matching of equipment materials and sealing grades. Second, Southeast Asian and Middle East expansion waves bring turnkey and complete-line opportunities, and makers capable of delivering complete production lines are more competitive. Third, feedstock price volatility reminds downstream buyers to schedule production on demand, and equipment investment is best aligned with mid- and long-term process planning. Shenzhen Haolin Shengda Equipment Manufacturing Co., Ltd. provides stainless steel reactors, mixing tanks, storage tanks, dispersers, concentrators and complete chemical line integration, with non-standard customization supported.

Further reading: - Chemical Market Weekly | 2026-10-15: Solid-state battery lines start up intensively, lithium anode integration speeds up, European storage projects keep scaling - Chemical Market Weekly | 6 October 2026: EU anti-dumping case on nitrotoluene, new energy storage capacity up 61% YoY, overseas chemical investment continues

This article is compiled by Shenzhen Haolin Shengda Equipment Manufacturing Co., Ltd. (hyline.cn); ownership of the information belongs to the original authors. We specialize in stainless steel reactors, mixing tanks, storage tanks, dispersers, concentrators and complete chemical line integration, with non-standard customization supported.