Polymer trends: Prices on the rebound

09 June 2003 00:00  [Source: ACN]

PS surges $70-130 on higher styrene costs and increased buying with hdPE rising by $40-90, ldPE by up to $30 and PP by $50-70

PS: Rocketing styrene prices sent prices of both general purpose PS (GPPS) and high-impact PS (HIPS) galloping north. In NEA, June GPPS cargoes changed hands at US$700-740/tonne cfr CHina main port, whiloe HIPS cargoes for June lifting were bought at US$720-780/tonne cfr CHina main port. The prices were US$70-130/tonne higher compared with May.

Domestic prices in China were also rising. GPPS cargoes were reported to have been bought at Rmb7200-7500/tonne delivered, up Rmb800-1100/tonne from previous business.

HIPS cargoes changed hands at Rmb7500-7800/tonne delivered, up about Rmb1000/tonne from May.

Traders in China said inventory levels of end-users were running low after about a month of little activity due to Sars (severe acute respiratory syndrome).

Selling ideas were rising on higher feedstock  costs and increased confidence. A major Taiwanese producer was offering cargoes for late June or early July, lifting at US$780/tonne crf CHina main port for GPPS, and US$810/tonne cfr CHina main port for HIPS. Buying ideas were US$20-40/tonne lowere.

In SEA, June cargoes were ehard sold at US$730/tonne crf SEA for GPPS and US$760-780/tonne cfr SEA for HIPS. Trade was muted, perhaps due to Sars.

HdPE: Some film-grade business was last week reported to have been transacted at US$590/tonne cfr China for June lifting compared with US$500-550/tonne cfr China for May.

As was the case with all the grades of PE and PP, there was a flurry of inquiries from end-users early last week, raising hopes that fundamental demand might be on the rebound. However, it could be just another price bubble.

The South Koreans increased offers on higher feedstock costs (see p30) to US$600-620/tonne cfr China and the higher deals, said a trader.

In SEA, prices were also reported to be at around US$590/tonne cfr SEA with a slight improvement in activity.

LdPE: One South Korean producer claimed it had sold 80% of its very much reduced June China shipments (reduced by an outage in May) at US$670/tonne cfr China against what it said was May business concluded at US$640-650/tonne cfr China.

Traders described the market as a whole as being 'very confused' with prices at US$570-670/tonne cfr China, the lower end being for sometimes off-specification Russian cargoes moved into northern China by rail.

They placed prices for the better quality shipments at US$620-670/tonne cfr China with a consensus that May business had been settled at US$640-650/tonne cfr China.

LldPE: A South Korean producer which normally sells 50% of its ldPE and lldPE exports quota to China, 20% to SEA and 30% to South America and Africa has switched these percentages to 40% to China, 15% to SEA and 45% to South America.

The reason given was business from South America for ldPE at US$650-700/tonne fob Korea and lldPE at US$600/tonne fob Korea. Freight to the east coast of South America was US$40-50/tonne and to the west coast US$80-90/tonne.

The producer was offering June lldPE cargoes at US$600/tonne cfr China against its May business which it reported settled at US$550-580/tonne cfr China.

A cargo from North America had been sold at US$590/tonne cfr, indicating that the South Korean offer, again based on higher ethylene costs and more buying interest, might be realised.

Traders reported that May business was settled at US$500-560/tonne cfr China.

PP: South Korean offers rose to US$660-670/tonne cfr China for raffia and film grade on higher feedstock costs and a high number of enquiries from buyers.

The producer talked of raising its offers for homopolymer to US$700/tonne cfr China with traders adding that material was already on offer at that price.

Domestic prices rose by Rmb200/tonne to Rmb6700-6800/tonne delivered with raffia and film-grade business reported settled at US$630-650/tonne cfr China against US$580/tonne cfr China for May.

Co-polymer prices were at US$650-670/tonne cfr China, US$10-20/tonne higher than May.

ABS: Buyer inquiries increased on the hope that the Sars crisis was coming to an end.

Buyers purchased cargoes for June lifting at US$900-950/tonne cfr China main port, a jump of US$40-80/tonne from May. A Chinese trader was rumoured to have purchased a cargo at US$980/tonne cfr southern China for late June lifting.

A major producer in Taiwan was said to be offering July cargoes at US$990-1000/tonne cfr China main port.

An Indian trader said imports were priced at US$840-880/tonne cfr India West Coast, but only a few deals were reported. No deals were reported in SEA.

PVC: Domestic prices in China shot up from Rmb5600-5800/tonne delivered in late April to Rmb6300-6400/tonne delivered last week, due mainly to antidumping duties imposed by China on 12 May (ACN 19 May, p31).

Prices of imported PVC also rose. Deals for June lifting were heard done at US$550-590/tonne cfr Hong Kong/China, up US$30-70/tonne from May.

A major Taiwanese producer planned to offer US$600-620/tonne cfr China main port for mid-June and early July.

Producers said Sars and the Labour Day holidays in May hurt demand badly in China and Taiwan, but no official figures were available. Prices would have gone down if not for the antidumping duties, they added.

In SEA, June cargoes were heard changing hands at US$530-555/tonne cfr SEA, up marginally from US$520-550/tonne cfr SEA in May.

In India, cargoes for June lifting were bought at US$530-550/tonne cfr India main port. SEA producers said trade for June cargoes had been slow because of Sars. They added that there were increased sales to China following the antidumping duties.

UK polymer prices - US$/tonne

	NE Asia	SE Asia
HdPE
Film grade	590	590
Yarn and injection moulding	580	570-580
LdPE
GP film grade	570-670	620-670
LldPE
GP film grade	590	580-590
PP
Film grade	630-650	630-650
Raffia and injection moulding	630-650	630-650
GP copolymer	650-670	650-670
PS
General purpose	700-740	730
High impact	720-780	760-780
ABS
GP grade	900-950	840-880 cfr India WC
PVC
GP suspension	550-590	530-555

The above prices are a guide to market levels and were compiled
by the ACN team in the middle of the week before publication.
Prices are on a cfr basis for NEA and cfr basis for SEA for June
arrival shipment. Special greades or material will command premiums

< previous article(ICIS Chemical Business podcast November 2, 2009)

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