Asia chemical industry outlook for 2008

10 January 2008 02:33  [Source: ICIS news]

SINGAPORE (ICIS news)--The following stories were published on ICIS news between Monday 24 December 2007 and Thursday 3 January 2008.

 

Asia naphtha bull run to slow

Asia’s naphtha market may tread on a softer note in 2008 from heavier cracker turnarounds planned in the northeast in the second half.

 

Asia SM to see downturn on supply

The near-term outlook for styrene monomer (SM) in Asia is bearish on the back of recent losses in spot pricing and a supply overhang in China.

 

Asia BD to rise on tight supply

Asia butadiene (BD) spot prices are poised to rise in January, with major Taiwanese and Korean BD producers targeting $1,600-1,650/tonne CFR Asia, more than $100/tonne above December numbers.

 

Supply, feedstock threaten Asia BTX

Asia’s benzene, toluene and mixed xylene (BTX) markets would be stable-to-weak on increased supply and higher feedstock costs in 2008, with the exception of the US summer driving season from March to June.

 

Olefins supply to tighten on feed

Asian naphtha crackers are bracing themselves for high feedstock costs and squeezed margins in 2008, while buyers are wary of tight olefins supplies.

 

Mid-East, S Asia PE, PP to gain in H1

Middle East and South Asia polyethylene (PE) and polypropylene (PP)  makers are expected to see better margins in the first half of 2008 on tight supply and strong demand, but the outlook for the second half is less certain.

 

Asia PE supply tight, PP oversupply

Polyethylene (PE) supply is forecast to remain tight in Asia next year, while polypropylene (PP) is expected to be oversupplied in the short term due to new plant start-ups.

 

Mid-East PS bullish, S Asia bearish

Polystyrene (PS) market trends in the Middle East and South Asia are likely to diverge in 2008.

 

Asia MEG may see bumper year

Asia’s monoethylene glycol market – which rose to an 18-year high in 2007 despite earlier expectations of downturn – may remain bullish in 2008.

 

Mid-East, S Asia PVC supply tight

Limited availability will enable polyvinyl choride (PVC) makers in the Middle East and South Asia to justify keeping prices high in the first half of 2008.

 

Asia polyester to consolidate

The polyester industry in Asia is headed for a year of consolidation in 2008 and prices are expected to firm in the first quarter on the back of feedstock costs and crude futures.

 

Asia PVC set to stay firm

Asian polyvinyl chloride (PVC) prices are set to stay firm at least until September next year, supported by strong fundamental demand and higher costs caused partially by inflation.

 

Asia caustic soda to be firm

Asian caustic soda prices are expected to remain firm in 2008 on strong demand from India, the US and Canada amid snug supply.

 

Asia soda ash could hit $400/t

Asian soda ash spot prices for 2008 could hit a high of $400/tonne (€272/tonne) Asia by the second quarter on the back of continued strong demand and tight supply.

 

Asia biodiesel will watch feedstock

High feedstock costs and the need for governmental and environmental support will be key concerns for the Asian biofuel markets in coming year.

 

Tight supply dictates Asia methanol

Asian methanol is expected to correct in 2008 from the record highs this year but a lack of new capacities may keep supply balanced-to-tight during the first half.

 

INSIGHT: Asia outlook 2008

The Roman historian Pliny the Elder gave rise to the myth that ostriches bury their heads in the sand in order to avoid danger.

 

Asia acetic acid to ease on supply

Asia’s acetic acid is expected to correct to $500-600/tonne (€345-414/tonne) in 2008 on ample supply, after ending an exceptional year of above $700/tonne.

 

Asia TDI balanced; MDI oversupplied

Asian toluene diisocyanate (TDI) demand and supply are forecast to be finely balanced next year, while methyl di-p-phenylene isocyanate (MDI) is expected to be oversupplied.

 

Asia glycerine prices to stay strong

Refined glycerine prices in Asia are expected to remain high next year on strong demand and tight supply, after hitting a peak in 2007.

 

Mixed fortunes for Asia oxo-alcohols

Asian oxo-alcohol markets will likely see mixed fortunes in 2008 with 2-ethylhexanol (2-EH) prices remaining high due to persistent tight supply while fresh cargoes from a new n-butanol (NBA) plant are set to flood the market in the second half of the year and weigh prices down.

 

Asia BPA prices to remain buoyant

Bisphenol-A (BPA) prices in Asia are set to be stable to firm in the first half of the new year, due to upward price pressure from additional downstream capacities coming on stream and growth in the downstream epoxy resin and polycarbonate (PC) sectors.

 

Asia PTA to fare better, PX worse

Purified terephthalic acid (PTA) makers’ weakening margins amid escalating feedstock costs and worsening oversupply may end in 2008 but paraxylene (PX) producers face a difficult year.

 

High-end Asia base oils boost lubes

The launch of new Group II and Group III lube base oils plants in Asia in 2008 will mark the a new phase of increased use of new lubricant formulations that are fuel-efficient and compliant with international emission norms.

 

India petchems growing with GDP

India’s petrochemicals and chemicals industry is likely to grow at par with the country’s GDP growth in 2008, said senior industry officials and analysts.

 

China petchem demand to slow

China’s petrochemical demand is expected to slow next year after peaking in 2007, as macroeconomic controls, high crude oil costs and heightened environment and safety awareness curb usage.

 

OUTLOOK '08: Mid-East builds on despite cost

Some upcoming petrochemical projects in the Middle East may see delays but most of them will largely be unaffected by escalating construction costs.

By: Staff Reporter
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