28 November 2008 07:05 [Source: ICIS news]
By Pearl Bantillo
SINGAPORE (ICIS news)--South Korea’s petrochemical exports in October moved significantly higher as producers cleared inventory in the face of the falling won and weak domestic demand, market sources said on Friday.
October shipments of propylene, benzene and purified terephthalic acid (PTA) posted strong double-digit growth in terms of volume, from year-ago levels, based on latest data from the Korea International Trade Association.
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The won was the worst-performing currency in
Propylene exports surged 55% in October to 76,528 tonnes, aided by slowing C3 domestic demand.
Benzene exports were unusually large, totalling 111,577 tonnes in October, with shipments to the
The strong export volumes can be viewed as sign of times as South Korean producers look for ways to unload inventories, even at a loss, some market sources said.
Some petrochemical exports declined due to a slump in regional manufacturing activities.
Polymethyl methacrylate (PMMA) shipments fell 43% to 3,800 tonnes, with notable weakness in demand coming from
“November figures may be even lower as by 25 November only slightly more than 1,000 tonnes had been exported,” said a PMMA producer in
Exports of styrene monomer (SM) dipped 6% to 117,961 tonnes also as a result of weaker demand from
Weaker domestic consumption in
The Chinese government recently announced a yuan (CNY) 4,000bn ($586bn) pump-priming package to prevent its economy from slowing further due to strains in the export-oriented manufacturing sector.
However, some market observers believe the effects of this economic stimulus package would only trickle down to the manufacturing sector by the middle of 2009.
Traders attributed the low production rate of resins to waning demand in
($1 = CNY6.83/W1,475)
Clive Ong, Chow Bee Lin, Anu Agarwal and Steve Tan contributed to this story
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