02 October 2009 06:00 [Source: ICIS news]
By Chow Bee Lin
Many importers were unwilling to take October cargoes while some international resin producers began pricing cargoes on arrival basis to entice buying, traders said.
Recent plant start-ups in
The benchmark PP injection and yarn grades have fallen 9.8% in
The benchmark film grade high density PE (HDPE) fell 8.6% in
“PP prices may stabilise for a while in October due to restocking activities, but are expected to fall further in November and December as more of the new capacities come into the market,” a northeast Asian PP producer said.
Fujian Refining and Petrochemical Co (FREP) has a new 800,000 tonne/year polyethylene (PE) unit and a 400,000 tonne/year polypropylene (PP) unit, while Dushanzi Petrochemical's new facilities comprise a 550,000 tonne/year polypropylene (PP) plant and a 900,000 tonne/year polyethylene (PE) plant.
“PP prices are likely to stabilise for a while when China returns from the holidays, but are likely to fall again around mid October as supply from Dushanzi Petrochemical’s new plant is expected to hit the market in the second half of October,” a trader in east China said.
PP injection and yarn grades from FREP’s plant were already offered in east
Near-prime film grade HDPE and linear low density PE (LLDPE) from PetroRabigh’s plant were offered at $1,070-1,080/tonne CFR (cost and freight) China and $1,110/tonne delivered in Malaysia last week, Asian importers said.
Another potential downside was the prospect of US exporting more PE to Asia, the
“Low natural gas prices and weak PE demand at home may push US PE suppliers to export more to
“PE prices in
Importers in southeast Asia could push back their December purchases to January to take advantage of the new zero-duty policy for intra-ASEAN (Association of South East Asian Nations) trade, and that could exert further downward pressure on regional prices, traders said.
The zero-duty policy adopted by the ten ASEAN member countries, namely
($1 = €0.69 / $1 = CNY6.83)
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