Asia Chemical Industry Outlook for 2011

10 January 2011 03:00  [Source: ICIS news]

SINGAPORE (ICIS)--The following OUTLOOK '11 stories were published by ICIS news between Thursday 24 December 2010 and Friday 7 January 2011. Please click on the headlines to read the full versions.

OUTLOOK '11: Asia BD spot prices may surge in Q1 on demand
Asia butadiene (BD) prices may surge in the first quarter and rise above $2,300/tonne in March as demand is expected to outstrip supply, industry sources said.

OUTLOOK ’11: Asia PET prices seen firmer on raw material costs
Asian polyethylene terephthalate (PET) bottle-grade chip prices, on an uptrend since the last quarter, are expected to rise further this year on higher raw material costs with demand expected to remain strong, according to industry players.

OUTLOOK ’11: Asia ethanol looks set for new highs on tight supply
Asian ethanol prices are expected to hit record highs this year because of the continued tight supply due to poor crop harvests and strong demand, traders said.

OUTLOOK ’11: Slow recovery ahead for Asia chemical freights
The Asian chemical shipping industry seems bound for a sluggish recovery in 2011 amid ample tonnage, higher bunker fuel prices and stagnant contract of affreightment (COA) renewal rates at around 5-7%, industry sources said.

OUTLOOK ’11: Asia MMA, PMMA prices to rise on strong demand
Asian methyl methacrylate (MMA) and polymethyl methacrylate (PMMA) prices are expected to remain firm this year on the back of growing demand from downstream sectors, according to industry sources.

OUTLOOK' 11: Polyester capacity increase to support Asia PTA
Asia purified terephthalic acid (PTA) prices are poised to hit new highs in 2011 due to significant capacity expansion in the downstream polyester industry in the key markets of China and India, according to industry sources.

OUTLOOK '11: Asia paraffin wax set to remain stable in 2011
Asian paraffin wax prices are expected to follow the lead from China and remain largely stable in 2011 on the back of balanced supply and demand, according to market players.

OUTLOOK ’11: Strong demand, firmer costs to boost China PO

Spot propylene oxide (PO) prices will increase in the key China market this year particularly in the second half of 2011 as demand for the material increases due to expansion of downstream polyether polyol units, sources said.

OUTLOOK '11: Spot ACN prices to maintain uptrend in January
Spot acrylonitrile (ACN) prices in Asia are likely to rise further in January on the back of soaring feedstock propylene costs despite the seasonally slow demand in the first quarter, industry sources said.

OUTLOOK ’11: Asia methanol to trade at tight $300-400/tonne range
Asian methanol prices may turn firmer next year, supported by steady growth in demand, but trading values will likely be locked in a tight range, industry sources said.

OUTLOOK ‘11: Asia acetic acid market faces third tough year
Asia’s acetic acid market players are bracing for a third tough year ahead due to prevailing supply surplus conditions.

OUTLOOK '11: Strong auto sector to support Asia base oils market
The Asian base oils market next year will continue to be driven by the fast growing economies of China and India, where rising disposable incomes spur demand for automobiles.

OUTLOOK '11: China PE, PP may rise in end-February on restocking

China’s polyethylene (PE) and polypropylene import prices are expected to rise at the end of February on the back of restocking activity amid high feedstock costs, industry sources said.

OUTLOOK ’11: New supply may halt Asia SBR uptrend from March
Spot styrene butadiene rubber (SBR) prices in Asia may continue its uptrend until March, when surplus supply and China’s credit tightening policy start to bite, industry sources said.

OUTLOOK ’11: Asia MTBE to ease on shrinking Chinese demand
Asia methyl tertiary butyl ether (MTBE) prices are expected to ease in the coming months, as Chinese import demand for the octane booster fizzles out, along with a weakening gasoline market, traders said.

OUTLOOK ’11: Asia PX/OX supply to remain tight due to turnarounds
The demand-supply balance for Asian paraxylene (PX) and orthoxylene (OX) is likely to remain generally tight in the first quarter of 2011 due to a series of scheduled turnarounds, sources said.

OUTLOOK ’11: Asia MDI sees limited upside on fresh supply boost

Asian methyl di-p-phenylene isocyanate (MDI) may not increase by much next year, with massive supply from a Chinese major producer expected to flood the market, industry sources said.

OUTLOOK '11: Asia naphtha to firm until cracker turnarounds begin

Asia naphtha prices are expected to firm in early 2011, stoked by robust global crude futures at above $91/bbl as a bitter cold winter in Europe and US northeast sparks demand for home heating, traders said.

OUTLOOK ’11: Asia TDI to hover at low prices on supply glut
Asia toluene di-isocyanate (TDI) spot prices will likely linger at low levels in 2011, particularly in the second half due to an exacerbated oversupply situation in the key China market, players said.

OUTLOOK ’11: Asia PVC demand to be weak in first quarter of 2011
Asian polyvinyl chloride (PVC) prices are likely to soften further at the start of 2011 on the back of the seasonal lull in demand, market players said.

OUTLOOK ’11: China demand holds key to Asia toluene prospects
China’s growing toluene demand, mainly fuelled by its booming automotive sector, will likely support prices of the aromatics product in Asia next year, industry sources said.

OUTLOOK ’11: Robust China demand backs strong Asia nylon values
China’s nylon demand is expected to grow at about the same pace as its economic expansion next year, boding well for Asian spot prices of semi-dull nylon 6 (or polyamide 6) chips, industry sources said.

OUTLOOK '11: Indian PP, PE markets gear up for fruitful new year
Indian polypropylene (PP) and polyethylene (PE) producers and traders expect supply to be abundant in 2011, more than enough to cope with the increasing demand in the country.

OUTLOOK ’11: Asia oleochemicals to track rising feedstock costs
Asian oleochemical prices will likely take the cue from rising feedstock values next year, industry sources said.

OUTLOOK ’11: Asian biodiesel faces a lukewarm new year
Demand for Asian palm methyl ester (PME), a palm oil derivative used in biodiesel blending, is expected to remain tepid in 2011 as the European Renewable Energy Directive (RED) takes effect from 1 January.

OUTLOOK ’11: Tight Asia caprolactam supply to keep prices firm
Asian caprolactam prices will be firmly supported as the tight supply experienced throughout 2010 is likely to prevail next year, industry sources said.

OUTLOOK ’11: Firm SM to support Asia benzene despite supply glut
A strong downstream styrene monomer (SM) market will provide crucial support to Asian benzene prices next year, given expectations that oversupply conditions could worsen, market sources said.

OUTLOOK ’11: Fundamentals, speculative trade back strong Asia MEG
Asia’s monoethylene glycol (MEG) prices are expected to remain strong into 2011 because of healthy demand from the downstream sector while supply is tight, with the aid of some speculative trading.

OUTLOOK ’11: Asia SM in for a good run as demand outstrips supply
Demand for styrene monomer in Asia is expected to outstrip supply next year, with about 2m tonnes of additional styrenic resins capacity requiring feedstock coming on stream in China, boding well for prices, industry sources said.

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By: Staff Reporter
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