05 August 2011 09:32 [Source: ICIS news]
(recasts headline and lead to focus on petrochemical prices)
At 16:03 hours Singapore time (08:03 hours GMT), US crude futures for delivery in September were down by $1.71/bbl at $84.92/bbl, after plunging by more than $5/bbl overnight.
The plunge in global crude futures has caused Asian naphtha prices to fall.
Naphtha prices for delivery in the second half of September declined by $47.25-48.25/tonne (€33.55-34.26/tonne) to $918.50-921.50/tonne CFR (cost & freight)
“The market is bearish because there is much supply streaming from the Middle East and
Methyl tertiary butyl ether (MTBE) prices also declined, by about $60/tonne, to around $1,050/tonne FOB (free on board)
“The economic situation is not so good. There is much uncertainty in the market and we expect the petrochemical market to slow down for the rest of this year,” said a company source from South Korean firm Kumho Petrochemical.
Kumho Petrochemical, the biggest producer of synthetic rubber in
Freight costs are at around $60/tonne within the region and about $120/tonne for intra-regional shipments.
Purified terephthalic acid (PTA) futures traded on
“The market is crazy today. Everyone is watching amid an unclear situation. I think negotiations will be subdued as most players will opt to take a wait-and-see stance,” a trader in eastern
Meanwhile, offers for monoethylene glycol (MEG) were heard at $30/tonne lower at $1,250/tonne CFR CMP (
Contract prices of linear low density polyethylene (LLDPE) that were traded on China’s Dalian Commodity Exchange (DCE) fell by 5% on Friday morning because of panic-selling activity.
The contract prices for LLDPE for January 2012, the most actively traded, were heard at CNY11,255/tonne on Friday morning, down by CNY755/tonne from 4 August, data from DCE showed.
The weak futures market has also caused prices to fall in the physical LLDPE market in
Shares of petrochemical companies across
“The outlook for sentiment certainly isn’t good. When investors discover that governments are as constrained as they are, gold (and mattresses) start to look attractive. And the impact on the real economy, as 2008/09 makes clear, can be dramatic,” DBS Bank said in a research note.
($1 = €0.71, $1 = CNY6.44)
Additional reporting by Felicia Loo, Helen Yan, Chow Bee Lin, Mahua Chakravarty, Judith Wang
and Amy Yu
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