23 September 2011 08:55 [Source: ICIS news]
By Nurluqman Suratman and Pearl Bantillo
SINGAPORE (ICIS)--Asian petrochemical shares declined on Friday along with product prices, following heavy sell-offs in the equities and commodities markets overnight on heightened concerns that the global economy is heading towards another recession.
Markets are on their second day of rout, following the US Federal Reserve’s comment that the ?xml:namespace>
At 13:29 hours
Japanese markets are closed on Friday for a public holiday.
In Malaysia, PETRONAS Chemicals Group was down by 1.08%, with the FTSE Bursa
“Needless to say, market sentiment is at its most fragile since the Lehman crisis,” Singapore-based DBS Bank Research said in a note.
Meetings of global leaders started on Friday to address the growing unease over the health of the economy.
“More than ever, markets now need to see global leaders holding each other’s hands and not pointing fingers at each other to help restore the stability to global financial markets and return the world to its recovery path,” DBS Bank said.
“The immediate task is to affirm global cooperation to support
The prices of petrochemical products in
NYMEX crude and Brent crude declined by about $5/bbl on 22 September as a rout in global equity markets saw a strengthening of the US dollar, which made dollar-denominated commodities less attractive to investors amid an uncertain economy.
On Friday, NYMEX crude for delivery in November was trading at close to $81/bbl, while BRENT crude was quoted at above $106/bbl.
Naphtha prices in Asia fell to a six-week low in early trade on Friday to $909.25-912.25/tonne (€672.85-675.10/tonne) CFR (cost & freight)
Spot benzene prices declined by $40-45/tonne on Friday morning to a nine-month low of $1,000-1,010/tonne FOB (free on board)
Trades for styrene monomer (SM) were also affected, with prices falling by $125/tonne to $1,375/tonne CFR (cost & freight)
“Buyers [of SM] are staying away [because they are expecting] lower prices”, a South Korean trader said.
SM offers for November at around $1,375/tonne CFR China represents a complete erosion of gains made this year, according to ICIS data.
In the monoethylene glycol (MEG) market, spot offers fell by $20/tonne to $1,280/tonne CFR CMP (
“The market outlook is too uncertain, that is why no buyers are willing to buy as they are worried prices will continue to drop next week,” a Chinese trader said.
Preliminary data on the manufacturing sector in
HSBC’s China Manufacturing Purchasing Index showed a contraction, with the index falling below the 50% threshold.
Asia is vulnerable to the
($1 = €0.74)
Additional reporting by Felicia Loo, Mahua Chakravarty, Clive Ong, Trisha Huang and Judith Wang
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