18 May 2012 02:19 [Source: ICIS news]
KUALA LUMPUR (ICIS)--Increasing polyethylene (PE) exports from ?xml:namespace>
"While the volumes are marginal in the context of overall
Lacklustre demand in
Widening sanctions against
As of yet, there are no signs of an emerging demand recovery in
"The first sign of a recovery would be in the form of [plastic] converters coming back into the market, but this is not happening. There is not much of a spread between [feedstock] naphtha and PE at the moment," Razak said.
The struggles of converters, most of which are small to mid-size enterprises (SMEs), are illustrated in the China Manufacturing Purchasing Managers Index (PMI) compiled by global investment bank HSBC, he pointed out.
This index, which reflects the activity of SMEs rather than larger companies, has been on an overall downtrend in the past several months.
The China Manufacturing PMI in April rose to 49.3 from 48.3 in March, but still indicated a decline in activity. Any reading above 50 indicates expansion while under 50 indicates contraction.
The figures are in stark contrast to the China Manufacturing PMI released by the China Federation of Logistics and Purchasing (CFLP), where the April PMI rose to 53.3 - up for 5 consecutive months.
By: Joseph Chang
Additional reporting by John Richardson in
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