18 June 2012 00:00 [Source: ICB]
Sharp falls in naphtha and crude prices since June 1 dampened sentiment in the PE and PP markets, with several importers expecting prices to fall in July, or at best hover around June levels.
This price weakness in China polymers markets may prevail until August or September, when restocking activities begin, according to industry sources.
China's average PP import prices could breach the $1,300/tonne (€1,040/tonne) CFR (cost and freight) China main port level if US crude futures fall below $80/bbl, said a Taiwan-based resin producer.
There are concerns that China's average PE import prices could fall to below $1,200/tonne CFR China main port if the country's import demand fails to improve, according to a South Korea-based resin producer.
Most plastics traders and processors in China are said to be holding low inventories and will need to replenish stocks. As a result, importers might return to the market in August and September to procure cargoes.
Most importers refrained from building inventories because of uncertainty in global demand amid the ongoing eurozone debt crisis.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Sample issue >>
My Account/Renew >>
Register for online access >>
|ICIS Top 100 Chemical Companies|
|Download the listing here >>|
Asian Chemical Connections