06 August 2012 05:55 [Source: ICIS news]
By Chow Bee Lin
In the week ended 3 August, the average weekly prices of linear low density PE (LLDPE) and PP yarn were assessed at $1,260/tonne (€1,021/tonne) CFR (cost and freight) and $1,355/tonne CFR China, up by 3.7% and 3% from four weeks ago, respectively, according to ICIS.
Demand usually improves in August/September as downstream plastics processors ramp up production ahead of the peak year-end consumption in the local and overseas markets.
But the improvement this time is likely to be marginal because orders from the
“Downstream demand is unlikely to improve markedly within the short term,” said a source at a South Korean trading house.
Operating rates at
Typically, activities in the sector go in full swing in
In the first half of the year,
However, most Chinese importers said they do not expect PE and PP prices to fall sharply in the end-August to end-September period, as a number of importers have been maintaining low inventories because of low business visibility.
Most Asian producers also have low inventory because high naphtha costs in May-June had led many of them to run their plants at reduced rates, Chinese importers said.
Some Middle East and Asian resin producers might raise their offers to
($1 = €0.81)
Additional reporting by Amy Yu, Angie Li
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.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections