29 August 2012 07:59 [Source: ICIS news]
By Chow Bee Lin
On the flip side, prices are unlikely to fall markedly because the downward pressure could be off-set by high crude values, they added.
US crude futures have been on a gradual uptrend since the start of July, with prices increasing from about $83/bbl on 2 July to $95.47 at the close of trade on 27 August.
The new PE and PP capacities will account for 11.3% and 7.1% of
Downstream demand might improve in October because plastics processors could raise production rates in the run-up to the year-end peak consumption season, market sources said.
However, in view of the slower economic growth projected for
Restocking activity is also expected to be limited in the fourth quarter as most plastics processors and stockists have been keeping low stocks this year because of the uncertain global economic outlook, China-based traders said.
China’s interest rate cuts since late last year aimed at boosting domestic consumption have failed to lift plastics resin demand significantly because the Chinese plastics processing sector still derives much of its revenue from European and US markets.
But demand in both the regions has been dwindling.
According to a survey by the Pew Research Center (PRC) issued this month the
The recent hikes in China’s PP and PE import prices does not reflect strengthening market fundamentals because it is mainly driven by high energy and feedstock prices instead of strong demand, said a source at a Taiwanese resin producer.
China’s benchmark LLDPE and PP flat yarn import prices had risen by 2-4% over the four weeks ended 24 August to $1,280-1,320/tonne CFR (cost and freight) China, and $1,370-1,400/tonne CFR China, according to ICIS.
Additional reporting by Amy Yu, Angie Li, Rain Dong, Lizzie Yu, Doreen Zhao
($1 = €0.80)
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