By Malini Hariharan In yesterday’s post the blog made a reference to the difficulty in settling the October Asian contract price (ACP) for paraxylene (PX). Wide differences in price expectations have held up negotiations with buyers rejecting producers’ initial efforts to implement a steep $105-145/tonne hike in October contracts to $1,760-$1,800/tonne cfr Asia. Buyers, citing […]
Asian Chemical Connections
MEG bucks the trend
By Malini Hariharan There are some exceptions to the generally weak petrochemical markets seen in Asia these days and monoethylene glycol (MEG) is one such product. Spot prices have hit a 44-month high of $1,275-1,280/tonne CFR China and are expected to soon cross $1,300/tonne, close to levels last seen in January 2008, reports Judith Wang, […]
Yet another week of price corrections
By Malini Hariharan Asian petrochemical markets continue to face downward pressure on concerns about the health of the global economy. Market sentiment for most products remains poor with buyers in no rush to resume purchases. Polyolefin markets closed last week on a weak note. Prices of low-density polyethylene (LDPE) and polypropylene (PP) dropped $10-40/tonne last […]
High Frequency Trading dominates as markets crash
by Paul Hodges The Chemicals and the Economy blog was almost alone at the end of April, when it launched the IeC Downturn Alert. Today, its fear that we are close to a global downturn has become mainstream. As the American Chemistry Council report, “fears of another global recession are rising with several noted forecasters […]
Q2 setback for Korea
By Malini Hariharan The margin pain experienced in Asia in the last quarter is clearly evident in the recently released results by South Korean majors Honam Petrochemical and LG Chem. Honam’s operating profit for Q2 declined 36.8% from the previous quarter to Won36.1bn. LG Chem’s operating profit was down 7.2% at Won775.4bn while its petrochemical […]
India petchem projects update
By Malini Hariharan India’s major petrochemical projects are inching forward very slowly and the blog will not be surprised if there are more delays along the way. Reliance has yet to kick start its 1.4-1.6m tonnes/year cracker project adjacent to two refineries at Jamnagar, on the west coast of India. The cracker will be based […]
Cotton corrects; will polyester follow?
By Malini Hariharan After last year’s stunning rise, cotton prices have plunged 53% in the last four months from a 140-year peak of $2.15/lb on 4 March. Prices have fallen 38% in July with cotton for December delivery quoted at 98.63 cents/lb on the Intercontinental Exchange. The swift correction in prices is based on expected […]
Does the industry need more PTA?
By Malini Hariharan The impending oversupply in purified terephthalic acid (PTA) and likely problems in securing feedstock paraxylene (PX) does not seem to have dampened enthusiasm for new investments, Around 10m tonnes of PTA capacity is expected to come on stream from the third quarter of 2011 to late 2012, while another 12.9m tonnes of […]
PTA – one more view
By Malini Hariharan One view on the purified terephthalic acid (PTA) market, highlighted by the blog last week, is that operating rates in the next few years will be constrained by a shortage of feedstock of paraxylene (PX). A rapid buildup in PTA capacity is taking place in China where new plants with a total […]
Trouble for PX, PTA and MEG
By Malini Hariharan All is not well in the Asian polyester chain. Demand has slowed down exerting a steady downward pressure on prices. Purified terephthalic acid (PTA) spot prices have dropped by $100/tonne in the last week to $1,290-1,300/tonne CFR China Main Port and the outlook for the coming months is bearish, reports ICIS news. […]
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