Americas top stories: weekly summary
ICIS Editorial
17-Oct-2016
HOUSTON (ICIS)–Here are some of the top stories from ICIS Americas for the week ended 16 October 2016.
(Please click on the link to read the full text.)
Access to credit hampers Latin
America polymers market
Volatile exchange rates and a lack of access to credit are
snarling petrochemical trade throughout the region, from
Mexico to Argentina. A Mexican distributor – which imports
polyethylene (PE), polypropylene, (PP) and polystyrene (PS)
from the US and also sells domestically produced material –
said customer payments are usually made 45-60 days after an
order is placed.
Activists step up protests over
US, Canada pipelines
First Nations Indian groups and climate activists on both
sides of the border are targeting both planned and existing
oil pipelines and other energy infrastructure. Last week,
police in four US states arrested 10 climate change activists
following disruptions of existing pipelines that ship oil
sands and crude from Canada to the US.
US Oct epoxy contracts a battle
for producers
The US epoxy resin market remains a challenge, producers
said, with several price-increase nominations facing strong
pushback. “There’s been acknowledgement that our costs have
gone up from our customers,” a producer said. “But they’re
still saying, ‘There’s too much product out there’.”
INSIGHT: Tight supply pushes US
benzene to 2016 high in Q3
Low levels of imports into the US, reduced operating rates
for on-purpose production and good consumption put prices for
US benzene into a steep climb for most of the third quarter
this year. Imports are an important part of the supply
picture for US benzene due to structural shortness. In 2015,
domestic production met only 73% of consumption.
US October MMA prices likely to
see big increase
October is likely to see another increase in US methyl
methacrylate (MMA) prices due to feedstock pressure. Sources
are saying that proposed price increases are largely in line
with expectations due to a recent run-up in upstream spot
propylene prices. However, as propylene supply constraints
begin to ease in October, it is possible that the proposed
price increases will weaken as buyers push back.
US spot benzene lower in thin
market
US spot benzene prices moved were lower on Friday, amid
limited buying interest and a volatile week for upstream
crude oil futures. Benzene values have trended lower since
prices hit a high point in mid-August. As imports levels and
on-purpose production rates increased in September, benzene
prices moved lower.
US toluene prices step back as
supply normalises
US spot toluene prices were assessed lower on the week as
supply was said to be more comfortable. A trading source said
that a production issue which had helped drive up prices had
been addressed and that the market is accordingly feeling
less upward pressure.
US PVC spot export prices move
higher
Spot export prices for US polyvinyl chloride (PVC) moved
higher during the week as higher prices in Asia helped move
US prices up from their recent floor. Additionally, producers
were separately indicating intentions to seek further
increases for exports in November when US material is
expected to be tight after a number of chlor-alkali
maintenances in the US during that month.
Sentiment drives US ethylene
volatility, overall plunge
US ethylene spot prices were volatile last week, but values
slumped overall because of bearish sentiment stemming from
expectations of improving supply, as well as from a fire in a
derivative market. The week actually began with front-month
October ethylene spot prices continuing the previous week’s
uptrend. Sentiment became bullish on Tuesday as a force
majeure was lifted in the downstream polyethylene (PE)
market.
Reported fire at US Westlake
facility roils spot markets
The US spot ethylene and styrene markets reacted quickly on
Thursday to reports of a fire at Westlake Chemical’s
manufacturing facility in Calcasieu parish in Louisiana.
Westlake said on Thursday that that it had contained a fire
at the southeast corner of the facility. As news of the fire
emerged in the downstream market, ethylene spot prices
slumped by 11% on Thursday.
Propylene glycol may provide
profitable market for glycerine
Propylene glycol (PG) production can provide glycerine makers
with a profitable outlet for product, says Air Liquide
director Peter Potschacher, speaking at the second ICIS Pan
American Oleochemicals Conference in Miami. Potschacher
pointed to technology developed previously that can convert
glycerine to acetol and then to PG. It is a route, he said,
that is less volatile than the petrochemical route of
propylene to propylene oxide (PO) to PG.
US Q4 melamine prices little
changed from Q3
Most US melamine buyers appear to be signing supply contracts
for Q4 at prices ranging from a rollover to an increase of 1
cent/lb. The Q4 contract prices include both domestic
production and melamine supplied from other countries. ICIS
will likely settle its Q4 contract prices this week.
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