By Malini Hariharan Spot monoethylene glycol (MEG) markets have quickly reacted to news that Nan Ya Plastics, an affiliate of the Formosa Plastics Group, has been ordered by the Taiwanese government to shut down two plants. Prices surged by $15-30/tonne to $1,140-1,160/tonne CFR China, reports the blog’s colleague Becky Zhang on ICIS news. Nan Ya […]
Asian Chemical Connections
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 […]
Metallocene action from Chinaplas
By Malini Hariharan The fight for the metallocene market is heating up with South Korean producers increasingly looking at getting a share of this attractive market. SK Corp confirmed plans to build a new metallocene linear-low density polyethylene (MLLDPE) plant outside Asia once a new plant in South Korea starts operations, writes the blog’s colleague […]
China Power Woes Hit Chem Output
By Malini Hariharan and John Richardson The power crisis in China, highlighted in this post last month and yesterday, has worsened and is likely to affect economic output in the second quarter. More than 10 provinces, including Zhejiang, Hunan, Anhui, Jiangsu, Hubei, Sichuan and Henan, have been affected. Small and medium-sized petrochemical producers in the […]
Tough times start for India polyolefins
By Malini Hariharan Tension is building up in the Indian polyolefin market with buying activity slowing down in recent weeks. “The market is really dull; trading activity is very flat and end-users are taking minimum quantities. We are worried that the situation will worsen if we offer more discounts,” says a concerned producer. The slow […]
SBR under pressure on China slowdown
By Malini Hariharan Styrene butadiene rubber (SBR) prices, which have nearly doubled over the last year, may be heading for a much needed correction. The strength in feedstock butadiene markets and strong demand from the automotive sector have so far helped support the high numbers. But a key concern is that China’s tightened monetary policy […]
Power shortages strike China
By Malini Hariharan The problems for Chinese manufacturers are multiplying. Besides having to worry about rising input costs, inflationary pressures and tightening of credit, companies now have to contend with unexpected power cuts. This is usually the low season for power consumption in the country but supply to industrial units is being rationed in some […]
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. […]
Butadiene – will the good times last?
By Malini Hariharan A question that every butadiene buyer has been asking for a long time is when will prices ease? There are no signs yet although buyers are threatening to cut production. Butadiene rose by more than $200/tonne last week to $3,080-3,120/tonne CFR Northeast Asia, reports my colleague Helen Yan on ICIS news. Prices […]
China market problems persist
By John Richardson WHILE ethylene prices rose to a 14-month high last week on very expensive oil and the Shell Chemicals outage in Singapore, the ICIS pricing C2 margin report calculated a staggering $134/tonne fall in Northeast Asian margins. Rising naphtha is clearly not being passed on down the chain. Meanwhile, low-density polyethylene (LDPE) margins […]
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