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Updated to Q3 2020
Supply was tight due to various plant turnarounds in Q3, along with the shutdown of one line at Taiwan’s Nanya Plastics Mai Liao plant until next year. Supply of prompt cargoes, in particular, was tight in the weeks that led up to the Mid-Autumn Festival holiday as buyers rushed to procure sufficient cargo ahead of the holidays.
Demand increased as downstream sectors, epoxy resins and polycarbonate (PC), slowly recovered from the impact of the coronavirus pandemic. Demand was also supported by expectations of Zhejiang Petrochemical’s BPA plant’s start up, which boosted demand for prompt cargoes. Wanhua Chemical’s PC expansion project was also completed, which contributed to the overall increase in demand.
Despite limited Asian imports, the market was well covered in Q3 amid sufficient domestic supply and a gradual recovery in demand.
Demand in Q3 increased gradually following a downstream recovery from the Q2 coronavirus low. Domestic demand was boosted in some cases by a scarcity of Asian imports – due to the uptrend in China and a trend for more short-term purchases because of the coronavirus uncertainty. Some European export opportunities also materialised because the Chinese and Indian markets were firmer during the period.
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