Asia top stories – weekly summary
ICIS Editorial
19-Nov-2018
SINGAPORE (ICIS)–Here are some of the top stories from ICIS Asia and the Middle East for the week ended 16 November 2018.
NE Asia ethylene surges on restocking activity
in China
Northeast Asia’s ethylene prices rose at an
accelerated pace this week, despite broad-based
declines in downstream prices.
Mideast, Asia PE pipe grade outlook bearish
amid steep China decline
Asia and Middle East’s polyethylene (PE) pipe
grade outlook is bearish because of a general
weakness in the economy, an expected slow
demand in seasonal lull, and a big fall in
China PE pipe grade prices.
China’s export melamine prices may rebound
after recent sharp losses
China’s export melamine prices haven fallen by
11% over the last month on long supply and
sluggish demand but could soon rebound on the
back of tighter supply conditions in winter.
Asia SAN tumbles on weak demand, prospects
bearish
Asia styrene-acrylonitrile (SAN) prices slumped
amid the prevailing weak market in China with
little prospects of demand picking up in the
rest of the year as seasonal peak is already
over.
India MLLDPE import prices stable; market
re-opens to a slow start
India’s metallocene linear low density
polyethylene (MLLDPE) import prices were stable
amid limited trade activity – a slow start to
the market’s re-opening this week after the
Diwali holiday.
China SBR downtrend may continue on cheaper NR,
weak demand
China’s spot styrene butadiene rubber (SBR)
import prices are under downward pressure amid
an oversupply of rival product, natural rubber
(NR), and weak demand due to declining vehicle
sales in the country.
India’s Maharashtra state setting up plastic
recycling mechanism
Some of India’s largest corporate companies
have signed an undertaking with India’s western
Maharashtra state government to create a
foolproof plastic collection and recycling
system by 2021, government and industry sources
said.
Asia polyols prices coming off on weak demand
and upstream PO losses
Asian prices of polyether polyols are falling
in the domestic yuan-denominated market in
China, and in the US dollar-denominated import
market in southeast Asia, under dual pressure
of tepid demand and weak upstream propylene
oxide (PO) values.
Asia MEG discussions hit lowest since May ’17
at below $700/tonne
Monoethylene glycol (MEG) discussions in Asia
fell below $700/tonne on Tuesday amid
persisting weak market sentiment over a
potential economic slowdown in China, a key
market for the material.
Asia MTBE snaps five weeks of losses; downward
pressures remain
Asia’s methyl tertiary butyl ether (MTBE)
prices rebounded this week, riding on recent
gains in Brent crude futures, but downward
pressures remain due to long supply and weak
downstream gasoline consumption.
Asia BD rebound driven by China arbitrage
trades; demand still weak
Butadiene’s (BD) spot price rebound in Asia may
be short-lived as it is driven mainly by
arbitrage trades into China, rather than strong
underlying demand from downstream synthetic
rubber (SR) and acrylonitrile butadiene styrene
(ABS) markets.
Asia SM extends losses since early Oct, bearish
sentiment to continue
Asia’s styrene monomer (SM) prices have hit a
new low since end-May 2017 on the back of
bearish import sentiment from China and ample
supply, with market participants not expecting
a rebound in the near future.
Asia’s toluene falls below $700/tonne, more
weakness expected
Asia’s toluene prices have fallen below
$700/tonne FOB Korea for the first time since
April 2018 because of ongoing weak
demand-supply fundamentals, with market
participants expecting even more weakness
leading up to the year-end.
INSIGHT: The Asia benzene struggle
Sentiment in the Asia benzene market has turned
bearish from the latter part of the third
quarter and there appears to be many good
reasons why.
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