Asia top stories – weekly summary
ICIS Editorial
18-Mar-2019
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 15 March 2019.
Vietnam PP price gains
tempered by slow exports of finished
goods
Spot polypropylene (PP) prices in Vietnam have
gained considerable ground in recent weeks on
tight supply but gains may be tempered by weak
demand for finished goods in the export sector.
Pakistan LLDPE, HDPE
gains likely to be short-lived as India may
resume supply
The recent gains seen in polyethylene (PE) spot
import prices in Pakistan are likely to be
short-lived, as India gets ready to resume to
export cargoes to the country.
Asia
BD to remain soft near term on weak Chinese
demand
Asia’s butadiene (BD) spot prices may remain
flat to soft in the near term due to continued
weakness in demand in the key Chinese market.
India
LDPE tightness due to domestic outage to
persist until May
A tightness in Indian low density polyethylene
(LDPE) supply since February following a
domestic outage is expected to persist until
May, lending support to imports’ demand and
prices.
GCC
TDI price outlook unclear despite first
increase in over a year
Spot import prices of toluene di-isocyanate
(TDI) in the Gulf Cooperation Council (GCC)
increased for the first time in over a year but
whether this marks a reversal in trend is
unclear as buying sentiment remains cautious.
Asia
epoxy resins facing downward pressure from
subdued demand
Asia’s epoxy resin prices are facing downward
pressure from continuous subdued off take,
though that can change because March to May is
typically a strong demand season.
Asia
ABS offers rise as sellers wager on renewed
buying interest
Asia’s acrylonitrile-butadiene-styrene (ABS)
market strengthened this week with suppliers
targeting higher numbers, citing elevated
feedstock costs.
China
BG drops on slow demand; buyers
cautious
The outlook of China’s butyl glycol (BG) is dim
amid subdued buying, with spot prices already
drifted lower in tandem with domestic Chinese
market.
Spot
ADA prices for China-origin cargoes fall since
early Jan; downtrend likely to
sustain
Asian adipic acid (ADA) prices for China-origin
cargoes fell for the first time since early
January and the downtrend may continue in the
near term amid slower-than-expected demand
growth.
Europe to Asia MEK
arbitrage window opens to ease supply in SE
Asia
An arbitrage window from Europe to Asia has
opened up that will ease the tight supply in
southeast Asia in the wake of Taiwan’s methyl
ethyl ketone (MEK) plant’s force
majeure (FM).
Asia
PS sentiment to stay firm on robust demand amid
tight supply
Asia’s polystyrene (PS) market
sentiment is poised to stay firm in the
near term due to support from the downstream
appliances sector and limited spot supply.
Asia
naphtha fizzles out as ample supply dents
sentiment
Asia naphtha markets leaned towards a bearish
undertone, with abundant supply and limited
demand expected to weigh on sentiment in the
coming days, according to market sources.
Asia
EVA to stay firm on tightened supply, firm
demand
Asia’s ethylene vinyl acetate (EVA) spot prices
may remain supported by tightened supply due to
curtailed output in
Taiwan,
South Korea,
Thailand and
China, as well as impending plant
turnarounds in March and April.
Asia
FAE prices to ease on feedstock volatility,
healthy supply
Fatty alcohol ethoxylates (FAE) import markets
in Asia are expected to nudge down because of
weak upstream values and healthy supply.
Asia
caustic soda uptrend to continue; supply to
tighten
Liquid caustic soda prices in Asia are expected
to continue rising in the near term on the back
of tighter supply caused by turnarounds, as
well as new contract volumes to Australia, and
a possible resumption of shipments to India
this month.
China’s acetic acid drops
to the price level in one and half
years
China’s acetic acid prices have touched almost
one and half year low and any reversal would
depend on the country being able to export
cargoes, most likely in the last 10 days of
March.
Asia
MA prices supported by rising feedstock
costs
Southeast Asia maleic anhydride (MA0 prices are
expected to stay supported in the weeks to come
as a result of higher feedstock butane costs,
while supply remains slightly tight.
SE
Asia PA prices rising on tight supply and cost
pressures
Southeast Asia’s phthalic anhydride (PA) supply
will tighten further in the coming months as
several key northeast Asian producers prepare
for turnarounds in April and May, which may
further support prices in the region.
Asia
isomer-grade xylene under downward pressure
amid long supply
Asia’s isomer-grade mixed xylene (IX)
prices have declined for four consecutive
sessions amid ample supply and weak downstream
market, with the supply surplus situation
expected to continue for months.
China
PO imports to stay stable-to-soft on bearish
conditions
China import market propylene oxide (PO) spot
prices are expected to remain stable-to-soft,
against a backdrop of supply overhang and
sluggish cargo uptake as the downstream polyols
sector grapples with weak demand.
GCC
PMDI prices to extend recent gains following
bullish Asia market
Polymeric methylene diphenyl diisocyanate
(PMDI) spot prices in the Gulf Cooperation
Council (GCC) are likely to extend recent gains
tracking a similar trend in Asia, which was
sparked by an increase in offer prices from the
main producers.
Asia
benzene slips as Chinese demand flags amid high
inventory
Weak performance in the Chinese domestic market
is exerting downward pressure on Asia’s benzene
prices. Selling pressure has increased in the
key China market as elevated inventories
prompted some sellers to liquidate stocks.
GCC
PMDI prices to extend recent gains following
bullish Asia market
Polymeric methylene diphenyl diisocyanate
(PMDI) spot prices in the Gulf Cooperation
Council (GCC) are likely to extend recent gains
tracking a similar trend in Asia, which was
sparked by an increase in offer prices from the
main producers.
High
inventories to weigh down China’s acetone
market
China’s acetone market may face further
downside risks in 2019 after a bearish 2018 due
to high inventory levels.
China
propylene prices to fall on demand cut,
downstream turnarounds
Domestic propylene prices in Shandong, China,
are poised to decline owing to a massive influx
of cargoes and reduced demand as many
downstream units undergo maintenance works.
Asia
MEK surges 15% amid supply disruption in
Taiwan
Asia methyl ethyl ketone (MEK) prices surged by
15% week on week due to a sudden disruption of
supply in Taiwan – with the upward pressure
likely to persist – following a plant outage
that could last a few months.
NE
Asia C3 markets continue to bemuse, outlook
uncertain
Spot propylene markets in northeast Asia look
set to track developments in the Shandong
domestic market, which continues to see swings
but has been on a downtrend since the start of
March.
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