Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 22 March 2019.

Asia BD to extend losses in near term on weak demand and ample inventories
Asia butadiene (BD) spot prices are likely to extend losses in the near term because of ample inventories and weak demand.

China sets up national pipeline firm to reform oil & gas sector
China will set up a national oil and gas pipeline company as it continues reform on the energy sector, with the objective of breaking the monopoly in energy transportation network and improve efficiency and transparency in operations.

Asia acrylates face further pressure from increasing supply
Asia’s acrylates markets may come under further pressure amid soft demand while supply will increase as plants gradually resume production after turnarounds.

China further delays release of phenol ADD probe, final results in September
China has delayed again, the results of the anti-dumping duty (ADD) investigation on phenol imports, to September 2019, according to the China’s Ministry of Commerce.

Asia’s VAM prices set to firm as plant shutdowns deplete supply
Asia’s vinyl acetate monomer (VAM) spot prices will find support from a global supply squeeze, stoked by a flurry of plant shutdowns across the region and in the US during April-May period.

Indian polymer demand subdued ahead of April offers
Polyolefins demand in India was slow, with buying interest tempered by a myriad of factors ahead of April price announcements, including financial year-end of the country and scheduled turnarounds of some plants.

India acetone import prices to remain under pressure after hitting historic low
India’s import acetone prices – already at a historic low – may remain under pressure due to long supply and weak demand ahead of general elections in the country starting next month.

China gasoil demand seen healthy, gasoline off take to be limited
China’s demand for gasoil is likely to remain healthy in the short term, but gasoline demand will be limited resulting in an increase in inventories of Shandong-based independent refiners.

Asia melamine rebound on supply cut; weak demand may cap uptrend
Asia melamine prices finally rebounded after stabilizing for five straight weeks on the back of supply cut and rising domestic prices, but the slower-than-expected demand improvement may put a cap on further price rise.

Asia glycerine buyers pin hopes on increased biodiesel blending
Refined glycerine buyers in Asia are hoping that increased biodiesel blending, particularly in Indonesia, will lead to higher byproduct glycerine output and continue to maintain downward pressure on glycerine prices, market sources said on Thursday.

Asia MTBE at 5-month high on strong gasoline; trade flows to shift
Asia’s methyl tertiary butyl ether (MTBE) prices soared to a five-month high this week, tracking surging global gasoline prices, amid tight supply due to production outages in the region.

Surplus supply to weigh down China Group II base oils market in Q2 2019
China’s Group II base oils market may be saddled with surplus supply in the second quarter of 2019 as more new products will become available while downstream demand is unlikely to recover swiftly.

China SBR prices may fall on weak demand and lower BD feedstock
China styrene butadiene rubber (SBR) prices may fall in the near term because of declining feedstock butadiene (BD) costs, weak demand and ample supply.

India MLLDPE import market to stay muted amid buy-sell gap
India’s non-dutiable C6 metallocene linear low density polyethylene (MLLDPE) market remains muted in the week and is likely to remain so in the near future amid a gap in buying and selling indications.

Asia benzene rebounds on buoyant crude
The Asia benzene market were firmer this week after a lackluster performance in the previous week.

Asia naphtha prices at 3.5-month high on crude oil rally
Asia’s naphtha prices touched their highest in over three months, riding on the back of firmer crude oil benchmarks and demand, even as supply is set to stay adequate in the short term.

Asia isomer-grade xylene backwardation steeper, correction in sight
Asia’s isomer grade xylene inter-month spread has steepened to a $6/tonne backwardation on Wednesday, on improved demand and tightening supply.

Asia ABS suppliers target higher values amid firm feedstock
Asia’s suppliers of acrylonitrile-butadiene-styrene (ABS) continued to target higher values this week, citing elevated feedstock costs and thin margins.

Ample Asia PC supply outstrips demand, outlook frail
Asia polycarbonate (PC) markets are increasingly leaning towards a bearish undertone, with a well-supplied market scenario set to prevail in the short term.

Asia EPS demand to stay soft near term; China supply ample
Demand for expandable polystyrene (EPS) in Asia is expected to stay soft in the near term due to a seasonal lull in the key China market amid abundant supply.

China Group II base oils slump in March on weak demand
China’s Group II base oils prices have slumped in March mainly because of lukewarm end-user demand, which is likely to persist in the weeks ahead.

Asia SAN uptrend remains intact on firm demand, feedstock costs
The Asia styrene-acrylonitrile (SAN) market remains buoyant as demand in the key Chinese market is adequate.

Asia Q2 TiO2 contract offers track firmer China export prices
Asia’s titanium dioxide (TiO2) second-quarter contract discussions will likely take the cue from recent gains in China’s export prices for spot cargoes.

Asia BPA market to draw support from snug supply
Asia’s bisphenol A (BPA) prices are expected to see limited fluctuations on the back of tightening supply and stable demand in the days ahead.

Thai polymer market subdued ahead of general elections, Songkran
Thailand’s polymers market was subdued ahead of the country’s general elections at the end of the week, and demand is likely to remain thin in the holiday-shortened month of April due to the Songkran festival.

Asia’s acetic acid bottoming out on tightening supply
Asia’s acetic acid spot prices may be bottoming out on supply concerns on the back of output cuts, plant outages and on the start of plant turnaround season in China and Taiwan in March and April.

NE Asia ethanol import prices likely stable ahead in stagnant demand
Prices of b-grade hydrous ethanol imports into northeast Asia are expected to remain stable in coming weeks with no signs of any improvement in buyer appetite for any spot cargoes, market sources said.

Asia naphtha crack spread at over two-month high, Q2 market looks soft
Asia naphtha’s crack spread rose to its highest in over two months as steady demand provided market support, shrugging off supply that is expected to remain ample in the days ahead.