Asia top stories – weekly summary
ICIS Editorial
08-Apr-2019
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 5 April 2019.
China PE import prices rise on easing pressure
from high inventory
China’s polyethylene (PE) import prices are
expected to increase this month after
fluctuating at a narrow range in March, on
likelihood of reduced May-cargo arrivals which
should ease market pressure arising from high
inventory.
Asia BD to extend losses near term on surplus
supply, weak demand
Asia butadiene (BD) spot prices are likely to
extend losses because supply continues to
outstrip demand.
SE Asia PME stable to firm; export demand to
stay limited
Spot prices of palm methyl ester (PME)
biodiesel in southeast (SE) Asia were stable to
firm in the week ended 4 April, with demand for
exports likely to stay limited in the near
term.
China PE import prices rise on easing pressure
from high inventory
China’s polyethylene (PE) import prices are
expected to increase this month after
fluctuating at a narrow range in March, on
likelihood of reduced May-cargo arrivals which
should ease market pressure arising from high
inventory.
PE pipe grade offers up in Asia, Middle East;
buoyed by China demand
Producers of polyethylene (PE) pipe grade are
trying to shore up offers throughout Asia and
the Middle East, led by expectations of rising
Chinese demand.
INSIGHT: China petchems hit by shutdowns amid
safety checks
China’s demand for selected petrochemicals has
weakened amid a wave of shutdowns and
productions cuts after the government launched
stringent safety inspections, triggered by the
21 March Yancheng blast in Jiangsu province
that killed 78 people.
China’s Group II base oil demand bearish; may
rebound late April/May
China’s base oils demand from lubricant
companies is expected to remain bearish though
some market players citing a rebound in
domestic manufacturing PMI index say they
expect consumption will increase from late
April and May.
Asia PBR near bottom but may fall further on
declining feedstock BD
Asia polybutadiene rubber (PBR) prices are
likely to bottom out soon because of limited
spot availability, but may still face downward
pressure if key feedstock butadiene (BD) prices
fall further.
Asia SAN trade slows ahead of holiday in China;
buying may resume next week
Market activity in Asia styrene-acrylonitrile
(SAN) market slowed ahead of the Qing Ming
holiday in China but the situation is likely to
reverse next week when buying interest resumes.
China government carries out strict safety
inspections following blast
China’s stringent safety inspections of
chemical plants in the wake of a deadly blast
on 21 March have led to the discovery of many
violations, resulting in immediate punishments,
according to industry sources and government
announcements.
China PP import prices to remain firm on tight
overseas supply
China’s polypropylene (PP) import prices are
currently caught in a web of opposing factors,
with import suppliers citing tight supply for
firmer offer levels and downstream end users
buying on a need-to basis.
Singapore manufacturing seen stabilizing after
strong March growth
Singapore’s factory sector is showing signs of
stabilizing after the latest purchasing
managers’ indices showed (PMIs) a marked
improvement in manufacturing conditions in
March, according to analysts.
Asia crude glycerine prices tumble on shrinking
Chinese demand
China-bound crude glycerine prices nosedived
this week amid weakening Chinese demand and
buying sentiment may remain subdued going
forward.
Tight supply in India might continue supporting
C6 MLLDPE import prices
Prices of non-dutiable C6 metallocene linear
low density polyethylene (MLLDPE) in India were
pushed up by a tight supply situation and might
continue to be supported should supply
tightness prevail in the near future.
China PTA to rise on healthy fundamentals
despite weak PX
China’s domestic purified terephthalic acid
(PTA) prices may gain further on the back of
healthy fundamentals in spite of an expected
weakness in feedstock paraxylene (PX) values;
with the PTA-PX spread likely to widen further
in the coming months.
China’s phenol to stay bearish on poor demand,
declining feedstock
East China phenol spot prices have continued to
decline consecutively for the three weeks, a
trend unlikely to change in the near term in
the absence of demand and softening feedstocks.
Asia ABS extend losses on poor demand but
uptick likely after holiday
Asia acrylonitrile-butadiene-styrene (ABS)
prices were soft this week as demand in the key
Chinese market remained tepid, though off take
is likely to pick up later during the seasonal
uptick in manufacturing in the second quarter.
SE Asia polypropylene trapped between tight
supply, sluggish demand
Southeast Asian polypropylene (PP) prices are
caught between opposing factors at the start of
the second quarter, with buyers seeking lower
prices on sluggish downstream demand and
suppliers maintaining offers on tight supply.
Asia naphtha gains 6% month on month; demand to
sustain
Asia’s naphtha prices were underpinned by
consistent end-user demand, which is expected
to prevail in the near term.
China acetone plunges to 10-year low; may
extend falls on oversupply
China’s domestic acetone prices went on an
accelerated downtrend in March, which may
continue amid high inventories at ports and
weak demand as downstream operations were hit
by government-led safety inspections.
China MIBK domestic prices plunge alongside
feedstock, poor demand
China’s methyl isobutyl ketone (MIBK) domestic
prices plunged, alongside feedstock acetone
prices, amid poor demand after a massive
explosion in Yancheng, Jiangsu province killed
over 78 people and injured more than 600 last
month.
China LDPE at 10-year low; may stay weak on
ample supply
China’s domestic low density polyethylene
(LDPE) prices have fallen to their lowest level
in 10 years and may remain weak because of
ample supply.
China ACN prices to remain bullish in April on
tight supply
China domestic acrylonitrile (ACN) prices
reaped hefty increases in March on the back of
tight overseas and domestic supply, a trend
expected to continue into April.
China MEG prices to stay low in April on high
inventory pressure
China’s monoethylene glycol (MEG) prices that
have been on a decline in March in tandem with
weakening futures market are expected to remain
soft in April as a result of lingering high
inventories.
Asia’s acetic acid price uptrend offset by
rising inventory pressure
The upward pressure on Asia’s acetic acid spot
prices on account of plant turnarounds in April
in northeast Asia looks set to be offset by
mounting inventory pressure in China amid a
downbeat outlook on domestic demand and slowing
export sales.
NE Asia C3 markets might continue to stutter on
weak Chinese demand
Spot propylene market in northeast Asia may
have to endure more turbulence ahead before
turning the corner.
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