Asia top stories – weekly summary
ICIS Editorial
10-Jun-2019
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 7 June 2019.
NE Asia ethylene falls to multi-year lows;
outlook weak
Ethylene prices in northeast Asia fell for a
third consecutive week to levels last seen in
September 2015 due to a supply glut caused by
reduced downstream output.
Asia TDI set to remain plagued by tepid cargo
uptake in June
Asia’s toluene diisocyanate (TDI) spot market
is poised to be plagued by persistently bearish
market sentiment going ahead into June, against
a backdrop of tepid demand and pessimistic
economic conditions.
Stiff competition from Chinese exports to weigh
on Asia TiO2 Q3 contracts
Strong competition from Chinese exports is
likely to weigh on discussions for third
quarter titanium dioxide (TiO2) contracts in
Asia.
Asia spot MEK faces weak demand, softer
upstream after recent downtrend
Asia’s spot methyl ethyl ketone (MEK) market
faced continued downward pressure in the past
week, with near-term demand expected to remain
lackluster because of the Eid ul-Fitri holidays
in many parts of southeast Asia.
Vietnam PP weighed down by weak demand;
competitive Chinese exports
Vietnam polypropylene spot market, which saw
prices falling for four consecutive weeks, will
continue to face weak demand and the
availability of competitively priced Chinese
exports in the near term.
Asia EPDM downtrend on eighth month; demand may
not pick up soon
Asia’s ethylene-propylene-diene monomer (EPDM)
prices have been falling since October 2018
because of a supply glut and slowing demand,
which may not pick up in the near future.
Asia’s naphtha crack spreads sink to 2012
levels; persistent glut
Asia’s naphtha crack spreads have fallen to
their lowest levels in seven years, amid a
fragile market grappling with a supply overhang
that could linger.
Asia ABS retreats on weak demand amid trade
war
The Asia acrylonitrile-butadiene-styrene (ABS)
market weakened further as demand in the region
is soft and is likely to stay that way in the
near term especially as US-China trade war is
keeping buyers away.
China domestic ethanolamines likely to stay
dull on feedstock falls
Ethanolamines supply in domestic China market
is likely to remain long that will continue to
weigh on prices, exacerbated by drastic
feedstock ethylene oxide (EO) falls recently.
India C6 MLLDPE import market under pressure on
thin buying interest
The Asia non-dutiable C6 metallocene linear low
density polyethylene (MLLDPE) market was under
pressure amid thin buying interest and may
continue to be so due to inventory build-up.
Asia LAB under pressure on weak upstream
market, dull demand
Asia’s spot linear alkylbenzene (LAB) market is
under pressure on weakened upstream values and
continued lackluster demand.
Asia polyacetal slumps to two-year lows; demand
to stay subdued
Asia’s polyacetal (POM) prices have slumped to
their two-year lows after eight consecutive
months of downtrend largely due to the US-China
trade war, with demand expected to remain
subdued.
China may see strong gasoline demand but weak
gasoil market in early Jun
China is likely to see strong gasoline but weak
gasoil demand in June affected by the upcoming
Dragon Boat Festival holiday (7-9 June 2019)
and the rainy season, amid a high possibility
that the escalating China-US trade war will
continue pressuring the domestic oil market.
Asia ACN falls for first time since mid-Jan;
supply to stay tight
Asia’s acrylonitrile (ACN) prices fell for the
first time since mid-January, weighed down by
weak performance of downstream markets, even as
supply is expected to remain limited due to
ongoing and upcoming plant turnarounds.
Asia benzene down on crude oil slump; ample
availability in near term
Asia’s benzene market was under downward
pressure as a result of a slump in crude oil
futures, while availability is expected to
remain ample as new plants are expected to
startup.
Asia’s factory activity in May remains weak as
escalating trade war fans worries
Asia’s manufacturing activity broadly weakened
last month with export markets expected to
remain weighed down in the near term by the
escalating trade war between the US and China.
Asia naphtha falls below $500/tonne on supply
glut, oil price slide
Asia’s naphtha prices extended their downward
spiral on the back of weakening oil prices and
a persistent supply glut, as cargo deals fetch
deeper discounts.
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