Asia top stories – weekly summary
ICIS Editorial
08-Jul-2019
SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 5 July 2019.
Asia key petrochemical markets slump on
prolonged US-China trade war
Key petrochemical markets in Asia have suffered
double-digit price declines compared with the
same period in 2018, amid shrinking global
trade and weakened regional economies as the
US-China trade war marks its first year.
China’s garbage classification helps demand for
polyolefins, though limited
Shanghai authorities’ garbage sporting campaign
has boosted the sales of approved trash bins by
several times, though its impact on demand for
high density polyethylene (HDPE) and
polypropylene (PP) in China is expected to
remain minimal.
China acetone supply glut may continue in July
on weak demand
China’s domestic acetone supply glut is
expected to continue in July as supply will
remain unchanged and demand may weaken due to
high temperatures in summer.
Asia nylon buyers replenish inventory after
recent price falls
Asia’s nylon buyers have started replenishing
inventory after recent sharp price falls, on
the back of improved market sentiment.
Asian MA buoyant as sentiment improves amid
tighter supplies
Asia import offers for maleic anhydride (MA)
rose as sellers’ sentiment took a bullish turn
with thinning spot availabilities.
Slowing global economy hurts chemicals
demand
Latest data suggest the global economy is
continuing to slow down into the second half of
the year, with worrying implications for
chemicals demand amid rising supply.
China oil products supply expected to remain
ample
The supply of domestic oil products in China is
expected to remain ample in the near term, as
most Shandong-based independent refiners have
resumed production.
China’s melamine export prices rebound amid
reduced output; oversupply remains
China’s melamine export prices rebounded after
prices fell to a record low on the back of
falling operating rates, but the supply
overhang may weigh on market sentiment.
SBR falls in SE Asia on ample supply and
slowing economic growth
Demand for styrene butadiene rubber (SBR) is
expected to soften in southeast Asia because of
ample supply and slowing manufacturing
activities across the region.
Asia soda ash market faces pressure from ample
China output
Asia’s soda ash market is expected to remain
weighed down by ample supply in China amid
rising output following completion of plant
turnarounds.
China’s MLLDPE market holds steady despite
bullish commodity PE sector
The Chinese metallocene linear low-density
polyethylene (MLLDPE) market remains
unperturbed by bullishness brewing in the
commodity polyethylene (PE) sector.
Chinese MEK sentiment cautiously optimistic
after US-China temporary truce
Chinese methyl ethyl ketone (MEK) sentiment was
cautiously optimistic as China-based
manufacturers welcomed the news of a truce in
the year-long trade war between US and China,
with a freeze on further tariffs following the
G20 summit in Osaka, Japan, on 29 June 2019.
Asia ABS firm in cautious trade; suppliers
target higher numbers
Asia’s acrylonitrile-butadiene-styrene (ABS)
prices were firm, with suppliers continuing to
target higher numbers.
China gasoline demand to pick up in July in
peak summer season
China’s gasoline demand is expected to improve
in July in hotter months that will boost
trading, while international buying of the
material is also likely stabalise during the
peak season.
Asia benzene sentiment robust post-G20, open
arbitrage
The market sentiment in Asia benzene has become
robust on the back of buoyant energy markets,
after the US and China agreed on a trade truce
at the G20 summit in Japan in late June.
Asia ACN to be under pressure on supply
increase, poor demand
Asia’s acrylonitrile (ACN) market is expected
to weighed by a potential supply increase and
prevailing sluggish demand. Buying from China
to be subdued
Spot ACN prices have fallen by 16% since end
May to $1,650-1,750/tonne CFR NE Asia in the
week ended 28 June, ICIS data showed.
Asian epoxy resins’ demand outlook uncertain on
weak economic data
The demand outlook for Asian epoxy resins is
nebulous at this juncture, as dismal regional
economic data almost erodes market confidence.
Asia June industries weaken; China poses strong
downside risks
Asia’s manufacturing activity weakened in June
as the US-China trade war continued to dampen
business sentiment, with heightened downside
risks from China’s economic slowdown, according
to analysts.
China MOP supply to fall in July on fewer
Russian imports
Supply of muriate of potash (MOP) or potassium
chloride in China is expected to fall in July
as competitive local prices discourage imports
from Russia amid a pick-up in domestic demand.
Asia BPA prices sink to 21-month low on tepid
demand
The Asia bisphenol A (BPA) market slumped to a
21-month low amid downbeat import demand,
although this could be countered by plant
turnarounds gradually crimping supply.
SE Asia PA inches up on firmer upstream; weak
demand may curb upside
Southeast Asian phthalic anhydride (PA) prices
improved with upstream firmness in the week of
28 June, stemming five weeks of consecutive
losses.
China MOP supply to fall in July on fewer
Russian imports
Supply of muriate of potash (MOP) or potassium
chloride in China is expected to fall in July
as competitive local prices discourage imports
from Russia amid a pick-up in domestic demand.
Asia BPA prices sink to 21-month low on tepid
demand
The Asia bisphenol A (BPA) market slumped to a
21-month low amid downbeat import demand,
although this could be countered by plant
turnarounds gradually crimping supply.
SE Asia PA inches up on firmer upstream; weak
demand may curb upside
Southeast Asian phthalic anhydride (PA) prices
improved with upstream firmness in the week of
28 June, stemming five weeks of consecutive
losses.
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