Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 12 July 2019.

Asia isomer-grade MX market supported by limited production
Asia’s isomer-grade mixed xylene (MX) prices surged by 9.7% from the start of the week to hit their 2.5-month highs, and the market may stay supported by limited production.

China’s Q3 mixed aromatics imports to drop further
China’s mixed aromatics imports are likely to drop further in the third quarter on expectations of sustained import losses and increasing supply of domestic material.

SE Asian biodiesel to face subdued export market ahead
Spot prices of palm methyl ester (PME) biodiesel in southeast (SE) Asia were stable in the week ended 11 July with market participants expecting a subdued export environment in coming months.

Middle East polymer polyols may find support from feedstock gains
Spot import prices for 10-13.5% polymer polyols (POP) in the Middle East were firmer in the week ended 11 July but persistently weak demand suggests that further gains could be difficult unless feedstock prices continue to rise in coming weeks.

NE Asian hydrous ethanol outlook unclear on hazy supply conditions
Spot import prices of b-grade hydrous ethanol in northeast (NE) Asia were stable to soft in the week ended 10 July but the outlook for this sector remains unclear amid fundamental differences in the two main supply regions.

India’s MIBK only market seeing demand growth in Asia
Methyl isobutylene ketone (MIBK) in India is the sole market in Asia to have seen a consistent uptick in demand since 2016, according to market players.

LAB sentiment cautious on limited spot availability
Sentiment in Asian linear alkylbenzene (LAB) market remained cautious amid limited spot availability.

East Asia 2-EH faces weak demand on negative plasticizers margin
While high propylene prices have helped to bolster spot 2-ethylhexanol (2-EH) market in east Asia, demand for 2-EH was lacking in the wake of negative margin in downstream plasticizers.

Ample supply, weak demand weigh on India NBR market
Ample supply and weak demand are weighing on India’s acrylonitrile butadiene rubber (NBR) spot market.

China PE braces for new capacity; oversupply to be offset by shutdowns
China’s polyethylene market (PE) market is bracing for new supply as two new units are expected to start up in the third quarter.

Asia IPA sentiment seen firming on tight supply, bullish feedstock values
Sentiment in Asia isopropanol (IPA) could see a further pickup in the near term, propelled by bullish acetone and propylene values, as well as reduced stocks.

Asia benzene surges on increased US arbitrage opportunities
The Asia benzene market remained firm with a potential increase in cargo movements to the US, as the arbitrage window widened on demand uptick in the West.

German Covestro to focus on innovative solutions for growth – CEO
German polymer firm Covestro will continue its push for sustainable, innovative solutions for future growth as it looks beyond the bearish near-term impact of global tariff wars and the protracted economic slowdown in China, company CEO Markus Steilemann told ICIS.

Asia naphtha slides on soft crude oil; spot demand returns
Asia naphtha markets slipped in tandem with easing crude oil futures, but a return of spot demand coupled with an anticipated fall in excess supply may well provide some needed support.

GCC PMDI prices stable but Asia downtrend could add pressure ahead
Spot import prices of polymeric methylene diphenyl diisocyanate (PMDI) in the Gulf Cooperation Council (GCC) were stable in the week ended 4 July but the ongoing downtrend in Asian prices could put GCC prices under pressure again in coming weeks.

China domestic ECH market faces protracted supply constraints
China’s domestic epichlorohydrin (ECH) market is facing a supply crunch, as domestic supplies tightened substantially amid prolonged outage at two major Chinese plants.

Crude continues to drive China MTBE spot demand in July
China’s methyl tert butyl ether (MTBE) spot demand in July will continue to be driven by international crude movements though contractual commitments from refiners are likely to stay stable.

China’s domestic HDPE injection market may see tight supply
China’s domestic high density polyethylene (HDPE) injection market may find support from tight supply as more units switched to producing other polyethylene products.

China PTA fundamentals to remain healthy in the near term
China’s purified terephthalic acid (PTA) prompt supply will be tight while demand will be firm from downstream polyester sector in the near term.

China PP market to outperform PE in H2 despite more new capacities
China’s polypropylene (PP) market is set to be weighed by a high number of plant start-ups in the second half of this year.

China propylene prices rise on heavy unit shutdown
China’s propylene prices have posted a long streak of increases since mid-May on unexpected shutdowns at a number of domestic and overseas plants.

SE Asia oxo-alcohols prices could track feedstock for short term
Oxo-alcohols prices in southeast Asia could see some support with upstream propylene market trending up in recent times.