Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 26 July 2019.

Asia VAM supply tightens further as China producers cut output
Availability of spot vinyl acetate monomer (VAM) cargoes in Asia has dried up as China curtailed production due to firmer upstream ethylene and values.

UAE Group II base oils stable amid absence of deals 
Spot import prices of Group II base oils in the United Arab Emirates (UAE) market were stable in the week of 25 July due to a lack of firm deals and limited buying interest.

China PE market bearish on rising supply; import prices weaken 
China’s polyethylene (PE) is increasingly bearish, as the import market struggles with bloated domestic inventories, rising imports particularly from Iran, and poor demand as a consequence of the year-long trade war with the US.

Indian PP import gains stall amid stagnant China
Spot polypropylene (PP) import prices in India that have been on an upward trend since late June have stagnated, with a lack of clarity on the near-term price direction.

China phenol import discussions near two-year low on poor demand 
China’s phenol import discussions levels fell to lowest levels in nearly two years, weighed down by persistent weakness in demand from downstream bisphenol A (BPA), polycarbonate (PC) and caprolactam sectors.

Asia petchem trading muted ahead of China-US trade talks in Shanghai 
Trading in some key Asia’s petrochemicals has become muted ahead of the revived US-China trade talks next week, as many market participants prefer to stay on the sidelines until clarity is established on direction.

China’s demand for Group II 60N base oils likely to remain firm in Aug 
China has been seeing a supply shortage of Group II low-viscosity 60N base oils since late June due to higher gasoil prices, which is likely to continue in August.

Limited supply may cap GCC PP slide despite holiday lull 
Limited availability of polypropylene (PP) among producers in the Gulf Cooperation Council (GCC) is likely to limit any downside to August prices in the region, even as demand remains seasonally weak.

Asia TDI bottoms out, seasonal demand lull coming to an end 
Asia’s toluene diisocyanate (TDI) prices seem to have bottomed out and a seasonal demand lull is also coming to an end, which should help recover demand.

Asia ABS holds steady after recent declines but trading slows 
While Asia’s acrylonitrile-butadiene-styrene (ABS) market held steady this week and seemed to have stabilized after recent slippages, trade has slowed with buyers mostly on the sidelines.

Spreads between dutiable and duty-free SE Asia PP prices widen 
Spreads between dutiable and non-dutiable polypropylene (PP) prices in southeast Asia (SE Asia) for homopolymer grades may widen, amid a relatively tighter supply of duty-free ASEAN cargoes.

Asia SAN steady while demand eases; uncertainty to persist 
The styrene-acrylonitrile (SAN) market in China remained quiet as buyers were on the sidelines ahead of the renewed US-China trade talks, with top-level officials from both countries to convene in Shanghai from 30 July.

China’s EVA supply to fall in August amid higher photovoltaic demand 
China’s ethylene vinyl acetate (EVA) supply is declining ahead of two EVA facility turnarounds in Jiangsu and Ningbo from end-July, which prompted several major producers to roll over offers for August shipments.

LAB market under increasing pressure amid little spot availability 
The Asian linear alkylbenzene (LAB) market remains under persistent pressure amid scarce spot availability.

INTERACTIVE: Japan etac imports contract as overall consumption slows down 
Japan’s imports of ethyl acetate (etac) have posted a double-digit decline in the first five months of 2019, as domestic consumption may not hit the projected full-year growth of 3-5%.

China acetic acid supply tightens further amid stable demand 
Acetic acid supply in China has tightened further following an unexpected plant shutdown in Henan province, while demand has so far held steady.

Asia benzene in consolidation mode; eyes on open US arbitrage window 
Asia’s benzene market remained soft this week, following a price spike in mid-July, weighed down by weak performance in upstream crude market.

Asia Group II base oils supply glut lingers despite output cuts 
Asia’s supply of Group II base oils is likely to remain long despite recent output cuts by some regional refiners against the backdrop of surging crude and gasoil prices since late May.

Asia’s BPA demand to see limited upside despite perk up in China 
Asia’s bisphenol A (BPA) markets are poised to see limitations in any potential surge in demand in the weeks ahead, despite signs of import demand in China perking up.

SE Asia PA demand bearish; output cuts may support market 
Southeast Asia’s phthalic anhydride (PA) prices retreated after a recent upswing, as buying failed to pick up as well as earlier expected, but the market may be supported by tightening supply amid output cuts.