Asia Chemical Industry Outlook for 2015
ICIS Editorial
16-Jan-2015
SINGAPORE (ICIS)–The following OUTLOOK ’15 stories were published by ICIS news between Monday 22 December 2014 to Friday 9 January 2015. Please click on the headlines to read the full versions.
OUTLOOK ’15: Asia epoxy resins prices set
to dip on falling upstream
Asia’s liquid epoxy resins (LER) spot prices may have room to
drop further in the first quarter following the plunge in the
average prices of feedstock bisphenol A (BPA) by as much as
40% or more in the fourth quarter of 2014, market sources
said.
OUTLOOK ’15: Oversupply to plague China
Group II base oils market
China is expected to face a severe oversupply of Group II
base oils this year on the back of heavy domestic and
overseas capacity expansions, industry sources said.
OUTLOOK ’15: China bitumen market to
extend oversupply in Q1
China’s bitumen market is expected to remain in oversupply in
the first quarter of 2015, as demand is estimated to be weak
while production may stay high, industry sources said.
OUTLOOK ’15: Asia glycerine seen stable on
less supply, weak demand
The Asian glycerine market pricing is expected to be stable,
if not in a modest upstrend in 2015, as the likelihood of
reduced supply might be offset by sluggish demand from
industrial applications, industry sources said.
OUTLOOK ’15: Supply glut to weigh on MTBE
expansion plans in China
China’s production capacity of methyl tertiary butyl ether
(MTBE) is expected to expand at a slower pace after nearly
five years of strong growth because of a supply glut, market
sources said.
OUTLOOK ’15: Asia PTA industry to stay
oversupplied
Asia’s purified terephthalic acid (PTA) industry will
continue to be in an oversupplied condition this year, with
producers likely to continue to face squeezed margins,
industry sources said.
OUTLOOK ’15: Asia PET and R-PET face
supply demand challenge
Asia polyethylene terephthalate (PET) producers are likely to
face a continuous challenge in 2015 in balancing supply and
demand to maintain a sustainable price spread throughout the
PET chain, market participants said.
OUTLOOK ’15: Asia MEG headed for
uncertainty on low crude worry
Asia’s monoethylene glycol (MEG) market is headed for
uncertainty amid worries of lower crude prices while
continued demand growth from the downstream polyester fibre
and polyester terephthalate (PET) sectors might be curbed,
market sources said.
OUTLOOK ’15: Asia PBT seen stable-to-soft
in Q1 on poor demand
Asia polybutylene terephthalate (PBT) prices are expected to
remain largely stable-to-soft for the first quarter of 2015
because of persistently sluggish demand, an existing supply
overhang and also, bearish market sentiment brought about by
poor upstream values, market participants said.
OUTLOOK ’15: Asia anhydrous ethanol demand
seen weakening
Asia’s anhydrous ethanol market is expected to remain bearish
and import volume of anhydrous ethanol is expected to weaken
as a result of strong domestic capacity growth in key buying
region of Philippines in the first quarter of 2015, market
participants said.
OUTLOOK ’15: Restocking may support Asia
isocyanates in near term
Asia’s isocyanates markets may see some brief support in
demand early in 2015, as buyers that had destocked towards
the end of last year are expected to replenish their
inventory, but this may not be sustained in the first half of
the year.
OUTLOOK ‘15: SE Asia PE seen soft in Q1 on
weak demand, supply
Prices of imported polyethylene (PE) grades in southeast Asia
are expected to remain soft for the most part of the first
quarter on supply pressure and weak demand, market
participants said.
OUTLOOK ’15: Weak demand to persist in
Asia styrenics market
Demand for styrenics in Asia is expected to stay weak in
2015, with headwinds continuing to hit the world’s major
economies, producers and traders said.
OUTLOOK ’15: Asia SM market looks
uncertain after ’14 Q4 plunge
Asia styrene monomer (SM) market looks uncertain going into
the new year after prices slumped below $900/tonne in the
first half of December, a level not seen since May 2009.
OUTLOOK ‘15: Asia VAM price decline seen
to continue in near term
Asia’s vinyl acetate monomer (VAM) market is likely to remain
weighed down in early 2015 as a tight global supply eases
following capacity growth in China and Taiwan, as well as on
reduced production costs due to softer feedstock values,
industry sources said.
OUTLOOK ’15: China polyolefins seen under
pressure on new supply
Poor demand and ample supply including new capacity coming on
line these days would weigh on polyolefins prices in China in
the first quarter of 2015, industry sources said.
OUTLOOK ’15: Asia MTBE market bearish amid
sufficient supply
Asia’s MTBE market is set to remain bearish for most parts of
2015 as a result of sufficient supply amid unchanged demand
fundamentals from gasoline blenders owing to weak blending
economics, industry sources said.
OUTLOOK ’15: Asia MIBK seen soft in 2015
on slowdown in vehicles
Asia spot methyl isobutyl ketone (MIBK) prices are expected
to be largely soft in 2015 due to the projected slowdown in
the automobile industry amid cautious economic sentiments,
industry participants said.
OUTLOOK ’15: China’s phenol imports to
slump further in 2015
China’s phenol import volumes are likely to plunge further in
2015, driven by the country’s rapid capacity expansion and
increasing self-sufficiency, market sources said.
OUTLOOK ’15: Asia methanol market to brace
for more volatility
Asia methanol spot prices are seen more volatile this year as
a result of additional spot demand due to expected expansions
in the downstream methanol-to-olefins (MTO) projects, as well
as a decreasing percentage of contractual volumes being
discussed, industry source said.
OUTLOOK 15’: Asia PO seen mixed as supply
constrained outside China
Asia’s propylene oxide (PO) outlook in Asia for the first
half of 2015 is mixed with supply looking constrained in Asia
except for China because of new capacities there, market
participants said.
OUTLOOK ’15: Asia MA look to extend falls
on weak butane
Spot prices of maleic anhydride (MA) briquette are expected
to continue to trend lower in first quarter 2015 amid the
slump in crude as well as in the prices of alternative
feedstock butane and benzene, market sources said.
OUTLOOK ’15: Asia PA prices to trend lower
amid weak upstream
Spot prices of
phthalic anhydride (PA) in Asia is expected to continue its
downtrend in the first quarter of 2015, weighed by weak
prices seen in upstream feedstock orthoxylene (OX) and OX
co-product paraxylene (PX) markets, according to market
sources.
OUTLOOK ’15: Asia PX to track upstream
markets amid supply glut
The Asian
paraxylene (PX) market will be weighed by new capacity
additions in the region and the downtrend in upstream prices
in 2015, according to industry sources.
OUTLOOK ’15: Asia toluene to track
benzene, downstream PX prices
Asia spot
toluene prices will continue to track the downstream benzene
and paraxylene (PX) numbers closely into 2015 with little
likelihood that the supply will turn tight except during the
traditional downstream gasoline blending season in summer,
market players said.
OUTLOOK ’15: Asia benzene seen soft on
oversupply in H1 2015
Asia’s benzene
prices are expected to remain under pressure in the first
half of 2015 as a result of excessive supply because of new
capacities in the region despite the start-up of new
derivative plants, market players said.
OUTLOOK ’15: Asia caustic soda prices to
recover in Q1 2015
Asia’s liquid
caustic soda prices are expected to slowly recover in the
first quarter of 2015 from the downtrend seen in the fourth
quarter as buyers return from the sidelines and on the back
of firmer offers from northeast Asian producers, according to
market players.
OUTLOOK ’15: Asia PVC Q1 prices likely to
remain soft
Asia’s polyvinyl chloride
(PVC) spot prices will likely remain weak in the earlier half
of the first quarter of 2015, tracking the softness seen in
upstream crude and feedstock ethylene prices, according to
market sources.
OUTLOOK ’15: Asia base oil market seen
soft on low crude, supply
Asia’s base
oils market is poised to remain stable-to-soft for the first
quarter of 2015, especially for the Group II sector as a
result of steep decline in upstream crude values and supply
overhang of Group II grade, market participants said.
OUTLOOK ’15: Asia MMA, PMMA prices to come
under pressure
Asian prices of methyl
methacrylate (MMA) and its downstream derivative polymethyl
methacrylate (PMMA) are expected to come under pressure in
2015 amid the volatile downtrend of crude oil futures and
uncertainty over global economic growth, according to most
market players.
OUTLOOK ’15: Asia ACN supply to tighten in
Q1 on heavy turnarounds
The supply of acrylonitrile (ACN) in Asia is expected to
tighten in the first quarter of 2015 because of the heavy
turnarounds at regional producers, and this will put a cap on
the downtrend in prices, sources said.
OUTLOOK ’15: Asia BD prices to rebound on
output cuts, Jan demand
Asia butadiene
(BD) spot prices have bottomed out and are expected to soon
rebound because of production cutbacks and increased buying
interest, according to market sources.
OUTLOOK ’15: Asia brightstock outlook bearish amid
tepid demand
https://www.icis.com/Articles/2014/12/23/9848362/outlook-15-asia-brightstock-outlook-bearish-amid-tepid-demand.html
Asia’s brightstock spot prices are likely to continue their
downtrend in the near term after going through significant
decline during the week ended 19 December as a result of
weaker crude values and tepid demand, market sources
said.
OUTLOOK ’15: Asia fatty alcohol market
faces uncertainty in H1
The Asian fatty
alcohol market is expected to be mixed in the first half of
2015 because of a slew of new capacities, unpredictable
volatility in upstream palm kernel oil (PKO) prices and
worries over global economic growth, according to market
participants.
OUTLOOK ’15: Asia TiO2 to remain bearish
through to January
The Asian titanium
dioxide (TiO2) market is expected to remain bearish until
January next year amid ample supply and the year-end seasonal
demand lull for the coating sector, which is the major
consumer for the material, according to market players
OUTLOOK ’15: Asia propylene to
underperform C2 on capacity rise
Asia’s
propylene prices are expected to continue to underperform the
regional ethylene market next year amid strong capacity
growth.
OUTLOOK ’15: Asia C2 demand-supply balance
to stay tight
Asia ethylene’s demand-supply balance is expected to remain
tight in 2015 despite a lighter cracker turnaround schedule,
players said.
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