Asia Chemical Industry Outlook for 2017

SINGAPORE (ICIS)–The following OUTLOOK ’17 stories were published by ICIS news between Wednesday December 21 to Thursday 12 January. Please click on the headlines to read the full versions.

OUTLOOK ’17: Lengthening supply may cap upside for Asia amines
SINGAPORE (ICIS)–While Asia’s ethanolamine prices ended 2016 with a bang, registering 12-month highs in December, sustained growth throughout 2017 is less likely, as the market braces for new production capacities within the year, coupled with little chance of fresh demand growth.

OUTLOOK ’17: Asia AE Q1 to be supported by firm upstream markets
SINGAPORE (ICIS)–Asia’s spot fatty alcohol ethoxylate (AE) market may be buoyed in the first quarter, with prices expected to be driven by trends in the upstream fatty alcohol (C12-14) and palm kernel oil (PKO) prices, industry sources said.

OUTLOOK ’17: Asia ECH sellers seek alternative markets to China
SINGAPORE (ICIS)–Epichlorohydrin (ECH) sellers in Asia are seeking alternative markets to China, where a wide buy-sell gap is expected to persist into 2017, industry sources said.

OUTLOOK ’17: Asia and Middle East TDI prices to extend losses
SINGAPORE (ICIS)–Toluene di-isocyanate (TDI) prices in Asia and the Middle East are expected to edge lower in the first few months of 2017 but may start to drop faster thereafter as tight supply conditions in Europe are expected to be alleviated by the second quarter, according to market sources.

OUTLOOK ’17: Asia solvents seen stable to firm on higher oil prices
SINGAPORE (ICIS)–Asia isopropanol, methyl ethyl ketone (MEK) and methyl isobutyl ketone (MIBK) prices are expected to be stable-to-firm in 2017 on the back of higher feedstock crude oil prices, according to industry players.

OUTLOOK ’17: Asia MDI prices to stay largely flat in H1 2017
SINGAPORE (ICIS)–Spot prices of methyl di-p-phenylene isocyanate (MDI), particularly of polymeric methyl di-p-phenylene isocyanate (PMDI) or crude MDI, in Asia are expected to stay largely flat in the first half of the year as reduced supply from plant troubles and scheduled turnarounds will likely be offset by stagnant demand.

OUTLOOK ’17: Asia MA may gain on higher feedstock costs
SINGAPORE (ICIS)–Spot prices of maleic anhydride (MA) briquette are expected to trend higher in January amid recent gains in the feedstocks butane and benzene markets, industry sources said.

OUTLOOK ’17: China PO declines to hasten in 2H on additional capacity
SINGAPORE (ICIS)–China’s propylene oxide (PO) prices will likely trend stable to soft in the beginning one to two months this year as demand is expected to diminish ahead of the Lunar New Year in late-January and market activity will likely remain subdued until mid-February, industry sources said.

OUTLOOK ’17: Asia MTBE may see longer supply amid China wildcard
SINGAPORE (ICIS)–Asia’s methyl tertiary butyl ether (MTBE) market is expected to see longer supply mainly from the Middle East in 2017, with Chinese importers to continue being the demand wildcard, market participants said.

OUTLOOK ’17: Asia PA likely to firm in Q1 on upstream tight supply
SINGAPORE (ICIS)–Asia phthalic anhydride (PA) spot prices are expected to firm in the first quarter on the back of tight supply seen in upstream feedstock orthoxylene (OX) market.

OUTLOOK ’17: Asia ADA uptrend to weaken in Q1 as supply rises
SINGAPORE (ICIS)–Asia’s adipic acid (ADA) price uptrend is expected to weaken in the first quarter of 2017 as supply will increase, with a new capacity coming on stream in China, while demand is seen to slow down, market sources said.

OUTLOOK ’17: Asia PC seen stable; may track China BPA markets
SINGAPORE (ICIS)–Asia’s polycarbonate (PC) prices are likely to hold steady on expectations of stable consumer demand for most grades, industry sources said.

OUTLOOK ’17: Asia BPA markets to see limited fluctuations
SINGAPORE (ICIS)–Asia’s bisphenol A (BPA) markets are poised to see limited fluctuations on expectations of stable consumer demand in the first half of 2017.

OUTLOOK ’17: Asia benzene players to seek pockets of opportunities
SINGAPORE (ICIS)–Asia benzene players will be seeking pockets of opportunities in 2017 as the market juggles between new capacities as well as maintenance turnarounds at upstream and downstream plants to balance out long supply conditions amid higher demand.

OUTLOOK ’17: Asia isomer-grade xylenes may see new trade flows
SINGAPORE (ICIS)–Asian isomer-grade xylene market is expected to follow its upstream crude and downstream paraxylene (PX) markets though the existing supply overhang will create new trade flows as traders will be looking at other markets to relieve their inventories.

OUTLOOK ‘16: Asia nylon faces challenging year on growing capacity
SINGAPORE (ICIS)–Asia’s nylon faces a challenging year ahead as supply is expected to continue to grow in 2017 despite a persistent lacklustre downstream demand that industry sources believe will continue to plague the market in the coming year.

OUTLOOK ’17: Asian PTA majors to wrestle for global market share

SINGAPORE (ICIS)–Asian purified terephthalic acid (PTA) in China and India are expected to battle each other this year in order to further their global shares as domestic markets become increasingly saturated due to new production capacities coming on stream, according to industry players.

OUTLOOK ’17: Asia PX outlook depends on new capacity, PTA restarts

SINGAPORE (ICIS)–Asia paraxylene (PX) market fundamentals for 2017 will likely hinge new production capacities coming on stream and on downstream purified terephthalic acid (PTA) restarts.

OUTLOOK ’17: SE Asia PP outlook cloudy on rising market volatility

SINGAPORE (ICIS)–The southeast (SE) Asia polypropylene (PP) market faces a cloudy outlook as lacklustre downstream demand amid economical and geopolitical stresses across the region threatens to offset potential bullishness in the market following OPEC’s agreement to curb oil production, industry sources said.

OUTLOOK ’17: Asian’s TiO2 market seen bullish amid tight global supply
SINGAPORE (ICIS)–The titanium dioxide (TiO2) market in Asia is seen to be bullish in the near term as prices remain supported by tight supply of the material globally, according to market players.

OUTLOOK ’17: Asia ACN to get support in 1H from heavy turnarounds
SINGAPORE (ICIS)–A slew of turnarounds in the first half of 2017 may exert upward pressure on Asian acrylonitrile (ACN) prices, though the second half of the year may likely see them soften amid resumed supply, industry sources said.

OUTLOOK ’17: Mideast group I base oils outlook rests on crude, currency
SINGAPORE (ICIS)–Spot Group I base oil prices in the key UAE market are likely to face a high degree of volatility following movements in crude oil prices in the first half of 2017, market sources said.

OUTLOOK ’17: NE Asia group II base oils prices likely stable-to-firm in Q1
SINGAPORE (ICIS)–Northeast Asia’s Group II base oils spot export prices are poised to either hold steady, or register gains, in the first quarter of 2017 on the back of stable demand but tight availability, market sources said.

OUTLOOK ’17: Asia group I base oil spot prices to hold stable-to-firm in Q1
SINGAPORE (ICIS)–Asia group I base oils spot prices are set to stand largely stable-to-firm in the first quarter of 2017 as a result of well-balanced demand and supply conditions, market sources said.

OUTLOOK ’17: Asia paraffin wax trade unlikely to rebound significantly
SINGAPORE (ICIS)–The paraffin wax market in Asia is likely to remain in a stalemate in the near term, with industry sources expecting trade to remain slow on the whole.

OUTLOOK ’17: European IPA prices may revert to average, uncertainty lies ahead
LONDON (ICIS)–After a year of strong margins for producers and high spot prices, European isopropanol (IPA) is likely to revert to their historic average in 2017.

OUTLOOK ’17: Asia acetic acid suppliers bullish on Q2/Q3 price outlook
SINGAPORE (ICIS)–Asia’s acetic acid prices may be bolstered in the second and third quarter by the new normal of higher feedstock methanol values on new demand from methanol-to-olefins (MTO) plants in China and a spate of acetic acid plant turnarounds.

OUTLOOK ’17: Asia VAM to get lift from feedstocks, EVA start-ups

SINGAPORE (ICIS)–Asia’s vinyl acetate monomer (VAM) prices may be buoyed up in the first quarter by escalating feedstock costs and improved demand, with recent start-ups of downstream ethylene vinyl acetate (EVA) plants in the region, market sources said.

OUTLOOK ’17: Asia EVA makers face challenges amid higher supply

SINGAPORE (ICIS)–Asia’s ethylene vinyl acetate (EVA) producers face a challenging year ahead on shrinking demand in China for their cargoes due to increased EVA capacities in China as well as the Middle East.

OUTLOOK ’17: Asia MEG may see turbulence on long supply, slower demand

SINGAPORE (ICIS)–Asian monoethylene glycol (MEG) market in 2017 is expected to face challenges of longer supply and slower growth in downstream polyester fibre, yarn and polyester terephthalate (PET) sectors.

OUTLOOK ‘17: Asia MMA markets likely stable; eyes on supply
SINGAPORE (ICIS)–Spot methyl methacrylate (MMA) markets in Asia are poised to hold stable going into 2017 on expectations that supply will stay snug and demand steady, producers and industry players said.

OUTLOOK ’17: Asia phenol may surprise to the upside

MELBOURNE (ICIS)–The Asian phenol market may surprise to the upside in 2017 as downstream capacity expansion and potential project delays ease the imbalance between supply and demand.

OUTLOOK ’17: China plasticizers likely stable-to-soft in Q1
SINGAPORE (ICIS)–China’s plasticizers market is expected to be stable-to-soft in the first quarter of 2017 following a general uptrend toward the end of 2016, with prices of both dioctyl terephthalate (DOTP) and di-isononyl phthalate (DINP) hitting their highest for the year in November, market sources said.

OUTLOOK ’17: Cash crisis to dampen India PVC off take in early-2017
SINGAPORE (ICIS)–The near-term offtake for polyvinyl chloride (PVC) in India may still be limited by the demonetization policy introduced late last year, despite earlier expectations of robust demand in the first half of this year, industry sources said.

OUTLOOK ’17: Asia caustic soda multi-year high prices to roll into Q1
SINGAPORE (ICIS)–Asia liquid caustic soda prices may not see the same price surge – which it underwent in the second half of 2016 year – or maybe just soften very slightly, in the first quarter of next year as supply improves but market participants do not see a major fall.

OUTLOOK ‘17: Asia PVC may continue to see bullish sentiment in Q1

SINGAPORE (ICIS)–Asia polyvinyl chloride (PCV) is likely to see the current bullish sentiments carried over in the first quarter of next year as China became a net importer of the material in the past few months.

OUTLOOK ’17: China’s PE/PP import prices to weaken in Q1
SINGAPORE (ICIS)–China’s import prices for polyolefin are expected to weaken in the first quarter of 2017 as a result of increased supply and weaker demand, industry sources said.

OUTLOOK ’17: Mideast PS trade clouded by slow downstream, volatile SM
SINGAPORE (ICIS)–Polystyrene (PS) trade in the Middle East is unlikely to gain momentum in the near term as slow downstream demand capped buying interests, against a backdrop of volatile upstream styrene monomer (SM) prices, industry sources said.

OUTLOOK ’17: Asia styrenics uptrend could ease in first quarter 2017
SINGAPORE (ICIS)–Asia’s styrenic resins prices may ease in the first quarter of 2017 as market activity is expected to slow down with players along the supply chain currently flushed with stocks, industry sources said.

OUTLOOK ’17: Tight supply to buoy up Asia styrene market in H1
SINGAPORE (ICIS)–Spot styrene monomer (SM) prices in Asia are expected to buoyed up by tight supply in the first half of 2017, market sources said.

OUTLOOK ’17: India PE/PP outlook dampened by currency illiquidity
SINGAPORE (ICIS)–India’s polymer market is expected to see weak demand extend into the first quarter of 2017, as purchasing capacity remains curtailed by a lack of currency availability, industry sources said.

OUTLOOK ’17: Mideast PE/PP price outlook weighed by ample supply
SINGAPORE (ICIS)–New polyethylene (PE) supply expected to come on-stream in 2017 is likely to weigh down on Gulf Cooperation Council (GCC) spot prices in the first half of the next year.

OUTLOOK ’17: Asia SR may resume gains post-Lunar New Year
SINGAPORE (ICIS)–Asia’s synthetic rubber (SR) prices are likely to be stable in early 2017,  as trading activities and production in the key China market will slow down ahead of the Lunar New Year holiday in late January, market players said.

OUTLOOK ’17: Asia capro market optimistic on supply consolidation
SINGAPORE (ICIS)–Asia’s caprolactam (capro) market players are cautiously optimistic that 2017 will see better margins following global supply consolidation in 2016, industry sources said.

OUTLOOK ‘17: Asia BD Q1 uptrend likely despite Lunar New Year lull

SINGAPORE (ICIS)–Spot butadiene (BD) prices in Asia look set to continue their uptrend in the first quarter of 2017 despite the expected lull in market activity in the weeks leading to the Lunar New Year holiday in late January, market sources said.

OUTLOOK ‘17: Subdued demand to weigh on Southeast Asia PE market
SINGAPORE (ICIS)–Spot import prices of polyethylene (PE) grades in southeast Asia are expected to be under downward pressure should demand remained subdued in the first quarter of 2017, industry sources said.

OUTLOOK ’17: Asia acrylates market faces tight supply in H1
SINGAPORE (ICIS)–Supply of acrylic acid and acrylate esters in Asia is expected to remain tight in the first half of 2017 until major plants that were shut this year resume production, market sources said.

OUTLOOK ’17: Asia oxo-alcohols markets head for soft landing in Q1
SINGAPORE (ICIS)–Northeast Asia’s oxo-alcohols markets may be heading for a correction in the early 2017, following an unexpected surge in prices in the last quarter of  2016, but buffered by restocking activity, market sources said.

OUTLOOK ’17:Asia epoxy resins prices set to rise on firmer upstream
SINGAPORE (ICIS)–Asia’s liquid epoxy resins (LER) spot prices may have room to increase further in the first quarter following recent gains in feedstock bisphenol A (BPA), market sources said.

OUTLOOK ‘17: Capacity expansion to exacerbate Asia acetone glut
MELBOURNE (ICIS)–The existing acetone supply overhang in Asia is expected to worsen in 2017 as the region’s capacity expansion outpaces the growth in demand.

OUTLOOK ’17: Asia MLLDPE in for challenge, aiming market expansion
SINGAPORE (ICIS)–Asia suppliers continue to face an uphill task promoting the use of more specialty metallocene linear low density polyethylene (MLLDPE) grades over that of traditional butane-based (C4) LLDPE, which is less costly.

OUTLOOK’17: Asia PET overcapacity clouds 2017 prospects, R-PET steady
SINGAPORE (ICIS)–Asian polyethylene terephthalate (PET) market overcapacity continues into 2017, and is likely to worsen with the additional plants due to come on stream, and this might put pressure on its prices.

OUTLOOK ’17: Asia propylene faces uncertain Q1 as supply lengthens
SINGAPORE (ICIS)–Northeast Asia’s propylene markets may see a dull start to the year amid longer supply following start-ups of new capacities in China, market sources said.

OUTLOOK ’17: Asia toluene poised for short-term uncertainty
SINGAPORE (ICIS)–Asia’s toluene prices are poised for an uncertain first quarter on concerns over a potentially overheated market since early December amid unchanged Chinese demand despite the recent downstream benzene price rally, market participants said.

OUTLOOK ’17: Asia ethylene supply to stay tight; sellers upbeat
SINGAPORE (ICIS)–Asia’s ethylene production is expected to increase in Japan, South Korea and parts of southeast Asia in 2017 but the impact on regional supply could be negated to a large extent by higher consumption, according to market players.

OUTLOOK ’17: Asia naphtha market to see limited bullish factors
SINGAPORE (ICIS)–Asia’s naphtha markets are likely to see limited bullish factors – at least in the early half of 2017 – on account of increased transatlantic deep-sea supply and a greater use of competing liquefied petroleum gas (LPG) feedstock, market sources said.