Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are some of the top stories from ICIS Asia and the Middle East for the week ended 26 October 2018.

Pakistan polyolefins outlook bearish ahead of Nov offers
The near-term outlook for polyolefins in Pakistan stayed weak, as importers assumed a cautious stance to monitor the trend in international prices while waiting for November offers.

Asia IPA supply expected to tighten further, upward pressure on prices
Isopropanol (IPA) supply in Asia will further tighten next month following an impending shutdown of a major Chinese exporter ahead of an international trade conference in Shanghai.

Asia ADA downtrend may continue on sluggish demand
Asia’s adipic acid (ADA) spot prices have declined for three weeks in a row because of falling feedstock prices and sluggish downstream demand, with downward pressure likely to remain as the year-end market lull draws near.

Asia butyl glycol hits lowest in 2018 on ample supply, soft demand
Asia’s butyl glycol (BG) spot prices fell to the lowest level so far in the year, coming under pressure in the face of ample supply and weak demand.

China domestic SM market bearish amid heavy import arrivals
China’s domestic styrene monomer (SM) spot prices may stay weak as supply will be augmented by strong import arrivals over the next two months.

Asia MEG under pressure from falling oil, polyester prices
Asia monoethylene glycol (MEG) is expected to come under pressure amid increasingly bearish market sentiment resulting from the recent slump in crude oil prices and falling Asian equities.

Asia benzene under pressure on crude, lengthening supply
Asia’s benzene market slumped this week amid a sharp pull back in the crude oil sector and market fundamentals suggest the pressure on the molecule will remain strong in weeks ahead.

India SBR may extend falls on feedstock BD plunge, rupee depreciation   Styrene butadiene rubber (SBR) prices in India may face more downward pressure from ample supply and plunging feedstock butadiene (BD) amid a sharp depreciation of the Indian currency.

China domestic phenol prices spike on tight supply, weak yuan
China’s domestic phenol prices have surged by 40% from July and may remain firm for the rest of the year on the back of tight supply, weak yuan and amid an ongoing antidumping probe on imports.

Asia Nov Group II base oils trade to soften on output cuts, weak demand
Asia’s Group II base oils spot trade is expected to be limited in November as refiners have begun to cut operating rates this month.

Asia BD may have bottomed out after near-40% plunge
Asia’s spot butadiene prices may have bottomed out after plunging by nearly 40% over a two-month period, on improved Chinese buying interest.

Demand for ECH and epoxy resins impeded by China International Import Expo
Epichlorohydrin (ECH) and its downstream epoxy resins demand softened during the week, ahead of the China International Import Expo and the market expects the softening to continue next month.

China TDI prices slump; outlook dim on weak demand amid growing supplies
Toluene di-isocyanate (TDI) prices have fallen to a historic 15-month low in the domestic Chinese market, amid heavy selling by local traders.

NE Asia liquid caustic soda at 2-year low; India shipments on hold
Spot prices of liquid caustic soda in northeast Asia fell below $400/dry metric tonne (dmt), to their lowest level in two years on increased supply as contract shipments to India, a key export market, were delayed.

Urea market rally stopped in tracks on Pakistan tender results
Global urea prices look set for a temporary downward correction after an import tender in Pakistan for 100,000 tonnes of the fertilizer was awarded at a $12/tonne discount to last week’s Arab Gulf price.

Asia MEK market bullish; supply tight on China plant turnarounds              SINGAPORE (ICIS)–Asia’s methyl ethyl ketone (MEK) market is bullish, with buyers stocking up on inventories amid tightened supply due to scheduled plant turnarounds in China, a key exporter of the material.

China MTBE import prices off three-year highs on weak demand
China’s methyl tertiary butyl ether (MTBE) import prices have fallen from their three-year highs on weak consumption amid ample supplies.

Indian polymer demand struggles ahead of Diwali lull
Polymer demand in India remained seasonally slow ahead of the Diwali festivities and market players were uncertain of a significant pickup even in November, owing to a lacklustre economic environment.

China HDPE injection prices may stop falling as supply tightens
High density polyethylene (HDPE) injection prices in China’s domestic spot market – falling since mid-October due to growing supply of coal-based material – may see the downtrend end as supply tightens.

NE Asia C3 falls on bearish sentiment; supply to lengthen in Nov
Spot propylene prices in northeast Asia fell for the first time in five weeks, weighed down by expectations of long supply in November and weakness in China’s domestic market in Shandong.

Asia ACN softens further on soft demand; outlook remains bleak
Asia’s acrylonitrile (ACN) prices extended losses as sluggish demand continued to push down spot prices despite the limited spot supply.