Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 11 January 2019.

Asia VAM tracks weak China market amid supply pressure
Prices of ethylene-based vinyl acetate monomer (VAM) in India and southeast Asia came under downward pressure to levels last seen in March/April 2017, weighed down by weakness in China’s domestic market amid a downtrend in upstream acetic acid values.

China’s domestic TDI spirals down on supply glut, slow demand
China’s domestic yuan-denominated prices for toluene di-isocyanate (TDI) have plummeted to a historic low level on mounting supply and sluggish consumption, market participants said on Friday.

OUTLOOK’19: Uncertain crude, policies to curb China’s mixed aromatics import market
China’s mixed aromatics import market is likely to come under pressure in 2019 from uncertainties in the crude futures, stricter invoice supervision and environmental measures as well as the boom in domestic reformer start-ups.

OUTLOOK ’19: Asia-Pacific ethanol market to remain under pressure
The Asia-Pacific market for fuel-grade ethanol and b-grade ethanol is expected to remain depressed in the early months of 2019 as demand has shown little signs of improving.

China BG import prices stable on domestic market rebound
China’s butyl glycol (BG) spot prices were largely stable, supported by a rebound in the domestic market on replenishing activities ahead of the Lunar New Year holiday in early February.

OUTLOOK ’19: China benzene rebound to be capped by uncertainties
China’s benzene prices are expected to rebound this year as demand will outpace output growth, but gains will be likely capped by uncertainties in the upstream crude market amid weakening macroeconomic fundamentals.
Demand in the first quarter will be boosted as downstream styrene monomer (SM) plants are expected to restart in January, which will boost benzene consumption by at least 5,000 tonnes per month.

OUTLOOK ’19: Southeast Asia MA to track feedstock butane market
Southeast Asia’s maleic anhydride (MA) market is expected to track price movements of feedstock butane, as demand is likely to stay tepid.

China soda ash prices decline to levels last seen in Aug/Sept 2018
Spot prices of dense and light grade soda ash in Asia declined to levels last seen in August/September 2018, as weakening demand in China ahead of the Lunar New Year holidays in early February triggered a reduction in export offers.

OUTLOOK ’19: Asia’s methanol sentiment bearish on new capacities
Asia methanol market is poised to see new capacities adding to the global pool of supply that may not allow prices to rebound to high levels seen in 2018.

OUTLOOK ’19: Asia’s VAM to thrive on European demand, plant shutdowns
Asia’s vinyl acetate monomer (VAM) prices in the first quarter may be underpinned on expectations of demand from Europe and a supply curtailment owing to regional plant shutdowns.

Asia ABS market recovers in new year, long-term outlook hard to predict
The Asia acrylonitrile-butadiene-styrene (ABS) market was firmer as New Year kicked off with suppliers expressing relief that the market had stabilized after months of decline.

OUTLOOK ’19: China MMA ample supply to keep pressure on prices
China’s methyl methacrylate (MMA) supply will increase in 2019 on the back of new plant capacity while demand is expected to remain soft to stable that may keep pressure on prices.

OUTLOOK ’19: Asia’s soda ash prices to stay supported despite Turkish supply
The perennial year end soda ash price spikes in Asia due to tightened supply from China may prevail albeit at a moderated manner as new supply from Turkey was insufficient to meet demand.

Asia IPA under downward pressure on lower offers; bearish sentiment
Isopropanol (IPA) prices in Asia are under downward pressure on lower offers and bearish upstream acetone, a trend unlikely to change on the back of long supply and weak demand.

OUTLOOK ’19: Asia’s polycarbonate may see limited upsurge potential
Asia’s polycarbonate (PC) prices are expected to take on a soft trend in the first quarter at least, with ample supply expected to keep a lid on any potential upsurge, market sources said.

Asia PS market upbeat despite volatile SM amid healthy demand
Asia’s polystyrene (PS) market sentiment is upbeat in the near term despite volatility in feedstock prices, as demand stays buoyant while supply is tight.

OUTLOOK ‘19: China’s acrylic acid profitability to hinge broadly on downstream demand
China’s acrylic acid market will see new capacities coming onstream in 2019, with the total of such new volumes rising by more than a fifth, underscoring the country’s growing supply share in the global market.

Asia MTBE higher on stronger energy, China arbitrage opens
Asia’s methyl tertiary butyl ether (MTBE) prices have seen a $69/tonne gain in total from 2 January, or 13.5%, supported by higher energy prices and improved buying sentiment from China but the trend is unlikely to last long given ample supply.

OUTLOOK ’19: Asia PTA supply balanced to tight amid growing demand
Asia’s purified terephthalic acid (PTA) supply is likely to remain largely balanced to tight in 2019 as a result of limited capacity expansion, while demand is expected to continue growing.

OUTLOOK ’19: Asia plasticizers spot prices to be supported in Q1
Asia spot prices for plasticizers could some see support in the first quarter of 2019 on restocking ahead of the Lunar New year in the first week of February, and slight thaw in trade tensions between the US and key Asian market of China.

OUTLOOK ’19: Asia oxo-alcohols to enjoy some support in Q1
Spot prices for oxo-alcohols in Asia could enjoy some support in the first quarter of the year on restocking ahead of the Lunar New year in the first week of February.

Asia BD to track China market gains; demand to weaken toward Feb
Asia’s butadiene (BD) spot prices may track recent gains in China’s domestic market, but demand is expected to weaken ahead of the Lunar New Year in early February.

OUTLOOK ’19: Asia MEG under pressure from China economic slowdown
Asia’s monoethylene glycol (MEG) prices are expected to be weighed down in the first half by an economic slowdown in key China market, along with slower growth in downstream polyester sectors.

Asia benzene extends rebound on buoyant crude, US-China talks
Asia’s benzene market firmed this week in a refreshing change after several months of decline, on hopes of a resolution to the US-China trade war in the near term.

OUTLOOK ’19: China DEG prices to remain bearish on rising supply
China’s diethylene glycol (DEG) prices are likely to remain bearish in 2019 in the face of rising supply, but the downtrend may be limited as it is approaching three-year lows.

OUTLOOK ’19: Middle East Group I base oils hoping for better demand
The Middle East base oils market has been struggling with weak demand, supply overhangs and prolonged uncertainty over the last few months but there is hope conditions will improve in 2019.

OUTLOOK ’19: Asia base oils to remain sluggish on oversupply, falling crude
Asia’s spot import prices for Group II low viscosity 150N as well as high viscosity 500/600N base oils are expected to come under further pressure in the first quarter of 2019 as a result of long supply.

OUTLOOK ’19: Asia FAE could gain steam in Q1 on some upstream rebounds
Fatty alcohol ethoxylates (FAE) import markets in Asia could gain steam on some upstream rebounds and steady demand in the first quarter of 2019.

OUTLOOK ’19: Asia fatty alcohols may see support from supply tightness
Asia’s fatty alcohols prices may continue to receive upward support from supply tightness in 2019 as a result of some shutdowns in Asia.

OUTLOOK’19: China acetic acid to continue its fluctuation
China’s acetic acid prices are likely to widely fluctuate and see saw in 2019, following the turbulent trend from last year as a result of erratic supply and demand dynamics.

OUTLOOK ’19: Asia’s acetic acid poised for more balance amidst uncertainties
Asia’s acetic acid spot prices may experience comparatively reduced volatility in 2019 because of a more balanced market, although lingering uncertainties on the macroeconomic front will continue to cloud the sentiment of suppliers.

OUTLOOK ’19: Asia fatty acids to continue tracking palm oil movements
Spot prices of fatty acids in Asia will continue tracking feedstock palm oil prices closely in 2019 as they did in 2018.

OUTLOOK ’19: Asia PX supply to lengthen on new capacities
Supply of paraxylene (PX) in Asia should gradually lengthen as a result of PX capacity expansion growth, driven by two large production units coming on stream in the key China market this year.