Polymerupdate Asian resin pricing, Nov. 9-13: Ethylene, propylene, LDPE, LLDPE, and PS rise

Ethylene prices were on the rise in Asia last Friday climbing on user and speculative demand, according to Polymerupdate. Ethylene avails were tight, and sellers were not in a hurry to unwind their positions, with several converters in need of cargo reportedly willing to pay a premium for their prompt requirements. FOB Korea ethylene climbed over $50/tonne on Friday, hitting $1020/tonne, while CFR Northeast Asia prices jumped by $20/tonne to $1000/tonne and CFR Southeast Asia prices hit $1060/tonne.

Linear low-density polyethylene (LLDPE) prices also rose in Asia last week, impacted by rising ethylene and steep gains recorded in low-density polyethylene (LDPE) prices. Last Thursday, CFR Far East Asia and CFR Southeast Asia LLDPE rose $15/tonne to $1260/tonne, with CFR South Asia prices at $1280/tonne. In China, meanwhile, ex works prices at midweek were RMB 10750 to RMB 10800/tonne. A trader noted that January futures on the Dalian Commodity Exchange are already showing signs of strength, with prices reaching RMB 10,995/tonne by the middle of last week. In plant news, South Korea’s Daelim suffered an unplanned shutdown at its 130,000 tonnes/yr high-density/linear low-density swing plant in Yeosu on Monday.

Low-density polyethylene (LDPE) raced higher, climbing more than $50/tonne on firmer ethylene feedstock and regional availability constraints. On Thursday, CFR Far East and Southeast Asia prices of general-purpose LDPE were assessed at $1355/tonne. In China, local supplies were tight due to the unexpected shutdown of Beijing Yanshan’s LDPE plant. A trader contacted by Polymerupdate said that as converters work to replenish low inventories in a marketplace where avails are tight, the pricing undertone will remain firm, but his company does not expect this trend to last through until December.

Propylene prices ended up last week in Asia, with FOB Korea rates at $1040 to $1045/tonne, and CFR Taiwan and CFR Southeast Asia prices reaching $1095/tonne. A trader told Polymerupdate that rising downstream prices of polypropylene (PP) were pushing propylene feedstock upwards at a time when avails are tight across Asia, with regional shutdowns, particularly in Taiwan, exacerbating shortages. Looking forward, however, two Japanese propylene plant startups—Kashima and Chiba sites with combined annual output of 300,000 tonnes—should help alleviate constrained supply with test runs set for this week.
 
Polystyrene (PS) galloped higher in Asia, rising on the back of bullish styrene monomer (SM). Last Thursday, SM was assessed at $1045 to $1050/tonne FOB Korea, up roughly $50/tonne. This pushed general purpose (GPPS) grades to $1170/tonne CFR China, while CFR Southeast Asia prices hit $1170/tonne. High-impact (HIPS) prices were assessed at $1250/tonne CFR China and $1260/tonne CFR Southeast Asia. A trader noted that the pace of demand growth has not kept pace with price increases. —mpweditorial@cancom.com