Global Pricing Briefs from Polymerupdate.com 5216

According to Polymerupdate.com (for more information on these stories, go to www.polymerupdate.com), polypropylene (PP) and polyethylene (PE) prices edged higher in Asia in early December, in spite of a recent slide in crude and subsequent fall in naphtha. Higher target prices are being pushed for December and January on the back of what polymer traders say is a tightness in regional availability accompanied by strong demand. According to an Asia-based trader contacted by Polymerupdate, government-enforced shutdowns of polymer producers are impacting the market. “Companies like PetroChina and Sinopec have been asked to slash their petrochemical plant operations in order to focus more on oil production to make up for shortages. With cracker rates reduced by over 10%, downstream plant run rates have also been impacted. This is bound to create shortages in the markets which will keep the undertone across Asia very bullish going forward.”

In additional news, Polymerupdate is reporting that dumping allegations against South Korean and Chinese polyvinyl chloride (PVC) manufacturers have been initiated by the Brazilian and Indian governments. In China news, the site is reporting that Taiwanese polymer producer Formosa will start up its new polypropylene (PP) plant in Ningbo next year. The operation will begin in February or March 2008, with an annual capacity of 450,000 tonnes.