Polymerupdate Asian resin pricing, August 31-Sept. 4: Ethylene up; propylene, LDPE, HDPE, SM, PVC downPolymerupdate Asian resin pricing, August 31-Sept. 4: Ethylene up; propylene, LDPE, HDPE, SM, PVC down

Ethylene prices firmed last Friday in Asia, according to Polymerupdate, with buying interest in Southeast Asia described as robust and availability remaining tight. Northeast Asian prices of ethylene climbed as traders moved cargoes from Northeast Asia to Southeast Asia. CFR Northeast Asia prices last Friday were assessed at $990/tonne, up $25/tonne, while CFR Southeast Asia prices rose more than $15/tonne to $1090/tonne. FOB Korea ethylene prices were assessed at $1010/tonne. A trader contacted by Polymerupdate was surprised by the gains in ethylene in light of sluggishness in downstream polyethylene. In addition, the National Day and Diwali holidays next month in China and in India are expected to further slow down purchase momentum.

Low-density polyethylene (LDPE) prices in Asia pulled lower, slipping as demand in the region waned. Further supporting the price drop were softer energy rates and a drop in ethylene. CFR Far East Asia LDPE general-purpose grades dropped to $1295 to $1305/tonne on Thursday, with CFR Southeast Asia prices at $1300 to $1310/tonne. Sellers noted mounting inventories, prompting some traders to liquidate stocks. In China’s domestic markets, LDPE prices also dropped.

High-density polyethylene (HDPE) prices were also dragged lower on sluggish buying interest, ample availability from new plant startups, and weak upstream energy and ethylene rate. CFR Far East Asia HDPE injection dropped to $1225/tonne, while CFR Southeast Asia HDPE injection fell to $1240/tonne. HDPE Film prices were assessed lower at $1275/tonne CFR Far East, while CFR Southeast Asia prices were assessed at $1280/tonne. In plant news, Iran’s Mehr Petrochemical started up its new HDPE plant at Assaluyeh as feedstock supplies from Jam and Arya Sasol crackers restarted. Thailand’s PTT reportedly postponed a shutdown at one of its two HDPE plants located at Map Ta Phut, taking offline 250,000 tonnes/yr of capacity. India’s Haldia Petrochemicals is scheduled to shut its plant for debottlenecking in October. After the work is completed, PE capacity is expected to increase to 670,000 tonnes/yr.

Propylene prices across Asia finished lower last week on bearish energy prices and falling downstream prices for polypropylene. FOB Korea propylene prices were assessed at $1040/tonne, while CFR Taiwan prices hit $1065/tonne. Elsewhere, FOB Japan prices were assessed at $1030/tonne, with CFR China propylene prices at $1065/tonne.

A propylene seller contacted by Polymerupdate said that given the discouraging near-term outlook in Asia, the company is concentrating on directing shipments to the U.S. and Europe where propylene shortages remain. In plant news, propylene avails from the Philippines' Petron are expected to lift as a local PP plant has shut down. In Thailand, PTT Chemical’s new ethane-based steam cracker at Map Ta Phut will start test runs next month.

Polyvinyl chloride (PVC) prices in Asia declined in the midst of soft demand and a drop in crude, naphtha, ethylene, and ethylene dichloride (EDC). Buying in China and India was sluggish, with a move by Indian producers earlier in the week to hike PVC not accepted. CFR China PVC prices were down at $925 to $935/tonne. India buyers countered offers at $980 to $1000/tonne CFR for September with notional bids at $950/tonne CIF Nhava Sheva and below. CFR Southeast Asia PVC fell to $925 to $935/tonne. A PVC trader contacted by Polymerupdate believes the downward correction in PVC will continue, with prices at $900/tonne CFR or below within September a distinct possibility.

Styrene Monomer (SM) prices fell across Asia, with FOB Korea prices at $1045/tonne. CFR China prices fell more than $20/tonne on the day and were assessed at $1055 to $1060/tonne, with CFR Taiwan at $1050/tonne. The drop in SM was triggered by soft global energy prices, falling prices of benzene feedstock, and subdued buying interest in downstream acrylonitrile butadiene styrene (ABS) and polystyrene (PS). Going forward, the outlook for SM appears increasingly bearish, with Asia expected to experience ample availability and softer demand. —[email protected]