Polymerupdate Asian resin pricing, Nov. 16-20: LDPE, LLDPE, PS up; PP downPolymerupdate Asian resin pricing, Nov. 16-20: LDPE, LLDPE, PS up; PP down
Low-density polyethylene (LDPE) prices raced higher last week in Asia, driven by supply constraints and rising ethylene, according to Polymerupdate. CFR Far East and Southeast Asia prices of general-purpose LDPE rose to $1400/tonne, jumping more than $40/tonne. An unplanned outage at Samsung Total’s Daesan complex on Saturday exacerbated the situation, with the 100,000-tonnes/yr LDPE facility taken offline.
November 25, 2009
Low-density polyethylene (LDPE) prices raced higher last week in Asia, driven by supply constraints and rising ethylene, according to Polymerupdate. CFR Far East and Southeast Asia prices of general-purpose LDPE rose to $1400/tonne, jumping more than $40/tonne. An unplanned outage at Samsung Total’s Daesan complex on Saturday exacerbated the situation, with the 100,000-tonnes/yr LDPE facility taken offline. Offers from South Korea have climbed to $1450 to $1470/tonne CFR China for general-purpose grades, but a trader contacted by Polymerupdate noted that there are converters in need of cargo that were willing to pay this price given the seasonal demand for agricultural film. The strong buying appetite has also been seen in China, where domestic prices rose by more than RMB 150/tonne last week to RMB 11750 to RMB 11800/tonne ex works.
Linear low-density polyethylene (LLDPE) shot higher on firmer ethylene and strong demand for agricultural film. CFR Far East Asia and Southeast Asia prices rose to $1300/tonne, climbing more than $35/tonne. The price gains were also driven by an unexpected shutdown of Shanghai Secco’s LLDPE plant in China. The 300,000-tonnes/yr facility shutdown on Nov. 14 due to unspecified problems. In China, LLDPE prices gained more than RMB 400/tonne, with ex works prices at RMB 11200/tonne.
Polypropylene (PP) producers experienced negative margins in Asia after propylene prices marched higher. FOB Korea propylene hit $1060/tonne and $1115/tonne CFR China on Thursday, with PP injection and raffia at $1150/tonne. The situation for PP producers isn’t likely to improve in the near term with one producer noting that current demand for PP isn’t robust enough to support higher prices, as most converters polled in China say they do not intend to build inventories as the fiscal year-end approaches.
Polystyrene (PS) edged marginally higher, although regional demand remained sluggish. PS sellers successfully steered offers upwards, citing steep gains in styrene monomer (SM) prices. Firmer ethylene and benzene prices didn’t hurt their cause. General purpose (GPPS) prices were assessed at $1170/tonne CFR China and Southeast Asia, while high-impact (HIPS) prices hit $1255/tonne CFR China and Southeast Asia. In plant news, Hong Kong Petrochemical is scheduled to shut down its PS lines for maintenance during the first quarter of next year for two weeks, affecting 70,000 tonnes/yr of capacity. —[email protected]
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