Polymerupdate Asian resin pricing, Nov. 2-6: Ethylene, LDPE, LLDPE up; HDPE, PS, ABS down

Ethylene prices shot higher in Asia last week, according to Polymerudpate, with FOB Korea prices at $960/tonne and CFR Southeast Asia prices at $1020/tonne. An outage at Marun Petrochemical's 1.1 million tonnes/yr steam cracker constrained supplies in Southeast Asia, and traders turned to Northeast Asian to cover shortages. In spite of this development, a trader contacted by Polymerupdate said the outlook in downstream polyethylene (PE) appeared bearish due to year-end pressures to keep raw material stocks low and a seasonal lull in demand.

High-density polyethylene (HDPE) injection molding prices were down to $1210/tonne CFR Far East Asia, while HDPE blowmolding was assessed at $1180/tonne CFR Far East Asia. HDPE film was at $1220/tonne CFR Far East Asia. In Southeast Asia, sellers cited supply troubles in Malaysia and Thailand as justification to defend their offers. HDPE injection molding prices were assessed at $1215/tonne CFR, while film prices were at $1230/tonne CFR mark. South Asian HDPE film prices were assessed at $1285/tonne CFR, with sellers citing availability constraints. A planned shutdown of a 550,000 tonnes/yr PE plant at India's Haldia Petrochemicals was expected to exacerbate already tight supplies. In additional plant news, Sinopec Tianjin was expected to bring on stream its new 300,000 tonnes/yr HDPE plant by the end of December, while Thailand's PTT Chemical was due to bring on line its new 300,000 tonnes/yr HDPE plant located at Map Ta Phut in mid November. Sharq of Saudi Arabia shut its new 400,000 tonnes/yr HDPE plant in Al Jubail last Saturday for maintenance.

Low-density polyethylene (LDPE) prices edged higher in Asia this week, rising on tight regional availability and reports of stable demand for agricultural packaging applications. On Friday, general-purpose LDPE hit $1305/tonne CFR Far East Asia, while CFR Southeast Asia prices were assessed at $1310/tonne. Domestic prices of LDPE in China were pegged at 11,400/tonne ex-works, with Sinopec reportedly having hiked its ex-factory rates by RMB 200/tonne to 11,400/tonne. A trader contacted by Polymerupdate said his forecast if for LDPE to end the year at $1200/tonne CFR Asia, maybe lower.

Linear low-density polyethylene (LLDPE) experienced good demand and tight supply of prompt parcels, pushing prices to $1240/tonne CFR Far East Asia, $1255/tonne CFR Southeast Asia, and $1295/tonne CFR South Asia. In China, domestic prices fell to RMB 10,550/tonne ex works, falling on slower local buying trends and an anticipated lift in availability with the start of the new 300,000 tonnes/yr LLDPE plant of Sinopec Tianjin, due to begin runs at the end of December.

Propylene prices in some parts of Asia ended flat last week, and Polymerupdate described the near-term outlook for the key monomer in Asia as "not very bright." FOB Korea prices were assessed at $1005/tonne, with CFR China prices at $1055/tonne and FOB Japan propylene prices at $995/tonne. The softening was due in part to weakening demand in the downstream polypropylene (PP). In China, PP slipped RMB 100/tonne dropping ex-works rates to RMB 9600/tonne.

Polystyrene (PS) prices slipped, as subdued demand trends overshadowed gains in styrene monomer. General-purpose (GPPS) prices mid week were assessed at $1140/tonne CFR China. CFR Southeast Asia prices fell to $1160/tonne. On Friday, GPPS prices were quoting lower as buying interest remained muted. A few sellers claimed to have transacted at $1150/tonne CFR China, however the volumes were low and the deals unrepeatable. High-impact (HIPS) prices were assessed down at $1205/tonne CFR China, while CFR Southeast Asia prices settled on $1225/tonne. In response to the current situation, Taiwan's Formosa is reportedly planning further run cuts at its PS plants in Mailiao and Jaiyi.

Acrylonitrile butadiene styrene (ABS) prices in Asia drifted lower on sluggish regional buying interest which forced sellers to drop their offer rates. Supporting the decline in Asian ABS rates were softer prices of ABS feedstocks acrylonitrile (CAN) and butadiene. On Wednesday, CFR China prices were assessed at $1440 to $1445/tonne with rates dropping to $1430/tonne CFR on Thursday. Despite the price decline, buying interest failed to lift, with notional buyer bids at the $1420/tonne CFR mark and below. In plant news, Toray cut run rates at its 110,000 tonnes/yr ABS plant in Butterworth, Malaysia to 90% due to slowing demand. Run rates at its 220,000 tonnes/yr plant are down at 50% rates. - [email protected]