Polymerupdate Asian resin pricing, Oct. 19-23: PP, PVC, PS, ethylene, propylene rise

Ethylene prices shot higher in Asia last week, according to Polymerupdate, riding a demand surge in Southeast Asia. FOB Korea ethylene rose to $930/tonne, with CFR Southeast Asia prices at $1015/tonne. In addition to improved demand, the market was impacted by higher energy, naphtha, and downstream polyethylene prices, as well as the start-up of Shell’s new 750,000-tonnes/yr mono ethylene glycol (MEG) plant in Singapore.

Propylene prices also jumped in Asia last week, rising on strength in crude oil and naphtha, as well as firmer downstream prices of regional polypropylene. FOB Korea propylene rose to $1010/tonne, with CFR Southeast Asia and CFR Taiwan prices at $1040/tonne and FOB Japan propylene at $1000/tonne. A trader contacted by Polymerupdate described trading as “hectic,” with market players particularly interested in building long positions.

Polypropylene (PP) was higher in Asia, rising on gains in crude, naphtha, and propylene, as well as reports of frantic restocking activity by traders and distributors in China. PP injection and raffia offers climbed to $1110 to $1115/tonne CFR Far East Asia, with CFR Southeast Asia prices at $1105 to $1110/tonne. PP film hit $1135/tonne CFR Far East Asia, with PP block copolymer at $1205/tonne CFR Far East Asia. A market participant contacted by Polymerupdate actually felt price gains in PP would have been sharper if Chinese PP converters had been as active as traders and distributors were. Those processors remain skeptical about whether the current bull run will sustain, choosing only to restock on their return from the National Day holidays, and remaining circumspect over further purchases.

Polyvinyl chloride (PVC) prices edged higher in India last week, while falling in China. Healthy Indian demand pushed sellers’ offers to $880/tonne CIF Nhava Sheva. In China, however, prices fell in anticipation of large volumes of U.S. cargoes, purchased at below $800/tonne CFR, which are scheduled to arrive at ports in the weeks ahead. Overseas sellers responded to the low bids from China by turning their attention to more lucrative markets, including Turkey, where buying interest for Asian product increased after U.S. deep-sea offers dried up. Turkish buyers were willing to purchase material at $880/tonne CFR, with offers at the end of the week at $920/tonne CFR Turkey. CFR China PVC prices fell to $840/tonne, while CFR South Asia rose to $880/tonne.

Polystyrene (PS) prices were higher in Asia last week, with general purpose (GPPS) rising due to higher styrene monomer (SM) rates and reports of improved buying activity. CFR China GPPS rose to $1130/tonne, with CFR Southeast Asia prices at $1150/tonne. High-impact (HIPS) prices were assessed at $1210/tonne CFR China and $1230/tonne CFR Southeast Asia. HIPS offers were pegged above $1250/tonne CFR, with Taiwan’s Grand Pacific Petrochemical Co. going over $1270/tonne. In plant news, Japan’s Denka is reportedly operating its Singapore plant at reduced rates of 75-80%. In Taiwan, Taita has also reportedly lowered operating rates at its 100,000-tonnes/yr PS plant in Kaohsiung to between 70% to 80%. —[email protected]