Polymerupdate Asian resin pricing, Sept. 14-18: HDPE, LLDPE, LDPE, PP, PVC, and ABS down; PS steadyPolymerupdate Asian resin pricing, Sept. 14-18: HDPE, LLDPE, LDPE, PP, PVC, and ABS down; PS steady

High-density polyethylene (HDPE) prices finished lower in Asia last week, according to Polymerupdate, with the drop triggered by a combination of factors, including sluggish buying, large volumes of unsold inventories, and increased availability from new plant startups. HDPE injection molding prices fell to $1155/tonne CFR Far East Asia, with CFR Southeast Asia at $1175/tonne. HDPE film prices fell to $1215/tonne CFR Far East Asia, while CFR Southeast Asia prices were at $1255/tonne. Several HDPE producers polled by Polymerupdate said they were unwilling to drop rates to try to spark buying, but in their absence, traders with unwound positions aggressively reduced their rates. Across parts of Asia, HDPE prices were off $30/tonne, and in China, local prices fell by RMB 500/tonne. The market was affected by the startup of Fujian Refining’s new Quanzhou HDPE plant, as availability of HDPE increased significantly. By the middle of last week, India’s Reliance Industries lowered their HDPE rates by Rs 3/kg basic.

Linear low-density polyethylene (LLDPE) prices slipped across Asia, dropping to $1230/tonne CFR Far East Asia and CFR South Asia, while CFR Southeast Asia prices were assessed at $1260/tonne. Polymerupdate reports that buyer appetite for spot cargoes dried up rapidly and sellers were seen struggling to find buyers. An LLDPE trader contacted by Polymerupdate said that competitive offers for LLDPE have surfaced in India at $1220/tonne CFR from sellers in the U.S., but buyers have not responded favorably, believing that LLDPE rates will dip below $1200/tonne CFR. The trader held out hope that post-Diwali holidays inventory replenishment could offer some recovery in India, with the potential for buying to restart by the end October/early November timeframe.

Low-density polyethylene (LDPE) rates in Asia were reduced as well last week, although the slip wasn’t as severe as that seen in other grades. General-purpose LDPE prices were assessed at $1245/tonne CFR Far East Asia, while CFR Southeast Asia prices fell to $1260/tonne. Buying activity remained subdued and LDPE sellers worked hard to unwind inventory positions ahead of the approaching National Day holidays in China. Competitively priced LDPE offers surfaced from Iran at $1220/tonne CFR Asia, but buyers were not biting. In India, Reliance Industries reduced local LDPE prices by Rs 4/kg basic.

Polypropylene (PP) prices ended last week in Asia lower, as buying interest continued to steadily dry up in the region and upstream propylene prices fell over concerns about regional oversupply. PP raffia and injection prices were assessed at $1130/tonne CFR Far East Asia, with CFR Southeast Asia prices at $1150/tonne and CFR South Asia prices PP injection and raffia down to $1190/tonne. PP film prices were assessed at $1165/tonne CFR Far East Asia, while CFR Southeast Asia prices fell to $1180/tonne and CFR South Asia at $1200/tonne. One of the main triggers for the price decline is the growing level of regional availability, with new PP production from Fujian Refining and Reliance Industries, as well as new plant start ups in the Middle East. Additional supplies were also reported from China’s Shaanxi Yangchang, Panjin Petrochemical, Da Tang Coal, Liaoning Huajin, and from Zhanziang Dongxing. A PP maker offered his anonymous opinion to Polymerupdate saying, “Our struggle to sell within Asia is mounting…the current time is very difficult for us and therefore we are concentrating our efforts to sell to other markets outside Asia where buying interest continues to remain fair,” specifically citing Latin America, Egypt, and Turkey.

Polyvinyl chloride (PVC) prices journeyed south in Asia last week, as China’s buying appetite rapidly dried up. CFR China PVC prices dropped to $890 to $900/tonne. PVC buying interest in other parts of Asia also ebbed, weighing down on spot rates. A PVC seller contacted by Polymerupdate noted that despite lowering PVC offers by $20/tonne, sales failed to increase, with some buyers seeking cargoes for October at as low as $850/tonne CFR Southeast Asia and $800/tonne CFR China.

Polystyrene (PS) prices held steady in Asia, as the market undercurrent was clearly weak with only a handful of buyers in China actively seeking to replenish exhausted stocks before the Oct. 1 start of the National Day holidays. CFR China prices of general-purpose PS were flat at $1205/tonne, while high-impact PS prices rose to $1315/tonne CFR China. In operation news, select Taiwanese firms were heard running their PS plants at low rates of 80%, while in China, the smaller PS plants were reported to be operating at rates between 50% and 60%.

Acrylonitrile butadiene styrene (ABS) prices continued to slide in Asia this week despite upstream increases in acrylonitrile (ACN). CFR China and CFR Southeast Asia ABS prices fell to $1510/tonne. Buying bids for ABS from some parts of Asia dropped as low as $1450/tonne CFR, a price sellers brushed off as impossible to match. The lowest offer heard was at $1480/tonne CFR, where the seller was a trader and available quantities were limited. —[email protected]