Polymerupdate.com Global Plastics Pricing Briefs 21986

Polymerupdate.com learned that processors in China are resisting producer efforts to raise polyethylene (PE) and polypropylene (PP) prices. Producers believe high crude and naphtha prices, as well as the upcoming turnaround season in Asia, will pressure prices upward.

Among individual companies, Sabic is experiencing mechanical trouble at its PE facility that’s limiting supplies; Formosa has delayed the start up of its 450,000 tonne/yr PP plant in Ningbo until after April; and Japan Polypropylene has delayed test runs at its new 300,000 tonne/yr PP plant at Kashima due to feedstock supply issues. In other resins, Polymerupdate has learned that Hanwha Chemical will shut down its 250,000 tonnes/yr polyvinyl chloride (PVC) unit for two weeks in May. During the maintenance at that Yeosu, South Korea site, Hanwha’s 310,000 tonnes/yr PVC plant in Ulsan will continue to operate.

Hanwha will also invest RMB 2.66 billion in a new PVC site in Ningbo, with a designed production capacity of 300,000 tonnes/yr of PVC; 300,000 tonnes/yr of vinyl chloride monomer (VCM); and 500,000 tonnes/yr of dichloroethylene.

Also in PVC, Ukraine’s KarpatNaftoKhim began construction on a new PVC production site in Kalush. The $210-million plant will have production capacity of 300,000 tonnes/yr. KarpatNaftoKhim has internal VCM capacity of nearly 370,000 tonnes/yr.

In Europe, high-density polyethylene (HDPE) contract prices were stable at euro 1310/tonne FD North West Europe for injection grade and euro 1360/tonne FD North West Europe for film grade. Spot injection-grade HDPE was down to euro 1160/tonne FD North West Europe, while film-grade HDPE was also lower at euro 1260/tonne FD North West Europe. Low-density polyethylene (LDPE) spot prices finished down last week in Europe, as well, hitting $1280/tonne FD North West Europe, off euro 20/tonne from the previous week.

Last week in Europe, PP contract prices settled from February levels. Homopolymer injection-grade PP was assessed at euro 1265/tonne FD North West Europe, a drop of euro 10/tonne from February levels, while PP copolymer prices registered at euro 1315/tonne FD North West Europe.

In the PP spot market, PP homopolymer injection prices ranged from euro 1150/tonne to euro 1160/tonne FD North West Europe. PP copolymer prices ended down from euro 1190/tonne to euro 1200/tonne FD North West Europe.

In polystyrene (PS), general-purpose PS March contract prices were at euro 1415/tonne FD North West Europe, with high-impact PS at euro 1460/tonne FD North West Europe. In the spot market, GPPS was at euro 1220/tonne FD North West Europe while HIPS was assessed at euro 1255/tonne FD North West Europe. In ABS, natural grade and general purpose were at euro 1690/mt FD North West Europe.

Bottle-grade polyethylene terephthalate (PET) contract prices were assessed at euro 1295/mt FD North West Europe last Friday. Spot prices came in at euro 1085/tonne FD North West Europe. While producers were targeting rollovers in their March contract prices, buyers pushed for a reduction, citing a decline in upstream monoethylene glycol (MEG) costs. Film-grade PET contract prices were assessed at euro 1250/tonne to euro 1260/tonne FD North West Europe.