Polymerupdate global resin pricing: Prices continue fall in Asia and Europe, while LDPE proves stubborn

Styrene monomer (SM) prices fell as demand and upstream benzene prices dropped nearly $20/tonne, falling below $1270/tonne FOB Korea. Traders with long positions in SM slashed rates to $1565/tonne FOB Korea. Despite the reduction, buying interest was thin.

Acrylonitrile butadiene styrene (ABS) prices in Asia also dropped about $50/tonne with Taiwan’s Chi Mei heard to have lowered injection grade offers to Hong Kong from $2250/tonne to $2200/tonne CFR China. Polystytene (PS) prices also fell with general purpose offers to China down $40/tonne on lower SM and very soft regional demand.

Propylene prices in Asia fell more than $50/tonne on a CFR China basis, with dull demand in polypropylene (PP) and falling crude and naphtha prices weighing on regional spot rates.

In polyvinyl chloride (PVC), weak Chinese demand has pressured Asian sellers to lower their offers quite sharply. Polymerupdate says a fall in crude and naphtha prices coupled with a tumble in regional prices of ethylene have further weighed on prices. PVC offer prices to China subsequently fell from $1320/tonne to below $1305/tonne CFR.

Calls to reduce prices are being seen elsewhere, with producers of polyethylene terephthalate (PET) bottle-grade chips under “intense pressure” to reduce rates, according to Polymerupdate. Drops in feedstock paraxylene (PX) prices coupled with falling terphthalic acid (PTA) and monoethylene glycol (MEG) have PET buyers waiting for price decreases in the polymer.

Low-density polyethylene (LDPE) have resisted calls to lower prices, citing tight regional product availability and good demand for LDPE outside Asia, including in Africa and Latin America. One producer told Polymerupdate that it’s selling general-purpose LDPE grades to markets like China at $1970/tonne to $1980/tonne, with offers to some other Asian markets at $2000/tonne CFR.

In Europe, general-purpose LDPE contract prices were assessed at euro 1540/tonne FD North West Europe, with spot prices rising by euro 10 to euro 1510/tonne FD North West Europe. LyondellBasell announcing a euro 100/tonne hike in its PE grades effective August 1.

Spot LLDPE prices spiked by about euro 20/tonne, in spite of weak demand. Gains came on account of extreme regional tightness of LLDPE, according to Polymerupdate, which pushed spot prices to euro 1450/tonne FD North West Europe. In the contract markets, LLDPE prices were assessed at euro 1525/tonne FD North West Europe.

PP contract prices rose in Europe, with PP homopolymer injection grade prices assessed at euro 1315/tonne FD north West Europe. PP copolymer contract prices were reported at euro 1365/tonne FD North West Europe. In the spot market, PP homopolymer prices were seen at Euro 1260/tonne FD North West Europe, while PP copolymer prices registered at euro 1315/tonne FD North West Europe. For August, Dow announced a euro 200/tonne hike in its prices, inviting what Polymerupdate called “incredulous responses” from buyers. Chances for the increase are seen as dim to August holiday season, and depressed demand.

PVC suspension-grade contract prices were unchanged in Europe with FD North West Europe prices at euro 1035/tonne. In July negotiations that hadn’t closed, sellers were determined to push forward with targets of a euro 60/tonne to euro 90/tonne hike for the month.

PS spot prices firmed in Europe last week, with GPPS prices up to euro 1250/tonne FD North West Europe and HIPS prices rising to euro 1300/tonne FD North West Europe. In contract markets, prices rose more than euro 50/tonne from June settlements to euro 1520/tonne FD for GPPS and euro 1570/tonne FD for HIPS. Dow proposed a hike of euro 130/tonne in PS prices, and INEOS NOVA planned to take down its HIPS line located in Marl in October for between 3-4 weeks of maintenance.

ABS contract prices in Europe finished flat from the week before, with general-purpose and natural-grade ABS rates unchanged at euro 1840/tonne FD North West Europe. Here too, Dow Europe announced a price increase across Europe effective August 1, 2008 or as contract terms allow, with prices of all styrenic copolymers hiked by euro 80/tonne across Europe.