HDPE, LLDPE prices trade at discount to ethylene in China
Spot ethylene prices on a CFR Northeast Asia basis have continued to follow a steady to firmer trend over the past few weeks even as weaker energy costs and lackluster demand pulled down PE prices. Players attribute the persistent strength of the spot ethylene market to limited spot availability stemming from a number of planned and unplanned shutdowns. In production news, Shell declared a force majeure from its 960,000 tons/year cracker in Singapore earlier this month, with players commenting that this force majeure may remain in place for three to six months. In addition, Thailand’s PTT Global is planning to shut a 1 million tons/year cracker for a 40 to 45 day maintenance in late January while Taiwan’s CPC shut a 380,000 tons/year cracker in mid-December. CPC’s cracker is slated to restart in February.
While spot ethylene prices have been buoyed by limited supply and regional production issues, weaker energy costs and lackluster demand have pulled down PE prices in the Chinese market. A source from a Middle Eastern producer reported that they announced their January prices to Asia with decreases, commenting, “Buyers are keeping to the sidelines as they believe that lower crude oil prices will continue to weigh down on PE sentiment. We are not expecting to see any real improvement in demand until after the Chinese New Year holidays.” Another Middle Eastern producer also announced lower January offers to Asia this week, with a producer source stating, “Buyers are holding sufficient supplies and are in no rush to purchase these days. There is a serious imbalance between spot prices for ethylene and PE in the market these days and we feel that this will remain in place over the short term as regional production issues are supporting spot ethylene prices.”
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian styrenics rise cautiously as sellers wager on higher costs
- EN sayfa EN flash haber G deneme
- Price gap between PP and PE widens in China
- Will Taiwanese major roll over November PVC offers?
- Malaysia’s local PE market dives to a decade low
- Homo PP offers below $1000 pervade China’s import market
- PP, PE prices in Mid-East and Africa set to remain weak until end of Q3
- Expectations for Sept PP hikes fade, weakening ahead in Europe(Edited By Boş)
- Expectations for Sept PP hikes fade, weakening ahead in Europe (yazar bilgisinin çoklu girilmesi)
- US LDPE becomes latest target in tit-for-tat tariffs