Limited supplies of polyethylene (PE) and polypropylene (PP) in China will likely drive up spot import prices for the materials, chemical and energy news website ICIS has reported citing industry sources.
 
Heavy maintenance at plants across Asia is set to take place next month, which will also have a major impact on supply.
 
Offers for imported linear low density polyethylene (LLDPE) film grade jumped by $30 per ton this week to $1,330-1,360/ton CFR (cost and freight) China. Imported PP flat yarn grade was sold at $1,280-1,340/ton CFR China, also increased by $30/ton from last week. 
 
The upward trend in PE and PP prices has been ongoing since February.
 
Within China, major suppliers such as Dushanzi Petrochemical, Jilin Petrochemical, Wuhan Petrochemical, Shenhua Ningxia Coal Industry, Dalian West Pacific Petrochemical, and Daqing Petrochemical are said to be closing their facilities next month.
 
Polyolefin is also expected to be in limited supply as Middle East sellers opt to ship out cargoes to Southeast Asia and India, where netbacks are higher, according to industry experts.
 
Major PE plants are due for maintenance in Malaysia and Thailand in May, impacting production for two to three weeks. ExxonMobil in Singapore has not announced any shutdowns, but sources say it does not expect to have any LLDPE material available until the end of May. 
 
Lotte Chem Titan in Indonesia is currently operating its 125,000 ton/year LLDPE/high density PE (HDPE) swing plant at half its capacity. 
 
Meanwhile, Middle Eastern-producers such as Rabigh Refining and Petrochemical (Petro Rabigh) and Saudi Basic Industries Corp. (SABIC) were said to be experiencing production issues at some of their PE facilities throughout this month.
 
PP imports to China are also expected to be limited given supply issues and shutdowns at plants run by LG Chem and Samsung Total Petrochemicals in South Korea, as well as at a unit of Al-Waha Petrochemical in Saudi Arabia.

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}} حساب موثّق

{{comment.ElapsedTime}}
loader Train
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Popular Links

Quick Links

Join Us

Argaam.com Copyright © 2024, Argaam Investment, All Rights Reserved
Call Request