OfBusiness Polymer Dailies | 26th October 2023

Price

• PP Raffia Rs.89/kg levels Ex Godown.
• PP Film Rs.93/kg levels Ex Godown.
• PPCP Rs.96/kg levels Ex Godown.
• PP IM Rs.91/kg levels Ex Godown.
• LLDPE Rs.80/kg Ex Mundra/Bhiwandi.
• LDPE prices are around Rs.93/kg Ex Mundra/Bhiwandi.
• HDPE PE100 natural Rs.98/kg Ex Mundra/Bhiwandi.
• HDPE PE100 black Rs.100/kg Ex Mundra/Bhiwandi.
• HDPE HM Rs.90/kg Ex Mundra/Bhiwandi.
• HD Blow Moulding Rs.93/kg Ex Mundra/Bhiwandi.
• PVC (SG5) Rs.71.25/kg Ex Mundra/Nhava Sheva.
• Ethylene Based K67 (LG/Formosa) Rs.71.5/kg Ex Mundra/Nhava Sheva.
• Low K (Formosa K57) Rs.78/kg Ex Mundra/Nhava Sheva.

Demand and Supply

• This week, HDPE prices declined in South Asia while remaining stable in Southeast Asia and Far East Asia. Ample material avails coupled with muted demand sentiments pressured prices lower in Asia.
• Asian producers are under severe pressure to offload their excess inventories which in turn has compelled them to offer cargoes at discounted rates because of which material in the local markets is available at cheaper prices as compared to overseas material.
• Meanwhile, overseas producers are facing a daunting task in selling their material in global markets. The seasonal demand ahead of the festive season in the Asian region is anticipated to be dull as compared to previous years, a key factor that may weigh on prices.
• Low-density polyethylene (LDPE) prices drifted lower in Asia while remaining unchanged in Far East Asia. The market was witness to a slowdown in the trading momentum amid excess material avails while hardly any firm transaction was noted for import cargoes.
• A combination of factors including fluctuating upstream energy rates, a bleak global market outlook, and dampened demand sentiments weighed on prices.

News

• Xinji Jiuyuan Chemical has taken offstream its melamine unit in Hebei.
• Sinopec Zhenhai Refining and Chemical (ZRCC) has shut down its No.4 Polypropylene (PP) unit.
• CITGO Refining and Chemical has undertaken an unplanned shutdown at its refinery in Corpus Christi, Texas.
• Jinneng Science and Technology has restarted its Polypropylene (PP) unit in Qingdao.
• Zhejiang Petroleum & Chemical (ZPC) has postponed the restart of its No.1 Methyl methacrylate (MMA) plant in Zhoushan.
• Sinopec Luoyang has brought onstream its No.1 Polypropylene (PP) unit.
• Delek Refining has undertaken an unplanned shutdown at its fluid catalytic cracker (FCC) unit in Big Spring, Texas.
• Shandong Befar Group has brought onstream its Propylene oxide (PO) plants.
• CNOOC and Shell Petrochemicals Company Limited (CSPC) has taken offstream its No. 2 cracker in Huizhou.
• CNOOC and Shell Petrochemicals (CSPC) has taken offstream its No. 2 Polypropylene (PP) unit in Guangdong.
• Siam Sorbitol has taken offstream its sorbitol unit in Phimai.

OFB’s Opinion

• It is anticipated that the persistent oversupply in the region will lead local producers to continue reducing their prices in the open market. Many market players are expected to explore the option of diverting their cargo to overseas markets in hopes of securing better netbacks. Despite this, market participants across the value chain are anticipated to grapple with significant inventories, while demand sentiments are expected to remain depressed, resulting in buyers making only need-based purchases.