OfBusiness Polymer Daily Market Report | 5th August 2024

Price

• PP Raffia (-1) Rs.97.5/kg levels Ex Godown.
• PP Film (-0.50) Rs.101/kg levels Ex Godown.
• PP CP (±0) Rs.100.5/kg levels Ex Godown.
• PP Lamination (±0) Rs.104/kg levels Ex Godown.
• LLDPE (-0.5) Rs.89/kg Ex Mundra/Bhiwandi.
• LDPE prices are around (±0) Rs.121/kg Ex Mundra/Bhiwandi.
• HDPE PE100 Natural (-0.5) Rs.95/kg Ex Mundra/Bhiwandi.
• HDPE PE100 Black (-0.5) Rs.96/kg Ex Mundra/Bhiwandi.
• HDPE HM (±0) Rs.95/kg Ex Mundra/Bhiwandi.
• HD Blow Molding (±0) Rs.94/kg Ex Mundra/Bhiwandi.
• Low K (Formosa K57) (-50p) Rs.95/kg Ex Nhava Sheva/Mundra.
• LG LS100H (-50p) Rs.88/kg Ex Mundra/Bhiwandi.

Demand and Supply

• The global HDPE market showed varied trends: in the USA, prices fell by 2% due to declining crude oil costs, eased trading activities, and softened export demand.
• In Asia, the market remained stable except in China, where prices dropped due to reduced demand and falling crude oil prices.
• Despite increased feedstock Ethylene costs, HDPE prices stayed low due to sufficient supply and weak demand.
• Supply disruptions from potential storms and geopolitical tensions could impact future prices.
• In China, market sentiment remains subdued with supply resuming but no significant demand boost. August shipment discussions and regional factors will influence future price trends.

News

• Qingdao Haiwan has restarted its Styrene Monomer (SM) Plant, which was shut down on 2nd July 2024 for maintenance work. The Plant is located in Shandong, China.
• Roehm shut its Methyl Methacrylate (MMA) Unit on 3rd August 2024 for maintenance work. The Unit is located in Caojing, Shanghai.
• Arya Sasol from Iran offered their LDPE Film at 1170$, LD Lamination at 1400$, and HM 5110 at 1000$ Per MT CIF Nhava Sheva/Mundra for September shipment.
• LyondellBasell Petrochemical is aiming to shut its High Density Polyethylene (HDPE) Units on 1st September 2024 for maintenance work of around 30 days. The Units are located in Wesseling, Germany.

OFB’s Opinion

• It is anticipated that HDPE prices in the Asian market could be shaped by ongoing negotiations for August shipments, with buyers exercising caution while awaiting clearer settlement prices. In the US, moderate demand is forecasted, and prices may be influenced by freight costs during the peak season.
• Furthermore, the interaction of global supply chain dynamics and regional economic conditions is expected to play a crucial role in determining HDPE market trends shortly.