Crude oil prices rose past US$72 in the week of October 12, 2009 supported by a weak US dollar and on expectation of an economic recovery. The International Energy Agency up revised its forecast of global consumption for 2010 by 1.7%. On Friday, prices dipped to near US$71 a barrel as the US dollar rebounded - making commodities more expensive for investors. Economies still await a strong signal of recovery amid job losses every month. Unemployment rate in USA rose to 9.8% in September, the highest since 1983.
Naphtha prices in Asia rose to US$600/MT in the week of October 12, 2009 in line with rising oil prices. Since market players from China and South Korea have just returned from their week long Holidays, few deals were concluded.
Ethylene prices have slipped to US$770/MT in Asia in the week of October 12, 2009 on a supply glut from the Middle East and unenthusiastic markets. Though buying interest is beginning to perk up in China when markets reopened after an 8 day national holiday, deal values continue to be lower. Seller’s offers above US$800/MT FOB Korea, have met with damp buying interest about hundred dollars lower. An influx of cargoes from the Middle East has pulled down CFR SEA ethylene prices in SE Asia to US$810/MT.
Propylene prices have advanced to US$910/MT in Asia in the week of October 12, 2009 as demand begins to recover in the region and also in line with rising crude and naphtha prices.
EDC prices steadied at US$360/MT in Asia in the week of October 12, 2009. Outlook is not very optimistic as prices of derivative PVC are on a downtrend.
VCM prices have stagnated at last week’s US$695/MT in Asia in the week of October 12, 2009. Despite conclusion of September deals above US$710/MT CFR China, offers for October could see a downtrend in line with current pessimistic feedstock EDC and downstream PVC prices.
Robust crude oil and benzene prices have pushed up November shipment Styrene Monomer prices to US$980/MT in Asia in the week of October 12, 2009. Few FOB Korea deals were heard concluded at US$975/MT. Benzene prices spiked up to US$770/MT FOB Korea for November. Buying interest was heard above US$760/MT FOB Korea as an uptrend in crude oil prices continues.
Propylene prices have advanced to US$910/MT in Asia in the week of October 12, 2009 in line with rising crude and naphtha prices. Demand has started to recover in the region on one hand, and reduced operating rates at crackers in Asia have restricted propylene avails on the other. Outlook seems to be optimistic on expectation of restocking from China and increased exports to the West from South Korea and Japan.
HDPE prices inched to US$1125/MT in Asia in the week of October 12, 2009 on slow demand as buying interest is just beginning to pick up in China after the week long National holidays. Deal values continue to be lower - deals for film grade from Taiwan for October were concluded at US$1125/MT CFR China, while deals for injection molding were concluded At US$1100/MT CFR China. Since most players have depleted stockpiles pre-holiday, demand is slowly perking up in the region as they initiate the process of restocking. Buying will also get a thrust from the recent rises in crude oil values, expected to rise further.
Unenthusiastic demand from China on recently recovering buying interest from China after the week long National holidays, has pulled down LDPE prices to US$1185/MT in Asia in the week of October 12, 2009. Very few firm offers were heard in the FE market due to the absence of serious buyers, while few CFR China deals in SE region of Asia were heard concluded at levels of US$1180/MT. Sellers prefer to adopt a wait and watch policy in anticipation of an upward prices revision as the Chinese are expected to embark upon restocking post-holidays.
LLDPE prices inched up to US$1150/MT in Asia in the week of October 12, 2009, as the Chinese begin to restock. October shipment offers were heard at levels of US$1150/MT CFR China with deal conclusion about 15-20 dollars lower. Offers from South Korea were heard at US$1175/MT CFR SE Asia with delas concluded about 15-25 dollars lower.
Polypropylene prices in Asia dipped to US$1045/MT in the week of October 12, 2009 due to quiet markets. The market awaits offers from sellers who in turn wait for some movement from the buyers. Few deals for injection molding grades were heard concluded at the thousand dollar mark. In the absence of firm offers and bids, the market movements remained restricted.
POLY VINYL CHLORIDE
Lethargy on part of the buyers who have just returned from their 8 day break has pulled down PVC prices to US$870/MT in Asia in the week of October 12, 2009. Though sellers offers have been lowered, majority of buyers prefer to wait and watch for a revision in November shipment offers before showing an interest.
Persistent lack of buying interest has pulled down GPPS prices to US$1100/MT in Asia in the week of October 12, 2009. Despite a rise in feedstock SM and benzene values, lackluster buying kept market outlook pessimistic. HIPS prices dipped to US$1150/MT CFR China.
Continuing lack of buying interest has pulled down ABS prices to US$1405/MT in Asia in the week of October 12, 2009. Lackluster buying from China has kept market outlook bearish.