24-Jun-16 Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected.Crude inventories fell by 933,000 barrels. In addition, the number of rigs drilling for oil in the U.S. rose by 9 to 337, marking the third straight week of gains. However, crude prices grew on Friday for the first time in a week as the dollar fell and investors cautiously bought some riskier assets as anxiety eased about Britain's possible exit from the European Union. OPEC kept estimates for world supply and demand in 2016 unchanged in its monthly market report, predicting that the global market will be more balanced in the second half of this year.
PE
PE contracts were steady. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethane value fell by 1.7 cents/lb. Ethylene price dropped slightly by US$7/mt or 0.3 cents/lb. Supplies continued to grow as most plants returned from maintenance. At the same time demand was lackluster, causing inventory builds. Some buyers were still anticipating 45 cents/lb decrease for June contracts, but PE price is unlikely to drop this month. The decrease will probably take place in July instead. Over the next couple of weeks PE prices are likely to stay stable or fall.
PP
PP contracts were steady. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Propane value dropped by US$4/mt. Propylene price rose by US$8/mt. Supply was sufficient due to growing domestic production and continued import deliveries. In May domestic PP plants ran at 97% of capacity. Demand was healthy, but market could not absorb supply volumes. As a result, PP inventories continued to grow, putting pressure on the PP prices. Over the next couple of weeks PP prices are expected to stay stable or decrease.
PET
PET contracts were stable. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene price dropped slightly by US$7/mt or 0.3 cents/lb. Supply was sufficient, but not too long. Domestic demand was healthy while US exports of prime PET dropped by 13% in the 2015 comparing to the previous year. Meanwhile, new capacities in Indiana are expected to come online in a couple of weeks. Over the next few weeks, PET contracts are expected to stay stable or rise.
PVC
PVC contracts were stable. Oil prices fell last week amid concerns about the market supply and demand balance as production in Canada started to grow and U.S. stockpiles dropped less than expected. Ethylene price dropped slightly by US$7/mt or 0.3 cents/lb. Supply was sufficient, but not too long. Warmer weather supports domestic demand for construction related products. Demand from domestic consumers as well as from overseas markets was still slower than expected. Over the next couple of weeks PVC prices are expected to stay stable or rise. Demand (Economic & Market News) USA, Canada, Mexico
The Federal Reserve left its benchmark interest rate unchanged Wednesday during its much anticipated June meeting. The Federal Open Market Committee (FOMC) said in an official statement that only gradual increases in interest rate will appear if economic conditions evolve, depending on incoming data that favors domestic growth. Although the unemployment rate has declined, job gains have diminished, the FOMC said. With the economy adding just 38,000 new jobs in May, its fewest since September 2010, the unemployment rate surprisingly fell to 4.7%, from 5% the previous month. The committee projects an unemployment rate of 4.6% for this year and the next one.
Source Courtesy: polymers.io in association with Allied Solutions India Pvt Ltd
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