24-Jun-16 South East Asia (Indonesia, Thailand, Philippines, Malaysia, Vietnam, Singapore, etc)
PE
PE prices were relatively 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 value continued to decrease, dropping by US$5/mt last week. Supply was sufficient, but deliveries from the Middle East were limited due to the start of Ramadan. Demand remained flat. In Malaysia and Indonesia, market activity is likely to remain slow during Ramadan. However, the market is expected to firm up in July ahead of August plant turnarounds in Asia. Over the next couple of weeks, PE prices are likely to stay stable.
PP
PP prices rose by US$30/mt. 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. Naphtha dropped by US$18/mt. Propylene value was relatively stable, falling just by US$1/mt. Supply was quite tight. Deliveries from the Middle East were limited due to the start of Ramadan. As a result, inventories decreased. In Singapore, two PP plants are expected to be shut for maintenance in July, meaning tighter supply during the summer. Demand has improved a bit. However, in Malaysia and Indonesia market activity is likely to be slow during Ramadan. Over the next couple of weeks, PP prices are likely to stay steady.
PET
PET prices dropped by US$10/mt. Oil 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 value continued to decrease, shrinking by US$5/mt last week. MEG decreased by US$9/mt, PTA gained US$3/mt while PX fell by US$21/mt. Supply was sufficient while demand was flat. In Malaysia and Indonesia, market activity is expected to remain slow during Ramadan. Over the next couple of weeks, PET prices are expected to stay steady.
PVC
PVC prices were stable. Oil 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 value continued to decrease, shrinking by US$5/mt last week. EDC rose by US$15/mt while VCM jumped by US$65/mt. Supply was quite tight as some PVC plants in Asia are due to be shut for annual maintenance. Demand remained soft as buyers were anticipating lower July prices from a Taiwanese major. In Malaysia and Indonesia, market activity is expected to remain slow during Ramadan. In Thailand, demand has slowed down
in line with the rainy season. In July, PVC prices are likely to stay stable or decrease.
Demand (Economic & Market News) Indonesia, Thailand, Philippines
Indonesia's central bank cut its policy rate for the fourth time this year to 6.5%, following the U.S. Federal Reserve's decision on Wednesday to hold its reference rate steady and with encouraging macroeconomic data at home. Bank Indonesia on Thursday announced a 25 basis point cut of its benchmark interest rate to 6.5% the first change in the rate in three
months. This is the fourth time the bank has cut its policy rate this year. The latest cut means the bank has slashed the rate by 100 basis points since January. Bank Indonesia said the Fed's decision, spurred by discouraging U.S. job employment data, gives it an opportunity to continue with its policy easing as Indonesia's gross domestic product grew less than projected, at 4.92% in the first quarter.
Source Courtesy: polymers.io in association with Allied Solutions India Pvt Ltd
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