Polyethylenes weaken in Asia

17-Dec-09

Price of all polyethylenes has softened in Asia this week on lackluster trading. Market movement has been slow on preparation of accounts during end of year; and on hand-to-mouth buying in many countries. Singapore, Indonesia, Malaysia, the Philippines, Thailand and Brunei, under a free trade pact, get ready to remove import duty for a range of products, including polyolefins, starting 2010. Material movement will increase as trade between the ASEAN-6 nations will become duty-free along with abolition of custom duties for LLDPE trade with China. Uncertainty over demand ahead of the Lunar New Year holiday in China in mid-February, has led to hesitation from buyers in China. Prices are expected to continue easing as supplies in the region have been augmented with start up of Thailand's PTT Chemical’s 400,000 tpa LLDPE plant and Panjin Petrochemical’s 300,000 tpa LLDPE/HDPE swing plant along with Sinopec Tianjin’s 300,000 tpa HDPE and LLDPE plant in China. Supplies will increase when PTT Chemicals’ new HDPE plant as well a 300,000 tpa LDPE plant start up by Q2-2010. Simultaneously, capacities will come onstream in delayed projects in the Middle East. Singapore, Indonesia, Malaysia, the Philippines, Thailand and Brunei are the six members of the Association of South East Nations (ASEAN) that agreed, under a free trade pact to remove import duty for a range of products, including polyolefins, starting 2010. South East Asia’s plastic resins makers are readying for the enforcement of a zero tariff within the region from the beginning of 2010.