24-Jun-16 PE
PE prices rose on average by US$33.3/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. Ethylene value continued to decrease, dropping by US$5/mt last week. Supply was sufficient. However, deliveries from the Middle East were limited due to the start of Ramadan. As a result, PE inventories fell. Demand has continued to improve. In July-August, the market is likely to find a support from plant turnarounds and curbing output in China ahead of the G20 Summit held in September. Over the next couple
of weeks, PE prices are likely to stay stable or continue rising.
PP
PP prices rose by US$40/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 remained sufficient. Furthermore, new capacities in the region are expected to come on stream. However, deliveries from the Middle East were limited due to the start of Ramadan. Demand has strengthened as market participants returned after the Dragon Boat festival. Over the next couple of weeks, PP prices are likely to stay steady.
PET
PET prices remained 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. 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. It is likely to improve as the summer high season is approaching. Over the next couple of weeks, PET prices are expected to stay steady or rise.
PVC
PVC prices remained 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 major regional producers. In July, PVC prices are expected to decrease.
Demand (China)
Growth in China's fixed asset investment slipped below 10% for the first time since 2000 in January-May as a boost from record credit growth seemed to be already fading, putting expectations of further stimulus back on the table. Overall fixed asset
investment growth fell to 9.6% in January-May from a year earlier, missing market expectations of 10.5%, which would have been unchanged from Jan-April. Investment by private firms slowed to a record low, with growth cooling to 3.9% from 5.2% in Jan-April and double digits last year. Private investment so far this year has been the slowest since China began publishing the data in 2012.
Source Courtesy: polymers.io in association with Allied Solutions India Pvt Ltd
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