24-Jun-16 Far (North) East Asia (Japan, South Korea, Taiwan, etc)
PE
PE prices were relatively stable, rising on average by US$3.3/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 were seen lower. Demand improved slightly. 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 remained ample. Furthermore, new capacities in the region are coming on stream. At the same time, deliveries from the Middle East were limited due to the start of Ramadan. Demand has improved. Over the next couple of weeks, PP prices are likely to stay steady.
PET
PET prices fell 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. 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 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. Meanwhile, Japan’s PVC exports rose 10.9% in Maycomparing to a month earlier. In July, PVC prices are likely to stay stable or decrease.
Demand (Economic & Market News) Japan, South Korea
South Korea's surprise interest rate cut Thursday is meant as a life preserver for an economy weighed down by structural adjustment in the shipbuilding and marine transport sectors, a bid to calm fears of rougher seas in the second half of the year. The central bank's 7 member policy board voted unanimously to cut its policy rate by 25 basis points to
1.25%. The move comes barely a month after a unanimous vote in May to keep the rate unchanged, and a month before many market players had expected a cut. No clear recovery is apparent in the domestic real economy, Bank of Korea Gov. Lee Juyeol told reporters after Thursday's monetary policy meeting. April's forecast of 2.8% economic growth in 2016 likely will need to be trimmed, he said.
Source Courtesy: polymers.io in association with Allied Solutions India Pvt Ltd
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