Polymer Price Trends

Crude oil prices jumped this week pumped by concerns over summer supplies following the release of a weekly U.S. government data that showed unexpected drop in gasoline inventories just before the driving season neared its peak. As of 29 June August Brent crude was traded at US$71.22 a barrel on the ICE Futures exchange while US Light, sweet crude for August delivery was at US$70.18 a barrel on the New York Mercantile Exchange Naphtha prices eased a bit further despite rising oil prices. The CFR Japan naphtha was at US$667 a ton, down US$3 from previous week's close. In the Asian open spec aspect, bids for first half of August were assessed at US$689.50 a ton while the ask rate was at US$691.50 a ton CFR, up US$16 from the previous week's numbers. Bids for far off second half of October were assessed at US$680.50 a ton as against the ask rate of US$682.50 a ton. In NW Europe swap aspect, bids for July were at US$666.50 a ton while the ask rate was at US$668.50 a ton, up US$18 from the previous week's numbers The polyester chain was losing strength this week as upstream fibre intermediate prices weakened. Paraxylene prices declined across Asia and Europe by US$30-50 a ton touching a 13-week low. It was traded at US$1,110-1,115 a ton CFR South East Asia, European prices dropped to US$1,095-1,100 a ton FOB Rotterdam. Ethylene prices increased a bit in USA and Europe while they declined in Asia. It was traded at US$1,020-1,030 a ton North East CFR, down US$10 from previous week's numbers. Similarly, the South East Asian ethylene was down US$20 a ton. The US Gulf physical FD numbers dropped 2 cents. PTA prices declined US$25-35 a ton. In Asia, it was traded in the range of US$910-920 a ton FOB Korea/Taiwan. MEG prices too declined reflecting falling ethylene prices. MEG was traded at US$935 a ton in Korea and Taiwan, dropping US$10 from the previous week values. PET chips prices declined on weakening raw material values. Offers from Taiwan were in the range of US$1,160-1,180 a ton, dropping US$20 from previous week's numbers. Polyester filament yarn prices were stable this week despite the weakening input prices. Polyester staple fibre prices declined in China while they rolled over previous week's numbers in Pakistan and India. The nylon chain weakened on falling raw material prices. Benzene prices declined in Asia and Europe but inched up in USA In Korea, benzene was traded at US$1,023 a ton, down US$25 from previous week's numbers. In Europe prices declined US$45-55 a ton. In USA, prices were up 5 cents Caprolactum prices declined further in Far East and South East Asia. It was traded in the range of US$2,275-2,285 a ton Far East and South East Asia, down US$10 a ton from previous week's numbers. Based on a report on the PriceWatch.