Polyolefin prices continue to tumble in Asia, MidEastern producers eye European markets

17-Dec-14

Middle Eastern polypropylene and polyethylene producers are eyeing European markets as prices in Asia continued to tumble, as per sources in Platts. Asian PP prices have fallen dramatically on the back of seasonal destocking and crumbling demand from China, the main importer of polyolefins in the region, while demand in Europe is holding up better. Raffia grade PP was assessed by Platts on Tuesday at US$1130/mt CFR FE Asia, with injection grade at US$1120/mt CFR FE Asia, down 11% and 12% respectively since the start of the month, when both grades were assessed at US$1275/mt CFR FE Asia. High density polyethylene film prices were assessed by Platts Tuesday at US$1270/mt CFR FE Asia, down 9% from US$1370/mt at the start of the month. Low density polyethylene prices were assessed at US$1240/mt, down 11% from US$1385/mt CFR FE Asia at the start of the month. "The Asian price crash may see Middle Eastern products being moved to Europe," a source said, adding that price falls in Asia were outpacing those seen in Europe. Middle Eastern material makes up the majority of Asian PP imports, with suppliers heard to be trying to force material into a market which has "frozen up." PP demand in Europe is slowing towards the end of the year but heard to be notably stronger than that in Asia.