PP – Jul 23 - CANEI Corp

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VIRGIN POLYMERS
NEAR PRIME REPRO
MASTERBATCHES & FILLERS
MACHINERY
FINANCING PP – Jul 23
Pricing
Mkt Forecast
Decision
$20 Up
Stable/Rising
Hand to Mouth
The Chinese peak-manufacturing season passed with a whimper, pointing
to weak demand. Despite lower oil prices, polymer suppliers seem to be
holding out for higher prices. This cannot last long.
World price movements
PP Raffia: 1,570
PP Homo: 1,570
PP Copo: 1,630/MT CNF Nhava Sheva - PolymerBazaar
Two Middle Eastern producers revealed their August PP prices to South East Asia with $20 –
50/MT increases from July. - ChemOrbis
South East Asian producer lifts August prices by $10 – 30/MT. - ChemOrbis
Firming European PP prices - due to tight supply - are keeping Turkish prices high, so buyers are
having to use inventories or pay higher prices from Middle Eastern suppliers. - ICIS
Energy Markets
23 Jul: Brent $108; Nymex $103
20 Jun: Brent $115; Nymex $107
29 May: Brent $110; Nymex $103 - Bloomberg
Feedstock
Asian Spread between Crude & Naphtha:
23 Jul: $170
20 Jun: $140
27 May: $154/MT - Plastemart
Spot Naphtha:
23 Jul: $974
20 Jun: $990
29 May: $973 CFR Far East Asia - PolymerUpdate
Spot Ethane:
23 Jul: $182
20 Jun: $215
29 May: $213/MT - BarChart
Propylene:
22 Jul: $1,420
20 Jun: $1,365
29 May: $1,360/MT CNF South East Asia. - PolymerBazaar
Polymer Demand
The Chinese polymer-buying season peaks between June & July. However, this boost has yet to
appear, suggesting that peak manufacturing is unlikely to be particularly strong. - ICIS
Middle East producers expected to announce offers that may trigger a buying frenzy ahead of Eid
holidays. There is a general expectation that polymer offers will increase. - ICIS
CANEI Corporation, Suite 300 – 1370 Don Mills Road, Toronto, Canada
T: (+1) 416.887.5771 E: [email protected] W: www.caneicorp.com
VIRGIN POLYMERS
NEAR PRIME REPRO
MASTERBATCHES & FILLERS
MACHINERY
FINANCING Polymer Supply
Plants Shutdown:
Japan: 70K JX Nippon reduced its propylene production rates due to Typhoons. - Polymerupdate
Taiwan: 750K CPC’s propylene cracker will remain down for another 2 weeks. - Polymerupdate
Plants Starting:
China: 450K MT Zhejiang Shaoxing propylene plant opening by Q3. - ChemOrbis
China: 200K MT New Shandong Shenda PP plant opening by end 2014. - Polymerupdate
Taiwan: 1.8 Million ton Formosa ethylene & propylene cracker off for 1.5 months. Polymerupdate
Players in China have started to talk about the start-up of some new plants with coal-to-olefin
technology. The emergence of products from these new plants may be as soon as July, according
to some players in the PP and PE markets. In addition, a propane dehydrogenation (PDH) unit is
expected to come online this month while there are three more plants scheduled to come online
by the end of this year, report sources. All this means more supply and hope that prices will
stabilize and potentially decline. - Polymerupdate
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CANEI Corporation, Suite 300 – 1370 Don Mills Road, Toronto, Canada
T: (+1) 416.887.5771 E: [email protected] W: www.caneicorp.com
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