ICIS REPORTS (August 2019)

ICIS REPORTS (August 2019)

11/09/2019 Share
ICIS REPORTS (August 2019)


PE market : Import prices largely lower as overseas suppliers cut their offers for September and October shipment cargoes amid increasing supply pressure. Prices for certain HDPE grades were supported by relatively limited supply from Saudi and Iran. Local market was mixed as LLDPE futures rebounded and esquires for cargoes increased in the week. Local producers’ inventories dropped 6.8% to 620,000 tonnes as compared to last Friday’s level.  However, any price gain was capper by lower-priced import cargoes.


Local producers may lower operating rate as margins erode

Supply might tighten amid several CTO plants maintenance in Q3

Demand might remain weak on escalating US-China trade war



Asia PE margins from all process decreased in the week of 30 August due to lower PE prices.

LPG-based PE margins decreased both in SEA and NEA market due to falling PE prices and increasing feedstock prices. SEA LPG-based PE margins remained the most competitive route in Asia.

PE prices declined in the week of 30 August, pressured by weak spot demand.  Local currencies depreciation and US-China trade




Import prices fall further

Domestic prices climb continually

Sinopec and PetroChina’s polyolefin inventories drop to lowest since Feb 2019

Analytics View:

PP margins from all processes decreased in the week of 30 August, among which LPG/PDH based margins dropped sharply.

PP prices in Asia kept decreasing. Lower prices in domestic China weighed down the import market. Bearish market sentiment and yuan depreciation limited the buying interest from China.

LPG/PDH-based margin decreased due to lower PP prices and increased feedstock prices. Crude oil prices rose, pushing propane prices up.

MTO-based PP margins drop slightly this week, on lower PP prices, but remain the position of second most competitive within Northeast Asia region.




PE prices down, not fully settled

Several cracker issues affect ethylene

Demand reports mixed