ICIS Reports March 2021
Prices of polypropylene (PP) maintained an uptrend, drawing strength from bullish prices in other parts of the world. Global supply remained tight and suppliers have little challenge finding buyers away from Asia. As a result, some suppliers offered limited PP allocations to Asia at prices calculated based on the values they can fetch in other destinations.
However, buying began to slow down this week as end-users saw their margins being chipped away at an alarming rate. Some buyers were
pondering whether to stop production operations for the time being since end product prices were not catching up as fast.
China homopolymer deals and discussions:
PP flat yarn grade CFR CMP prices were assessed firmer, with the low end reflecting a deal and the high end reflecting a selling indication.
Injection grade and BOPP CFR CMP prices were assessed in line with flat yarn grade prices.
SE Asia and Vietnam homopolymer deals and discussions:
Dutiable flat yarn and injection grade prices on CFR SE Asia
basis were assessed firmer based on deals. A deal above the published price range was excluded as it involved prompt shipment and was considered neither widespread nor repeatable in thebroader market.
Polystyrene (Middle East / South Asia)
PS prices stable-to-firm amid tight supply
Feedstock SM price weakened
Trades limited by supply, cautious sentiment
Spot polystyrene (PS) prices in the Middle East and South Asia markets were assessed as stable-to-firm this week.
Sellers either held on to or raised prices further, citing tight supply and low inventory pressures on their side even as feedstock styrene monomer (SM) spot prices revised lower as SM buying sentiments turned cautious due to slightly slower demand and concerns of rising supply in April.
PS trades remained limited as buyers were reluctant to buy at current higher price levels while sellers were content to conclude deals at their preferred levels as they had little spare volumes to sell in the spot market. Buying was limited to small quantities, with offtake mostly limited to purchases from domestic or close proximity suppliers to avoid long delivery lead-times.
Indian domestic demand remained firm. A major local producer raised its domestic prices by Indian rupees (Rs) 10-11 /kg further during the week. There were no export volumes available from India currently.
In the Middle East, supply remained limited at a major regional supplier after it announced its monthly prices for March deliveries at higher levels, with some buyers commenting that they received very limited volume allocations. Market activities were dull, with buyers turning away from offers deemed pricey.
Turkish polyethylene (PE) prices are stable to firm this week.
Sentiment is still firm but business levels fell, as most players requiring material bought early. Now most buyers are holding their position and resisting the increasing prices as much as they can.
US high density polyethylene (HDPE) has been offered to the market for the first time since the Texan snowstorm knocked out a large quantity of US petrochemical production.