Published on : Apr 30, 2015
xThe import prices of polyethylene (PE) and polypropylene (PP) in China is expected to exhibit uptrend in prices in May. This is on account of tight back end supply in the middle of a heavy maintenance schedule in a production plant.
In the region, prices for PE and PP have been rising steadily in the region since February. In the domestic market in China, major suppliers namely Dushanzi Petrochemical, Wuhan Petrochemical, Jilin Petrochemical, Shenhua Ningxia coal Industry, Daqing Petrochemical, and Dalian West Pacific Petrochemical are shutting down facilities in the next month.
Further, the import of polyolefin is expected to be limited as most sellers in the Middle East prefer to ship cargoes to Indian and Southeast Asian markets where they receive higher netbacks.
Additionally, the shutdown of plants outside China makes it scarce to import spot PP and PE. In the Southeast Asian markets, PE production facilities are either undergoing maintenance or have production issues.
In Singapore, ExxonMobil is expected not to have any material available for low density polyethylene (LLDPE) till the end of May, as per market sources. It is not clear; though of the company has shut its plants.
Lotte Chem Titan, is in the meantime, is running its 125,000 tonne/year high density swing plant in Indonesia at half capacity. The company that could not buy enough ethylene from the market to produce PE, has since receiving raw material HDPE from its sister concern in Malaysia.