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Singapore –
The Asian olefins market is expected to receive stronger support this week due to the recovery season and the tightening of the cash supply.
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The outlook for the aromatics market has remained divided this week, but the Asian toluene market is expected to strengthen in light of China's recent decision to lower the value-added tax, further boosting consumption and the imports.
OLEFINS
The Asian market for butadiene closed down 80 USD / mt week on week, for both FOB Korea and CFR China markers, with a FOB Korea value of $ 1,045 / mt and CFR China of $ 1,080 / mt. This was mainly due to abundant supply and moderate demand. In the future, the market is expected to remain stable given the end-user replenishment requirements, as well as the turnaround season of some Asian and European buyers in the second half of April.
The Chinese market and imported propylene showed a strong recovery last week, as Chinese buyers are willing to buy propylene after the spread between Asian polypropylene (raffia grade) and propylene surpbaded the typical $ 150 break-even point. / tm. Shandong's propylene rose to 850 yuan per ton or 13 percent more week on week to 7,400 yuan / mt after falling to 6,550 yuan / mt.
The Asian ethylene is expected to remain firm this week, under the effect of supply concerns, after a fire in the Exxon Mobil refinery and petrochemical plant in Baytown, Texas as well as a fire in the Intercontinental Terminals Company's stockyard at Deer Park near Deer Park. Some Asian ethylene export buyers in the United States may be affected by the fire.
POLYMERS
Low density Asian polyethylene prices remained stable this week despite limited trade. Some buyers have delayed their purchases due to the drop in ethylene prices, while waiting for this downward impact on the EP markets.
Asian polypropylene was generally stable to high in the week. Copolymer grades continue to remain close to the general lack of Asian plants capable of producing these grades, while raffia grades in China have remained stable despite weak trade, with buyers hoping that physical prices will follow the decline. futures contracts.
AROMATIC
Asian PX prices were valued at $ 9.16 / mt on a daily basis at $ 1,103.17 / mt of Taiwanese-Chinese CFR and at $ 1,084.17 / m FOB of Korea on Friday, following the fall of price of purified terephthalic acid on the Chinese domestic market. Week after week, this represents a drop of $ 11.66 / mt compared to the CFR Taiwan / China marker. Market participants attributed the drop in PTA prices in the domestic market to China's announcement of a VAT cut as of April 1, with the aim of reviving the economy. by reducing costs and boosting sales.
For the manufacturing sector, VAT will be reduced from 16% to 13% currently. As a result, trade participants estimate that domestic PTA prices are expected to fall from April.
The Asian toluene market is expected to remain bullish this week given China's recent decision to cut VAT, as well as tightening supply in Southeast Asia and rising demand. National discussions in China on VAT-free shipments have already begun for May, and most market players are already considering the effect of lowering the tax rate.
The Asian MTBE market remains buoyed by the economic margins of blends in Asia as traders continue to expect a reduced supply of gas in the region. On Friday, the three inter-RON spreads widened, indicating more lucrative mix margins. In addition, with petrol demand starting to come in the summer, the demand for gasoline blends is expected to remain healthy this week.
China's methanol market was relatively stable. Trade sources indicated that many products from Middle Eastern producers were being offered for major ports in Southeast Asia.
INTERIM
Trade participants are generally optimistic about the outlook for demand for the entire Asian polyester chain this week, especially in China. Nevertheless, market sentiment for Asian monoethylene glycol remained low in the midst of an oversupply of supply. With regard to purified terephthalic acid from Asia, some trade participants are likely to remain on the sidelines for shipments from April, despite the uncertainties badociated with the commercial production of Hengli Petrochemical's new aromatic unit. China.
– Melvin Yeo, [email protected]
– Posted by Norazlina Juma at, [email protected]
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