Price trends of oil, polymer feedstock and commodity polymers in ...

Tag : Polypropylene Yarn
CRUDE OIL
A $10 dip was witnessed in crude oil values in the week of October6, 2008. Falling for the fourth consecutive day, oil prices endedthe week at US$91 a barrel, on concerns that efforts to restrainthe spreading financial crisis will not be successful in avoiding afurther decline in oil demand. The 12% drop observed this week isthe biggest drop since 2004, and accompanies higher borrowingcosts, deteriorating fuel demand in USA that has averaged 19 mlnbpd during the past 4 weeks, the lowest since October 2001. Fridaymarked the passing of the US$700 billion bailout bill in USA,accompanied by a growing perception that the bailout package willhinder US growth. Europe witnessed a scuttle to salvage threebanks, accentuating the effect of the credit crisis. Oil demand hasweakened in USA-the world's top consumer, Japan and Europe. Fearsabound that demand will start shrinking in China, whose rapidgrowth helped trigger oil's rise from just $20 a barrel in 2002.

NAPHTHA
Naphtha prices have fallen in line with deteriorating oil values inthe week of October 6, 2008. Prices in the continent dipped tohover around US$750/MT CNF Japan.

ETHYLENE
In the week of October 6, 2008, FOB Korea ethylene prices dippedbelow US$1000/MT in Asia even as the Chinese return to the marketsafter a week long break. Falling crude and naphtha values anddeteriorating downstream demand continues to exert pressures onethylene prices, keeping market outlook persistently gloomy.Naphtha prices in the continent dipped to hover around US$750/MTCNF Japan, further diluting buying sentiments for ethylene. Buyersprefer to wait and watch for a further ethylene price correction inline with falling input costs. Sellers continue to offer materialat around 1000 dollars, but are being met with reluctance frombuyers, leading to a downward evaluation of offers by a furtherfifty dollars. Most end-users in Far East, saddled with largestockpiles, are not in a rush to buy.

PROPYLENE
Propylene prices have dipped to US$1100/MT in Asia in the week ofOctober 6, 2008. Lack of ample transactions influenced by weakdownstream polypropylene demand and falling feedstock costs, markedthe propylene markets of Asia. A quietude prevailed as buyersanticipate another price drop, as naphtha prices in the continentdipped to hover around US$750/MT CNF Japan. Sellers continue tooffer material at US$1100/MT FOB Korea, while buyers have expressedintent to buy about hundred dollars lower.

STYRENE MONOMER
Styrene Monomer prices have dipped to US$1290/MT in Asia in theweek of October 6, 2008. Though seller's offers for late Octoberdelivery have dipped to US$1280/MT levels, buying intentioncontinues to be pegged lower. As buyers and sellers are bothunwilling to relent, very few deals have been concluded as yet.Feedstock benzene prices have plunged below US$950/MT, hovering at8-month lows. In response to deteriorating SM demand and meagerprofit margin realization, upstream benzene producers are alsoreducing operating rates. Japan Energy Corp. plans to reduce runsat benzene plants in Chita and Kashima by 10-20%, South Korea'sYeochon Naphtha Cracking Centre (YNCC) plans to reduce by 10%, runrates at three of its BTX plants in Yeosu. On the other hand, LGChemical has brought back its 170,000 tpa SM plant online after agap of 6-7 weeks. The company had delayed start up at an earlierdate because of poor returns.

VCM
VCM prices have dipped below US$790/MT CFR China in the week ofOctober 6, 2008, on weak downstream demand, even though the Chinesehave come back after a week long holiday. Downstream PVC priceshave sunk and downstream markets remain lackluster. Sup