Asian Markets
September 17, 2021
Chinese Production Update
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals
Author: Will Beacham
2021/09/17
China’s PP prices have risen slowly since September amid limited plant production capacity, and the peak season in September and October may not be as obvious as in previous years. Watch the video as ICIS industry analyst Shawn Xiao tells us about the current uptrend in domestic PP prices.
China’s domestic propylene oxide (PO) market sees fresh round of price adjustments amid tight supply and weak exports of polyether polyols. Listen in as ICIS analyst Jady Ma and senior information director Chris Qi discuss the market dynamics in the latest ICIS podcast.
The domestic polyethylene (PE) market in China will gain momentum in the fourth quarter as supply may be tightened by operational cutbacks at some domestic plants from September, as well as expected turnarounds in the Middle East.
Domestic epichlorohydrin (ECH) supply may tighten in China as a major facility in Jiangsu province may shut in the wake of the country’s newly minted environmental policies.
Asia’s glycerine market is likely to continue to face upward pressure from soaring container freight rates and strong demand amid concerns over supply security.
Meanwhile, ongoing robust demand across most segments, persistent feedstock constraints and import delays continue to strain Europe epoxy resins supply and the tightness could extend into Q4, as Asian import disruption intensifies.
European toluene availability continues to have some length in the bulk sector, with consumption limited. Market conditions are expected by some to remain stable throughout September.
By contrast, European monoethylene glycol (MEG) spot supply remains limited for larger quantities, but imports are expected to improve in the next couple of months.
Updated on 17 Sep
September 17, 2021
Chinese Production Update
TOPIC PAGE: Coronavirus, oil price direction – impact on chemicals
Author: Will Beacham
2021/09/17
China’s PP prices have risen slowly since September amid limited plant production capacity, and the peak season in September and October may not be as obvious as in previous years. Watch the video as ICIS industry analyst Shawn Xiao tells us about the current uptrend in domestic PP prices.
China’s domestic propylene oxide (PO) market sees fresh round of price adjustments amid tight supply and weak exports of polyether polyols. Listen in as ICIS analyst Jady Ma and senior information director Chris Qi discuss the market dynamics in the latest ICIS podcast.
The domestic polyethylene (PE) market in China will gain momentum in the fourth quarter as supply may be tightened by operational cutbacks at some domestic plants from September, as well as expected turnarounds in the Middle East.
Domestic epichlorohydrin (ECH) supply may tighten in China as a major facility in Jiangsu province may shut in the wake of the country’s newly minted environmental policies.
Asia’s glycerine market is likely to continue to face upward pressure from soaring container freight rates and strong demand amid concerns over supply security.
Meanwhile, ongoing robust demand across most segments, persistent feedstock constraints and import delays continue to strain Europe epoxy resins supply and the tightness could extend into Q4, as Asian import disruption intensifies.
European toluene availability continues to have some length in the bulk sector, with consumption limited. Market conditions are expected by some to remain stable throughout September.
By contrast, European monoethylene glycol (MEG) spot supply remains limited for larger quantities, but imports are expected to improve in the next couple of months.
Updated on 17 Sep
September 2, 2021
Middle East Demand
Mideast petrochemical demand may improve; shipping woes remain
Author: Felicia Loo
2021/09/02
SINGAPORE (ICIS)–Petrochemical demand in Middle East may see some improvement, shored up by post-summer restocking, although concerns remain about high freight costs and difficulties in securing empty containers and vessel space.
September is the archetypal month when peak demand kicks off for some products.
For base oils, market sentiment remains on a largely even keel, with any improvement in year-end demand tied to economic recovery.
Steady Iran Group I supply will be expected over the coming weeks, with mild improvement likely for Group II Asian bulk supply to the UAE.
While there are minimal known turnarounds so far among base oils producers in the Middle East throughout the second half of the year, spot supply for Group I and Group II are improving, albeit slowly.
There are concerns that slow automotive sales around the world could further dampen demand for downstream finished lubricants.
For polyethylene (PE), demand in the Gulf Cooperation Council (GCC) is likely to remain stable from August, with players looking forward to restocking for a seasonal Q4 demand uptick.
The GCC is home to several processors which export finished goods to Europe and Africa, and they are expect a steady flow of enquiries from buyers ahead of the year-end holiday season.
Regional players are also awaiting clarity on any impact on cargo availability following power supply issues at key PE facilities in Saudi Arabia earlier this month.
For general purpose polystyrene (GPPS), prices in the GCC market were stable as high freight costs are offset by lower cost of feedstock styrene monomer (SM).
Concerning toluene diisocyanate (TDI), regional buyers have procured volumes for delivery in September – the start of peak demand season for downstream foam markets.
Sellers are worried over worsening freight issues such as a shortage in empty containers, uncertainties in the cargo loading date and possible delays.
Regarding polymeric methylene diphenyl diisocyanate (PMDI), expectations are that demand should pick up over the next few months, on increased construction activity after the summer.
For polyols, activity has been subdued, with buyers maintaining a wait-and-watch stance on the market due to the volatility of feedstock propylene oxide (PO).
Buyers are not in a hurry to procure volumes and are waiting for PO prices to stabilise.
High freight costs and difficulties in securing empty containers and vessel space are also issues affecting the polyols market.
Focus article by Felicia Loo
September 2, 2021
Middle East Demand
Mideast petrochemical demand may improve; shipping woes remain
Author: Felicia Loo
2021/09/02
SINGAPORE (ICIS)–Petrochemical demand in Middle East may see some improvement, shored up by post-summer restocking, although concerns remain about high freight costs and difficulties in securing empty containers and vessel space.
September is the archetypal month when peak demand kicks off for some products.
For base oils, market sentiment remains on a largely even keel, with any improvement in year-end demand tied to economic recovery.
Steady Iran Group I supply will be expected over the coming weeks, with mild improvement likely for Group II Asian bulk supply to the UAE.
While there are minimal known turnarounds so far among base oils producers in the Middle East throughout the second half of the year, spot supply for Group I and Group II are improving, albeit slowly.
There are concerns that slow automotive sales around the world could further dampen demand for downstream finished lubricants.
For polyethylene (PE), demand in the Gulf Cooperation Council (GCC) is likely to remain stable from August, with players looking forward to restocking for a seasonal Q4 demand uptick.
The GCC is home to several processors which export finished goods to Europe and Africa, and they are expect a steady flow of enquiries from buyers ahead of the year-end holiday season.
Regional players are also awaiting clarity on any impact on cargo availability following power supply issues at key PE facilities in Saudi Arabia earlier this month.
For general purpose polystyrene (GPPS), prices in the GCC market were stable as high freight costs are offset by lower cost of feedstock styrene monomer (SM).
Concerning toluene diisocyanate (TDI), regional buyers have procured volumes for delivery in September – the start of peak demand season for downstream foam markets.
Sellers are worried over worsening freight issues such as a shortage in empty containers, uncertainties in the cargo loading date and possible delays.
Regarding polymeric methylene diphenyl diisocyanate (PMDI), expectations are that demand should pick up over the next few months, on increased construction activity after the summer.
For polyols, activity has been subdued, with buyers maintaining a wait-and-watch stance on the market due to the volatility of feedstock propylene oxide (PO).
Buyers are not in a hurry to procure volumes and are waiting for PO prices to stabilise.
High freight costs and difficulties in securing empty containers and vessel space are also issues affecting the polyols market.
Focus article by Felicia Loo
July 26, 2021
Chinese Prices Rise
Global “replenishment”! Epoxy, polyurethane, MDI, TDI soared up to 179%!
Echemi 2021-07-26
- With the arrival of the peak consumption season in the market, many countries around the world have begun to “replenish goods” from overseas. China’s foreign trade has continued the good momentum since the first half of last year, with a rapid growth rate and has become the first choice for many countries to purchase. Recent data released by the General Administration of Customs shows that the total value of China’s import and export of goods trade in the first half of 2021 is 18.07 trillion yuan, an increase of 27.1% over the same period last year. Among them, exports were 9.85 trillion yuan, a year-on-year increase of 28.1%. China’s exports to the United States were 1.64 trillion yuan, an increase of 31.7%; exports to ASEAN were 14.65.14 billion yuan; exports to Japan were 519.35 billion yuan; exports to India were 277.5 billion yuan.
In addition, in the first half of 2021, the volume of sea containers (20 feet) shipped from Asia to the United States reached 10.037 million, an increase of 40% year-on-year, setting a new record for nearly 17 years (2004). Among the containers shipped from Asia to the United States, by region, China’s transportation volume accounted for 60%, an increase of 51% year-on-year. These data undoubtedly show the fact that the export volume of many products in my country has been rising recently, and the chemical industries involving foreign trade orders have also ushered in a favorable situation of rising volume and price.
A variety of chemical products ushered in positive exports, up 179%
In terms of foreign trade exports, the chemical industry has recently shown an upward trend. Regardless of whether it is epoxy resin products or titanium dioxide products, the export situation is very hot in the first half of the year. The price of external disks is even higher than that of domestic products. In addition to giving priority to keeping the orders of old customers and long-term customers, domestic chemical companies will adopt a limited amount. Sales, closing and other methods to ensure that some products are sold overseas to obtain more benefits.
According to data from the General Administration of Customs, from 2010 to 2019, the export value of China’s chemical classification products continued to grow, and the growth rate of plastic products was the fastest, with an average annual growth rate of nearly 10%. In terms of scale, the export value of organic chemicals and petroleum, petroleum products and related raw materials is the largest.
According to incomplete statistics, the annual export volume of products with a relatively high proportion of my country’s exports exceeds 20 million tons. Products that account for more than 30% of exports mainly include rubber additives, titanium dioxide, polyurethane, dyes, phosphorous chemicals, fertilizers, etc. In particular, the export of accelerators, antioxidants, ammonium sulfate, diammonium phosphate, and polymeric MDI accounted for a relatively high proportion of more than 50%.
These products have also recently shown a larger upward trend to “live up to expectations”. Not only did they rise up to 179% over the same period last year, but also frequently filled orders, shortages of goods and even out of stock and the need to line up. The hot state is obvious.
Polyurethane industry chain:
TDI quoted at RMB 14,666.67/ton, a year-on-year increase of 39.68%;
The price of polymer MDI was RMB 20,500/ton, a year-on-year increase of 74.10%;
Formaldehyde (37%) was quoted at RMB 1342.5/ton, up 54.90% year-on-year;
Propylene oxide was quoted at RMB 18,475/ton, a year-on-year increase of 82.32%;
Nitric acid was quoted at RMB 2,450/ton, a year-on-year increase of 68.97%;
Toluene was quoted at RMB 5,770/ton, a year-on-year increase of 71.73%;
The price of pure benzene was 8240 yuan/ton, a year-on-year increase of 162.42%.
Epoxy resin industry chain:
Bisphenol A was quoted at RMB 26,600/ton, a year-on-year increase of 174.56%;
Epichlorohydrin was quoted at RMB 15,400/ton, a year-on-year increase of 57.14%;
Phenol was quoted at RMB 9,680/ton, a year-on-year increase of 73.63%.
Pigment and dye products:
Phthalocyanine blue was quoted at RMB 55,000/ton, a year-on-year increase of 22%;
Phthalocyanine green was quoted at RMB 60000/ton, a year-on-year increase of 20%;
Aluminum pigments are quoted at RMB 24,000/ton, a year-on-year increase of 20%;
Disperse dyes have risen by 14% since the beginning of the year.
Phosphorus chemical products:
The price of yellow phosphorus was 28666.67 yuan/ton, an increase of 179.51% year-on-year;
The price of phosphoric acid was 6383.33 yuan/ton, a year-on-year increase of 35.34%;
Diammonium phosphate was quoted at RMB 3,400/ton, a year-on-year increase of 55.58%.
Rubber products:
The price of butadiene rubber was 14,620 yuan/ton, up 80% year-on-year;
The price of styrene-butadiene rubber was 14158.33 yuan/ton, a year-on-year increase of 76.24%;
The price of nitrile rubber was 21,433.33 yuan/ton, an increase of 56.07% year-on-year.
Other products:
Aniline was quoted at RMB 10,100/ton, a year-on-year increase of 138.58%;
Ammonium sulfate was quoted at RMB 1,175/ton, a year-on-year increase of 108.58%;
The price of titanium dioxide was 19,000 yuan/ton, an increase of 54.48% year-on-year.
…
According to previous reports from Coatings Purchasing Network, in the first half of this year, resin products and titanium dioxide products were all driven by the surge in demand, and there was a favorable situation. Not only did the orders fill up, but the prices also rose. Some companies have even begun to “select” customers, requiring cash to place full orders in line, and “big tricks” such as raw material auctions and limited sales are frequently used. At present, the overseas epidemic situation is still severe. Southeast Asian countries and manufacturing industries have been hit by the epidemic and suspended operations. The parks are closed, and production and sales have been severely hit. my country’s foreign trade exports will continue to run at a high level in the short term, and there will be a downward trend in the long term.
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