Asian Markets
October 6, 2020
Chinese PO Prices Spike 37% in Sept
China September chemicals buoyed by firm demand, supply pressure
Author: Yvonne Shi
2020/10/06
SINGAPORE (ICIS)–China’s chemical markets in September were generally buoyed up by firm demand due to pre-holiday restocking and tight supply for some products.
Twenty of the 33 petrochemicals tracked by the ICIS China team had price increases in September from August, eight of which rose by more than 10% with the strongest growth logged by propylene oxide (PO) at 37%.
Thirteen products posted price declines, five of which had more than a 5% slump.
PO is included in the 17 products that comprise the ICIS China Petrochemical Index.
The others are methanol, purified terephthalic acid (PTA), polypropylene (PP), polyethylene (PE), monoethylene glycol (MEG), mixed xylene, benzene, toluene, acetic acid, styrene, phenol, acrylonitrile, acetone, n-butanol, 2-ethylhexanol (2-EH) and acrylic esters.
The index spiked in early September, with some narrow fluctuations noted until some weakness set in toward the end of the month.
Spot prices of PO, methyl methacrylate (MMA), n-butanol and bisphenol-A (BPA) rose on the back of healthy demand; while those of butadiene (BD), vinyl acetate monomer (VAM) and acetic acid increased largely due to tight availability of supply.
External market conditions have had some influence on products such as acetic acid and VAM, as well as BD.
China’s exports of acetic acid and VAM were strong in September, while imports of BD was curtailed by tight regional supply.
Unplanned domestic plant shutdowns have tightened supply of some products in September, but market players are generally concerned about a possible oversupply when four integrated petrochemical complexes in the country start up toward the fourth quarter.
Some of the key downstream plants of Zhongke Refinery and Petrochemical and Sinochem Quanzhou, including PE, PP and MEG came on stream in end-September, with commercial production expected in October.
In terms of demand, pre-holiday restocking was a bright spot for September, providing a short-term support for some products like MMA.
MMA demand was up by about 15% from normal levels in September before waning, closer to the October holidays.
The Chinese markets are closed for the Mid-Autumn and National Day celebrations on 1-8 October.
In the fourth quarter, peak domestic travel during the long holiday, as well as consumption-boosting events such as the Double Eleven (11 November) and year-end promotions should help buoy up demand for petrochemicals.
Economic data in September were encouraging, with the manufacturing purchasing managers’ index (PMI) on its seventh month of expansion.
China’s retail sales in September also posted growth for the first time this year, led by communication equipment, cosmetics, and goods related to sports and entertainment as well as cultural and office supplies.
September retail sales inched up by 0.5% year on year, from a 1.1% contraction in August.
China’s total consumption of goods and services in the two weeks to 27 September increased by 7.4%, based on data from a third-party payment platform.
Seasonal demand with the onset of winter should help the apparel and textiles sector but this is not expected to be as strong as in the previous years.
Textile raw materials PTA and MEG had the steepest price falls in September.
For methyl tertiary butyl ether (MTBE), xylene and mixed aromatics, blending demand will be constrained by weaker consumption of downstream gasoline at the end of the summer season.
An expected improvement in construction and agricultural farming activity should boost diesel consumption.
Market players are hopeful of more stimulus policies as consumption, although improving, is far from pre-pandemic levels.
Analysis by Yvonne Shi
September 30, 2020
Tight PO Wreaking Havoc on Polyol Pricing in Middle East
High polyol prices depress Middle East TDI demand
Author: Prateek Pillai
2020/09/30
SINGAPORE (ICIS)–The unceasing rise of polyol prices in the Middle East along with scarce availability of cargoes has dampened demand for toluene diisocyanate (TDI) in the region.
With polyol supply expected to remain tight up to the end of the year, TDI demand is likely to be negatively affected for the foreseeable future.
TDI and polyols (both the POP and the conventional variety) are used in combination to manufacture polyurethane (PU) foams which have multiple applications, including for mattresses, furniture and automobile seat covers.
Due to the months-long rise in prices of upstream propylene oxide (PO) in China, polyol producers have had to increase their quotes.
Average prices of 10-13.5% polyether polyol (POP) reaching $2,430/tonne CFR Middle East and those of conventional polyols at $2,405/tonne CFR Middle East – their highest levels in more than five years.
The non-stop rise of upstream PO prices has trimmed the margins of polyol producers. This has made it difficult for them to ramp up production to meet demand, which has picked up markedly since lockdown restrictions were relaxed in the region during the summer.
Polyol supply to the Middle East is currently very limited with many buyers unable to procure cargoes that they need. This extremely tight supply situation has, in turn, caused polyol prices to spike.
Buyers now find themselves in a situation where either the record high polyol prices have made it prohibitively expensive to buy cargoes; or the limited supply makes any procurement difficult.
Since the primary application of both TDI and polyols is in the manufacturing of PU foams, the tight supply conditions prevalent in the polyol market has cooled buying interest in TDI too.
It does not make sense to buy TDI when polyol was not available, a downstream buyer said.
The reluctance to buy new TDI cargoes has also halted the rise of TDI prices in the region, which had been on a continuous upswing since July.
With most market players expecting the polyol market to be marked by tight supply for the remainder of the year, unless TDI prices begin to decline, demand for the product is likely to continue weakening.
Focus article by Prateek Pillai
September 30, 2020
Tight PO Wreaking Havoc on Polyol Pricing in Middle East
High polyol prices depress Middle East TDI demand
Author: Prateek Pillai
2020/09/30
SINGAPORE (ICIS)–The unceasing rise of polyol prices in the Middle East along with scarce availability of cargoes has dampened demand for toluene diisocyanate (TDI) in the region.
With polyol supply expected to remain tight up to the end of the year, TDI demand is likely to be negatively affected for the foreseeable future.
TDI and polyols (both the POP and the conventional variety) are used in combination to manufacture polyurethane (PU) foams which have multiple applications, including for mattresses, furniture and automobile seat covers.
Due to the months-long rise in prices of upstream propylene oxide (PO) in China, polyol producers have had to increase their quotes.
Average prices of 10-13.5% polyether polyol (POP) reaching $2,430/tonne CFR Middle East and those of conventional polyols at $2,405/tonne CFR Middle East – their highest levels in more than five years.
The non-stop rise of upstream PO prices has trimmed the margins of polyol producers. This has made it difficult for them to ramp up production to meet demand, which has picked up markedly since lockdown restrictions were relaxed in the region during the summer.
Polyol supply to the Middle East is currently very limited with many buyers unable to procure cargoes that they need. This extremely tight supply situation has, in turn, caused polyol prices to spike.
Buyers now find themselves in a situation where either the record high polyol prices have made it prohibitively expensive to buy cargoes; or the limited supply makes any procurement difficult.
Since the primary application of both TDI and polyols is in the manufacturing of PU foams, the tight supply conditions prevalent in the polyol market has cooled buying interest in TDI too.
It does not make sense to buy TDI when polyol was not available, a downstream buyer said.
The reluctance to buy new TDI cargoes has also halted the rise of TDI prices in the region, which had been on a continuous upswing since July.
With most market players expecting the polyol market to be marked by tight supply for the remainder of the year, unless TDI prices begin to decline, demand for the product is likely to continue weakening.
Focus article by Prateek Pillai
September 4, 2020
Polyol Anti-Dumping Case in India
Anti-dumping investigation concerning imports of Flexible Slabstock Polyol
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
NOTIFICATION
FINAL FINDINGS
New Delhi, the 1st September, 2020
Case No. (OI) 14/2019
Subject: Anti-dumping investigation concerning imports of Flexible Slabstock Polyol originating in or exported from the Kingdom of Saudi Arabia and United Arab Emirates (UAE) – Reg.
F. No. 6/20/2019-DGTR.—1. Having regard to the Customs Tariff Act, 1975, as amended from time to time (hereinafter also referred to as the Act), and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, as amended from time to time, (hereinafter also referred to as “the Rules”) thereof:
2. M/s Manali Petrochemicals Ltd. (hereinafter also referred to as the “Applicant”) filed an application before the Designated Authority (hereinafter also referred to as the “Authority”) in accordance with the Customs Tariff Act, 1975 as amended from time to time (hereinafter also referred to as the “Act”) and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of injury) Rules, 1995 as amended from time to time (hereinafter also referred to as the “Rules”) for imposition of Anti-dumping duty on imports of “Flexible Slabstock Polyol” (hereinafter also referred to as the “subject goods” or PUC) from Kingdom of Saudi Arabia and United Arab Emirates (UAE) (hereinafter also referred to as the “subject countries”).
3. The Authority on the basis of sufficient prima facie evidence submitted by the applicant on behalf of the domestic industry, issued a public notice dated 18th September, 2019, published in the Gazette of India, initiating the subject investigation in accordance with Rule 5 of the above Rules to determine existence, degree and effect of the alleged dumping of the subject goods, originating in or exported from the subject countries, and to recommend the amount of anti-dumping duty, which, if levied, would be adequate to remove the alleged injury to the Domestic Industry.
Read more here: https://taxguru.in/custom-duty/anti-dumping-investigation-imports-flexible-slabstock-polyol.html
September 4, 2020
Polyol Anti-Dumping Case in India
Anti-dumping investigation concerning imports of Flexible Slabstock Polyol
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF TRADE REMEDIES)
NOTIFICATION
FINAL FINDINGS
New Delhi, the 1st September, 2020
Case No. (OI) 14/2019
Subject: Anti-dumping investigation concerning imports of Flexible Slabstock Polyol originating in or exported from the Kingdom of Saudi Arabia and United Arab Emirates (UAE) – Reg.
F. No. 6/20/2019-DGTR.—1. Having regard to the Customs Tariff Act, 1975, as amended from time to time (hereinafter also referred to as the Act), and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, as amended from time to time, (hereinafter also referred to as “the Rules”) thereof:
2. M/s Manali Petrochemicals Ltd. (hereinafter also referred to as the “Applicant”) filed an application before the Designated Authority (hereinafter also referred to as the “Authority”) in accordance with the Customs Tariff Act, 1975 as amended from time to time (hereinafter also referred to as the “Act”) and the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of injury) Rules, 1995 as amended from time to time (hereinafter also referred to as the “Rules”) for imposition of Anti-dumping duty on imports of “Flexible Slabstock Polyol” (hereinafter also referred to as the “subject goods” or PUC) from Kingdom of Saudi Arabia and United Arab Emirates (UAE) (hereinafter also referred to as the “subject countries”).
3. The Authority on the basis of sufficient prima facie evidence submitted by the applicant on behalf of the domestic industry, issued a public notice dated 18th September, 2019, published in the Gazette of India, initiating the subject investigation in accordance with Rule 5 of the above Rules to determine existence, degree and effect of the alleged dumping of the subject goods, originating in or exported from the subject countries, and to recommend the amount of anti-dumping duty, which, if levied, would be adequate to remove the alleged injury to the Domestic Industry.
Read more here: https://taxguru.in/custom-duty/anti-dumping-investigation-imports-flexible-slabstock-polyol.html
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