Prices of naphtha and ethylene in Asia to decline

(ICIS) -- Prices of naphtha and ethylene in Asia are expected to be on a decline because of weak demand for downstream products - styrene monomer (SM) and polyethylene (PE), traders said on Friday. A possible prolonged shutdown at a cracker in Taiwan further dampens the outlook for naphtha, they said.


The intermonth naphtha spread between the first-half July and first-half August contracts was assessed at a backwardation of USD 3.50/tonne (EUR 2.50/tonne) - the weakest since 21 February, according to ICIS data. Naphtha prices were at USD 983.50-986.50/tonne CFR (cost and freight) Japan on Friday.


Reflecting the bearish market, South Korean's Yeochun NCC (YNCC) has bought 50 KT of spot naphtha a very weak premium of USD 1.50/tonne to Japan quotes CFR for delivery into Yeosu in the first half of July. ⌠Demand is decreasing and the outlook is bearish, said a naphtha trader.


Meanwhile, Asian SM prices slipped below USD 1.400/tonne CFR China this week amid poor downstream styrenic resins demand. SM buyers were hesitant to commit as they expect spot prices to fall further.


High density PE (HDPE) spot prices have weakened by USD 10/tonne to below USD 1.350/tonne CFR China, on the back of sluggish downstream demand and softer leading domestic prices. Buyers opted to monitor the market this week, while waiting for more offers to emerge next week. However, they reiterated that purchases would be limited to small lots.


MRC

Record volumes of PVC were imported to Ukraine in April

MOSCOW (MRC) -- In April, Ukrainian companies imported record volumes of PVC to the domestic market. The biggest growth of supplies fell at suspension, according to MRC DataScope.


In Arpil, Ukrainian companies imported about 18 KT of suspension PVC to the domestic market. Main growth of imports was stipulated by resin supplies from North America. Such a record volume of PVC supplies from USA (more than 11.7 KT) is partially caused by failures to deliver on time - the resin contracted yet in January was delivered to Ukraine only last month.


In May-June, serious reduction of suspension PVC imports from USA is expected which is caused by reluctance of many Ukrainian companies to contract resin in April-May because of high export prices.


Export prices for PVC from USA in June was reduced, on average, USD 50-70/mt. This may cause next wave of suspension purchases in North America.


Import supplies of resin from Europe in April grew only to 6 KT. High level of prices for PVC in Europe as well as limited export quotes of separate producers restrain growth of supplies of European suspension to the Ukrainian market.


MRC

Soda ash prices in Asia are driven by soaring raw material costs

(ICIS) -- Soda ash prices in Asia are expected to continue rising in the near-term, driven by soaring raw material costs, and with demand likely to pick up in the summer months amid decreasing supply, market players said on Thursday.


Spot prices rose by 20% from mid-April to around USD 300/tonne (EUR 213/tonne) CFR (cost and freight) Asia on 25 May, led by the Chinese market, according to ICIS data.


In the domestic Chinese market, dense soda ash prices have gone up by around yuan (CNY) 200-300/tonne (USD 30.8-46.2/tonne) to CNY2,050-2,150/tonne DEL (delivered) over the same period, market sources said.


Prices of dense 99% purity bulk soda ash parcels had increased to USD 280-310/tonne FOB (free on board) China in the week ending 25 May, according to ICIS.


The price spikes are in line with escalating costs of raw materials - salt and petroleum coke, and crude prices, they said.


MRC

BASF to build world's largest single-train TDI plant in Europe

(BASF) -- BASF will build the world's largest single-train TDI (toluene diisocyanate) plant in Europe. The plant will have a capacity of 300 KTa and will be fully integrated with precursor production. The TDI plant will be located at one of the company's integrated Verbund sites in Antwerp, Belgium or Ludwigshafen, Germany and will start production in 2014. Engineering is underway and the final site selection will be announced shortly. TDI is a key component used for polyurethane foams.


TDI is a key component for the polyurethanes industry. To a large extent it is used in the automotive industry (e.g. seating cushion and interior applications) as well as in the furniture segment (e.g. flexible foams for mattresses, cushions or wood coating).


BASF is a leading supplier of basic products for polyurethanes and operates TDI plants in Geismar, Louisiana; Schwarzheide, Germany; Yeosu, Korea; and Caojing, China.


MRC

US acrylic acid and acrylate esters contract prices rose for May

(ICIS) -- US acrylic acid and acrylate esters contract prices for May rose by 5 cents/lb (USD 110/tonne, EUR 78/tonne) on snug supply and upstream pressure from feedstock chemical-grade propylene (CGP), sources said on Wednesday. The increase took glacial acrylic acid (GAA) to a range of USD 1.50-1.55/tonne, as assessed by ICIS. May acrylates contract prices had been proposed up by 5-8 cents/lb. Individual increases for butyl acrylate (butyl-A) were heard as low as 3 cents/lb and as high as 8 cents/lb, but posted gains of 5 cents/lb reflected market consensus.


Supply was still snug, some sources said, while others said supply was ample, partly because large volumes of GAA are available from Asia.


Most sources said the market would be balanced within the next few months.


Besides additional Asian material, weaker-than-expected demand was another reason cited for longer supply. ⌠I don't see demand as much different than last year, another buyer said.


Several sources noted that downstream demand had weakened because of a late start in the US spring coatings season. Also, severe supply constraints on methyl methacrylate (MMA) have diminished demand for butyl-A and 2-ethylhexyl acrylate (2-EHA), buyers and sellers said.


MRC