MOSCOW (MRC) - Low buying activity in the Asian market of polyolefins does not allow domestic producers to raise prices, according to MRC analysts.
Price quotations of polyethylene in Asia last week remained unchanged. Purchasing activity was low because of the high volatility of oil quotations and uncertain global outlook of economy. Many market participants do not expect any improvement in demand for polyethylene in the region in the near future. Even the growth of ethylene quotations is unlikely to make local converters increase their purchases of polyethylene.
The situation in the polypropylene market looks much the same as the market of PE. Buying activity is low on the back of volatility of oil quotations and decreasing prices of propylene. Some converters in China in the sector of household appliances and furniture are reporting an increase in demand for finished products, but at the same time, sales volumes are lower than last year. In South-East Asia, the number of deals was small because many companies have already closed contracts for August and are in no hurry to buy PP for September.
Prices of linear polyethylene last week were at USD1,240 – 1,280/tonne, CFR.
HDPE was offered on average at USD1,260 – 1,320/tonne, CFR. The deals on the supply of PP-homo were in the range of USD1,340 – 1,380/tonne, CFR.
MRC