1. Ukrainian prices of PVC for August increased significantly.
MOSCOW (MRC) -- Ukrainian market of PVC has faced a serious rise in prices on rising price quotations in Europe, according to MRC analysts. The growth of oil quotations in July led to a serious increase in ethylene prices in Europe, the August contracts rose to EUR140/tonne, from the July level. Given the growth of ethylene quotations, the prices of PVC should increase by EUR70/tonne, but European makers are targeting to achieve more serious price rise. As a consequence, the price of PVC in the Ukrainian market immediately echoed the trend in Europe. This week the price quotations of resin for August delivery rose to UAH11,000-11,500/tonne, including VAT, CPT Kiev.
2. PP an PE prices in Asia are sluggish on weak demand.
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. 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. 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.
3. MEG prices keep rising in Asia
MOSCOW (MRC) – MEG prices continued its upward trend following an announcement of Equate facility shutdown in the Middle East, report MRC analysts. In connection with the fire at the Kuwait plant (with the total capacity of 550,000 tpa) operated by Equate, MEG price-offers in Asian markets grew by USD40/tonne. Traders kept speculative prices and did not make concessions to the buyers. MEG spot prices at the Chinese port were voiced at the level of USD951-963/tonne CFR, China.
4. Rusian prices of pipe HDPE increased in August.
MOSCOW (MRC) -- A tightened supply of pipe polyethylene and surge in buying activity resulted in the price increase in the market. The availability of pipe HDPE is unlikely to improve in the nearest two months, according to MRC analysts. August is the last month before the scheduled turnarounds of Kazanorgsintez and Nizhnekamskneftekhim. Local producers of pipes on oncoming increase in demand for finished products and turnarounds of major producers began actively replenishing their inventories. The limited supply of pipe PE and increased demand led to a small deficit in the market and price increase. As Russian producers expectedly have announced an increase in contract prices of pipe polyethylene for delivery in August.
5. In July imports of SPVC to Russia exceeded 33,000 tonnes.
MOSCOW (MRC) -- In July, imports of suspension PVC exceeded 33,000 tonnes. Imports of resin from the U.S expectedly grew on the back of a serious fall of export prices last month, according to MRC analysts. According to preliminary data, imports of suspension PVC to Russia in July exceeded 33,000 tonnes, with a slight increase from June. Expectedly, the imports volume of the resin from the U.S. grew significantly, while the supply of acetylene resin from China fell by almost twofold. In general, over the first seven months of this year, the total import volume of suspension PVC in Russia amounted to 213,000 tonnes, down 29% year on year.
6. European makers keep raising PE prices.
MOSCOW (MRC) – This week European producers lifted again their export PE quotations for August deliveries on the back of tightened PE supply. Some producers are already contracting polyethylene for shipments in September, report MRC analysts. The reduction of PE prices in July increased the demand from both domestic consumers and export markets. Some makers partially sold out August quotas.
7. GPPS imports to the Russian market set a new record in July.
MOSCOW (MRC) – Last month Russian traders imported more than 8,000 tonnes of GPPS, report MRC analysts.
As it was reported previously, since early 2012 imports of GPPS have grown significantly, due to which the index reached record values every months starting from May, 2012. Another record of 8,032 tonnes was set last month. From January to July 2012 Russian traders imported 32,867 tonnes of GPPS, up 30% year-on-year. Styrolution holds a leading position among makers of imported GPPS. Ukrainian PS producer concern Stirol (Gorlovka) increased the volume of GPPS supplies to the Russian market to 2,680 tonnes in 2012.
MRC