Polymer feedstock prices and summary analysis-13th March, 2017

SEATTLE (polymers.in):  Oil prices declined sharply to the lowest level since November 2016 with Brent down by about $5/bbl and WTI dropping below $50 threshold after the EIA reported another big US oil inventory increase.

The table given below summarizes the updated polymer prices from last Friday (Mar 10, 2017).

PE

Local Indian PE prices were steady. Ethylene value in Asia dropped sharply by $145/mt. Domestic supply in India is expected to decrease at the end of the month as RIL is going to shut its PE plant at Hazira for a maintenance turnaround of around 25 days. At the same time, new capacities are going to come online. Upward trend in PE pricing may halt as feedstocks values started to decline. Import PE prices will likely soften amid weak demand from China. Over the next couple of weeks, local PE prices will likely stay steady.

PP

Local Indian PP prices were stable. Naphtha value in Asia decreased by $16/mt. Propylene price dropped for a third week in a row, losing $25/mt. Asian PP market started to soften amid lower feedstock values and weak demand in China. Import PP prices declined. In India, demand was quite good while supply was sufficient. Over the next couple of weeks, local PP prices will likely stay steady.

PET

Local Indian PET prices were steady. Import prices dropped by $35/mt. Ethylene value in Asia dropped sharply by $145/mt. MEG decreased by $38/mt, marking the 6th week of declines. PX price was down by $37/mt while PTA shrank by $18/mt. Softening feedstocks put downward pressure on PET prices. In India, demand was good. Over the next couple of weeks, local PET prices will likely stay stable.

PVC

Local Indian PVC prices were steady. Ethylene value in Asia dropped sharply by $145/mt. EDC price ticked up by $5/mt while VCM gained $15/mt. Asian PVC market remained stable, waiting for a direction from a Taiwanese major. Formosa is expected to reveal its April PVC prices during the next week. In India, demand was good due to an increase in agriculture activities. Over the next couple of weeks, PVC prices will likely stay steady or rise.

OIL

Crude supplies in the US grew by 8.2 million to the highest level in weekly government data since 1982. Oil stockpiles have been persistently rising since the beginning of the year and now glut became impossible to ignore. Shale oil revival continued. US crude output rose for a third week in a row to 9.09 million b/d and is projected to increase to a record 9.73 million b/d next year, the EIA said. US oil rig count grew by 8 to 617. Analysts say if OPEC does not extend the deal in May, crude prices might tumble.

DEMAND

Car sales in India lost momentum in February after a spike in the previous month, as consumer sentiment in Asia's third-largest economy remained subdued following a government cash recall that dented demand for automobiles, Nikkei Asian Review reported. According to data from industry group Society of Indian Automobile Manufacturers, or SIAM, sales of passenger vehicles, including cars, sport-utility vehicles and vans, rose more than 9.01% to 255,359 units last month from a year earlier. Sales jumped 14% in January after most carmakers replenished inventories at dealerships.

Courtesy: www.polymers.io