Petrochemicals prices to stabilize after Lunar New Year
- Details
- Published on Thursday, 02 February 2012 12:12
ASIA – Spot prices of petrochemicals in Asia are expected to rise following a slowdown in trade during the Lunar New Year celebrations last week.
With China out of the market for a full week from 22-28 January, Taiwan on a three-day holiday from 23-25 January, and South Korea, Singapore, Indonesia and Malaysia celebrating the festive season for two days at the start of last week, the market had been almost stagnant as players decided to postpone negotiations until after the festive season.
Prices of some petrochemical products in the region have either been falling or trading sideways, from as early as the start of this year.
Some propylene sellers in northeast Asia though, expect prices to move up, to track the rising values of feedstock naphtha, while an anticipated tightness in regional supply due to a slew of cracker turnarounds due in March is expected to cause an increase in propylene prices as well.
Spot propylene prices were pegged at $1,350-$1,400 per tons CFR (Cost and freight) NE at noon on Friday, 20 January, while naphtha values stayed between $960.50-962.50/tonne CFR Japan.
The purified terephthalic acid (PTA) market also experienced the same fate as sellers took the same stance.
A PTA trader reported, “I don't plan to sell more cargoes before holiday, as prices will rise further amid firmer energy futures and peak buying after the holiday.”
In China, expectations are upbeat on spot prices, fuelled by tight supply since most plants in the country were shut for the whole of last week.
Prices of styrene monomer (SM), methanol, acrylonitrile (ACN), dioctyl phthalate (DOP), urea, bisphenol-A (BPA) in the Chinese market look set to move up on restocking after the holidays, market sources said.
