ChemAnalyst

Indonesia’s recent move to curb spot trading of palm oil feedstocks has given room to intense price rise speculations among market participants involved in stearic acid production and trading in China.   Stearic acid prices had last week witnessed an abrupt surge of 8% from last month on account of increased downstream consumption upon optimistic demand growth in the personal care sector amid falling imports due to port suspensions in the wake of tightening Covid restrictions and Chinese New Year around the corner. Now with the implementation of the new Indonesian regime, an inevitable enhancement in the stearic acid prices is expected in China, which is a major importer of stearic acid and its feedstock palm oil from Indonesia. The palm oil market has remained under the spotlight throughout the last year owing to its low output and record-breaking price trends which has kept the trading and downstream dynamics on the edge. Once again, the global palm oil market is seeing itself...

In this week, the prices of MMA in China were rolled over to $1800/ton contract CFR Qingdao and observed to be constant across the Asian region with dramatic deflection. The weak market demand in the Asian region was driven by feeble trading as many downstream customers in China were heard to shutting down from middle January for the New Year Lunar Holiday and the pessimistic economy outlook as a result of the Covid-19  new variant – Omicron pandemic  crisis. However, MMA plant shutdown due to hovering crude oil and logistics cost along with port congestion hindered product delivery in the parts of America and Asia. As a result, MMA producers hesitate to decrease the prices further and compelled to rollover throughout the January. In Southeast Asia, market demand was stabilized, and most downstream cast steel producers hesitate to build up the inventories prior to New Year and operated their plant with low productivity in order to keep their inventories stagnant. Vietnamese...

The manufacturer's offers for Ethylene Carbonate remained unchanged in the third week of January, with only a minor shift in the pricing trajectory. Speculation around Chinese New Year revealed certain infrastructure issues due to service delays and excessive inventory levels. As a result of the ripple effect, the FOB Qingdao discussions for demand of Ethylene Carbonate fell to USD 2460 per tonne for the week ending January 21. The Chinese New Year is usually celebrated for a week or occasionally longer, and it brings with it a period of low demand that has a negative impact on worldwide markets. When the typical speed of business slows and daily trade volume falls, prices become erratic. This year Lunar New Year is scheduled to be celebrated on the 1 st of February. Because the market is weak, the prices of the raw material Ethylene Oxide has remained stable. While the cost assistance remained relatively generous. This trend has persisted in the EO market since the Chinese...

On 21 st January, the prices of Polystyrene surged to $1650/ton FD Hamburg, the price trend is observed to be rising continuously with inclined trajectory. With strong demand, such trajectory is seen from August 2021 where prices were $1200/ton and since then, the prices kept surging. Inadequate stock of Styrene and its feedstock the European market, made issue in the locale to meet the necessities in their domestic as well as in the international market. In Germany, the prices of Benzene, which is the feedstock of the product observed to be steady on the higher side with the cost of $1250/ton FOB Hamburg and were seen to be hovering around $1211/ton-$1294/ton. Deficiency of raw material Benzene and Ethylene hampered the Styrene market in Saudi Arabia , which is the major exporter of Styrene to the International market, had also revised its price to $1240/ton FOB Dammam. Polystyrene interest then again apparently to be on the peak with expansion in its utilization in automobile and ...

Concerns over the supply of Lithium from China has been pushing up its prices to significant highs in the first half of January. Demand for Lithium has strengthened across the globe due to rising adoption for EV batteries in various countries. Lithium Carbonate prices skyrocketed entering 2022 following strong demand for electric-vehicle manufacturers. The strong wave of demand has shadowed over the availability of Lithium at times of ongoing maintenance turnarounds and curbs due to Winter Olympics in China. As buyers begin to scramble for spot purchases amid the tight material availability, lithium and its derivatives prices have showcased tremendous surge in the past two weeks. Chile holds largest Lithium reserves in the world. Various countries have been bidding for Lithium mining contracts from Chile amidst the exponential rise in demand. As per the declaration, the successful bidder will receive seven-year development and exploration rights for Lithium in addition to 20 year e...

  In the times when a lot of FMCG industries are introducing recycled plastics in the packaging of products in countries like the USA, Japan, India, Germany, under mounting pressure from environmental advocates, the FMCG companies in Saudi Arabia are still opting for 100% virgin plastic packaging. In line with the stagnant demand pattern, the Saudi Arabian R-PET market continues to project bearishness with prices falling incessantly since the previous month. A further fall of around 7-8% in the prices of R-PET is likely to be seen in a span of two weeks. The ease of availability of raw materials and the improving supply dynamics in the previous weeks have encouraged the manufacturers to expedite R-PET productions. However, with the demand falling gradually after a small hike in beverages and packaged food demand during New Year celebrations, the market has fallen prey to supply abundance. Contrary to the expectations of demand picking up in the new year the R-PET cargoes remaine...

The year 2022 is crucial for various end-user industries, including agriculture, pharmaceutical, food and beverage, and others, to get government support, as these industries play a vital part in fuelling India's overall GDP growth. Soaring shipping costs and high freight charges in the past year riddled with supply-chain disruptions have strained various commodities importers in India, which are likely to stretch into 2023. The container shipping industry is undergoing various supply-chain disruptions due to surging sea freight costs causing devastation on trade Congestion at major regional transshipment ports. As per ChemAnalyst , the prices of Sodium Bicarbonate are consistently increasing due to the surging raw material prices and high sea freight charges. The short supply of electric power and coal is resulting in increased energy costs, which is further propelling the price of Sodium Bicarbonate in India. Sodium Bicarbonate prices shot up from USD 432.2 per tonne to USD 46...

In United States, the price of Methanol surged to $615/ton EXW Louisiana with the inclination of 0.5% compared with the previous week where prices were observed to $612/ton EXW Louisiana. In the upcoming weeks, the prices of Methanol in USA may burst with the increment of 5%-7% and will likely to hover around $620/ton-$625/ton. Feedstock Natural Gas prices in USA had surged by nearly 12% when observed on 12 January bringing the prices to record high in this month. February future contract on the New York Mercantile Exchange (NYMEX) reached nearly $4.75 per MMBtu where price rally up to be strongest since gas future debuted more than 30 years ago. Downstream Methanol fuel applications had started to grow and according to EIA biodiesel Production is expected to grow by 22pc till the end of 2022. Methanol consumption in automobile industry is also spotted to be on the higher side. US Methanol two largest marketers Methanex and Southern Chemical sales revenue increase with increase in the...

In Europe, the satiate of more than 10 million of LNG across December and to work date in January had assisted calm Title Transfer Facility (TTF), which is virtual exchanging point for Natural gas in Netherlands , prices down to around $26/MMBtu. Gas costs are relied upon to remain calm for the forthcoming weeks as European stockpiling level, which had administered prices in Europe and Asia last year, gives off an impression of being improving, however supply concern persists. The prices are finding support from storage level weakening to 53% of capacity and slipped down in flows from Velke Kapusany, Russia to a fraction level seen in December. The geopolitical tension between Russia and Ukraine brings the cloud over the Nord Stream 2 Pipeline, which was the factor responsible for weak flow of gas from Russia to Western Europe in the first half of the year. According to ChemAnalyst , due to extremely eventful winters, support the prices due to increasing demand for heating. It is a...

European Benzene prices are expected to witness an increment in prices for about 3-4% as prices for Benzene move in line with the crude prices . On the 13th of January 2022, European Brent crude futures rallied to a 9-week high above USD84 a barrel, boosted by tight supply and easing concerns about the omicron variant's possible impact on demand. According to sources, energy volatility will be a crucial issue at the core of the Benzene market in H1 2022, with increasing natural gas costs prompting producers to impose extra surcharges on top of agreed contract pricing for downstream components. Benzene prices in the current week were assessed at USD 1140/MT FOB Hamburg. The European market witnessed a mismatch in Benzene supply and demand at the start of the new year, as the impact of the coronavirus pandemic will continue to have a large influence on upstream oil prices, over the uncertainties of worries of omicron and the following impact on global markets. Furthermore, high in...

In this week, the prices of Polystyrene were observed to 1942/ton Ex-Riaydh with the increment of 1.13% compared with December where prices were $1920/ton Ex-Riyadh. With the reviving market dynamics and increasing downstream sector it is expected that SABIC along with major Polystyrene producer in Saudi Arabia will increase the prices of Polystyrene along with its feedstocks mainly Ethylene, Benzene and Styrene Monomer. In February 2022, the prices of Polystyrene can increase by 5% to 7% and can observed to be hovering around $2040/ton- $2077/ton Ex-Riyadh. With the recovering demand and increasing domestic demand the prices of Polystyrene may increase by another 5%-7% by February 2022. The downstream market is observed to be escalating in Saudi Arabia where the product is being used in making appliances and other electronic things. Scrutiny by End user Industries was also developed as Benzene, which is one of the feedstocks of Polystyrene can be recycled many times and used in the ...

With minimal contracts, the PTMEG market rose in the first week of January. Mono Ethylene Glycol prices futures rose and spot prices were strong in the early week, owing to firmer demand and sluggish supplies. While cost support is not maintained, the raw material BDO price is running at a high level, and the market has strong pricing sentiments. Domestic traders' demand for PTMEG was reported to be slow. The supplies were only made in order to fulfil export orders. As the burden of insufficient Polyester inventories mounted, due to the shortage of PTMEG, the domestic manufacturing producers felt the pinch. In the face of growing raw material prices, the atmosphere of terminal speculation and follow-up grew stronger. The entire domestic and export markets are now underperforming. Due to the multiple plant turnarounds that are scheduled for maintenance, the shipments are generally undeliverable. With the forthcoming Spring Festival, the polyester industry chain has entered its t...

On the polymethyl methacrylate (PMMA) front, polymethyl methacrylate prices were deemed constant across Asia, despite a dramatic drop in MMA pricing in China's domestic market. polymethyl methacrylate prices for general purpose (GP) are constant at $1,950-2,200/mt CFR China and $2,150-2,300/mt CFR Southeast Asia. With the historical oversupply of Methyl Methacrylate in the market across Asia, the declination in the trend is observed. However, polymethyl methacrylate market was firm due to moderate demand in its downstream market. Production challenges, including routine maintenance limits the prices of PMMA to dip further. India which majorly imports MMA from Southeast Asian countries had measured the significant fall in the prices due to backdrop in the deteriorating demand in the acrylic market. The emerge in the new Covid Variant had deterred the Southeast Asian market. Procurement activities had showcased the significant improvement as the prices were firmed due to its appl...

  Largest food grade plastic producers China and India have been attempting to prioritise the use of food grade Recycled Polyethylene Terephthalate (r-PET) for contributing and promoting the idea of circular economy. To enhance r-PET use, countries like Thailand, South Korea and India have implemented strict standards for quality food packaging in the market. The ongoing sustainability drive in India has stressed on the reduction of plastic waste in order to develop a circular economy. The government of India has already announced plans to phase out the use, production and sale of certain kinds of single-use plastics from July 2022. This situation has made plastic producers anxious over plastic packaging. As various bottles manufacturing companies were witnessed switching to r-PET from other alternatives, therefore prices of r-PET have soared significantly in the domestic market. r-PET prices rarely exceed the prices of virgin PET in India. However, due to the increasing focus ...

On 05-Jan, the prices Vinyl Acetate Monomer in South Asia were slipped amid weak demand and sufficient supply. In India, the prices of Vinyl Acetate Monomer were observed to be INR 168000/ton EX-Hazira with the declination of 2.63% compared with 31 St December. The Feedstock acetic acid prices in India were INR 79240/ton Ex-Kandla. Ethylene market was stable in India with the price of INR 77740/ton Ex-JNPT. As the prices of Feedstock Ethylene, Acetic acid and Methanol impacted during this period which affected the price of Vinyl Acetate Monomer (VAM). Downstream Paint and coating market was weak supported by the weak consumer demand and bearish liquid coating industries in India, and consumers started purchasing on need-to basis. Local Vinyl Acetate Monomer producers VAM plant was operated stably while the supply was relatively sufficient. As per market players, new orders were limited, and inventory levels was high. However, due to high inventories of enterprises the difficulties ca...

The prices for hydrogen peroxide in USA market seemed tamed during the December month owing to the retraction in the international natural gas feedstock prices as well as year-end festive season slowdown in the market transactions. However, the market is expected to rebound soon in Q1 2022 on a bullish demand outlook and mounting pressure from the rising feedstock futures. The average prices for Hydrogen Peroxide in December month were assessed to be USD 585/MT FOB Illinois, down by 8.6% from the prices observed in November. The small respite in the energy prices from record-breaking levels, and improvement in the international supply-chain dynamics with easing marine trade constraints marked for the lower contracts in December. In addition, the Christmas and New Year holidays in the USA brought a temporary halt in the downstream and end-user activities leading to muted demand fundamentals. Now that the festive season is over, the hydrogen peroxide market in the USA is expected to g...

Crude oil experienced sharp fall during Asian trading with the ICE Brent Futures dropping by close to 5% owing to heightened concerns of over supply during the first quarter of 2022. The rise in the supply is expected to be triggered by US led inventory release plans by the leading consumers. Another reason for price fall is the bearish demand fundamentals which are expected to develop owing to the new coronavirus variant related fourth wave of the pandemic. In a joint effort several countries including US, China, India, South Korea, Japan, and the UK have agreed to release more Crude Oil from their strategic reserves in order to cap the rising prices of Crude Oil . Crude oil is a hydrocarbon-rich liquid fuel residing in deep reservoirs under the Earth’s crust which is collected using the drilling process and refined to form extremely important fuels like gasoline, diesel, heating oil etc., which are used in powering transport, generating electricity and heating purposes. Crude oil i...

The Styrene Monomer prices in the Asian markets dropped on Thursday due to weaker upstream energy rates and bearish regional buying sentiment. The FOB South Korea prices were assessed at USD 1105 per tonne which showed a drop of USD 10 per tonne from Wednesday’s assessed levels. CFR China Styrene Prices quoted lower at USD 1125 per tonne showing a day on day drop of USD 10 per tonne. Moreover, upstream Benzene prices remained steady at USD 930 as per FOB South Korea levels. The prices are expected to maintain the downward trend as the upstream benzene prices are expected to remain steady for the upcoming week. The regional buying sentiment also appears to be stagnant. This can have a hit on the price levels and the prices are expected to drop by another 5%-10% in the upcoming last week of November. On the supply side the supply is also expected to ease in the month of November as the Zhejiang Petroleum and Chemical has already brought its 600 kilotons per year capacity plant online ...

Methyl Methacrylate prices remained in freefall in key Asian markets continuing on the slump in previous months. Demand deterioration has been a key force behind the dullness in MMA market sentiment. Both traditional and imminent factors have led to global demand drop. Holiday season in the West has resulted in muted enquiries for MMA and downstream acrylics from North America and Northwestern Europe. There has been traditional hush in the market as consumption declined in the last few weeks of the year. Muted activity has been further amplified by rising covid cases across the globe. Despite high raw material and logistics costs, MMA producers failed to increase or even rollover the prices of Methyl Methacrylate in China market. This has been majorly derived from demand deterioration in the MMA market which is caused by stagnancy in acrylics during the last month of the year. Consequently, MMA manufacturers have decreased their production rates on a par with the available demand. ...

Market participants of Paraxylene (PX) have been speculative regarding their offtakes in December as the demand from downstream PET and polyester segment has failed to showcase any significant recovery throughout Q4 in South Korea. Drag in Polyester polymerization rates due to power rationing in the nation has led to higher inventory levels of feedstock PTA, the situation has compelled traders to allow consistent negotiations in order to destock existing inventories before year-end. Paraxylene-Naphtha spread has narrowed drastically in Q4 2021 in majority of Asian countries. Under pressure of poor economics, various Paraxylene producers either shut or implemented a temporary cut in the operating rates in October and H1 of November. As per the revealed stats, several producers based in South Korea reduced their production rates by nearly 10% in late October. However, the resumption in plant operations by Lotte and GS of South Korea in late November has flooded the market which has fur...