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Sep 8th, 2008                                Print this article

Polymerupdate global resin pricing: Asian prices continue fall, Europe mostly flat

By Modern Plastics Editorial Staff

Polymerupdate (http://www.polymerupdate.com) reports that high-density polyethylene (HDPE) prices continued to slide in Asia, with injection offers were assessed down to $1670/tonne CFR Far East Asia, while blowmolding grades fell to $1740/tonne CFR. Polymerupdate says bids for high-density film were at $1700/tonne CFR for September, but sellers were reluctant to accept, hoping for a demand recovery after the Beijing Olympics. In plant news, Formosa Plastics will shutdown its polyethylene (PE) plant in Mailiao early next month for maintenance, which is scheduled to last three weeks. The facility includes a 350,000 tonnes/yr HDPE unit and a 264,000 tonnes/yr linear low-density polyethylene (LLDPE) unit.

In low-density polyethylene (LDPE), a steep plunge in prices of linear low-density polyethylene (LLDPE), coupled with sluggish buying activity in China and India, pushed down spot prices for LDPE in the region. Spot general-purpose LDPE prices were assessed $40/tonne lower with CFR Far East Asia prices at $1890/tonne, while CFR South East Asian LDPE prices were seen at $1900/tonne.

LLDPE prices in Asia fell by $90 to $100/tonne, with producers sharply reducing their offers in an effort to attract buyers. Bids are currently at the $1720/tonne CFR Far East mark, but here too, sellers are reluctant to accept these low targets, hoping for a post-Olympics recovery in demand.

Polyvinyle chloride (PVC) prices slumped, dragged sharply down due to dull regional demand, particularly in China. PVC was seen at $1240/tonne to $1250/tonne CFR China, off some $30/tonne. Unable to attract buyers, Formosa Plastics announced steep reductions in their PVC offers, knocking off $80/tonne from prices of $1330/tonne CFR China to $1250/tonne CFR China. Bids for spot PVC across key markets of Asia are between $1200/tonne to $1220/tonne CFR.

In an effort to win back buyers, polystyrene (PS) producers across Asia cut prices despite a rise in styrene monomer (SM) feedstock. General-purpose offers to China were down to $1660/tonne CFR, while lower offers to China surfaced at $1630/tonne CFR. High-impact offers were heard at $1750/tonne CFR China. A PS seller told Polymerupdate that his reading has the bottom for general purpose potentially at around $1620/tonne CFR China, while high impact may bottom out at $1720/tonne CFR.

In Europe, LDPE general purpose contract prices were unchanged at euro 1595/tonne FD North West Europe. Spot prices dropped, sliding on the back of softening regional demand and increased availability, falling to euro 1490/tonne FD North West Europe. Cues from Asian and Middle East LDPE markets were bearish, impacting buying sentiments in the European markets.

LLDPE butene contract prices were flat from a week earlier at $1560/tonne FD North West Europe, with spot prices also holding steady at euro 1480/tonne to euro 1490/tonne FD North West Europe. A Polymerupdate source told the firm that cues from Asia remain negative here as well and as prices of LLDPE fall in that region, the threat of competition from Asian sellers mounts, making it difficult for European LLDPE producers and sellers to hold prices stable.

Spot HDPE prices in Europe declined last week, with injection, blowmolding, and film prices assessed at euro 1420/tonne, euro 1380/tonne, and euro 1390/tonne FD North West Europe, respectively. In the contract markets, prices also held their ground, with injection, blowmolding, and film contract prices assessed at euro 1520/tonne, euro 1560/tonne, and euro 1530/tonne FD North West Europe.

PP contract prices in Europe were also unchanged, with homopolymer injection grades at euro 1345/tonne FD North West Europe, although producers were looking to achieve a price of euro 1360/tonne FD North West Europe. PP copolymer was seen at euro 1400/tonne FD North West Europe. Spot prices were flat, with homopolymer grades at euro 1280/tonne FD North West Europe and copolymer at euro 1330/tonne FD North West Europe.

In Europe’s PVC markets, sellers targeted hikes between euro 20/tonne to euro 40/tonne in their contract prices. PVC suspension-grade contract prices remained flat at euro 1125/tonne FD North West Europe, unchanged from the week before.

General-purpose PS contract prices held steady at euro 1575/tonne FD North West Europe, with high-impact PS contract prices at euro 1630/tonne FD North West Europe.

Acrylonitrile butadiene styrene (ABS) contract prices edged higher last week, with general-purpose and natural-grade rates to euro 1895/tonne FD North West Europe. In the spot market, ABS was at euro 1630/tonne FD North West Europe.

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