Asia top stories – weekly summary

SINGAPORE (ICIS)–Here are some of the top stories from ICIS Asia and the Middle East for the week ended 17 August 2018.

Indian PP likely to firm but weak rupee mars sentiment
The near-term outlook for spot polypropylene (PP) prices in India firmed up on the back of the recent recovery in the Chinese domestic market but a weak rupee to the US dollar generally hampered sentiment.

NE Asia EDC at 16-month high on tight supply, US-China trade war
Ethylene dichloride (EDC) prices in northeast Asia are at their highest in 16 months amid short spot supply and uncertainty caused by the US-China trade tensions.

Asia MMA at record highs for 10 weeks; upside limited
Asia’s methyl methacrylate (MMA) import prices have remained at historical highs for 10 consecutive weeks, with upside likely limited in the near term.

China’s PTA on a four year high, trend to continue Sept-Oct
Chinese purified terephthalic acid (PTA) domestic prices are on a four year high and may fluctuate at a high level in September and October supported by heathy demand, tight supply and firm feedstock paraxylene (PX) prices.

Asia melamine prices rise by 4% since Aug; uptrend to be limited
Asia’s melamine prices rose by 4% since the beginning of August amid limited supply, but the uptrend in price will likely be limited due to upcoming new capacities in China.

Asia MEG under pressure on weak China yuan, soft crude
Asia’s monoethylene glycol (MEG) prices are likely to remain weighed down by continued weakness in the Chinese yuan and softer crude oil prices.

China petchem imports weaken; domestic prices spike on yuan slump
China’s appetite for petrochemical imports is waning on rising costs stemming from the continued depreciation of the Chinese yuan, while the consequent surge in domestic demand was fueling price spikes in the local markets.

Asia freight rates under pressure as bad weather slows down trades
Freight rates on shipping routes in Asia are under pressure due to abundant tonnage space available as trades are slowing down amid the typhoon season in the region.

Asia PC slumps to six-month low; supply outstrips demand
Asia’s polycarbonate (PC) prices dropped to a six-month low as growing supply overshadows demand, a bearish situation that could linger in the near term, according to market sources.

Japan, S Korea target India NBR market after China imposes ADDs
Acrylonitrile butadiene rubber (NBR) producers from Japan and South Korea are diverting their cargoes to the price-sensitive Indian market following the anti-dumping duties imposed on their product by the Chinese government.

Turkey crisis weighs on Asian currencies, chemical market sentiment
Turkey’s currency crisis has further raised contagion worries as Asian currencies continue to plunge against the US dollar, dampening sentiment across multiple petrochemical markets in the region.

China benzene rally bolsters Asia markets; inventories dwindle
China’s domestic benzene prices continued to rally, bolstering the Asian markets in August, amid the country’s ongoing trade war with the US.

Corrected: China tariffs on US acetone to have little impact on imports
China’s 25% tariff on US goods from 23 August will have a limited impact on imports of acetone as local buyers were already cutting down purchases from the US.

Asia BD market shrugs off China’s 25% tariff on US imports
Asia’s butadiene (BD) market is not expected to take a significant hit even as the key China market will start imposing an additional 25% tariff on US material from 23 August.

China gasoline prices at two-year high, uptrend to continue
China’s gasoline prices, at two-year highs in early August on the back of persistently tight supply and stricter consumption tax supervision on refined oil products, are likely to maintain the uptrend in the short term.