EUROPE

Europe R-PET falls for first time since 2016

Prices for May Europe recycled polyethylene terephthalate (R-PET) colourless flake have fallen by €40-45/tonne on the back of low demand, particularly from the sheet and film industry, sources confirmed. Sheet and film consumption has fallen by 5-10% in the second quarter of 2019 compared with the same period in 2018, according to market estimates. R-PET colourless flake prices are currently trading at €1,000-1,050/tonne NWE.

Europe LDPE spot highest since August 2018

Low density polyethylene (LDPE) net spot prices are at their highest point for nine months as of 14 May. Higher prices are down to unplanned production issues and higher upstream costs, and feedstock ethylene has also tightened in recent weeks. The range stood at €1,100-1,150 FD NWE. Supply was interrupted recently at LyondellBasell’s plant at Aubette, in the Berre complex, in France.

Europe PM and PMA spot prices stable-to-soft

European propylene glycol ethers spot prices were assessed stable to soft, with a wide range of prices available in early May. Sellers targeted a mixture of rollovers and double-digit decreases for propylene glycol methyl ether. PM prices were assessed at €1,280-1,380/tonne, while PMA was valued at €1,460-1,550/tonne FD NWE, a reduction of €40/tonne on the low end and stable on the high end of each range.

Europe methanol hovers near 18-month low

European methanol spot prices are back down to near a year-and-a-half low as healthy supply in May is boosted by offers of Azerbaijani material. Local and global turnarounds and outages are doing little to dent availability. European spot prices fell €5/tonne on the low and €4/tonne on the high to €267-271/tonne FOB (free on board) Rotterdam in the week to Friday 10 May.

Europe ETBE prices slip on falling MTBE

European ethyl tertiary butyl ether (ETBE) prices dipped, tracking a lower average price for methyl tertiary butyl ether (MTBE). The high end of the range was down by $53/tonne and the low end was down by $23/tonne, mitigated by a narrower range of premiums. The premium above MTBE rose $30/tonne on the low end this week, narrowing the range to $170-200/tonne FOB ARA.

Europe MA Q2 contract settles up €30-€50/tonne

European maleic anhydride (MA) Q2 contract prices settled at an increase of €50/tonne at the low end and €30/tonne at the high end this week. The rise represents a moderate increase for the peak season, mainly due to disappointing demand and easing of the recent supply drought. Spot prices were stable, pending further feedback. Activity was thin on the spot market as most demand was covered by contracts.

Europe PVC increase nominations emerge

Some European producers are separately aim for May polyvinyl chloride (PVC) contract price increases with discussions yet to conclude for the majority of players. Initial indications from buyers suggests that they will aim for increases similar to the cost increase for feedstocks. The range is 1,213-1,240/tonne FD.

Europe paraffin wax demand stable-to-sofT

European paraffin wax (p-wax) prices remained static this week amid quiet activity. Ongoing competitively priced imports from China and lacklustre demand and ample supply were said to be tempering price sentiment. P-wax is assessed at €1,000-1,050/tonne FD NWE.

ASIA

S Korea BDO May contract down

South Korean May domestic contract prices for 1,4-butanediol (BDO) declined from April, according to ICIS data. The May contract prices were settled at $1,570-1,630/tonne DEL, $50/tonne lower from the previous month. The prices were down for the seventh straight month amid tepid demand with the approach of the seasonal lull in June.

MEGlobal lowers June MEG ACP nomination

MEGlobal has nominated its June monoethylene glycol (MEG) Asian Contract Price (ACP) at $710/tonne, lower by $90/tonne from its May nomination, according to a company source. The price is on a CFR Asia basis. Asia MEG prices have been under persistent downward pressure from high port inventory levels in China since March.

Asia isomer-grade xylene falls 2.4%

Asia’s isomer-grade mixed xylenes (MX) declined by 2.4% amid bearish sentiment and lacklustre downstream market. Spot prices were $699/tonne FOB South Korea and $718/tonne CFR NE Asia.

China PTA futures plunge 4.4%

China purified terephthalic acid (PTA) futures prices declined by 4.4% on Tuesday amid bearish sentiment following the current escalation of the trade war between the US an Chine. The September 2019 PTA futures, the most actively traded contract at Zhengzhou Commodity Exchange (ZCE), closed at Chinese yuan (CNY) 5,560/tonne ($808/tonne), down by CNY256/tonne from the previous day’s settlement. Spot PTA prices in east China also declined by CNY45/tonne over the same period to CNY6,615/tonne.

Asia PX falls $35/tonne amid breaish market

Asia’s paraxylene (PX) prices fell by $35/tonne on Tuesday amid bearish market sentiment. PX prices stood at $865-867/tonne CFR Taiwan/China Main Ports, down by $35/tonne from the previous day, according to ICIS data. The ongoing trade war between China and the US has escalated, dampening market sentiment, resulting in limited buyers for fixed-price PX cargoes.

Asia nylon chip offers fall on weak demand

Asia’s high-speed spinning nylon chip offers fell in the week, following increasingly bearish sentiment in key market China amid the US-China trade tensions. High inventories and weak downstream demand hampered buying, resulting in producers reducing offers to stimulate interest. Current offers are around $2,000-2,030/tonne CFR China. Prices last week were at $2,010-2,020/tonne CFR China, current ICIS data showed.

Asia MEG slumps on US-China trade spat

Asia’s spot monoethylene glycol (MEG) discussions slumped on Tuesday amid now increasingly bearish sentiment coming over the escalation of the US-China trade spat. MEG discussions fell to $515-525/tonne CFR CMP, but trade was largely limited by a wide gap between buying and selling ideas. On 13 May, spot MEG prices stood at $546-552/tonne CFR CMP.

China PBR market remains stagnant

The spot market of polybutadiene rubber (PBR) in east China remained stagnant because subdued downstream demand largely overshadowed the issue of limited supply. Supply is limited on the back of plant turnarounds in May, with Sinopec Yangzi scheduled to shut its 100,000 tonne/year PBR plant in Nanjing on 15 May for a month-long turnaround. Spot prices were assessed as unchanged on 10 May, at yuan (CNY) 11,250-11,500/tonne ex-warehouse.

East China SM prices drop by 3%

Styrene monomer (SM) prices in east China were down by 3% on 14 May compared with 10 May, ICIS data showed. The closing price of SM in east China was down by Chinese yuan (CNY) 230-280/tonne compared with last Friday to CNY8,220-8,300/tonne on May 14. The weakness being currently seen in financial markets was caused by the escalation of the trade war between China and the US.

AMERICAS

LyondellBasell seeks 5 cent/lb increase

LyondellBasell has issued a price increase initiative of 5 cents/lb for monopropylene glycol (MPG) effective 1 June, according to a customer letter. The increase would apply to other propylene glycol (PG) products, including dipropylene glycol (DPG) and tripropylene glycol (TPG) in North America and South America. US April MPG prices are assessed by ICIS at 80.30-84.80 cents/lb ($1,770-1,870/tonne) FOB east of the Rockies for industrial grade and 89.30-95.80 cents/lb for pharmaceutical grade. MPG prices had been falling in recent months, tracking declines in upstream propylene.

US June glycol ethers increase initiatives

Separate US glycol ethers price initiatives have emerged from two producers seeking increases in a range of 3-6 cents/lb ($66-132/tonne), each effective on 1 June. Eastman said in a letter to customers that it intends to increase its ethylene-series butyl-glycol (BG) and butyl di-glycol (BDG) by 3 cents/lb, and raise its propylene-series propylene glycol methyl ether (PM) and propylene glycol methyl ether acetate (PMA) by 6 cents/lb.

BASF seeks US June acrylates price hikes

US glacial acrylic acid (GAA) and acrylate esters price initiatives have emerged from BASF, seeking gains of 7 cents/lb ($154/tonne), effective 1 June. The producer also is pursuing increases for butyl acrylate (butyl-A), methyl acrylate (methyl-A), ethyl acrylate (ethyl-A) and 2-ethylhexyl acrylate (2-EHA), citing rising freight costs and upcoming raw material cost increases as its rationale for the new initiatives. May propylene has been nominated higher. May domestic acrylates prices are trending mostly toward rollovers on flat April propylene amid tepid demand that has not yet reached seasonal norms, and which may lag year-on-year volumes.

US June oxo-alcohols price-hike bids

Separate US oxo-alcohols price-hike initiatives have emerged from two major producers, seeking gains of 5-6 cents/lb ($110-132/tonne), effective 1 June. Eastman said in a letter to customers that it will increase its n-butanol (NBA) and isobutanol (IBA) by 5 cents/lb, and its 2-ethylhexanol (2-EH) price by 6 cents/lb in North America and Latin America, citing no rationale. Oxea also cited no specific rationale for its proposed increases of 5 cents/lb for NBA and IBA, and 6 cents/lb for its 2-EH in North America and Mexico.

US June butac hike initiatives amid May talks

US butyl acetate (butac) free-market price talks continued this week, with May outcomes heard likely flat to weaker on the April propylene rollover amid demand that had not yet increased to seasonal norms. In the meantime, producer Eastman announced its intent to increase its US and Latin America butac prices by 4 cents/lb ($88/tonne), effective 1 June. The company cited no specific rationale and did not immediately respond to a request for comment, but May propylene has been nominated higher.

US BDO eyes trade war effect on Q3 demand

No direction for US Q3 butanediol (BDO) contract prices has yet emerged as the market waits to see how an escalation of the US-China trade war could affect demand and the economic outlook for the third quarter. BDO demand in the second quarter remains good, with a slight uptick for some sectors which had slowed during the first quarter. Some of the demand fall-off was attributed to lower consumption into the polyurethane sector.

June price increases announced in US MDI

Increase initiatives of 7 cents/lb ($154/tonne) effective 1 June or as contracts allow have emerged in the US methylene diphenyl diisocyanate (MDI) market, according to Tuesday customer letters. The increase will be applied to several MDI grades including polymeric, monomeric and modified MDI products. A separate increase initiative of 8 cents/lb was announced for May.