US OLEFINS
Houston — All three US propane dehydrodenation units are expected to be up and running this week, which may push propylene prices lower. Sources said downtime at two PDH units belonging to Enterprise Products Partners and Flint Hills Resources last week should be short-lived. Although both units are expected to be back online this week, sources will still likely be monitoring production issues. In ethylene, which saw an increase of 1.25 cents for the July contract prices last week, market participants will look to see how spot activity plays out following sudden buying interest late last week. August ethylene spot prices rose 1 cent week on week, trading at 15 cents/lb MtB-Nova Friday. But sources said ExxonMobil's 1.5 million mt/year Baytown, Texas, steam cracker coming online in late July may lead to softer prices.
US METHANOL
US spot methanol prices trended higher over the past week, with expectations for prices to receive further support this week as a Gulf Coast producer outage is ongoing. OCI Beaumont's 912,500 mt/year methanol unit in Beaumont, Texas, site went offline July 24 because of a steam methane reformer issue, sources said, with expectations it would take 10-14 days for the facility to come back online.
US PVC
Prices could decline further this week as buyers continue to seek lower levels amid tepid global demand. Last week, US producers settled protracted August pricing negotiations, having agreed to drop pricing by $35/mt to $810/mt FAS Houston after offers at a rollover of $845/mt, and then $835/mt and $820/mt failed to gain traction. Sources said global buyers continue to push for lower pricing as a result of aggressive selling by a Middle Eastern producer. US producers may be under more pressure to sell into export markets this month than in July as domestic PVC demand begins to wane seasonally.
US AROMATICS
US benzene prices are expected to see continued support from the downstream styrene market this week as prices are expected to remain firm on the back of supply constraints in Europe and Asia. A reported issue at LyondellBasell/Covestra's POSM unit at Massevlakte is not expected to be resolved this week and, coupled with stronger styrene prices in China, is expected to continue to support US spot export pricing. US benzene prices are also expected to see some support from lower imports from Asia in late June and July. With arbitrage opportunities from South Korea and Europe relatively limited, imports are not expected to climb significantly.
LATIN AROMATICS
Mexican production of benzene, toluene and mixed xylenes was expected to be limited to begin the week following an unplanned shutdown last week of Pemex's Cangrejera unit, a company source said. The unit is expected to restart as soon as electricity is restored completely, the source said, adding that Pemex has been importing toluene and MX to complement its own production and address local demand. Alpek's purified terephthalic acid plant in Altamira remains shut following a July 15 fire, with feedstock paraxylene typically primarily sourced via imports, a source said.
LATIN POLYMERS
In Brazil, polyethylene and polypropylene buyers open the week looking for direction on August pricing from local producer Braskem after seeing higher domestic and export prices throughout July, sources said. Recent market sentiment has been that August should bring lower PE pricing on weak global demand and US-China tariff tensions, while there has been mixed reaction on a PP pricing floor not yet being reached, sources said. Importers in Mercosur markets are banking on lower Brazilian pricing this week as distributors start August with low inventories following strong July sales. In Peru, an increase in PE demand is expected this week following a presidential speech leading to the belief that government projects would be proceeding, with resultant increased orders from converters, sources said. Market sentiment for PE was expected to turn positive this week with the recent clarification on a plastic-bag ban timeline, which will be stretched over three years after it was thought the ban could take effect in six months, sources said.
