Asian petrochemical supply conditions in China are likely to remain challenging in the Sept. 6-10 trading week amid logistic issues as a result of poor weather. Hurricane-related production cuts in the US, particularly for polymers, have further compounded supply issues, limiting the availability of deep-sea cargoes arriving into Asia.
Benzene** Offloading of cargoes at east China ports has been extensively slow as a result of poor weather and this may curb the availability of prompt spot cargoes in the domestic market in the Sept. 6-10 trading week, market sources said.
** China Petroleum & Chemical Corp., or Sinopec, has raised its east China listed benzene price by Yuan 100/mt to Yuan 7,750/mt ex-tank, a company source told S&P Global Platts Sept. 6. The increase by Sinopec, China's biggest seller of benzene, is the second time this month.
** The benzene listed price was raised by Yuan 100/mt to Yuan 7,650/mt on Sept. 2 amid tight supply due to lower production by some producers.
Toluene** Regional trade activity in the Asian toluene market will likely remain lukewarm over Sept. 6-10 because of stable market fundamentals, while buying and price support may continue to predominantly come from India ahead of the festive season, according to market sources.
** Toluene prices rose Sept. 3 amid gains upstream despite little change in fundamentals, pulled up by rising crude and products' prices.
** Term cargoes in Southeast Asia are also moving slowly although Vietnamese term buyers were still holding off October-loading cargoes, according to market participants.
Propylene** The Asian propylene market may be rangebound over Sept. 6-10 as it faces a weaker downstream PP demand and swelling spot supply after a new capacity came online.
** Supply to Shandong increased, after a producer in Ningxia started its 300,000 mt/year propane dehydrogenation, or PDH plant, Platts reported earlier.
Monoethelene Glycol** Asian monoethylene glycol prices were buoyed by gains in futures and energy values but may face concerns over logistical issues and weak downstream demand going forward.
** Traders were buying to stock up over concerns of lowered east China port inventory levels amid weather-related shipping delays and higher global prices.
** Local Chinese demand, however, was not strong while downstream polyester sales remain lackluster, traders said.
Polyethelene** Asian LDPE prices may extend its uptrend over Sept. 6-10 on tighter supply after shutdowns in the US, traders said.
** US production such as from ExxonMobil chemical complex which houses a 400,000 mt/year high density PE unit, a 400,000 mt/year LDPE unit and a 900,000 mt/year linear low density polyethylene unit, was heard to have been affected because of the hurricane.
Recycled PE** Asian recycled polyethylene's outlook remains mixed as the undersupply of PE film may be negated by weak low value applications' demand, traders said.
