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Polymer prices to climb as demand lifts and feedstock costs rise

Petrochemical industry | 27 May 2020 10:30 IST | Polymerupdate.com

Prices of both ethylene and propylene were seen surging in Asia this week. Prices of ethylene in NorthEast Asia were assessed at the USD 690/mt CFR mark, up USD 70/mt on the week while South East Asian prices of ethylene were assessed at the USD 625/mt CFR mark, a week on week rise of USD 80/mt. Propylene prices were assessed up at the USD 755/mt FOB Korea levels, a gain of USD 30/mt on the week.

A gradual lifting of lockdowns across Asia including in select states of India, saw businesses re-opening, some partially, others fully. Sellers of PE and PP reported an improvement in inquiries and confirmed a lift in order flows.

Across India, several polymer processing units were reported to have resumed production including in COVID hotbed states like Maharashtra. Factories were reported to have restarted in Silvassa, Daman and in the state of Gujarat. Sellers of PP, PE and PVC confirmed an improvement in buying inquiries in the open markets for products like HD film HD raffia, HD BM grades, LDPE film, LDPE Milk Pouch, LDPE lamination and LLDPE film grades. Sellers however did report that buying interest in HD and PP injection continued to remain sluggish.

On account of a lift in buying sentiments with the slow but welcome re-opening of businesses, the markets were prepared for price increases in PP, PE and PVC with the gains supported by rising energy and naphtha values and a climb in ethylene and propylene values. This was not only expected in markets like China, Vietnam and other South East Asian and Far East Asian countries, but in India too.
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