Summer Months & the Polymer Market

Summer Months & the Polymer Market

Wk 25: Polymer prices continue to go down

PE: As ethylene plants come back online in Asia, polymer prices will continue to go down. Oil prices look stable and demand from China remains weak – this will keep oil prices stable, if not lower. Slowing demand in China for PE, Ramadhan and the South Asian monsoon will keep demand depressed over the next month for PE.

PP: The biggest development has been that China has now started exporting PP materials to the rest of Asia. Huge amounts of PP supply has come online using Coal this year. This will keep PP prices depressed. In addition, slowing demand in China will lower PP prices over the short term. Further, Ramadhan & the South Asia monsoon will mean lower demand until end July.

PVC: India has been driving additional PVC demand. This has slowed down due to the South Asian monsoon and expected to remain slow over the next month. Slower demand in China over the last few months has also impacted PVC prices. In addition, restarting of Ethylene plants will continue to reduce PVC prices.

PET: Oversupply in PET continues to keep prices low. In addition, sharp declines over the last few weeks in PTA & MEG feedstock has reduced prices further. This is against the fact that the summer months are supposed to be peak demand for PET. Feedstock PTA & MEG is starting to rebound slowly but we don’t expect a big change in PET prices over the next month.

Joelle Boals

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