US July contract prices for polyethylene fell by 3-4 cents/lb

(ICIS) -- US July contract prices for polyethylene (PE) fell by 3-4 cents/lb (USD 66-88/tonne, EUR 46-62/tonne), based on weak domestic demand, sources said on Friday. With the reduction, prices for linear low density polyethylene (LLDPE) butane film were at 71-74 cents/lb DEL (delivered), low density polyethylene (LDPE) film prices were at 80-82 cents/lb DEL and high density polyethylene (HDPE) blow moulding prices were at 69-71 cents/lb DEL, for small-volume buyers, as assessed by ICIS.

Producers had announced earlier in the month that prices would fall by 3 cents/lb for all grades of PE resins. However, many customers were able to argue for an extra cent, depending on the amount of the decrease they were given in June.

At least two buyers indicated prices fell by as much as 5 cents/lb for certain grades, but those decreases were not believed to be representative of the market.

Producers have already announced plans to raise prices by 5 cents/lb on all grades by 1 August. However buyers say they expect it will be difficult for producers to push through an increase before September.


MRC

(ICIS) -- Stocks in the European chemicals sector were lifted by a rally in global markets on Monday after US leaders reached an agreement to avoid the country defaulting on its debt obligations.
President Barack Obama said that under a proposed deal, which will be put to a vote in the US Senate and the House of Representatives later on Monday, the US debt ceiling would rise by up to USD 2.4 trillion (EUR 1.7 trillion).

In early afternoon trading, the Dow Jones Euro Stoxx Chemicals index was trading up 0.75%, indicating that many of Europe's major chemical companies had experienced some gains. Among Europe's top producers, Germany-based major BASF's shares had risen 1.34%, France-based Arkema was up 1.03%, while shares of Norway-based fertilizer producer Yara grew 1.15%
European stock markets reacted positively to US Congressional leaders agreeing on raising its borrowing cap.


MRC

(ICIS) -- Taiwan's Formosa group has shut a 540.000 bbl/day refinery and 520.000 tonne/year Group II base oil plant in Mailiao following a fire at a propylene pipeline over the weekend, although its No 2 and No 3 crackers continue to operate at high rates, company sources said on Monday.
The shutdown of the base oil unit has forced the company to cancel all its term and spot base oil shipments scheduled to load after the first week of August.

The company originally planned to export around 45 KT of the product in August. However, the group is running its No 2 and No 3 naphtha crackers ⌠normally, a company source added.

⌠There is no impact on the crackers, said a company source, referring to the 1.03m tonne/year No 2 and 1.2m tonne/year No 3 crackers at the complex. The crackers are operating at a rate of 90-100%, he added.

The refinery and naphtha crackers belong to the group's Formosa Petrochemical Corp (FPCC).
A fire broke out at a hydrogen pipeline at the group's Mailiao petrochemical complex on 27 July and as a result, FPCC was unable to restart its No 1 cracker.


MRC

(ICIS) -- Chinese market players have reversed a rare move to resell bonded cargoes of methyl tertiary butyl ether (MTBE) because domestic demand for gasoline fuel is picking up, traders said on Monday. A major Chinese seller withdrew its offer to sell 4 KT of bonded MTBE last week. The seller's initial offer stood at USD 1.140/tonne (EUR 787/tonne) FOB (free on board) China, the traders said.

Around 10-12 KT of MTBE material were being resold into the Singapore market in ecent weeks at USD 1.120/tonne FOB China, or equivalent to USD 1.165/tonne CFR (cost & freight) Singapore, the traders added. The cargo was subsequently sold at USD 1.140/tonne FOB China or USD 1.185/tonne CFR Singapore, the traders added.

China, the world's top energy user, imports gasoline despite being a net gasoline exporter and major Chinese refiners source the motor fuel from private blenders, the traders added. There will be hundreds of thousands of motorists on the roads during Golden Week, which is a week-long holiday celebrating China's National Day.

Overall gasoline demand remains stable in China, although the Chinese government is tightening credit to combat inflation, industry players said.


MRC

(Arabian Oil and Gas) -- India has settled a USD 5 bln dispute over payment for oil imports from Iran, according to reports from the Iranian oil ministry and the Iranian state-backed Mehr news agency.

In order to navigate payment through what has been described by the Carnegie Endowment for Peace as the "swiss cheese" of international sanctions currently levied against Iran, India will make the USD 5 billion back payment and future payments for crude through a Euro-denominated facility in Turkey's Halkbank.

While buying Iranian crude remains legal under the sanctions regime, severe financial restrictions have made it difficult to pay Tehran for crude exports.

India imports around 400.000 barrels of oil per day from Iran, some 12% of total national daily demand. The Iranian oil ministry had threatened to cancel future exports to India if payment terms were not negotiated.

MRC