Methyl-A prices in southeast Asia to hit a 24-month low

(ICIS) -- Methyl acrylate (methyl-A) prices in Southeast Asia look poised to hit a 24-month low on the back of a supply overhang and weak demand, regional producers and traders said on Wednesday. A regional trader said on Wednesday it is offering iso-containers of methyl-A at USD1,750/tonne (EUR1,383/tonne) CIF (cost, insurance & freight) southeast (SE) Asia. This is a USD100-150/tonne drop from methyl-A prices on 11 January, when methyl-A was assessed at USD1,850-1,900/tonne CIF SE Asia.

The last time that methyl-A sank below USD1,750/tonne CIF SE Asia was on 24 February 2010, when methyl-A was assessed at USD1,650-1,750/tonne CIF SE Asia, ICIS data showed.

⌠It has been extremely difficult to conclude methyl-A deals over the last few months, as buyers have been using a cheaper alternative, vinyl acetate monomer [VAM], in place of methyl-A, said the trader. Other regional producers are also grappling with the issue of buyers turning to lower-priced substitutes.

A regional producer said that it was unable to sell a single parcel of methyl-A into southeast Asia since end-November.
⌠There are practically no methyl-A enquiries from southeast Asia at all, the producer lamented.

VAM was assessed at USD980-1,020/tonne CFR (cost & freight) SE Asia on 13 January, ICIS data showed.

Commenting on the outlook for methyl-A for the rest of the first quarter, regional producers and traders said they are not optimistic. ⌠Even after the Lunar New Year holiday this month, I believe that producers will still have difficulties persuading their customers to purchase methyl-A over VAM, said a second regional trader. Methyl-A is used in the production of acrylic fibres and as a resin modifier.

MRC

SABIC's income from operations for the fourth quarter dropped by 5% year on year to SR9.51bn.

⌠The decrease in net income for the quarter ended December 31, 2011 compared to the same period in the preceding year and third quarter of 2011 is mainly driven by lower pricing environment in global markets for most of the products, despite increase in sales volumes, it said.

The company's net income for the 12 months ended 31 December 2011 increased by 36% to SR29.21bn, compared with the same period a year before. ⌠The increase in net income for the twelve months period ended December 31, 2011 compared to the same period in 2010 is attributable to the increase in production and sales volumes and higher product prices, SABIC said.
The company added that its income from operations for the whole of 2011 rose 29% year on year to SR48.8bn.

MRC

(ICIS) -- Asia's benzene prices hit a five-month high on Wednesday, tracking gains in US prices as crude values spiked overnight, market players said. Spot prices rose USD30/tonne (EUR24/tonne) at USD1,195-1,205/tonne (EUR944-952/tonne) FOB (free on board) Korea early on Wednesday, the first time that USD1,200/tonne level was breached since early August, according to ICIS data.

US crude was trading at above USD101/bbl on Wednesday, after rising by more than USD2/bbl overnight. A March-loading cargo was concluded at USD1,200/tonne FOB Korea, while an April shipment was done at USD1,198/tonne FOB Korea, market sources said. Offers for March-loading shipments were heard at USD1,205-1,210/tonne FOB Korea that met bids at USD1,185-1,198/tonne FOB Korea.

Boosting the market sentiment in Asia were the gains in US benzene values for prompt January lots to USD4.13-4.17/gal, or USD1,235-1,246/tonne FOB Barges, on Tuesday. But this price upturn in the US could just have resulted from pure market play and not backed by fundamentals, traders said.


Benzene supply in Asia is tight in the first quarter due to a slew of plant turnarounds and unplanned shutdowns in South Korea, Japan, Thailand, Indonesia and Singapore, said traders. This was another key factor pushing up prices in recent weeks, they added.

MRC

(ICIS) -- A comparatively warm winter is helping sustain better-than-expected buying interest in the European polyethylene (PE) pipe-grade resin and polyvinyl chloride (PVC) plastic markets, industry sources said on Tuesday. In some cases - such as PE pipes - it is touted to bring forward the beginning of the traditional spring' buying season. ⌠Mild winter weather is helping sustain levels of demand, one PVC producer said. ⌠We are surprised that there have been so many enquiries, another producer added.

Low inventories after year-end destocking activity and favourable currency exchange rates are also driving this increase in customer demand, improving sales volumes and balancing out the PE pipe resin and PVC markets.

Despite a pick-up in trading activity, PVC contract price ideas for January continue to point in different directions.

The European January ethylene contract price settled at EUR1,120/tonne (USD1,418/tonne) FD (free delivered) NWE (northwest Europe) - up by EUR40/tonne from December. Producers are aiming for hikes of EUR50-60/tonne in order to offset the higher upstream prices and ease pressure on margins. Buyers, on the other hand, are pushing for an increase of EUR10-40/tonne instead, depending on the region.

MRC

(ICIS) -- Law enforcement officials and private businesses all over the US have become increasingly concerned with the theft of plastic goods, such as beverage crates, shelves, pallets and other items.
There are two primary elements to the crime. First, the plastic is stolen from businesses, either by scavengers or, in some cases, an employee and some partners. Then it is transported to illegal grinding operations, typically hidden in unmarked warehouses or even in someone's backyard.
Once grinded, the plastic is sold to recyclers and manufacturers at a price determined by a number of factors, including the quality and quantity of the plastic.

Some law enforcement officials say illegal plastic peddling can fetch millions of dollars. Since October 2011, the Los Angeles County Sheriff's Department (LASD) has recovered over USD5m (EUR4m) of stolen plastic from illegal grinding operations throughout Los Angeles County.

The crime has become so widespread that the city of Industry in Los Angeles County helped fund the Industrial Plastic Theft Task Force aimed at curtailing plastic theft.

The task force recently recovered USD250,000 worth of stolen plastic products and made four arrests in south Los Angeles. ⌠Clearly, the enormity of the loss just in Los Angeles County could easily exceed USD10m/year, said LASD Captain Mike Claus. ⌠Some business owners explained that their losses had been so huge, that had the thefts continued, they most likely would have had to go out of business.

MRC