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(ICIS) -- Asian ethylene prices are likely to ebb for January-delivered
cargoes, as the robust Chinese import demand is seen fizzling out on a weakening
downstream domestic market, traders said on Wednesday.
For January, top energy user China is expected to reduce spot ethylene
imports to possibly 4,000-5,000 tonnes, following a hefty purchase of 10,000
tonnes or more for December delivery to plug a domestic shortfall, they
added.
Prices of ethylene - the basic petrochemical building block - were
assessed at $1,150-1,170/tonne (?863-878/tonne) CFR (cost and freight)
Northeast (NE) Asia on Wednesday, down $20-30/tonne from levels earlier in the
week, ICIS data showed.
Reflecting a weakening market, Asian polyvinyl chloride (PVC) prices were expected to drift
lower due to the softening domestic prices in China, traders said. Plus, with
the upcoming long Chinese Lunar New Year holidays in early February, buyers
could defer their purchases until after the holiday. As a result, demand for
January PVC cargoes were expected to be weak, they said.
Furthermore, news that China had met its energy saving and emissions
reduction targets, led to market players’ beliefs that the power rationing
policy would be relaxed or even stopped by the end of the year.
This would lead to increased chlor-alkali operating rates, which would
result in an excess supply of PVC from China, further exerting downward pressure
on PVC prices, traders said.
mrcplast.com
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