Global Polyurethane

简体中文 | 繁体中文

 
Home | News |Weekly Polyurethane Market Review
Weekly Polyurethane Market Review
Updated: 2012-11-26 16:29 Source: PUWORLD share:

Market Review

PU market seems stepping into winter as filled with downsides. Gloomy sentiment suppresses insiders and results in thick wait-and-see atmosphere. Trends in detail:

Isocyanate

Pure MDI: Pure MDI market continued sliding down as availability was ample but demand kept limited. Upstream benzene price firmed at high level due to tight supply, but low-end quotations were gradually increasing. CNPC now has no permanent plan for price lift and market prices maintained around Rmb 10500-10600/ton. Phenylamine market stabilized at low level of Rmb 12400-12700/ton. Yantai Wanhua has completed its maintenance and operated at 50%-60% capacity; Bayer (Shanghai) will start its maintenance this month end and now operation rates are under down-regulation, but few positive impacts given to support market.

In east China, mainstream quotations were heard around Rmb 21500-22500/ton, among which low-end materials were quoted at Rmb 21500-22000/ton, Shanghai goods numbered at Rmb 22000-22300/ton while NPU pegged its price around Rmb 22000-22500/ton. In south China, feedstock was mainly quoted around Rmb 22000-23000/ton, Shanghai goods were heard at Rmb 22000-22500/ton while cargoes from Japan and South Korea hovered around Rmb 22500-23000/ton.

Polymeric MDI: Polymeric MDI market exhibited a soft picture. Early this week negotiation level mainly kept stable and traders kept on the fence. Moving into second half, given that downstream demand was insipid and overall economic environment remained sluggish, traders slightly downward adjusted quotations to around Rmb 19000/ton in order to stimulate shipment. Insiders were waiting for announcements of list prices and hold the point that market would continue falling down in near future.

Till now, PM 200 was negotiated around Rmb 19200-19500/ton. Negotiation numbers of Shanghai goods were heard around Rmb 18900-19200/ton; that of Dow and imports from Japan and South Korea pegged around Rmb 18700-19000/ton.

TDI: TDI market in east China was falling down from Rmb 24200-24800/ton early this week to Rmb 22800-23600/ton this weekend; while in south China, number dropped from Rmb 23000-24000/ton to Rmb 22600-23500/ton. Facing gloomy situation, suppliers successively cut down shipment to stimulate purchasing enthusiasm but few improvement was seen. Market demand has been declining since November and downstream turned into prudent attitude otherwise bargained during making small-amounted orders.

Till now in east China Shanghai goods were mainly negotiated around Rmb 23600/ton while homemade goods heard around Rmb 23000/ton; in north China domestic materials were mainly quoted around Rmb 23500-23700/ton while Shanghai feedstock hovered around Rmb 24000-24500/ton; in south China, homemade cargoes excluding tax pegged at Rmb 22600/ton, Shanghai materials were negotiated around Rmb 22800-23500/ton without tax, while imports free of tax were number around Rmb 22700/ton。

                                                                    Polyol

AA (Adipic Acid): Turnovers in AA market presents mediocre. Players are cautious about list and settlement price. Mainstream price maintained at Rmb 10300-10600/ton, lower end for cash deals while high price was for payment by acceptance. Crude oil price rolled over bellow $90/bbl while benzene price was firmed at high level of Rmb 10500-10600/ton. Downstream PU coating remains weak while shoe resin didn’t improve either. The expected “sales peak” failed to show up.

As to production, only Liaoyang petrochemical runs normally. Xinjiang Dushanzi halved operating rate due to various reasons. Shandong Haili only operated one production line. Both Shandong Hongye and Hualu Hengsheng operated only one line now and operating rates are around 70-80% and 60-70% respectively. Shanxi Yangquan Coal’s facility has been shut down, no restart plan heard. Henan Shenma operates normally this week. The newly added 50 ktpa facility was still in testing. Huafon Chongqing-based facility operates normally and mainly delivers goods to east China.

Import goods are quoted at Rmb 12000-13000/ton.

In east China Xinjiang and Shandong materials were quoted at Rmb 10300-10500/ton; feedstock of Liaoyang Petrochemical was priced at Rmb 10500-10600/ton. In south China, Xinjiang and Shandong materials were quoted at Rmb 10500-10700/ton; feedstock of Liaoyang Petrochemical was priced at Rmb 10700-11000/ton.

BDO: BDO market still went downswing this week. Continuous down-adjustments have aggravated suppliers’ worries for future market. As some individual downstream buyer has consumed a lot inventory as he was on the fence previously, he has to buy some feedstock now, which supported some of the holders. But generally speaking, buyers are forcing price down and mainly placing small orders. Price was kept at Rmb 14500/ton by acceptance.

In third week of November, domestic BDO price fell from Rmb 14500-14800/ton in early week to Rmb 14200-14500/ton in week end. High-end price in early week was quotation from manufacturers with negotiation room. Negotiation level got close to lower end in late this week. Prices from some sources are heard at Rmb 14000/ton by acceptance while prices for cash deals are even lower. Market price is approaching to so-called cost line. But most of the facilities operate normally and supplies present sufficient. It seems that future market will remain bearish. Due to restricted demand, barreled goods are directly supplied to customers by manufacturers. Prices are heard at Rmb 15500-16200/ton or Rmb 15300/ton. Imported goods are numbered at $2000-2900/ton. Negotiation price for $ 1900/ton is also heard, but it is not the dominant price.

PO (propylene oxide): There is no large improvement in PO market this week. Feedstock propylene market showed weak at the beginning of this week. Later on , due to imported goods entered market gradually, some propylene plants have to down-adjust price. As there are few supportive news in upstream while rigid demand fromd downstream is decreasing, PO price keeps unchanged. PO was negotiated around Rmb 11400-11600/ton in north China and Rmb 11400-11500/ton in Shandong and north China.

PPG: Rigid PPG dipped slightly. Stable upstream PO has offered powerful support to rigid PPG, but downstream buyers are cautious in placing orders. With strong willing to promote sales, plants down-adjust negotiation price in late this week.

4110 barreled goods are negoitated at Rmb 11500-11800/ton in north China while Rmb 11500-11800/ton in east and Rmb 11500-11800/ton in south.

Flexible PPG market presented insipid as well. Common flexible PPG was negotiated at Rmb 12200-12400/ton in east China, Rmb 12300-12400/ton in south while Rmb 12200-12300/ton in north.

Solvent

DMF: DMF market rolled over. Turnovers are flat. Price of upstream carbinol dropped and failed to support DMF. Operating rates of a few large and middle downstream PU coating factories are kept at 60-70% but that of small ones still stays at 40-50%, even 10-20% is also heard. Shoe rein markets are weak as well with the expected “sales peak” failed to show up. Anhui Huaihua and Luxi Chemicals still shut down; Hualuhengsheng and Zhejiang Jiangshan operate normally.

Bulk materials were negotiated around Rmb 5700-5900/ton in Jiangsu and Zhejiang, Rmb 5500-5700/ton in north China and Shandong, while Rmb 5900-6100/ton in Guangzhou and Fujian.

MEK: MEK market continued weak. Raw material C4 price goes upward, supported MEK from falling. Fushun Petrochemical’s 30 ktpa unit operates normally while Lanzhou Petrochemical’s 30 ktpa unit runs low at 50-60% meanwhile another 30 ktpa stopped for maintenance and planned to restart by end of the month. Other plants are under normal operation of 60-70%. Downstream demands are weak, mainly placing small orders. Downward room of MEK is likely to become limited under this circumstance.

Currently MEK is negotiated around Rmb 8750-8900/ton in east China and Rmb 9000-9200/ton in south China.

Downstream

PU Coating Systems: Polyurethane coatings continued weak performance and according to plants demand for coatings was better than that for synthetic leather. Operation rates were heard at 60%-70% in middle-sized and large plants, and others mostly kept at 40%-50%, but rates around 10%-20% were also heard

Wet PU coatings were negotiated at Rmb 10200-10500/ton and dry goods were heard at Rmb 10800-11200/ton in Jiangsu and Zhejiang provinces. Nominations of wet goods were Rmb 10300-10600/ton and Rmb 10800-11400/ton for dry goods in north China and Shandong areas. Guangzhou and Fujian market were heard quotations of Rmb 10500-10800/ton for wet goods and Rmb 11000-12000/ton for dry goods.

Spandex: Since production of warm clothes was drawing to an end, and domestic temperature continued falling down, enabling both production and sales to thrive, which supported domestic spandex market to keep stable in terms of shipment. However, under sluggish economic environment, some weaving mills faced decreasing orders, and prices of main materials like Dacron, chinlon and viscose also softened, making traders turn to prudent side and buyers purchase materials at a hand-to-mouth basis. But still, under supports of PTMEG and pure MDI, prices remained steady and flat. 20D was heard around RMb 50000-62000/ton while 40D at Rmb 44000-46000/ton.

Sole Resin: Sole resin market continued the weak sentiment since the said “little peak” actually failed to come. Operation rates mostly kept at 40%-50%, and rates below 30% or shutdown were also heard.

Sole resin was quoted around Rmb 18000-19000/ton while traded at Rmb 17000-18000/ton in Jiangsu and Zhejiang while quoted and traded prices are at Rmb 18500-19500/ton and Rmb 17500-18500/ton respectively in Guangzhou and Fujian.

 

About us | Service | Feedback | Terms of Privacy | Contact us

Tel:+8621-56526182, Fax:(+86)21-56525833, Email:enservices@puworld.com

Copyright 2012 http://www.puworld.com All rights reserved.