The Week in Chemistry: US PE contracts seen rising US$0.03/lb for January, PP producers seek US$0.03/lb contract hike in addition to cost-related increase; China recovery seen driving demand for propylene, durable plastics, paraxylene

Sample article from our Chemicals Industry

LOS ANGELES , February 3, 2023 () –

 

US Resins

US resin trading for the week of January 23 remained subdued, with spot prices keeping the previous weeks’ gains without increasing further.

PE producers have pushed for contract increases of US$0.05/lb, though industry groups foresee $0.03/lb as a more realistic figure.

Production of PE continues to be affected by force majeure conditions at Chevron Phillips’ production site in Baytown Texas. However, processors have been able to find adequate supply in general. 

PP producers will look for margin increases of $0.03/lb in January and $0.06/lb in February, on top of cost-related increases as polymer-grade propylene costs rise.

PP inventories hit their lowest in 16 months at the start of January after high levels of exports in December, in addition to reduced production.

The primary source of this information is Plastics Today.

 

China Plastics Demand

China’s demand for durable plastics could improve in 2023 as propylene demand makes a comeback, according to Chris D’Anna, Enterprise Products Partners SVP of petrochemicals.

A rebound in China could play a role in global demand recovery later in the year, D’Anna notes.

Spot polymer-grade propylene prices were assessed at US$0.4375/lb on Jan. 31, while US contracts settled at $0.43/lb in January, an increase of $0.11/lb over December, Platts data shows.

Enterprise plans to start a 750,000-tonne/year propane dehydrogenation unit in Q2 2023.

The primary source of this information is S&P Global Platts.
 


Asia Paraxylene

Asia paraxylene spot prices reached record highs in January, hitting US$1,082/tonne CFR Taiwan/China on January 30 as markets anticipated a spike in Chinese demand.

Following the Lunar New Year holidays, buyers in China are expected to replenish thin inventories.

In addition, markets are expecting a seasonal lag in PX and other aromatics coming from the US.

Overall, aromatics demand in Asia and the West remain healthy.

The primary source of this information is S&P Global Platts.
 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order chemicals industry coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.