The Week in Chemistry: US PE, PP contracts unlikely to achieve increases in July, global durable plastics including PET, PP, PVC impacted as inflation reduces consumer demand for durables; Japan chemical exports in June up 19.6% year-over-ear to 1.06T yen

Sample article from our Chemicals Industry

LOS ANGELES , July 22, 2022 () –

 

US Resins

US PE spot pricing for the week ended July 15 was steady to US$0.01/lb lower as producers offload inventories, enabling buyers to bid lower.

Spot PP pricing also continued to slip amid low demand from processors.

Meanwhile, PP contracts have begun to recover after falling US$0.18/lb in the three months to June. In the month of June, production lagged against solid demand, leading to greatly reduced producer inventories.

Still, price increases for PE and PP resins are on the table for July, including a US$0.03/lb PE increase. However, analysts see contract reductions as more likely than gains.

The primary source of this information is Plastics Today.


Global Durable Plastics

Rising inflation will likely continue to impact consumer demand for durable products, impacting durable plastics such as PET, PP, and PVC according to Dow CEO.

The polymers are commonly used in items such as furniture, bedding appliances and construction products.

Meanwhile, Dow sees a robust outlook for travel and tourism, leading to solid demand for plastics used in packaging for food and consumables.

For upstream ethylene, the company continues to monitor energy dynamics in Europe that could lead to government-mandated curtailments of production. 

In preparation, the company has reduced its use of natural gas in Poland, which would have been its largest exposure to curtailments.

Other ethylene facilities in Spain and the Netherlands can substitute liquefied petroleum gas for naphtha if needed.

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

 

Japan Chemical Exports

Japan’s chemical exports in June totaled 1.06 Trillion yen in June, an increase of 19.6% year-over-year, according to official data from Japan’s Ministry of Finance.

In terms of value, exports of plastic products increased 13.9% to 283 billion yen. However, export volumes of plastics fell by 4.2% year-over-year to 474,344 tonnes.

Exports of organic chemicals increased 22.8% to 196 billion yen.

The primary source of this information is MRC.

 

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