LOS ANGELES
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May 26, 2023
(Industry Intelligence Inc.)
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US Resins US spot resin trading improved significantly in the week of May 15 amid improving demand, bringing volumes above average for the year thus far, according to a PlasticsExchange report. Nevertheless, most spot PE grades decreased by about a cent, eroding hopes that a US$0.05/lb contract increase will go through for May. Adding to downward pressure, PE processors are calling for a $0.03/lb recall. Robust spot PP trading led to reduced inventories, with some co-polymer PP grades becoming tightly supplied. PP contracts in May are expected to decrease by $0.07-$0.08/lb in line with decreasing polymer-grade propylene. The primary source of this information is Plastics Today. Japan Chemistry's Earnings Season Chemical companies in Japan have been showing up at the end of their fiscal 2022 with lower earnings, despite higher sales for most major companies. Sumitomo Chemical’s statement cited poor economic growth related to inflation and China’s delayed recovery post-COVID. Meanwhile, Mitsubishi Chemical described an overall upward trend in the global economy but warned of the risks related to tightened monetary policy and inflated raw material costs. Shin-Etsu was an outlier with positive sales and earnings. However, the company did note challenges to its PVC business in the US, where rising interest rates are putting a drag on construction activity. The primary source of this information is Chemical & Engineering News. India Petrochemicals Expansion India’s chemicals and petrochemicals market is currently worth US$190 billion, according to India’s minister of petroleum and natural gas Hardeep Singh Puri speaking at Asia Petrochemical Industry Conference. The country is poised to become a worldwide petrochemical destination, aligning with the prime minister’s Make in India and Make for the World initiative, the official noted. India is the sixth largest chemicals producer in the world, exporting to more than 175 countries, Puri added. Going forward, chemical and petrochemical demand in India is projected to nearly triple, reaching US$1 trillion by 2040. The industry's rapid growth will benefit from government policies that make it easier to do business in the country, including creation of automatic routes to foreign direct investment. Policies also seek to create petroleum, chemical and petrochemical investment regions, establishing infrastructure for more than 10 parks. The primary source of this information is Chemical Week.
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