The Week in Chemistry: US PE producers push April, May contract hikes of US$0.06-US$0.07/lb; China refinery, petrochemical operators increase crude import from Middle East while decreasing Russian imports, Alpek expects decision on Texas PET site in May

Sample article from our Chemicals Industry

LOS ANGELES , April 29, 2022 () –

 

US Resins

US prime PE and PP resins both gained another US$0.01/lb in the week started April 18, impacted by rising feedstock costs and tight supply against strong demand.

In addition, HDPE supply was hit by another force majeure in Louisiana. This comes one week after another producer was forced to declare force majeure due to congested railways. More PE exports in March added to supply tightness, even as production increased during the month. 

Nevertheless, one pricing index projected April PE contracts to roll flat, despite gains in the spot market. Producers are pushing for April and May contract hikes of US$0.06-$0.07/lb. 

The primary source of this information is Plastics Today.

 

China Petrochemicals

Chinese refiners and petrochemical companies reduced their imports of crude from Russia and Brazil in Q1 2022, official data show.

Instead, imports from the Middle East increased 4.8% to 5.6 million barrels/day, equivalent to a 53.8% market share.

Zhejiang Petroleum & Chemical was the main contributor to rising crude imports from Kuwait, as the company is sourcing feedstock for two new 400,000-barrels/day operations.

In March, imports from Russia declined 14.1% year-over-year. China’s overall crude imports decreased 8.1% year-over-year during the same period.

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


Alpek PET/PTA Complex

Alpek has made ‘significant progress’ on a potential joint venture PET and PTA complex in Texas, sasy CEO Jose de Jesus Valdez.

A decision will most likely be made during May, he added, noting that he anticipates PET demand in the US to remain stable for the remainder of 2022.

The project would include a 1.3 million-tonne/year PTA unit and a downstream 1.1 million-tonne/year PET plant.

Alpek partnered with Indorama and Taiwan-based Far Eastern New Century to revive the project, which was initiated by M&G Chemical before the company declared bankruptcy in 2018.

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

 

 

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