LOS ANGELES
,
January 13, 2023
(Industry Intelligence Inc.)
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US Resins US resin prices started the first week of 2023 with their first increases in months as restricted supply meets improving sentiment. Monomer costs, including polymer-grade propylene, were also on the rise. PE spot prices added US$0.02/lb during the week due to strong buyer demand. However, production issues at Chevron Phillips Chemical and Ineos may limit the availability of material in the following week. PE contracts, which have held steady for the past three months, are seeing nominations for January increases ranging $0.06-$0.08/lb. PP prices increased by $0.04/lb in the week of January 2 on the back of rising monomer costs. The increase in polymer-grade propylene costs could translate to PP price increases of about $0.75/lb, in addition to a proposed $0.03/lb price hike. The primary source of this information is Plastics Today. China’s imports of LPG during January-November 2022 increased 7% year-over-year to 24.2 million tonnes. Leading suppliers included the U.S., United Arab Emirates, Qatar and Saudi Arabia, according to customs data. For all of 2022, China’s LPG imports are estimated at about 26.3 million tonnes, trade sources say. Going forward, China may see double-digit increases in its LPG imports in 2023. Demand from downstream propane dehydrogenation plants will likely be gradual as petrochemical margins improve. In December, CFR North Asia propane prices averaged US$625.90/tonne and held steady during January 1-11 at $625.14/tonne. Chinese PDH plants are projected to process 12.28 million tonnes of LPG in 2023, a 23.5% increase from 2022, according to S&P Global Commodity Insights analysts. Steam crackers in China are projected to process 5.06 million tonnes of propane in 2023, down 17% year-over-year. The primary source of this information is S&P Global Platts. Independent refiners in China increased their feedstock imports in December by 11.7% year-over-year to 19.12 million tonnes, according to data from S&P Global Commodity Insights. Import volumes fell just short of record levels of 19.8 million in July 2020. Russia-based ESPO remains among the most popular feedstocks. In October 2022, fifteen refineries in the Shandong province received crude import quotas totaling 10.6 million tonnes. Some refineries increased their activity due to improved margins, boosted by the easing of COVID-19-related restrictions across the nation, according to one analyst. The primary source of this information is S&P Global Platts.
China Propane Dehydrogenation
China Independent Refineries
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