LOS ANGELES
,
March 11, 2022
(Industry Intelligence Inc.)
–
US Resins US spot resin markets at the start of March saw a flurry of activity and soaring prices in response to limited supply and escalating energy and feedstock costs. Some sellers are holding off as they anticipate even higher prices, fueled by the Russia-Ukraine conflict and its impact on supply chains. PE commodity grades gained about US$0.01/lb during the week. The upward pricing momentum could lend a hand to producers’ sought-after $0.04/lb contract increase, which has failed for two months. Meanwhile, PP increased by as much as $0.05/lb as March began, with expectations for further increases ahead. The primary source of this information is Plastics Today. Russia and China Polymer Trade Russian polymer producers may turn to China as a new trade partner as Russia faces sanctions from governments worldwide in response to its conflict in Ukraine. Typically, Russia accounts for 3%-5% of China’s PE imports, while Russian PP made up just 0.4% of China’s imports in 2021. Nevertheless, Russia has already begun offering PE, PP and styrene-butadiene rubber shipments in Yuan. PVC supply to Europe has also been impacted as the invasion takes its toll on Ukranian producers, compounding supply issues on top of the sanctions on Russian PVC. PE and PVC supply disruptions to Turkey have also emerged. Market sources say there have been no new Russian offers since February 24, though many customers are also avoiding Russian material. The primary source of this information is S&P Global Platts. Fertilizers Global fertilizer player Yara is pointing to rising energy prices as the company plans to cut production at two European plants. The move comes as no surprise to traders, who say that more production cuts are likely in the near future. The company will run at 45% capacity at its two facilities in Ferrara, Italy, and Le Havre, France, which have a combined capacity of 1 million tonnes/year of ammonia and 900,000 tonnes/year of urea. Ammonia prices were assessed at US$1,400/tonne CFR Northwest Europe on March 8. 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.
