LOS ANGELES
,
June 9, 2023
(Industry Intelligence Inc.)
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US Resins May saw slower demand for US PE and PP as consumer spending on manufactured goods decreased, sending spot prices flat to lower. Domestic PP sales for the first four months of 2023 are down 9.7% year-over-year. HDPE sales fell 8.9% year-over-year, while LLDPE fell 9.9% and LDPE fell 11%, according to data from the ACC and Vault Consulting. Average PP operating rates in April stood at 72%, now keeping below 80% for nine months consecutively. PE operating rates were higher than 80% for LDPE, and surpassed 90% for HDPE and LLDPE. PP contracts for May were mostly in line with the propylene monomer decrease of US$0.08/lb. PE contract negotiations are ongoing. The primary source of this information is Plastics Today. Europe Chlorine Production European chlorine production totaled 600,389 tonnes in April, with average daily production up 2.0% month-on-month to 20,013 tonnes. Still, average daily production is 15.3% lower than April 2022 levels of 23,619 tonnes. Caustic soda stocks decreased 5.6% month-on-month to 293,686 tonnes in April. A year earlier, stocks were lower at 192,315 tonnes. The primary source of this information is EuroChlor. Global Ethylene, MEG Global ethylene markets continue to face uncertain demand from downstream packaging markets, creating expectations for a less-than-impressive end to 2023, sources say. Meanwhile, the market remains well-supplied due to China’s slower-than-expected recovery, which has led to plentiful exports from the country. Conditions have led to oversupply in the Asian region. If China’s domestic demand does not rebound in the near future, ethylene exports and new supply from capacity additions worldwide would both face thin demand, according to sources. Markets still expect 45 million tons of new ethylene capacity to be added between 2020 and 2024. Downstream, European MEG prices are historically low amid weak demand for derivative PET. The primary source of this information is S&P Global Platts.
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