The Week in Chemistry: US spot PE, PP prices hold steady during week of June 19; India PTA buyers facing regulatory hurdles for Chinese imports seek alternate sources including South Korea; China's plastic production in May totaled 6.3 million tonnes

LOS ANGELES , June 30, 2023 (Industry Intelligence Inc.) –

US Resins

US PE spot prices held steady during the week of June 19, leveling off after surrendering most of their first quarter gains by the end of May.

Meanwhile, PE contracts defied some of the downward trend seen in the second quarter. However, June contracts face downward pressure due to abundant inventory and lackluster global demand.

Spot PP experienced reduced demand, bringing trading to a slowdown and keeping homopolymer and copolymer prices flat for the second week running.

PP contracts increased US$0.26/lb in the first quarter and lost a total of US$0.19/lb in April and May.

The primary source of this information is Plastics Today.

India PTA Trading

Indian PTA buyers face approaching regulatory hurdles affecting Chinese supply, sending buyers to seek out other markets, sources say.

China is among India’s largest PTA suppliers, making up 62% of the country’s 543,060 tonnes imported between January and April.

Other potential sources of PTA include Taiwan, Indonesia, Thailand and South Korea. 

Traders in South Korea say traders are receiving many inquiries from India.

However, South Korea may not have sufficient supply to meet demand from India, which could take away from exports to other destinations.

Chinese sellers could sell PET to South Korea for subsequent export to India, though the process would have higher costs.

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

China 

China’s production output of plastic products in May fell 3.3% year-over-year to 6.3 million tonnes, according to official data.

In the January-May period, output totaled 29.35 million tonnes, a 2% decrease year-over-year.

The decrease in output was influenced by reduced orders from overseas amid looming economic concerns. 

The primary source of this information is MRC.

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