ASIAN PETROCHEMICALSCAN

Volume 31 / Issue 16 / April 21, 2017

AROMATICS ($/mt)
FOB Korea CFR Taiwan CFR SE Asia CFR India CFR China China Domestic^
Benzene 801.50–802.50* 799.00–801.00* 802.50–803.50 FOB* 798.00–799.00
H1 May 803.00–805.00 1
H2 May 803.00–805.00 1 794.00–796.00
H1 Jun 799.00–801.00 1 801.00–803.00
H2 Jun 799.00–801.00 801.00–803.00
H1 Jul 789.00–791.00 794.00–796.00
Benzene Paper Swaps:
Bal month Apr NA–NA
May 797.00–799.00
Jun 788.00–790.00
Jul 784.00–786.00
Toluene 642.50–644.50 FOB* 673.50–675.50** 674.00–676.00** 697.50–699.50 663.50–664.50** 5464–5466**
666.50–667.50++
H1 May 640.00–642.00 642.50–644.50 FOB* 662.00–664.00**
665.00–667.00++
H2 May 640.00–642.00 662.00–664.00**
665.00–667.00++
H1 Jun 645.00–647.00 664.00–666.00**
667.00–669.00++
H2 Jun 645.00–647.00 664.00–666.00**
667.00–669.00++
H1 Jul 662.00–664.00 664.00–666.00**
667.00–669.00++
SOL–MX 554.00–556.00** – 639.00–641.00 CFR** – 589.00–591.00++
ISO-MX 666.50–667.50# 687.50–688.50***
H1 May 663.00–665.00 684.00–686.00
H2 May 665.00–667.00 686.00–688.00
H1 Jun 667.00–669.00 688.00–690.00
H2 Jun 667.00–669.00 688.00–690.00
OX 704.00–706.00** 694.00–696.00 CFR** 689.00–691.00** 709.00–711.00**
PX 816.00–818.00* 836.00–838.00+ 829.50–831.50+ –
H1 May 812.00–814.00 832.00–834.00
H2 May 812.00–814.00 832.00–834.00
H1 Jun 818.00–820.00 838.00–840.00
H2 Jun 818.00–820.00 838.00–840.00
Styrene 1103.00–1104.00 * 1129.00–1131.00 1162.00–1163.00 CFR** 1149.50–1150.50** 1130.00–1131.00++ 9180–9200
H1 May 1105.00–1107.00 1132.00–1134.00
H2 May 1105.00–1107.00 1132.00–1134.00
H1 Jun 1100.00–1102.00 1127.00–1129.00
H2 Jun 1100.00–1102.00 1127.00–1129.00
H1 Jul 1100.00–1102.00 1127.00–1129.00
Methanol 319.00–321.00 CFR 292.00–294.00 314.00–316.00 CFR 259.00–261.00 277.00–279.00** 2549–2551*
Methanol CP CFR Asia (Apr) 390.00
MTBE 675.00–677.00 FOB Singapore MTBE factor: 1.234 –

Weekly Averages

Benzene 783.70–784.70 FOB Korea SM 1098.40–1099.40 FOB Korea

Benzene 787.70–788.70 CFR China SM 1124.40–1126.40 CFR Taiwan
Benzene 785.50–786.50 FOB SEA SM 1125.40–1126.40 CFR China
Toluene 643.10–645.10 FOB Korea SM 9176–9196** China Domestic^
Toluene 664.50–665.50** CFR China Methanol 281.20–283.20 CFR China
Toluene 667.50–668.50++ CFR China Methanol 317.00–319.00 CFR SE ASIA
Toluene 5471–5473** China Domestic^ Methanol 2539.00–2541.00 China Domestic^
PX 817.77–819.77 FOB Korea MTBE 683.60–685.60 FOB Singapore
PX 837.77–839.77 CFR Taiwan/China MTBE factor 1.235
Iso–MX 674.10–675.10 FOB Korea Naphtha (Apr 21) 468.00–472.50 CFR Japan
Iso–MX 686.90–687.90 CFR Taiwan

*LC at sight, **LC 0-30 days, ***0-30 days for Asia origin cargoes and 0-60 days for deep-sea origin cargoes. +LC 30-45, #LC 30 days, ++LC 90 days. Note: Paraxylene CFR assessments are basis CFR
Taiwan/China. Styrene CFR assessments are basis CFR Taiwan/China. Credit differentials calculated using 1 month LIBOR +1.5%. No balance-month assessments from 16th of each month. PTA CFR China
assessments reflect Friday’s MOC assessment. ^in Yuan/mt

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ASIAN PETROCHEMICALSCAN APRIL 21, 2017

OLEFINS ($/mt)
Commentaries

FOB Korea CFR Taiwan CFR SE Asia FOB Japan CFR China CFR NE Asia
Ethylene** 1159–1161 1059–1061 1204–1206
Propylene** 804–806 859–861 779–781 804–806 829–831
Butadiene** 1224–1226 1284–1286 1274–1276 1274–1276

Weekly Averages
Monday Tuesday Wednesday Thursday Friday Weekly Average
Ethylene CFR NE Asia 1179–1181 1199–1201 1199–1201 1204–1206 1204–1206 1197.00–1199.00
Ethylene CFR SE Asia 1049–1051 1059–1061 1059–1061 1059–1061 1059–1061 1057.00–1059.00
Propylene FOB Korea 814–816 809–811 809–811 804–806 804–806 808.00–810.00
Propylene CFR China 839–841 834–836 834–836 829–831 829–831 833.00–835.00
Butadiene CFR China 1349–1351 1299–1301 1299–1301 1299–1301 1274–1276 1304.00–1306.00
Butadiene FOB Korea 1299–1301 1249–1251 1249–1251 1249–1251 1224–1226 1254.00–1256.00
**LC 0–30 days, +LC 30–45, #LC 30 days, ++LC 90 days. Credit differentials calculated using 1 month LIBOR +1.5%.

FIBER INTERMEDIATES ($/mt)

CFR SE Asia CFR India CFR China China Domestic^
PTA 645–647 648–650 627–629 4810–4830
MEG++ 692–694 689–691

Weekly Averages
Monday Tuesday Wednesday Thursday Friday Weekly Average
PTA CFR China 634–636 634–636 629–631 627–629 627–629 630.20–632.20
PTA China Domestic^ 4930–4950 4920–4940 4850–4870 4830–4850 4810–4830 4868.00–4888.00
MEG CFR China 694–696 686–688 689–691 704–706 689–691 692.40–694.40
MEG China Domestic^ 5820–5840 5740–5760 5790–5810 5890–5910 5770–5790 5802.00–5822.00
^in Yuan/mt

Benzene down about 10,000 mt from last week at about 100,000 mt,
inventory levels in China of benzene and SM were both considered
June demand emerges from NE Asia
„„ high, thus had capped import demand. In Taiwan, June-arrival
USGC prices rebound, East China remains stable
„„ discussions were expected to start next week after a state-owned
company had closed its June buy tender next Tuesday. Offers were
Asia benzene dropped $20-$31.50/mt from last Thursday under heard at premiums of plus $22-$23/mt to the FOB Korea
weak demand due to closed arbitrage windows. Spot prices in the assessment this week, but buyers were not keen to conclude this
FOB Korea market this week showed mixed trends, as prices earlier week at premiums above plus $20/mt. In Southeast Asia, spot
this week fell amid the downtrend in the US Gulf Coast market and discussions were thin amid the oversupply of H2 May cargoes. While
a weaker downstream styrene monomer. Sentiments earlier this there were no firm negotiations, buy ideas were heard at premiums
week were also suppressed on lower domestic East China prices, around plus $15-$16/mt to the FOB Korea assessment, against sell
down around Yuan 200/mt from last week. FOB Korea discussion ideas kept in the low-$20s/mt.
levels, however, picked up from Wednesday onwards, mainly to
track rebounds in the downstream SM market, and firmer USGC Rationale
benzene prices. FOB Korea sellers also held back for better netback FOB Korea benzene was assessed at $802/mt Friday, rose $20/
on the expectation of firmer prices in the USGC market after mt from Thursday. The marker takes the average of the third and
turnaround season, hence prompted for higher bids as buyers were fourth half-month laycans, H2 May and H1 June. Offscreen during
keen for June FOB Korea cargoes amid some Chinese import the MOC process, June was best bid at $795/mt against the best
demand. June FOB Korea discussions were heard at $788-$805/mt offer at $805/mt. Both June laycans were assessed between the
earlier Friday, and at $795-$805/mt in the afternoon before the bid and offer at $800/mt. Amid weaker demand for May cargoes,
Platts Market on Close assessment process. July FOB Korea talks the May/June spread was narrowed from plus $6/mt to plus $4/
was kept stable at around $775-$790/mt Friday. The FOB USG Q3 mt. Based on the May/June spread at plus $4/mt, both May laycans
price rose 7 cents/gallon to 276 cents/gallon ($825.24/mt) Thursday, were assessed at $804/mt. The CFR China marker increased
but was at 264 cents/gallon ($789.36/mt) last Friday. Arbitrage $13.50/mt over the same period to be assessed at $798.50/mt
opportunities into China had opened up briefly earlier this week, Friday. May CFR China laycans were assessed at $795/mt, between
with tradeable levels heard at $770-$790/mt CFR China, but import the bid heard at $785/mt and an offer at $800/mt. Earlier selling
demand was soon dampened by uptrend in the FOB Korea prices, indications for June CFR China were heard at $800/mt, but the
while East China prices were left stable. Domestic prices in East latest offscreen bid during the MOC process was at $800/mt. Both
China was heard stable day on day at Yuan 6,400-6,500/mt Friday, June CFR China laycans were assessed above the latest bid at
or $779-$791.40/mt on import parity basis. Although inventory $802/mt. The above rationale applies to the following market data
levels at the East China main port had dropped this week, heard code: “PHASM05”.

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 2
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

Bids/offers/trades POLYMERS ($/mt)

MOC Bids/offers/trades: CFR Far East CFR SE Asia CFR S Asia
MOC deal Summary: -None PVC SUSP 869–871 879–881 929–931
MOC Outstanding Interest: LDPE G–P 1239–1241 1299–1301
MOC bids: -None LLDPE Butene 1129–1131 1189–1191 1209–1211
MOC offers: -None LLDPE Metallocene C6 1329–1331 1349–1351 1359–1361
HDPE YARN 1174–1176 1194–1196
Exclusions: No MOC market data was excluded from the April 21, 2017
HDPE INJ 1139–1141 1159–1161 1179–1181
assessment process HDPE BLMDG 1119–1121 1139–1141 1169–1171
HDPE FILM 1144–1146 1149–1151 1169–1171
Toluene PP RAFFIA 994–996 1084–1086 1119–1121
PP INJECTION 994–996 1084–1086 1119–1121
May CFR China demand heard at $660/mt
„„ IPP FILM 1014–1016 1104–1106 1139–1141
Benzene rises $20/mt on day
„„ BOPP 1004–1006 1104–1106 1139–1141
BLOCK COPOL 1084–1086 1154–1156 1189–1191
PS G–P 1259–1261 1284–1286
Asian toluene fell $9.50/mt week on week to 643.50/mt FOB Korea HIPS 1329–1331 1369–1371
Friday, but rose $2/mt day on day following a rebound in benzene, ABS INJ 1719–1721 1659–1661
which was up $20/mt from Thursday to $802/mt FOB Korea. For PVC, PS, ABS and C6 mLLDPE, FE Asia refers to China. All polymer assessments are basis L/C
0–30 days. Credit differentials calculated using 1 month LIBOR +1.5%.
However, compared to Thursday last week benzene was down $20/
mt. No deals were heard for toluene Friday as the gap between bids
and offers was wide amid mixed fundamentals. Upstream, naphtha CHINA DOMESTIC (Yuan/mt ex–works)
tumbled $17.63/mt day on day to $470.50/mt CFR Japan as June LDPE 10480–10520
ICE Brent crude futures inched lower. Sources said this week that LLDPE 9380–9420
HDPE FILM 9780–9820
most markets, except for East China, were oversupplied. In East
PP RAFFIA 7680–7720
China this week, the inventory level of toluene was heard down PVC ethylene-based 6490–6510
10,000 mt to 80,000 mt. The domestic price of toluene in that PVC carbide-based 5690–5710
region was heard around Yuan 5,465/mt, or about $653/mt on an
import parity basis. But elsewhere, in India and Southeast Asia WEEKLY AVERAGES (CFR FE Asia)
supply was heard to be long.
HDPE 1149.00–1151.00
LDPE 1239.00–1241.00
Rationale LLDPE 1126.50–1128.50
Toluene was assessed up $2/mt at 643.50/mt FOB Korea Friday. The PP RAFFIA 996.50–998.50
marker takes the average of the third and fourth half-month laycans, PP INJECTION 996.50–998.50
currently H2 May and H1 June. Earlier in the day, H2 May was bid at
$640/mt FOB Korea and the laycan was pegged and assessed at $641/ WEEKLY AVERAGES (FOB Middle East)
mt. Offscreen during the Platts Market on Close assessment process, HDPE 1133.00–1135.00
an H2 May cargo was bid at $630/mt FOB Korea, against no offers. LDPE 1223.00–1225.00
Also offscreen, June was heard bid at $635/mt FOB Korea, against an LLDPE 1110.50–1112.50
offer at $660/mt FOB Korea. H1 and H2 June were both assessed at PP RAFFIA 980.50–982.50
PP INJECTION 980.50–982.50
$646/mt FOB Korea, between the bid and offer.
Note: Weekly polymer assessments are made each Wednesday for Far East Asia, SE Asia, and W
Asia. In addition, weekly averages of the daily PE and PP Far East assessments are published each
Solvent - MX Friday and represent the average of the assessments from previous Thursday through Wednesday.

Buyers await clarity on China consumption tax

„„ ASIAN MEG PRICES FALL TO 6-MONTH LOW
S Korea supply to tighten in May on turnaround
„„
($/mt)
1000
Solvent-grade mixed xylene was assessed down $30/mt Friday from
last Thursday. No bids were heard from China, where demand came to 950
a near standstill this week. This was due to the product sharing the
900
same code for imports as mixed aromatics, which is expected to have
a consumption tax imposed some time between May 1 and July 1. 850
Chinese importers do not yet know if the consumption tax will also be
imposed on solvent-MX, or only on mixed aromatics. A South Korean 800
producer of solvent-MX said there was no discussion for buying or
750
selling cargoes into the China market this week as participants
awaited clarity. Meanwhile, Taiwan’s CPC is offering 4,500 mt of 700
01-Jan 22-Jan 12-Feb 05-Mar 26-Mar 16-Apr
solvent-MX for June loading via a tender closing April 26. In plant news,
South Korea’s Yeochun NCC plans to shut its No. 1 aromatics unit for Source: Platts

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 3
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

maintenance from mid-May to mid-June. The unit has a design CHINA TOLUENE, MX, STYRENE INVENTORY LEVELS
capacity of 130,000 mt/year of benzene, 70,000 mt/year of toluene and Product Inventory level (mt) Prior week(mt) Change on week(%)
50,000 mt/year of solvent MX. Solvent-MX supply is likely to be tight
from May as the producer will be supplying only on a contract basis East China:
and have no additional spot material, according to a major South Toluene 80000 90000 -11.11
Korean producer. Mixed Xylenes 60000 83000 -27.71
Styrene 147500 160900 -8.33
Rationale South China:
Solvent-MX was assessed down $30/mt week on week at $555/mt Toluene 10000 7000 42.86
FOB Korea and $590/mt CFR China Friday for cargoes with letters Mixed Xylenes 10000 6000 66.67
of credit of 90 days. The lowest offer was heard at $560/mt FOB Styrene 6200 6200 0.00
Korea. In China, an offer was heard at $595/mt CFR, versus no bids. In
Southeast Asia, offers were heard at $650-$660/mt CFR. There were
no bids. Southeast Asia was assessed at $640/mt CFR, below the offer ASIAN AROMATICS SHIPPING ROUTES
at $650/mt CFR Southeast Asia.
Spot freight to/from Korea & USGC
Paraxylene From: Korea Korea USGC
To: 2-3kt 5kt 5-12kt
H2 May trades at $833/mt CFR
„„ Korea 57-62 (SM, PX,MX)
May PTA futures fall Yuan 12, Sept falls Yuan 10
„„ Taiwan 28-31 (BTX, SM) 17-20 (PX) 58-63 (PX, MX)
East China 23-26 (BTX, SM) 16-19 (PX) 59-64 (SM, PX,OX)
Ending a week of relative stability from the previous weeks in April, South China 23-26 (SM, Tol) 18-21 (PX) 59-64 (PX)
Asian paraxylene prices were unchanged on the day at $817/mt FOB India 49-52 (Tol)
Korea and $837/mt CFR Taiwan/China Friday, with selling sentiment USGC 40-45 (10kt Bz, Tol)
stable from Thursday amid marginal movements upstream and Spot freight from Southeast Asia
downstream. May and September purified terephthalic acid futures on
the Zhengzhou Commodities Exchange were trading slightly higher in From: Pasir Gudang Map Ta Phut Indonesia
To: 3kt 3kt 3kt
the morning, although a slight downturn in the afternoon saw the
markets close Yuan 12/mt and Yuan 10/mt lower, respectively, from Singapore 15-18 (Bz) 24-26 (Bz) 25-28 (Bz)
Indonesia 24-27 (Tol)
Thursday’s settlement prices at Yuan 4,850/mt and Yuan 5,010/mt,
East China 36-39 (SM)
respectively, in the afternoon trade. The late declines saw three offers
Korea 36-39 (Bz)
during the Platts market on Close assessment proces for June cargo,
Taiwan 29-34(Tol)
although none of them traded, in spite of all three offers falling to India 39-43 (OX) 44-49 (OX)
$840/mt CFR. Upstream June ICE Brent crude futures were 23 cents/b Al-Jubail 60-65 (Bz)
lower at $52.94/b at 0830 GMT. At least five deals were recorded over
the week for H2 May cargo, starting at $840/mt on Monday, with the Spot freight from Middle East
last deal heard at $833/mt Thursday, and with the other deals in that
From: Middle East Middle East
range. But June spot cargo traded at least six times, with the last deal To: 2-3kt 5-7kt
heard at $837/mt Friday. Meanwhile, India’s Reliance Industries Ltd. has Singapore 34-44 (SM, MTBE)
commissioned the second phase of its PX plant in Jamnagar, the Korea 47-52 (PX)
company said in a statement filed with National Stock Exchange of Taiwan 55-57 (SM)
India late Thursday. This follows the successful commissioning of the East China 58-60 (SM, OX)
first phase in late-December 2016. A source close to the company South China 54-56 (SM)
earlier told S&P Global Platts that operating rates in the second phase India 32-37 (SM, OX)
Southeast Asia 32-37 (PX)
was now at a “fairly high rate.” RIL’s No. 2 aromatics unit in Jamnagar
has a nameplate production capacity of 2.2 million mt/year of PX and Spot freight from India
500,000 mt/year of benzene. The startup of the second phase of the
PX plant will more than double RIL’s PX production capacity to 4.2 From: India India India
To: 3kt 5-7kt 10kt
million mt/year, making it the world’s second-largest PX producer, with
Singapore 37-42 (Bz)
9% of global PX capacity and 11% share in the global production, the
Indonesia 30-35 (PX)
company said in a statement announcing the commissioning the first
East China 47-52 (OX) 40-45 (PX) 38-42 (PX)
phase of the plant last December. The CFR Taiwan/China marker was South China/Taiwan 36-40 (PX)
67 cents/mt lower from the last weekly assessment on Thursday. Pakistan 15-18 (PX)
Middle East 20-24 (Bz)
Rationale *Key: BTX = Bz, Tol, xylenes (OX, MX, solvent-MX); Bz = benzene, Tol = toluene, SM = styrene
Asian PX was assessed unchanged from Thursday at $817/mt FOB monomer, MX = isomer-mixed xylenes, PX = paraxylene, OX = orthoxylene, Sol-MX = solvent-mixed
xylenes, MTBE = methyl tertiary-butyl ether
Korea and $837/mt CFR Taiwan/China Friday. The markers take the *Please refer to the methodology guide for details on port locations

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 4
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

average of the H2 May, H1 and H2 June laycans. The H1 and H2 June FOREIGN EXCHANGE RATES
laycans were assessed at $839/mt CFR Taiwan/China, below offers AUD/USD 0.75/0.75
from BP Singapore, AFCO Energy and Oman Trading International for EUR/USD 1.07/1.07
GBP/USD 1.28/1.28
June at $840/mt CFR, against no MOC bids. The H2 May laycan was
USD/JPY 109.22/109.23
assessed at $833/mt, maintaining the H2 May/June contango from USD/HKD 7.78/7.78
the previous assessment at minus $6/mt. The above rationale applies USD/MYR 4.40/4.40
to the following market data codes: “PHASS05” for FOB Korea and USD/SGD 1.40/1.40
“AAQNE00” for CFR Taiwan/China. USD/YUAN 6.8823

Bids/offers/trades
CONTRACT PRICES ($/mt)
MOC deal Summary: -None
MOC Outstanding Interest: Paraxylene
MOC bids: -None PX average CP settlements (Apr) 835 CFR Asia
MOC offers: ExxonMobil 835 CFR Asia
PX: S1) BP Singapore offers Any June at $840/mt CFR TND (Yisheng Idemitsu 835 CFR Asia
JX Nippon 835 CFR Asia
Dalian delivery excluded), 5kt, LC 30/45/60 days
S-Oil 835 CFR Asia
PX: S2) AFCO Energy offers Any June at $840/mt CFR TND (Yisheng SKGC 835 CFR Asia
Dalian delivery excluded), 5kt, LC 30/45/60 days PX producer CP nominations (Apr)
PX: S3) OTI offers Any June at $840/mt CFR TND (Yisheng Dalian ExxonMobil 835 CFR Asia
delivery excluded)/Hai/Zhu/Xia/Zha/Jy/Gu/LYG, 5kt, LC 30/45/60 days Idemitsu 860 CFR Asia
JX Nippon 835 CFR Asia
(max 25 kDWT) S-Oil 870 CFR Asia
Exclusions: No MOC market data was excluded from the April 21, 2017 SKGC 855 CFR Asia
assessment process Sinopec CP nomination (Apr): 852
Sinopec CP settlement (Mar): 894
Isomer - MX Sinopec CP nomination (Apr):
Sinopec CP settlement (Mar):
Yuan 7000
Yuan 7350

China blending demand supports May

„„ Benzene
Naphtha falls $17.63/mt
„„ JX Nippon nomination (Apr): 820
JX Nippon settlement (Apr): 795

Asian isomer-grade mixed xylene prices tumbled $24/mt from last MEG
Thursday to $667/mt FOB Korea and slipped $8/mt to $688/mt CFR Producer CP nominations (MAY)
Taiwan Friday, while day on day, the prices moved up $1/mt and $10/ MEGlobal 920 CFR Asia
Sabic 965 CFR Asia
mt, respectively. China gasoline blending demand was heard Shell 910 CFR Asia
supporting prices in May, on top of maintenance shutdowns over that
period in Northeast Asia. However, it was June that received most firm
buying intention Friday, as Shell International Eastern Trading Co. bid Orthoxylene
for an H1 June cargo, traded at $688/mt with Samsung C & T outside
of the Platts Market on Close assessment process, and continued to Sinopec reducess offer another Yuan 300/mt
„„
bid. Gasoline blending demand may also be a supporting factor for MX China port inventories remain ample
„„
during the summer months in the northern hemisphere. In related
markets Friday, paraxylene was stable day on day at $837/mt CFR Asian orthoxylene fell $15/mt this week on low demand amid ample
Taiwan/China, while naphtha tumbled $17.63/mt day on day to $470.50/ supply. Market participants said some carbide-based polyvinyl
mt CFR Japan. chloride plants had been shut down by Chinese authorities for non-
compliance with environmental regulations, making downstream
Rationale demand for OX weak. OX is the primary feedstock for phthalic
Isomer-MX was assessed up $1/mt day on day at $667/mt FOB Korea anhydride, which is used to make dioctyl phthalate, a plasticizer for
and up $10/mt at $688/mt CFR Taiwan Friday. The markers currently PVC. Another factor cited was curbs by Chinese authorities on
take the average of the H2 May and H1 June laycans. During the MOC excessive borrowing, which affected end-user cashflows. Also,
process, Sietco bid on H1 June at $688/mt CFR Taiwan, also after a naphthalene-based PA was preferred by DOP producers as it was
trade at the same level outside of the MOC process. The June laycans cheaper at Yuan 5,588/mt, compared with Yuan 6,500/mt for
were assessed above the bid at $689/mt. H2 May was assessed at OX-based PA. It was also more profitable for PA producers to make
$687/mt CFR Taiwan. FOB Korea H2 May was bid at $665/mt, and and sell naphthalene-based PA as margins were wider. Tradable
assessed above the bid at $666/mt. There were no bids or offers indications for naphthalene were currently around Yuan 3,400-3,500/
for June cargoes and the June FOB Korea laycans were assessed at mt. In response to the bearish conditions in the OX market, Sinopec
$668/mt, unchanged day on day. The above rationale applies to the further lowered its ex-works orthoxylene offers in East China by Yuan
following market data code: PHAUV00 for FOB Korea and PHAUT00 300/mt last Monday, trade sources said. Yangzi-BASF and Sinopec
for CFR Taiwan. Zhenhai, the company’s subsidiaries in East China, are currently

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 5
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

offering OX at Yuan 6,100/mt, equivalent to about $736/mt on an SUBSCRIBER NOTICE

import parity basis. This is the fifth cut this year and the second in
April, according to S&P Global Platts data. The last time Sinopec Platts extends feedback period for Asian PX revisions
S&P Global Platts is extending the feedback period for information around
reduced OX prices was on April 3, by Yuan 200/mt to Yuan 6,400/mt.
trading activity at berths in ports with specific restrictions and/or implied
OX inventories at Chinese ports remained ample at 60,000 mt this optionality, which may no longer form part of the CFR Taiwan/China Asia
week as there were no sales. In Southeast Asia, prices edged down paraxylene assessment process, to May 25, 2017 following a request from
$5/mt to $695/mt CFR based on a deal heard done. Demand in India industry participants. For example, terminals which cannot receive vessels
for downstream PA was stable amid thin trading indications. larger than 10,000 dwt may be deemed restrictive and excluded from the
Feedstock isomer-MX fell $24/mt to $667/mt FOB Korea Friday from assessment process. The volume standard for assessment will remain 5,000 mt.
Thursday last week, while paraxylene inched down 67 cents/mt to Platts clarifies that Taiwan and China remain basis locations for the CFR Taiwan/
China marker. Finally, Platts proposes to set the standard credit terms for Asian
$837/mt CFR Taiwan over the same period.
PX on a CFR Taiwan/China basis at 30 days letter of credit for cargoes shipping
from Northeast Asia and Southeast Asia, with cargoes offered from other
Rationale regions or on other terms normalized to a 30-day LC using prevailing interest
Asian OX was assessed down $15/mt from Thursday last week at $710/ rates and credit costs. Platts is proposing a launch date of July 3, 2017. Please
mt CFR China Friday, based on a deal heard done at that level for a direct any questions or comments to petchems@spglobal.com with a copy to
2,000 mt cargo. The CFR India marker also fell $15/mt over the same pricemethodology@spglobal.com. Please provide a clear indication if comments
are intended for publication by Platts for public viewing. Platts will consider all
period, to $690/mt, maintaining the $20/mt differential with the CFR
comments received and will make these comments available on request.
China marker. The CFR Southeast Asia marker fell $5/mt to $695/mt,
based on a deal heard at that level. In South Korea, OX was notionally Platts to revise FOB Korea, CFR Taiwan/China PX laycans
down $10/mt at $705/mt FOB Korea amid a weaker CFR China marker. S&P Global Platts proposes moving the three half-month marker laycans in
the FOB Korea and CFR Taiwan/China paraxylene assessments forward by
Styrene a half-month and removing the prompt half-month laycan. For example, on
April 1, 2017, the laycans for the FOB Korea and CFR Taiwan/China PX markers
would be the second half of May (H2 May), H1 June and H2 June. On April 16,
Prompt China domestic falls Yuan 520/mt from Thurs
„„
2017, the marker laycans would be H1 June, H2 June and H1 July. As a result
East China SM inventory drops 8% on week
„„ of this change, Platts will assess an additional half-month forward laycan. All
the current laycans would still be assessed and published, but the CFR marker
The Asian styrene monomer marker was assessed $5/mt higher day will contain laycans where buyers have a multiport option. The codes for the
on day at $1,130.50/mt CFR China Friday. That is, however, $67.50/mt markers in the Platts database are: “PHASS05” for FOB Korea and “AAQNE00”
lower compared with Thursday last week. There was no assessment for CFR Taiwan/China. Platts is seeking feedback until April 28, 2017, with a
proposed launch date of July 3, 2017. Please direct any questions or comments
Friday last week as Singapore was out on a national holiday. Prompt
to petchems@spglobal.com with a copy to pricemethodology@spglobal.com.
domestic prices in China plunged Yuan 520/mt from Thursday last Please provide a clear indication if comments are intended for publication by
week and was assessed at Yuan 9,190/mt Friday. That translates to Platts for public viewing. Platts will consider all comments received and will
about $1,107/mt on import parity basis. For the week ended April 21, the make these comments available on request.
SM market fluctuated, plunging over $90/mt Monday and Tuesday.
Platts corrects April 21 Asian PTA assessments
However, SM rebounded mid-week, amid news of declining SM stocks
The S&P Global Platts Asian purified terephthalic acid assessments for April
in East China. Inventory levels fell by 8% on the week and was 21, 2017, have been corrected as follows: The CFR China marker on April 21
estimated at about 147,500 mt Wednesday, according to sources. The should be $628/mt. The China domestic assessment should be Yuan 4,820/
CFR China marker has been tracking domestic China prices closely and mt. A full list of the affected codes are listed here: AAWAY04, AAWJA04,
the fluctuations in local SM prices have been linked to the price AAWAY00, AAWJA00. The affected pages can be found in Platts Petrochemical
movements in the futures market. On Friday, the CFR China SM prices Alert on pages 737, 179, 542 and 600. For comments or queries, please contact
were volatile, moving up about $15.50/mt in the morning from petchems@spglobal.com.
Thursday’s close. But the gains were short-lived, as lower offers were
seen before the Platts Market on Close assessment process. “This
afternoon, huaxicun [futures market] went down, that’s the key reason was normalized to $1,134/mt CFR China on open-origin basis. Hence,
[international spot prices fell],” a Chinese trader said. Downstream, May was assessed below the offer at $1,133/mt CFR China. The May-
acrylonitrile-butadiene-styrene and polystyrene prices fell by $30-$50/ June backwardation structure was unchanged from Thursday. June
mt when assessed Wednesday, compared with last week, as it tracked was assessed at $1,128/mt CFR China.
weaker upstream feedstock costs.
Methanol
Rationale
The Asian SM marker was assessed $5/mt higher day on day at Market hits 5-mth lows on heavy supplies
„„
$1,130.50/mt CFR China Friday. The CFR China and FOB Korea MTO margins seen increasing
„„
markers take into account the average of H2 May and H1 June
laycans. Before the MOC process, there was a May bid at $1,144/ Asian methanol market went down $5-$38/mt Friday compared with
mt CFR China, which pushed prices higher compared to a day ago. last Thursday, hit by bearish demand and rising supplies. The largest
However, prices dropped later in the afternoon and there was an price decline was seen in India. The CFR India methanol price dived
offer before the MOC process at $1,135/mt CFR China Asia origin. This $38/mt from last Thursday to be assessed at $260/mt Friday, the

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 6
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

lowest level since November 25, 2016, when the price was assessed at Rationale
$257/mt. Market sources said India’s methanol market would likely Asian MTBE was assessed up $2/mt day on day at $676/mt FOB
remain weak due to persisting supplies from the Middle East, notably Singapore Friday. No bids or offers were registered during the Platts
from Iran. On Friday, the CFR China price fell $13/mt from last Thursday, Market on Close assessment process. The MTBE factor was assessed
hitting the lowest level since November 16, 2016, when the price was at 1.234, unchanged from Thursday. The H1 May and H2 May laycans
assessed at $275/mt. Despite the $13/mt decline, some market were assessed at $676/mt FOB Singapore. The above rationale applies
sources said spot methanol demand was seen to be picking up in line to the following market data code:”PHALF11”.
with firmer ethylene price. On Friday, the CFR Northeast Asia ethylene
price rose $35/mt from last Thursday to be assessed at $1,205/mt, S&P Bids/offers/trades
Global Platts data showed. But some others said methanol-to-olefins MOC Bids/offers/trades:
margin was still negative, widely due to bearish polypropylene price. On MOC deal Summary: None
Friday, the CFR Far East Asia PP price dropped $15/mt from last MOC Outstanding Interest:
Thursday to be assessed at $985/mt, Platts data showed. Platts data MOC bids: None
also showed that MTO margins for PP production remained negative at MOC offers: None
minus $49/mt Friday, compared with minus $73/mt last Thursday, Exclusions: No MOC market data was excluded from the April 21, 2017
while PE margins were calculated at plus $96/mt, compared with plus assessment process.
$57/mt last Thursday.
Ethylene
Rationale
The CFR China methanol price fell $13/mt from last Thursday to Firmer sentiment maybe capped by weak derivatives
„„
be assessed at $278/mt CFR China on Friday. The latest deal done Japan’s March steam cracker runs 96.1%
„„
levels were heard at $275/mt CFR China and $287/mt CFR China.
The CFR Southeast Asia methanol price fell $10/mt to $315/mt Asian ethylene market was assessed unchanged day on day Friday.
during the same period, with an offer was heard at $320/mt CFR From a week earlier, Asian ethylene market marked a $10-$35/mt price
SEA this week. On a CFR South Korea basis, spot price inched increase. Trading activities were quiet this week but firmer market
down $5/mt from last Thursday to be assessed at $320/mt Friday, sentiment pushed up spot ethylene prices. Only one deal was heard to
with a tradable level was heard in a range of $320-$325/mt CFR have been done at $1,160/mt FOB Northeast Asia for second-half May
Korea this week. Meanwhile, the CFR India dived $38/mt from last arrival. Market sources said some spot demand continued to emerge
Thursday to $260/mt Friday. A buyer’s idea was heard at $240/mt amid ethylene supply shortfall from lower methanol-to-olefins plant
CFR India, versus seller’s idea heard at $275-$280/mt CFR India. operations in China as well as steam cracker turnaround in Asia.
A market level was quoted in the $250-265/mt CFR India range. Ethylene supplies from the Middle East were seen to be well but
Platts did not publish its price assessments last Friday due to a market sources said some supplies from the Middle East are moving to
public holiday in Singapore. Europe instead. On Thursday, the CIF NWE ethylene price inched up $3/
mt day on day to be assessed at $1,198/mt, according to S&P Global
MTBE Platts data. But a price increase in the Asian ethylene market is seen to
be limited, as profitability of most ethylene derivatives is currently
MTBE buying interest weak in China
„„ shrinking. On Friday, the CFR China styrene monomer price rose $5/mt
Gasoline demand seen in Middle East
„„ day on day to be assessed at $1,130/mt, but SM margin was calculated
at minus $22.60/mt Friday, compared with minus $11.60/mt, S&P
Asian MTBE prices edged up $2/mt day on day to $676/mt FOB Global Platts data showed. Spot polyethylene price was also not
Singapore Friday amid a rise in gasoline prices. No bids or offers were strong, with high density PE price was assessed unchanged day on day
registered during the Platts Market on Close assessment process. at $1,145/mt CFR Far East Asia, Platts data showed. In related statistics
MOPS 92 RON gasoline moved up 20 cents/b over the same period to news, Japan’s naphtha-fed steam crackers ran at an average of 96.1%
$64.85/b. The MTBE factor, which measures the ratio between the capacity in March, down from 96.6% from a month earlier but higher
daily FOB Singapore MTBE and Mean of Platts Singapore 92 RON than 95.2% a year earlier, the Japan Petrochemical Industry
gasoline assessments, stood at 1.234, flat from Thursday. Market Association said late Thursday.
participants said the Asian gasoline market remained stable Friday,
with notable demand in the Middle East, while one source said MTBE Rationale
buying interest in China was weak. “There is not much buying at the Ethylene was assessed flat day on day at $1,205/mt CFR Northeast
moment as the costs of blending components like MTBE are high,” the Asia Friday. A buying idea was heard at $1,200/mt CFR NEA, against a
source said. In tender news, China’s CNOOC is offering 14,000 mt of 92 sell idea at $1,250/mt CFR NEA. Meanwhile, on a CFR Southeast Asia
RON gasoline for May 24-26 loading at Huizhou. The tender closes April basis, ethylene was stable day on day at $1,060/mt Friday, with a bid
21 with same-day validity. ICE June Brent crude futures fell 25 cents/b was heard at $1,050/mt CFR SEA, while no offers were heard. In other
day on day to $52.94/b at the 0830 GMT close of Asian trade Friday. areas, the FOB Korea ethylene price rose $30/mt from last Thursday to
The inter-octane gasoline spreads widened from Thursday: 95/92 by be assessed at $1,160/mt Friday. A deal was heard to have been done
23 cents/b to $3.02/b, 97/92 RON by 28 cents/b to $4.33/b and 97/95 at $1,160/mt FOB NEA for H2 May this week. Platts did not publish its
RON by 5 cents/b to $1.31/b. price assessments last Friday due to a public holiday in Singapore.

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 7
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

MEG appeared very slim for propylene production in China. In Taiwan,

propylene imports were assessed at $860/mt Friday, down $30/mt
Domestic prices plummet Yuan 390/mt
„„ from last Thursday. The supply situation was heard to be less tighter,
Inventory levels grow to 629,000 mt
„„ as Taiwan’s CPC Corp. started feeding naptha into its No.6 naptha-fed
steam cracker at Linyuan on Monday. The cracker, with a production
The Asian monoethylene glycol market slumped $45/mt from capacity of 430,000 mt/year, is expected to start full-scale
Thursday to $690/mt CFR China Friday, with traders saying there was operations next week. CPC will also restart the 80,000 b/d RFCC at its
talk of short-selling. Domestic MEG prices in China followed suit, down Talin refinery next week, said a company source Friday. The unit has
Yuan 390/mt ($57/mt) week on week to Yuan 5,780/mt, equivalent to a propylene production capacity of 380,000 mt/year. In Southeast
$680.40/mt on an import parity basis. One factor that could explain the Asia, market sources noted that demand was lacklustre. “Unlike last
downtrend in MEG prices was the 629,000 mt of inventory at Chinese year, there is no pick-up in demand for Ramadan,” said a market
ports — a level considered very high. Bearish sentiment coupled with source. Imports of propylene into the region were assessed at $780/
market volatility on cashflow issues faced by downstream polyester mt Friday, down $25/mt from last Thursday. “There does not seem to
producers were other factors cited by market participants. As a result, be a recovery of prices in sight,” added the same source. The FOB
margins hit minus $183/mt, the lowest since October and after being Japan PP marker was assessed at $805/mt Friday, down $11/mt from
negative since February 14, S&P Global Platts data showed. Earlier in last Thursday.
the week, the CFR China MEG marker had fell $40/mt to $695/mt CFR
China as traders said panic selling on the futures market on Rationale
expectations of further price falls had exacerbated the decline in MEG The FOB Korea propylene marker was assessed at $805/mt Friday,
prices. As for other products, downstream PET prices declined $30/mt down $11/mt from last Thursday, based on a buying indication heard
week on week to $920/mt FOB Northeast Asia this Wednesday, while at $770-$780/mt. The CFR China marker was assessed at $830/mt
upstream feedstock ethylene leapt $35/mt to $1,205/mt CFR Northeast Friday, down $11/mt from last Thursday, based on buying indications
Asia Friday from last Thursday. Meanwhile, the three major MEG Asia heard at $800/mt, and selling indications heard at $860-$880/
Contract Price sellers in Asia — MEGlobal, Saudi Basic Industries Corp., mt. The CFR Southeast Asia marker was assessed lower by $25/
and Shell — have nominated their May ACPs. MEGlobal has nominated mt at $780/mt, based on tradable indication heard at $780/mt. The
its May ACP for monoethylene glycol at $920/mt, down $80/mt from FOB Japan marker was assessed at $805/mt Friday, down $11/mt,
April, while Shell nominated its May ACP at $910/mt CFR Asia, also tracking the fall in the CFR China marker. The CFR Taiwan marker was
down $80/mt. Sabic nominated its May ACP at $965/mt CFR Asia, assessed at $860/mt, down $30/mt based on a tradable indication
down $70/mt. The nominations reflected the short-term supply- heard at $850-$860/mt.
demand situation in the Asian market, according to sources.
Butadiene
Rationale
MEG was assessed down $45/mt to $690/mt CFR China on Friday Bottom seen as Chinese domestic offers firm
„„
from last Thursday, based on deals heard concluded at that level. Rare Northeast Asian cargo sold to Europe
„„
Offers were heard at $695/mt CFR China. The Southeast Asia marker
also fell in line with the losses seen in the CFR China marker, down Butadiene prices fell Friday compared with Thursday last week, amid
$45/mt to $693/mt. weak demand and market concerns of oversupply. Nevetheless, the
drop in prices was limited by indications that prices might be
Propylene bottoming out. For instance, in northern China, Fushun
Petrochemical’s offers stood at Yuan 10,500/mt delivered, or about
Chinese PP inventories remain firm
„„ $1,278/mt on an import parity basis, up from Yuan 9,800/mt last week.
Taiwan’s CPC to restart Talin RFCC next week
„„ During the week, an early-May-loading tender for about 1,700 mt of
butadiene was awarded in the mid-to-high-$1,200s/mt CFR Southeast
Asian propylene prices fell from last Thursday, on the back of weak Asia. Also, a Northeast Asian-origin cargo of about 3,000 mt was sold
demand. The FOB Korea marker declined by $11/mt to reach $805/mt to Europe for about Eur 1,475/mt CIF ARA ($1,584/mt). The transaction
Friday. Likewise, the CFR China moved down by $11/mt to be was said to be a one-off transaction, market participants said. In spite
assessed at $830/mt Friday. Industry sources attributed the fall in of the positive indications, there was cautiousness in the market, as
prices to high polypropylene inventories in China. “The sales of downstream derivative markets such as styrene-butadiene-rubber
products downstream of PP has been slow,” said a PP trader. and acrylonitrile-butadiene-styrene were weak. ABS prices fell $30/mt
Additionally, an end-user said that recent environmental inspections week on week to be assessed at $1,720/mt CFR China Wednesday.
at some PP plants had resulted in the slowdown of propylene buying SBR1502 prices stood Friday at $2,050/mt CFR Southeast Asia, down
interest. “The market is in a wait-and-see mode and China still has a $190/mt from last Thursday. A butadiene producer said due the
strong propylene production capacity,” added the source. The PP weakness in the SBR and ACN markets, producers in both markets
China domestic marker hit a seven-month low on Wednesday at Yuan were considering lowering their production rates to help lower
7,700/mt, down Yuan 300/mt. The PP CFR China marker was oversupply of both products in the markets. Butadiene cargoes were
assessed at $985/mt Thursday, down $10/mt from a day ago. Based heard moving to Japan ahead of planned turnarounds in the country
on a propylene to PP break-even cost at $150/mt, the margins from May to June.

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 8
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

Rationale deepsea cargoes in January and February in the domestic market.

The CFR Southeast Asia marker for butadiene was assessed Friday End-users would prefer LDPE domestic cargoes, as domestic prices
at $1,275/mt CFR, down $25/mt from Thursday last week. An early fell Yuan 200/mt to Yuan 10,500/mt this week, equivalent to $1,227.20/
May loading cargo was heard sold in the mid to high $1,200s/mt CFR mt, trade sources said. Although the general trend for LDPE was
SEA. The CFR China and FOB Korea markers were assessed Friday at bearish, upcoming plant turnarounds were expected to push up prices
$1,275/mt and $1,225/mt, respectively, both down $75/mt from last in the coming weeks. In plant news, China’s Shenhua Xinjiang Coal
Thursday. Domestic offers in China were heard at Yuan 10,500/mt, or had shut its 270,000 mt/year LDPE unit on April 15 for 45 days of
about $1,278/mt on import parity basis. maintenance. South Asia, which uses the CFR Southeast Asia marker,
was active in trading this week, as tradable indications were still
PVC heard at $1,330/mt CFR Southeat Asia. Demand was healthy for
import cargoes, as it was summer season in India and there was a
Fresh May offers down $80/mt from April
„„ great need for beverage packaging materials and in farming for
Japan’s March PVC output falls 6% on month
„„ irrigation purposes. There was also more demand for water tanks,
according to sources. However, market participants in South Asia
Asian PVC fell $30-50/mt week on week to hit a seven-month low expected prices to fall on the whole in the long run, as supply was
Wednesday. Major Asian PVC producers started their fresh offers for ample. Major producer Gail was considering exporting its LDPE
May $80/mt lower than April in a bid to clear high inventories. This is cargoes as it had fulfilled its domestic requirements, while Reliance
lower than market expectations of around $30-40/mt lower than April. was ramping up production in its new lines.
The lower May offers were triggered by falling domestic prices in China
where ethylene-based PVC was down Yuan 200/mt week on week to Rationale
be assessed at Yuan 6,500/mt, the lowest level since August 28, 2016, Asian LDPE, with a melt flow index of 0.3-4, was assessed unchanged
when it was assessed at Yuan 6,400/mt. Carbide-based PVC fell Yuan week on week at $1,240/mt CFR Far East Asia on Wednesday. Tradable
400/mt to Yuan 5,700/mt during the same period, the lowest level indications ranged at $1,230-$1,250/mt CFR China. An offer was heard
since July 31, 2016, when it was assessed at Yuan 5,650/mt. Market at $1,300/mt CFR China. The CFR Southeast Asia marker was up $10/
sources said, however, that spot PVC demand emerged this week after mt week on week at $1,300/mt on keen buying interest at $1,290-
May offers were slashed. End-users were snapping up spot cargoes at $1,300/mt CFR Southeast Asia.
$870/mt CFR China and $930/mt CFR India, they added. Some market
sources said that the Asian PVC market may have hit the bottom. LLDPE
Asian PVC was supported by rebounding ethylene prices. CFR
Northeast Asia ethylene rose $30/mt week on week to be assessed at CFR South Asia LLDPE falls $10/mt
„„
$1,200/mt Wednesday, S&P Global Platts data showed. In statistics mLLDPE falls $30-40/mt in quiet market
„„
news, Japan’s PVC production in March fell 6% month on month to
127,768 mt, the Vinyl Environmental Council said in a statement late Asian butene-grade linear low density polyethylene was mostly
Wednesday. Japan’s March PVC exports rose 7.7% from a month earlier unchanged this week amid weak demand. Prices fell slightly in India
to 56,835 mt, while local demand increased 10.5% to 92,740 mt during even as the actively traded June LLDPE futures contract on the Dalian
the same period. Japan’s PVC inventory fell 14.5% from a month earlier Commodity Exchange closed lower on Wednesday. Domestic prices in
to 128,222 mt as of the end of March. China were unchanged at Yuan 9,400/mt, equivalent to $1,094.30/mt
on an import parity basis. According to market sources, the spread
Rationale between the Far East Asia and Southeast Asia markers was likely to
CFR China PVC dropped $40/mt week on week to be assessed at narrow as Chinese importers would need to buy. However, the outlook
$870/mt Wednesday. A fresh offer for May was heard at $870/mt for the immediate period was uncertain as the Chinese government’s
CFR China, which was accepted by end-users. CFR Southeast Asia environmental regulations curbed demand, traders said. Feedstock
PVC fell $30/mt to $880/mt during the same period with a deal ethylene was up $30/mt week on week at $1,200/mt CFR NE Asia but
heard done at $880/mt CFR SEA this week. Meanwhile, CFR India market participants said they did not expect LLDPE to rise to the same
spot PVC dived $50/mt from the previous week to be assessed at extent in the short term. mLLDPE, which dropped $30-40/mt on slow
$930/mt Wednesday after a fresh offer for May was accepted at demand this week, was likely to be more actively traded in the future
$930/mt CFR India. as end-users begin to focus more on higher-end grades to cater to a
growing middle class in Asia, traders said. mLLDPE would also be more
LDPE commercially available from the end of 2018 to 2019 as most
petrochemical plants planning expansions are focused on producing
India summer season leads to healthy LDPE demand
„„ that grade, market sources said.
China domestic prices fall Yuan 200/mt
„„
Rationale
Asian low density polyethylene prices were stable this week, while in Asian butene-grade LLDPE, with a melt flow index of 1-2, was
Southeast Asia, both offers and buying interest rose on growing unchanged week on week at $1,130/mt CFR Far East Asia on
demand in the region. There was no strong demand for LDPE import Wednesday. The tradeable indication range was at $1,120-$1,130/mt.
cargoes in China, as there was a supply glut due to an influx of The CFR Southeast Asia marker was unchanged at $1,190/mt based

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 9
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

on discussions heard at that level. The CFR South Asia marker was PP
down $10/mt at $1,210/mt based on tradeable indications heard at that
level. C6 mLLDPE normalized to a dutiable origin was assessed $30/ China domestic price hits 7-month low
„„
mt lower at $1,330/mt CFR Far East Asia and $1,350/mt CFR Southeast Possible arbitrage for Chinese PP to India
„„
Asia, below an offer heard at $1,350/mt CFR SEA.
On Wednesday, the CFR Far East Asia polypropylene raffia marker
HDPE declined by $15/mt week on week, on the back of sluggish demand.
The marker was assessed at $995/mt on Wednesday. The last time the
Some markers up $10/mt, others down $10-$25/mt
„„ marker was at this level was in November 2016. Over the same period,
Injection grade assessed stable across Asia
„„ China domestic prices plunged by Yuan 300/mt to reach Yuan 7,700/
mt, ar about $900/mt on an import parity basis. Industry sources
Asian high density polyethylene price movements were mixed this largely attributed the fall to firmer levels of PP, as well as lacklustre
week in thin trade as participants waited for major suppliers to sales of downstream products. “Other commodities have also slowed
release fresh offers next week. Quite a few inquiries were seen from down, especially after the Chinese New Year holidays, but the market
China this week, but no deals were confirmed done, traders said. is in a wait-and-see mode,” a local trader said. “The futures market has
More deepsea import cargoes will be arriving at China’s ports during also been falling,” noted another trader. For the most active September
this period, cargoes that end-users had bought in January and futures contact on the Dalian Commodity Exchange, the contract
February from the US and Latin America that typically take four to six settled at Yuan 7,648/mt on Wednesday, down from Yuan 7,651/mt a
weeks to arrive, traders said. While the outlook for global PE demand day ago. In other regions, PP prices were notably better. The CFR
was generally bearish for the entire year, the forward market Southeast Asia marker was assessed at $1,085/mt, up $5/mt from last
structure in Asia was possibly in contango for the moment due to week. Sources said that buying interest was healthy, especially in
upcoming plant turnarounds and unplanned outages. But this also Vietnam. “But falling Chinese prices has encouraged buyers to expect
made substantial arbitrage attempts tricky, according to traders. lower offers,” said a third trader. “Bearish and bullish factors are
Demand for import cargoes in China this week was thin as most end- present together, and it depends which one is stronger,” according to
users would prefer to buy domestic cargoes as prices have fallen. another source. In India, market sources agreed that demand was
Chinese domestic prices for HDPE film fell Yuan 200/mt to Yuan firmer, amid tightening supply, due to local outages. The CFR South
9,800/mt this week, equivalent to $1,145.40/mt on an import parity Asia marker was assessed at $1,120/mt, up $5/mt from one week ago.
basis. Chinese traders said they were also investigating moving “Product availability is a concern, and inventory levels are low,” said a
cargoes into Southeast Asia as the arbitrage has also opened market source. While some industry participants said that it was
between China and Southeast Asia. Chinese prices are around $70/ possible to move surplus Chinese PP cargoes to India, a source said
mt cheaper than in Southeast Asia, but demand has been weak. that freight and tax costs would not make the arbitrage economical.
Traders in Thailand also said they were well supplied locally, and had
no current need to import. Prices for film in India have risen slightly Rationale
on healthy demand and active trading, with more activity also seen in The PP raffia was assessed down $15/mt week on week to $995/
the domestic market. Also in India, Reliance is on track to start mt CFR Far East Asia on Wednesday, based on a tradable indication
commercial production at its new Jamnagar PE complex by May. The heard at $990-$1,000/mt, from industry sources. A buying indication
complex consists of a 550,000 mt/year HDPE/linear low density was heard at $980-$990/mt. The China domestic raffia was assessed
polyethylene swing plant and a 400,000 mt/year LDPE plant. The down Yuan 300/mt week on week at Yuan 7,700/mt, based on
ethane-based PE plants will use refinery offgas as feedstock. indications heard at Yuan 7,700-7,750/mt from industry sources. The
CFR Southeast Asia raffia was assessed up $5/mt week on week
Rationale at $1,085/mt, based on a buying indication heard at $1,070-$1,080/
Film-grade HDPE with a melt flow index of 0.07-0.18 was assessed mt and an offer heard at $1,090/mt. The CFR South Asia raffia was
down $10/mt week on week at $1,145/mt CFR Far East Asia assessed up $5/mt week on week to $1,120/mt, based on an offer
Wednesday, below offers heard at $1,150-$1,160/mt CFR China. Buying heard at $1,140/mt. IPP Film, BOPP and block copolymer assessments
indications were heard at $1,120/mt. No deals were heard. The CFR were based on spreads tracking against the PP raffia, according to
Southeast Asia marker was assessed down $10/mt at $1,150/mt, industry sources.
below an offer heard at $1,160-$1,170/mt. Film grade was assessed
up $10/mt at $1,170/mt CFR South Asia, based on tradable indications PS
heard at that level. Yarn grades were assessed down $25/mt week
on week at $1,165/mt CFR China and $1,185/mt CFR Southeast Asia. Feedstock styrene falls $85.50/mt on week
„„
In China, a trade was concluded at that level while in Southeast Asia, East China SM stocks slip 8% on week
„„
the marker was brought down in line with the CFR China marker.
Injection grade was assessed stable week on week at $1,140/mt CFR Polystyrene prices dropped $40-$50/mt from a week ago, depending
Far East Asia. The CFR Southeast Asia and CFR South Asia markers on the grade, on the back of plunging feedstock costs. Week on week,
were also stable at $1,160/mt CFR and $1,180/mt CFR respectively, styrene monomer costs fell $85.50/mt and was assessed Wednesday
with freight differentials to Far East Asia steady at $20/mt and $40/ at $1,122.50/mt CFR China. SM inventory levels in East China dropped
mt respectively. 13,400 mt, or 8%, week on week at an estimated 147,500 mt

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 10
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

Wednesday, according to sources. Domestic SM prices for May and recovery in the May and September PTA futures market on the
June rose by Yuan 70-Yuan 100/mt day on day. On an import parity Zhengzhou Commodities Exchange saw a mitigation in declines,
basis, that translates to a day-on-day change of about $10-$15/mt. closing Yuan 12/mt and Yuan 10/mt lower, respectively, from last
Meanwhile, demand for polystyrene was lackluster, according to Thursday’s settlement price, at Yuan 4,850/mt and Yuan 5,010/mt,
sources. “Buyers are still waiting, expecting prices to fall much lower ... respectively, in the afternoon trade on Friday. In Southeast Asia, a Thai
traders are very silent at the moment,” one supplier said Wednesday. source said that trading sentiment was muted in the immediate
Related markets like arylonitrile-butadiene-styrene fell $30/mt week aftemath of the national holidays there, and that demand would
on week and was assessed at $1,720/mt CFR China Wednesday, also increase in the days ahead. Producer Siam Mitsui is planning a
tracking drops in all three of its feedstock costs. turnaround at one of its two operational plants in Rayong, although a
firm schedule has not been finalised yet. In plant news in Northeast
Rationale Asia, Yisheng Dahua restarted its 3.75 million mt/year PTA line at Dalian
GPPS was assessed $40/mt lower week on week at $1,260/mt CFR April 20, a source close to the company confirmed Friday, completing a
China Wednesday, below a $1,280/mt CFR China offer and in line with turnaround that was supposed to have ended April 15, but was
a tradable indication heard at $1,260/mt CFR China. HIPS dropped $50/ extended amid poor production margins. Additionally, Taiwan’s CAPCO
mt over the same period at $1,330/mt CFR China, below an offer at plant with a capacity of 760,000 mt/year is expected to restart in the
$1,380/mt CFR China. There was also a sell indication heard at $1,370/ first week of May, a company source said. The turnaround began on
mt CFR China. GP-grade EPS fell $40/mt week on week at $1,290/ April 17. Meanwhile, a market source in India said that a technical glitch
mt FOB Northeast Asia, below an offer at $1,300/mt FOB NE Asia. has forced the shutdown of Indian Oil Corp.’s Panipat PTA plant on
FR-grade EPS was also down by $40/mt during the same period at Thursday. Attempts to reach the company were unsuccessful. The PTA
$1,340/mt FOB NEA Wednesday. That was below the offer at $1,350/ plant has a nameplate capacity of 553,000 mt/year.
mt FOB NEA. Lower feedstock styrene monomer costs were also
considered in the assessment. Rationale
Asian PTA was assessed unchanged on the day and $2/mt lower on
ABS from the last weekly assessment on Thursday, at $628/mt CFR China
on Friday, amid relatively stable sentiment in the Chinese markets this
Styrene falls $85.50/mt, butadiene falls $100/mt
„„ week. The spread from the CFR India marker was assessed widened
Demand from end-users seen stable
„„ by $1/mt from the previous assessment to $21/mt week on week at
$649/mt, based on a plant outage in India and a turnaround in Taiwan.
Acrylonitrile-butadiene-styrene fell $30/mt this week to be assessed The CFR Southeast Asia marker was assessed at a spread unchanged
at $1,720/mt CFR China Wednesday tracking a sharp decline in from the previous assessment at $646/mt, in line with the fall in the
feedstock costs. Styrene monomer posted a $85.50/mt week-on-week CFR China marker.
plunge to be assessed at $1,122.50/mt CFR China Wednesday, while
butadiene tumbled $100/mt over the same period to be assessed at
$1,300/mt CFR China. Acrylonitrile fell $20/mt week on week to be NEWS
assessed Tuesday at $1,570/mt CFR Far East Asia. One ABS producer
said ABS demand from end-users was still good at the moment, and
China’s Qingdao Lidong targets aromatics plant
stable from a week ago, although demand from traders was “not so
good”. Margins for ABS remained healthy at $209/mt after accounting restart on Apr 25
for feedstock costs and operational costs of about $280/mt. China’s Qingdao Lidong Chemical aims to restart its aromatics plant in
northern Shandong province on April 25, after a month of
Rationale maintenance work, a source close to the company said on Tuesday.
ABS was assessed down $30/mt week on week at $1,720/mt CFR The plant is able to produce 1 million mt/year of paraxylene and about
China Wednesday. This was below an offer heard at $1,780/mt CFR 270,000 mt/year of benzene, after it completed debottlenecking in
China Wednesday. Declines in the three feedstock costs were also 2013 to raise PX capacity by about 200,000 mt/year. Qingdao Lidong is
considered in the assessment. 65% owned by GS Aromatics, a subsidiary of South Korea’s GS
Holdings, which is also the parent company of South Korean refiner
PTA and PX producer GS Caltex.

PX prices 67 cents/mt lower over same period

„„
Saudi Arabia’s Samapco restarts caustic soda,
IOC shuts Panipat PTA plant on technical glitch
„„
EDC plants
Purified terephthalic acid prices dipped $2/mt from the last weekly Saudi Arabia’s Sahara and Ma’aden Petrochemicals Company, or
assessment in Northeast Asia, amid stable sentiment and relatively Samapco, has restarted its 250,000 mt/year caustic soda and 300,000
firm feedstock prices. Paraxylene CFR Taiwan/China prices were only mt/year ethylene dichloride plants in Jubail, after completing
67 cents/mt lower over the same period, while domestic Chinese maintenance work at its electrolysis complex, the company said late
discussions for PTA were heard at Yuan 4,800-4,820/mt on Friday, Wednesday. The complex was shut March 10 for 25 days of
approximately Yuan 50-60/mt lower from the previous week. A late maintenance, S&P Global Platts previously reported. But Sahara

© 2017 S&P Global Platts, a division of S&P Global. All rights reserved. 11
ASIAN PETROCHEMICALSCAN APRIL 21, 2017

announced on April 9 that the shutdown period was extended due to Diversified. The proposed complex will have production capacity of up
some technical issues. Samapco is a 50:50 joint venture between to 5,000 mt/d of methanol, said Sarawak’s chief minister Amar Abang
Sahara Petrochemicals and Saudi Arabian Mining Company, better Johari Tun Openg.
known as Ma’aden.
Taiwan’s Nan Ya shuts one of four PA lines for
Asian MEG margin hits 6-month low on high stocks catalyst change
Asian monoethylene glycol margins hit a six-month low of minus Taiwan’s Nan Ya Plastics shut one of its four phthalic anhydride lines
$183/mt Tuesday as MEG prices tumbled amid ample supply in from mid-April to early May to change the catalyst, a company source
China and a rise in feedstock ethylene costs. The margin was last at said Thursday. Once that is completed, Nan Ya will shut another PA line
minus $183/mt on October 5 last year and has remained in negative for the whole month of May, also for a catalyst change. Nan Ya owns
territory since February 14, S&P Global Platts data showed. MEG and operates four PA lines at Mailiao, each with a capacity of 60,000
plummeted $48/mt week on week to be assessed at $687/mt CFR mt/year. The catalyst change is not expected to affect supply, as the
China Tuesday, while feedstock ethylene rose $30/mt over the company plans to stockpile PA to fulfill its contract requirements and
same period to $1,200/mt CFR Northeast Asia, according to Platts also sell in the spot market, the source added. Nan Ya is mulling a
data. The MEG production margin is calculated as the CFR China catalyst change for a third line, if the PA import price in China
MEG price minus production costs. The production cost is continues on its downward trend. Last week, PA fell $30/mt to be
calculated by multiplying the CFR Northeast Asia ethylene price by a assessed at $920/mt CFR China, while the CFR Southeast Asia marker
conversion factor of 0.6 and adding $150/mt for production. The was down $30/mt at $1,050/mt. Domestic prices for PA also dropped
sudden fall in MEG prices since late last week has caught market Yuan 300/mt to Yuan 6,300/mt in East China last week.
participants by surprise, as downstream polyester demand is
generally seen as healthy and its high demand season typically runs
Reliance to ship first term PX from new plant to
from April to June.
China end April
India’s Reliance Industries Limited or RIL will make its first term
Malaysia’s Sarawak to build $800 million methanol
paraxylene export to China from the second phase of its new 2.2
complex at Bintulu million mt/year plant at Jamnagar at end April, industry sources said
The Malaysian state of Sarawak plans to build an $800 million Wednesday. The first phase of the plant was commissioned last
methanol and methanol derivatives complex at Bintulu, near Samalaju December. Of the 35,000 mt of PX due to load from Sikka in Gujarat on
Industrial Park, by 2021, the state government said on its website the MT Bunga Angelica, 15,000 mt will be discharged at Dalian in China
Wednesday. A memorandum of understanding for engineering, under term contracts, sources said. The rest will form part of
procurement, construction and commissioning work was signed Reliance’s regular shipments to the region. In addition, 10,000 mt of
Tuesday between Sarawak government entity Yayasan Hartanah benzene output from the plant was heard to have been sold on a spot
Bumiputera Sarawak and a consortium comprising China Huanqiu basis for May loading, industry sources said, although further details
Contracting and Engineering and MACfeam, a subsidiary of Pegasus could not be verified.

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