With the accelerated pace of economic recovery in Asia, the demand is growing, and many suppliers have recently closed their factories. Do you know these chemical suppliers information? In the Asian chemical products market, there is a tight supply of many chemical products, such as polyethylene (PE) and benzene. The International Monetary Fund (IMF) raised the growth forecast of emerging and developing economies in Asia to 8.6% in 2021, and the chemical product market further expanded, which also reflected that after individual countries in the region relaxed the blockade, the economic recovery was stronger than originally expected.
In Southeast Asia, due to the planned factory overhaul in April and may, especially in Thailand, the import supply of polyethylene (PE) may continue to be tight in the coming weeks. A major Indian manufacturer will also close its low density polyethylene (LDPE) plant for maintenance in April. However, most manufacturers in other parts of Asia will not stop production until the middle of the year. "Although many factories in the United States have resumed production since March, due to the strong demand in the United States, the import goods from the United States in the Asian market will remain tight in April. Due to the retail promotion and holidays in Asia, the demand for packaging film will enter the peak season. The operating rate of plastic pipe processors will also increase in the second quarter. More construction projects will gradually resume." Amy Yu, senior analyst at ICIS, said.
In China, polyethylene (PE) inventories remain high, prompting sellers to cut prices and boost sales, while the supply outlook will remain surplus. In the second quarter, about 800000 T / a new PE capacity was put into trial operation in China.
"With the new production capacity put into operation in the second quarter, the tight supply situation in China will be gradually alleviated, while the supply in Southeast Asia will continue to be tight," Amy Yu said. Planned overhaul of multiple units reduces PE supply in China. At present, the LDPE unit of Sinopec Maoming Branch is being shut down for maintenance, while its HDPE unit is shut down, and the maintenance will continue until early May. The PE unit of Sinopec Yanshan Branch is also being stopped for inspection and is expected to be restarted in mid May. China is a major importer of polyethylene. At present, due to the high cost of resin and the low purchase interest of Chinese end users, downstream procurement activities may continue to be weak.
In the benzene market, due to frequent factory problems and strong demand recently, the supply of spot goods shipped in May was insufficient, which supported the rise of benzene prices in Asia. Since late March, many benzene plants in the Middle East, China, Japan and Southeast Asia have failed, resulting in supply shortage. Some sellers in the region are also trying to supply to the United States and Europe, where benzene prices are also rising. With the promotion of novel coronavirus pneumonia, Asia's economic recovery is accelerating and downstream markets are doing well. After the weakness in 2020, China's import demand for benzene has recovered this year. Benzene stocks in eastern China fell by half from the beginning of the year to about 125000 tons in April, indicating strong demand for benzene.
In the acetic acid market, due to the strong demand for shipments in Northeast Asia in May, the increasing purchase inquiries from Europe boosted the sentiment of sellers. In the Indian acetic acid market, the supply is tight or temporary, and it is expected that the inventory will be replenished in the first half of April, so the market is generally cautious.
In terms of xylene (PX), due to the continued weakness of profits of purified terephthalic acid (PTA) downstream in China, prices in the Asian market are still depressed. Due to the upcoming planned maintenance and unplanned downtime, the supply of PX in Asia is balanced to a slight tension. The squeezed profit margin may reduce the PX operation rate.
