Asian Petrochemicals Turn Bullish Under Import Shortage and Rebounding China Market
- Journalist: Robert Hume
The petrochemicals prices in Asia have witnessed a skyrocketing increase since past few years pressurised by the delayed imports due to the freezing winter conditions in the U.S. and the strong comeback by China after a weeklong lunar holiday. Affected by the harsh winter snap in Texas and several parts of America, the oil and natural gas production has been closed, impacting around 20% of the total U.S production capacity. The slow restoration of U.S. oil production is perceived as the prime reason behind the price surge.
On Wednesday, Naphtha which is one of the main raw material for downstream petrochemicals in Asia traded at its highest price since December 2019 i.e., USD 600 per tonne (CFR) Japan.
After gaining more than 6% over the last two days, Benzene traded at USD 846 per tonne (FOB) Korea. In line, its downstream Styrene prices in India Ex-Depot Kandla have surged by around USD 150 per MT since 12th February.
On 23rd February, the Epoxy Resin market was 17% higher than the beginning of February 2021,thus the product traded at USD 3750 per tonne FOB NE Asia.
Since November 2020, PET (Polyethylene terephthalate) prices have been rising amid the steep spot supply of Asia-origin and consistent climb in values of its feedstock PTA and MEG. Besides, PET prices in India have been positively revised by USD 41 per MT w.e.f. 25th February.
As per Chemanalyst “till the U.S refineries are not restored to their previous production level, the market will see a continuous surge in the price of petrochemical due to shortage of supply and high demand. In the upcoming days, the Asia market is expected to witness further the increment in prices of key petrochemicals since Chinese market has come stronger after the lunar week holidays”.