Polyolefin Elastomer Market on A Strong Bullish Rally in Asia
- 12-Apr-2022 6:19 PM
- Journalist: Nina Jiang
As per the latest assessment by ChemAnalyst, Polyolefin Elastomer market in Asia started the month of April on a firm note where prices have been on the uptrend. The substantial increase in prices came in the backdrop of the recent announcement made by Dow, a key producer of Polymers, Elastomers, and other commodities in the Asian region.
Dow has announced that the company will increase the price of all grades of Polyolefin Elastomers by USD 300 per MT (1893 yuan per MT) in Asia Pacific region. Dow has stated the increasing cost of production owing to rising feedstock costs, energy costs, and other costs, including transportation, culminating in a price increase of 15 products, including POE. Furthermore, the company has stated that the price increase will enable the sustained supply of the material in the Asia Pacific region.
The announcement by Dow has sent a wave of optimism in the market as both traders and producers can enjoy strong pricing sentiments. Meanwhile, the POE price increase also means that the prices of imports reaching South Asian shores will be costly as the South Asian region is a key importer of POE. Both Far East Asian and Southeast Asian regions produce material and cater to the demand of South Asia, particularly China and India.
In China, Octene-based Polyolefin Elastomer prices have been assessed at USD 3396 per MT on CFR basis, while Butene-based Polyolefin Elastomer prices have gained more than 6% since the beginning of the month and were assessed at USD 2963 per MT during the week ending 8th April 2022. China has also been facing supply disruptions owing to the lockdown in the key city of Shanghai, which has hampered transportation and logistics.
Among the key producers, the South Korean region has observed a strong bullish rally in POE prices, and as per the latest assessment, Butene-based injection moulding POE prices were settled at USD 3174 per MT FOB Incheon, increasing by 2.6% on a weekly basis.
As per ChemAnalyst, “Polyolefin Elastomer market is expected to remain firm in the light of the recent announcement from Dow, demand dynamics appears to be firm in the Asia Pacific region owing to robust consumption intakes from downstream healthcare and electricals & electronics industry.”