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Polymerscan
Volume 47 / Issue 5 / February 7, 2024

Americas Polymer Spot Price Assessments

FAS Houston FAS US US Contract US Domestic CFR Mercosur CFR Brazil CFR WC
($/mt) East Coast dlvd railcar ($/mt) ($/mt) ($/mt) South America
($/mt) (cts/lb) ($/mt)
PVC SUSP 775-785 54.00-56.00 1190.49 -1234.59 — 845-855 825-835

LDPE G-P 1036-1058 1049 69.00-70.00 1521.19 -1543.23 1145.00 1155-1165 1115-1125
LLDPE (Butene) 1014-1036 1010 58.50-59.50 1289.70 -1311.75 1115.00 1095-1105 1095-1105
LLDPE C6 1036 -1058 — — — — —
LLDPE metallocene 1058 -1080 — — — — —

HDPE Inj 926-948 52.00-53.00 1146.40 -1168.45 1095.00 1045-1055 995-1005

Bmldg 1014-1036 1016 53.00-54.00 1168.45 -1190.49 1095.00 1145-1155 1115-1125
Film 1036-1058 54.50-55.50 1201.52 -1223.56 1095.00 1155-1165 1115-1125
Yarn — — —

PP Homo Inj 1080-1102 75.00-76.00 1653.47 -1675.51 1175.00 1145-1155 1145-1155

Fiber — 77.00-78.00 1697.56 -1719.60 — — —
Copol 1124-1146 — 1200.00 1195-1205 1170-1180

PS G-P 1750-1772 90.00-92.00 1984.16 -2028.25

HIPS 1910-1932 100.00-102.00 2204.62 -2248.71
ABS Inj — 76.00-78.00 1675.51 -1719.60

PET bottle grade 1224-1246# 1356-1378##

Notes: All price assessments reflect spot trades with the exception of US Contract Delivered railcar. West coast South America includes major ports in Chile, Peru, Colombia and Ecuador.
CFR Mercosur represents basis main ports in Paraguay and Uruguay. #US PET bottle grade refers to DDP US West Coast. ##US PET contract price is in $/mt.

Asian Polymer Spot Price Assessments Contents

CFR FE Asia CFR SE Asia CFR China
($/mt) ($/mt) South Asia Domestic Polymers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................... 5
($/mt) (Yuan/mt)
Polyvinyl Chloride. . . . . . . . . . . . . . . . . . . ..................... 5
PVC SUSP 764-766 769-771 779-781 ^5690-5710
^^5590-5610 Low Density Polyethylene. . . . . . . . . . . ..................... 7
LDPE G-P 1034-1036 1094-1096 1145 9105-9145 Linear Low Density Polyethylene. . . . .................... 12
LLDPE (Butene) 939-941 999-1001 989-991 8155-8195
LLDPE (C6 metallocene) 999-1001 1039-1041 1179-1181 High-Density Polyethylene. . . . . . . . . . .................... 15

Polypropylene.. . . . . . . . . . . . . . . . . . . . . . . ................... 21
HDPE Inj 904-906 979-981 989-991 —
Bmldg 909-911 984-986 1034-1036 — Polystyrene. . . . . . . . . . . . . . . . . . . . . . . . . . .................. 26
Film 949-951 994-996 1049-1051 8055-8095
Yarn 959-961 1004-1006 — — Acrylonitrile Butadiene Styrene. . . . . ................... 28

PP Raffia 869-871 954-956 1009-1011 7255-7295 Polyethylene Terephthalate. . . . . . . . . ................... 29

PP Injection 869-871 954-956 1009-1011 —
Polymer Feedstocks: Olefins. . . . . . . . ................... 33
Fiber — —
Copol 904-906 984-986 1044-1046 — Ethylene. . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 34
IPP Film 879-881 974-976 1034-1036 —
BOPP 879-881 974-976 1024-1026 — Ethylene Glycol. . . . . . . . . . . . . . . . . . . . . ................... 35

PS G-P 1199-1201 1199-1201 — — Propylene. . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 37

HIPS 1249-1251 1249-1251 — — Butadiene.. . . . . . . . . . . . . . . . . . . . . . . . . . . .................. 38
EPS G-P 1204-1206*
EPS F-R 1304-1306* Polymer Feedstocks: Aromatics.. . . . . ................... 41
ABS Inj 1299-1301 1299-1301 — —
Paraxylene. . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 41
PET bottle grade 919-921 * 954-956 ** — —
Styrene. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .................... 42
Polyester POY150D/48F — — — 7750.00 Polymer Feedstocks: Intermediates.. .................. 45
Polyester DTY150D/48F — — — 9000.00
Polyester FDY150D/96F — — — 8400.00 Purified Terephthalic Acid.. . . . . . . . . . ................... 45
Polyester PSF 1.4D*38mm — — — 7400.00
Acrylonitrile. . . . . . . . . . . . . . . . . . . . . . . . . ................... 45
Notes: Asian PVC, PS, ABS and C6 mLLDPE, FE Asia refers to China. For PVC, South Asia refers to India. All Asian polymer
assessments are basis L/C 0-30 days. ^Denotes ethylene-based production. ^^Denotes carbide-based production. EPS Ethylene Dichloride, Vinyl Chloride Monomer, Chlorine... 48
F-R refers to fire retardant grade. *Denotes FOB North East Asia (South Korea, China, Japan). **Denotes FOB Southeast
Asia (Thailand, Indonesia , Vietnam, Malaysia). Methyl Methacrylate, Poly Methyl Methacrylate. ...... 50

Subscriber Notes. . . . . . . . . . . . . . . . . . . .................... 51

www.spglobal.com/commodityinsights
Polymerscan February 7, 2024

Euro Contract Assessments (Eur/mt)

Germany Holland Italy France Spain FD UK FD NWE CP*
(GBP/mt) ($/mt)
PVC susp Gross 1013-1017 1013-1017 1023-1027 1013-1017 1003-1007 864-868 1091-1095
PVC susp Net 988-992 988-992 998-1002 988-992 978-982 842-846 —

LDPE G-P 1663-1667 1663-1667 1663-1667 1663-1667 1663-1667 1418-1422 1790-1794

LLDPE C4 (Blown film) 1493-1497 1493-1497 1493-1497 1493-1497 1493-1497 1273-1277 1607-1611
LLDPE C4 (Cast stretch film) 1493-1497 1493-1497 1493-1497 1493-1497 1493-1497 1273-1277 1607-1611
LLDPE C6 (Blown film) 1693-1697 — — — — — 1822-1827
LLDPE C6 (Cast stretch film) 1693-1697 — — — — — 1822-1827

HDPE Inj 1403-1407 1403-1407 1403-1407 1403-1407 1403-1407 1196-1200 1510-1514

HDPE Bmldg 1453-1457 1453-1457 1453-1457 1453-1457 1453-1457 1239-1243 1564-1568
HDPE Film 1473-1477 1473-1477 1473-1477 1473-1477 1473-1477 1256-1260 1586-1590
HDPE HMW 2-5 1473-1477 1473-1477 1473-1477 1473-1477 1473-1477 1256-1260 1586-1590
HDPE HMW 5-10 1468-1472 1468-1472 1468-1472 1468-1472 1468-1472 1252-1256 1580-1584

PP Homo Inj 1383-1387 1383-1387 1373-1377 1383-1387 1373-1377 1179-1183 1489-1493

PP Copol 1453-1457 1453-1457 1443-1447 1453-1457 1443-1447 1239-1243 1564-1568

GPPS Net 1743-1747 1743-1747 1743-1747 1743-1747 1743-1747 1486-1490 1876-1880

HIPS Net 1843-1847 1843-1847 1843-1847 1843-1847 1843-1847 1571-1575 1984-1988
EPS 2198-2202 2198-2202 2198-2202 2198-2202 2198-2202 1874-1878 2366-2370

ABS GP/Nat 1823-1827 — 1823-1827 1823-1827 1823-1827 1554-1558 1962-1966

ABS Ave color 1953-1957 — 1953-1957 1953-1957 1953-1957 1665-1669 2102-2106
ABS Auto black 2093-2097 — 2093-2097 2093-2097 2093-2097 1784-1788 —-

PET bottle grade 1238-1242 — 1238-1242 1238-1242 1238-1242 1026-1030 —

PET bottle grade — — — — — 1204-1208## —
PET bottle grade Net 1148-1152 — — — — 998-1002 1236-1240
PET bottle grade Net — — — — — 1171-1175## —
APET film grade 1227-1231 — — — — — —
APET film grade Net 1138-1142 — — — — — —
Notes: *FD NWE CONTRACT PRICE denotes FD Germany converted into US dollars. ##PET bottle grade assessments basis FD UK are in Eur/mt. PET assessments refer to regular business
at prices negotiated between buyers and sellers on a monthly basis.

Platts European and African Polymer Spot Price Assessments

FOB NWE FD NWE FCA Antwerp CFR Turkey* CFR North Africa FD UK CFR West Africa
($/mt) (Eur/mt) (Eur/mt) ($/mt) ($/mt) (GBP/mt) ($/mt)
PVC SUSP 818-822 858-862 — 868-872 — — —

LDPE G-P 1214-1218 1218-1222 1198-1202 1168-1172 1138-1142 — 1108-1112

LLDPE (Butene) — 1148-1152 1128-1132 1088-1092 1088-1092 — 1088-1092
LLDPE C6 — 1198-1202 — — — — —
LLDPE metallocene — 1228-1232 — — — — —

HDPE Inj 1117-1121 1128-1132 1108-1112 1078-1082 1068-1072 — 1098-1102

Bmldg 1139-1143 1148-1152 1128-1132 1088-1092 1078-1082 — 1118-1122
Film 1161-1165 1168-1172 1148-1152 1128-1132 1138-1142 — 1138-1142
Recycled HDPE light pellets — 980 — — — — —

PP Homo Inj 1225-1229 1198-1202 1178-1182 1178-1182 1128-1132 — 1138-1142

PP Raffia — — — 1178-1182 1128-1132 — 1138-1142
PP Copol 1300-1304 1268-1272 1248-1252 1278-1282 1228-1232 — 1198-1202
PP Fiber — — — 1210 — — —

PS G-P 1763-1767 1698-1702 — 1418-1422 1458-1462 — —

HIPS 1871-1875 1798-1802 — 1488-1492 1518-1522 — —
EPS 1925-1929 1848-1852 — 1688-1692 — — —
ABS GP/Nat 1748-1752** 1848-1852 — — — — —

PET bottle grade — 1148-1152 — — — 1023-1027 —

PET bottle grade — — — — — 1200-1204# —
Post-consumer PET bottle bale — 470 — — — — —
Recycled PET flakes — 948-952 — — — 748-752 —
Recycled PET flakes — — — — — 878-882# —
Recycled PET FGP — 1350 — — — 1220 —
Recycled PET FGP — — — — — 1431# —
Notes: FOB NWE prices are based on exports of 300mt or more. *CFR Turkey denotes CFR Istanbul; **ABS GP/Nat denotes CFR NWE in $/mt. #PET bottle grade and Recycled PET
assessments for FD UK are in Eur/mt. Recycled PET flake assessments are for hot wash flake without food approval. Recycled PET FGP assessments are for food grade pellets.

© 2024 by S&P Global Inc. All rights reserved. 2

Polymerscan February 7, 2024

Daily Polymer Spot Price Assessments

Thursday Friday Monday Tuesday Wednesday Average
CFR FE Asia ($/mt)
LDPE 1034-1036 1034-1036 1034-1036 1034-1036 1034-1036 1034.00-1036.00
LLDPE 939-941 939-941 939-941 939-941 939-941 939.00-941.00
HDPE Film 949-951 949-951 949-951 949-951 949-951 949.00-951.00
PP Raffia 869-871 869-871 869-871 869-871 869-871 869.00-871.00
PP Injection 869-871 869-871 869-871 869-871 869-871 869.00-871.00
MMA* 1625.00 1625.00 1625.00 1625.00 1625.00 1625.000
PMMA* 1880.00 1880.00 1880.00 2020.00 2020.00 1936.000
PVC Ethylene** 725.00 725.00 720.00 720.00 720.00 722.00
PVC Carbide** 715.00 715.00 710.00 710.00 710.00 712.00
CFR SE Asia ($/mt)
MMA 1705.00 1705.00 1705.00 1705.00 1705.00 1705.000
PMMA 2130.00 2130.00 2130.00 2150.00 2150.00 2138.000
CFR S Asia ($/mt)
LDPE 1145.00 1145.00 1145.00 1145.00 1145.00 1145.000
FD NWE (Eur/mt)
LDPE 1188-1192 1188-1192 1198-1202 1198-1202 1218-1222 1198.00-1202.00
LLDPE 1148-1152 1148-1152 1148-1152 1148-1152 1148-1152 1148.00-1152.00
HDPE Injection 1128-1132 1128-1132 1128-1132 1128-1132 1128-1132 1130.000
HDPE Blmldg 1148-1152 1148-1152 1148-1152 1148-1152 1148-1152 1150.000
HDPE Film 1168-1172 1168-1172 1168-1172 1168-1172 1168-1172 1170.000
PP Homo 1178-1182 1178-1182 1198-1202 1198-1202 1198-1202 1190.00-1194.00
FCA Antwerp (Eur/mt)
LDPE 1168-1172 1168-1172 1178-1182 1178-1182 1198-1202 1178.00-1182.00
LLDPE 1128-1132 1128-1132 1128-1132 1128-1132 1128-1132 1128.00-1132.00
HDPE Injection 1108-1112 1108-1112 1108-1112 1108-1112 1108-1112 1110.000
HDPE Blmldg 1128-1132 1128-1132 1128-1132 1128-1132 1128-1132 1130.000
HDPE Film 1148-1152 1148-1152 1148-1152 1148-1152 1148-1152 1150.000
PP Homo 1158-1162 1158-1162 1178-1182 1178-1182 1178-1182 1170.00-1174.00
CFR Turkey ($/mt)
PP Fiber 1210.00 1210.00 1210.00 1210.00 1210.00 1210.00
FAS Houston ($/mt)
LDPE 1025-1047 1025-1047 1025-1047 1025-1047 1036-1058 1027.20-1049.20
LLDPE 970-992 970-992 970-992 1014-1036 1014-1036 987.60-1009.60
HDPE Blmldg 981-1003 981-1003 981-1003 1014-1036 1014-1036 994.20-1016.20
PP Homo 1080-1102 1080-1102 1080-1102 1080-1102 1080-1102 1080.00-1102.00
FOB Saudi Arabia ($/mt)
PP Raffia 975.00 975.00 975.00 975.00 990.00 978.00
DDP GCC ($/mt)
PP Raffia 1020.00 1020.00 1020.00 1020.00 1035.00 1023.00
FOB Middle East Netbacks ($/mt)
LDPE 1019-1021 1019-1021 1019-1021 1019-1021 1009-1011 1017.00-1019.00
LLDPE 924-926 924-926 924-926 924-926 914-916 922.00-924.00
HDPE 934-936 934-936 934-936 934-936 924-926 932.00-934.00
PP Raffia 854-856 854-856 854-856 854-856 844-846 852.00-854.00
PP Injection 854-856 854-856 854-856 854-856 844-846 852.00-854.00
*Refers to CFR China. Notes: The weekly average represents the average of Thursday last week through Wednesday of the current week.
**Refers to FOB China. FOB Middle East netback denotes CFR Far East Asia assessments minus the prevailing container freight rate from Al-Jubail to Shanghai for a standard 20-foot
container.

Polymer Spot Freight Rates ex-Middle East ($/mt)

From: Middle East Middle East
To: 25-100 mt \>100mt
East China 19-21 24-26
South China 19-21 24-26
India 2-4 3-5
Southeast Asia 19-21 24-26
NW Europe 89-91 94-96
Turkey 79-81 84-86
US Gulf 89-91 94-96
Latin America 94-96 99-101
Notes: Please refer to the methodology guide for details on port locations.

Foreign exchange
€1 to $1.0764 £1 to €1.1727

Metals
Aluminum US Feb 05 cts/lb 118.042
Tin US Feb 05 cts/lb 1181

© 2024 by S&P Global Inc. All rights reserved. 3

Polymerscan February 7, 2024

Daily Recycled Polymer Spot Price Assessments

Thursday Friday Monday Tuesday Wednesday Average
Recycled PET
Asia ($/mt)
Clear flakes FOB SE Asia 770.00 770.00 770.00 770.00 775.00 771.000
Clear flakes premium grade FOB SE Asia 825.00 825.00 825.00 825.00 830.00 826.000
Food Grade Pellets FOB SE Asia 1150.00 1150.00 1150.00 1150.00 1155.00 1151.000
Clear flakes premium grade FOB India 851.00 851.00 851.00 846.00 846.00 849.000
Europe (Eur/mt)
Post-consumer bottle bales FD NWE* 450.00 450.00 450.00 450.00 470.00 454.000
Clear flakes FD NWE 950.00 950.00 950.00 950.00 950.00 950.000
Clear flakes FD UK 878.00 878.00 876.00 878.00 880.00 878.000
Clear flakes FD UK (GBP/mt) 750.00 750.00 750.00 750.00 750.00 750.000
Mixed colored flakes FD NWE 690.00 690.00 690.00 690.00 690.00 690.000
Mixed colored flakes FD UK 761.00 761.00 759.00 761.00 762.00 760.800
Mixed colored flakes FD UK (GBP/mt) 650.00 650.00 650.00 650.00 650.00 650.000
Food grade pellets FD NWE 1350.00 1350.00 1350.00 1350.00 1350.00 1350.000
Food grade pellets FD UK 1429.00 1429.00 1425.00 1429.00 1431.00 1428.600
Food grade pellets FD UK (GBP/mt) 1220.00 1220.00 1220.00 1220.00 1220.00 1220.000
Americas (¢/lb)
Post-consumer bales premium grade FOB LA 19.00 19.00 19.00 19.00 19.00 19.000
Post-consumer bales standard grade FOB LA 13.00 13.00 13.00 13.00 13.00 13.000
Post-consumer bales standard grade FOB Chicago 14.00 14.00 14.00 14.00 14.00 14.000
Post-consumer bales standard grade EXW Southeast 14.00 14.00 14.00 14.00 14.00 14.000
Clear flakes FOB LA 48.00 48.00 48.00 48.00 48.00 48.000
Clear packaging-grade flakes FOB Chicago 53.50 53.50 53.50 53.50 52.50 53.300
Clear flakes EXW Southeast 60.00 60.00 60.00 60.00 60.00 60.000
Food grade pellets FOB LA 68.00 68.00 68.00 68.00 68.00 68.000
Recycled Polyolefins
Asia ($/mt)
R-HDPE black blow molding pellets FOB SE Asia 590.00 580.00 580.00 580.00 580.00 582.000
R-HDPE clear film pellets FOB SE Asia 750.00 750.00 750.00 750.00 750.00 750.000
R-LDPE natural film pellets FOB SE Asia 760.00 750.00 750.00 750.00 750.00 752.000
Europe (Eur/mt)
Post-consumer mixed HDPE bales FD NWE* 200.00 200.00 200.00 200.00 200.00 200.000
R-HDPE light pellets FD NWE 950.00 950.00 970.00 970.00 980.00 964.000
Post-use LDPE grade A bales DDP NWE 340.00 340.00 340.00 340.00 340.00 340.000
Post-use LDPE grade B bales DDP NWE 310.00 310.00 310.00 310.00 310.00 310.000
R-HDPE natural pellets FD NWE 1620.00 1620.00 1640.00 1640.00 1650.00 1634.000
R-LDPE black pellets DDP NWE 630.00 640.00 650.00 650.00 650.00 644.000
R-LDPE grey pellets DDP NWE 690.00 700.00 710.00 710.00 710.00 704.000
R-LDPE translucent pellets DDP NWE 960.00 970.00 990.00 990.00 990.00 980.000
R-PP black pellets DDP NWE 775.00 775.00 795.00 795.00 795.00 787.000
R-PP natural pellets DDP NWE 1600.00 1600.00 1600.00 1600.00 1620.00 1604.000
Americas (¢/lb)
Post-consumer HDPE bales natural grade FOB Chicago 32.00 32.00 32.00 32.00 32.00 32.000
Post-consumer HDPE bales mixed-color grade FOB Chicago 27.00 27.00 27.00 26.00 26.00 26.600
R-HDPE natural pellets FOB Chicago 75.00 75.00 75.00 75.00 75.00 75.000
Post-use LDPE grade A bales FOB 16.00 16.00 16.00 16.00 17.00 16.200
Post-use LDPE grade B bales FOB Chicago 9.00 9.00 9.00 8.00 8.00 8.600
R-LDPE light gray pellets FOB Chicago 34.50 34.50 34.50 33.50 33.50 34.100
Recycled Polystyrene
Europe (Eur/mt)
R-PS black pellets DDP NWE 800.00 800.00 800.00 800.00 800.00 800.000
R-PS grey pellets DDP NWE 1020.00 1020.00 1020.00 1020.00 1020.00 1020.000
*Excludes France. Note: The weekly average represents the average of Thursday last week through Wednesday of the current week.

© 2024 by S&P Global Inc. All rights reserved. 4

Polymerscan February 7, 2024
Polymers
Polyvinyl Chloride
Platts European and Turkish PVC:
European spot prices rise Eur10/mt
amid minor demand improvement
„ Cautious European demand recovery
„ Supply length persists, weighs on pricing
European demand recovery was described as cautious Feb. 7,
as it was mainly due to stock replenishing. Supply continued to
remain long, with producers still happy to keep offers in discount.
This was despite the lack of import competition that weighed on
the market through most of the fourth quarter of last year. With
the ethylene monomer settling at an increase of Eur5/mt from
January, producers said that they would try to seek an increase
but admitted that given the weak demand it would be a difficult
task to achieve.
"There is the feeling that demand is slightly improving. I still
can't catch the reason, but I think it is still restocking. I don't see
many fundamental changes in the demand itself so far. Yes, the
supply situation has changed a bit but there is plenty of material
available in Europe, at least in February. I think situation can
change in March because in Europe the maintenance season will
start, too," a producer said. Other producers were confident that
prices would now rise from the low floor levels seen in January.
"We believe that European prices have hit the bottom and
we will start to see some increases in the coming months.
Current price levels result in loss making operations which in
longer term is not sustainable," a second producer said. Traders
and producers observed spot pricing for K-67 grade material at
Eur850-950/mt DDP Europe. In the contract markets, medium-
sized buyer deal offers were being targeted at around Eur1,010-
1,030/mt DDP Europe.
The European ethylene industry-settled monthly contract
price for February was settled at Eur1,190/mt Feb. 2, up Eur5/
mt from January, market sources told S&P Global Commodity
Insights. The settlement came almost two days after the
European propylene contract price settlement on Jan. 31, raising
concerns from market players about the delay. The delay in an
agreement had risen because of differing stands emerging in the
contract price negotiations, according to market players.
Some market players were heard to have targeted a rollover
or slight increase amid tighter supply in the latter stage of
January and a slight rise in derivative buying interest. By contrast,
some buyers had expressed targets of a slight decrease, citing
continued structurally weak derivative demand and minimal
volatility noted in the cost of feedstock naphtha through January.
Naphtha prices averaged $638.13/mt CIF NWE in January, a
negligible increase of $3.49/mt from December levels, according
to S&P Global data.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 5
Platts European and Turkish PVC Weekly Rationale
Platts assessed free delivered Northwest Europe spot polyvinyl
chloride prices up Eur10/mt on the week at Eur860/mt Feb. 7,
at the low end of a corroborated trader and producer indication
heard at Eur850-960/mt DDP Europe, below uncorroborated trader
indications of material sold at Eur925/mt DDP Iberia, considering
separate producer offers heard from the same trader at Eur860-
900/mt DDP Iberia Feb. 7, while weighing a range of Iberian
indications heard at low Eur800s-1,030/mt DDP, pending fresh FD
NWE indications and considering feedback of supply length.
Platts assessed Germany PVC freely negotiated February net
contract prices unchanged on the week and from January at
Eur990/mt Feb. 7, below a producer target indication for February
settlements at Eur1,010-1,030/mt DDP Europe Feb. 7, and at a
target increase higher than the monomer settlement.
Platts assessed CFR Turkey PVC spot prices unchanged on
the week at $870/mt Feb. 7, below a trader level indication heard
at Eur880-900/mt CFR Turkey Feb. 7, pending further CFR Turkey
indications, and weighing feedback of limited offers and weak
demand.
Platts assessed FOB NWE spot prices unchanged on the week
at $820/mt Feb. 7, in line with stability seen in CFR Turkey spot
prices, while considering feedback of stable-to-weak Turkish and
European market sentiment.
Platts is part of S&P Global Commodity Insights.
Platts US PVC: Spot export PVC prices up on the week
„ Producers look for domestic price increments
„ Pulte Group says home buyer sentiment improves
US spot export polyvinyl chloride prices rose on the week Feb.
7 based on market feedback of higher prices. Platts assessed
spot export PVC at $780/mt FAS Houston, up $20/mt on
the week.
A source said that the export market has tightened. The
sources agreed on seeing an increase in prices for February.
"January was the lowest point for PVC," a source said.. The
sentiment is that prices will keep increasing, other source said.
In the case of domestic prices, January prices increases did
not materialize, sources said. Nevertheless, producers are aiming
to increase their prices in February up to 5 cents/lb, one source
said. Platts also assessed domestic PVC prices at 55 cents/lb
Feb. 7, stable on the week, pending further market corroboration
of higher prices.
For the upstream markets Platts assessed VCM domestic
prices stable on the week to Feb. 6, and export prices up
mirroring the increase in US spot export PVC prices. EDC export
prices were stable on the week, in line with an indication heard
at that level. Sources said EDC market activity overall remained
thin, as producers with downstream PVC operations had little
incentive to sell spot export material.
Polymerscan February 7, 2024
US homebuilder Pulte Group stated during the company's
fourth-quarter 2023 earnings call that homebuying demand was
soft in the early part of the fourth quarter, as average US 30-year
mortgage rates rose to a 23-year high of nearly 8%, but buyer
sentiment improved as those rates declined through November
and December. Home affordability "remains a challenge," and the
company will "have to be thoughtful" about what the company
does with incentives and price increases. Homebuilder results are
closely watched by PVC and polypropylene market participants
as a gauge of demand. PVC is a construction staple.
Another guide for PVC market participants is the Asian
markets. Platts assessed Asian polyvinyl chloride stable on the
week at $765/mt CFR China, amid the Lunar New Year holiday
season. Chinese market participants will be away on holiday
Feb. 9-15.
Platts is part of S&P Global Commodity Insights.
Platts US PVC Weekly Rationale
Platts assessed spot export PVC at $780/mt FAS Houston Feb.
7, up $20 on the week, based on market feedback of higher prices
on the week.
Platts also assessed domestic PVC prices at 55 cents/lb Feb.
7, stable on the week, pending further market corroboration of
higher prices.
Platts is part of S&P Global Commodity Insights.
Asian PVC: Stable ahead of Lunar New Year holiday
„ Carbide supply tight in China
„ Demand slow in China, SE Asia
Asian polyvinyl chloride was assessed stable week on week at
$765/mt CFR China and $780/mt CFR India Feb. 7 amid limited
spot price discussions.
Fresh price discussions were limited in the week starting from
Feb. 5, ahead of the Lunar New Year holiday season. Chinese
market participants will be away on holiday over Feb. 9-15.
Some market sources said carbide feedstock supplies have
been tight in China as heavy snow disrupted the land transport
system. However, it did not push up China's PVC market as
China's carbide-based PVC plant operations have been low at
around 30%-40% prior to the heavy snowfall. Market sources said
the carbide price in China was also stable from the previous week
at Yuan 3,200-3,400/mt.
In Southeast Asia, spot demand was seen to be slowing as
the Ramadan season approaches. Supplies from the US were
available basis CFR Vietnam but the offer level was pretty similar
with Asia-origin material at $790/mt CFR Vietnam. Typically, US
cargoes are offered lower than Asia-origin cargoes due to the
long voyage time.
In India, some market sources said demand was healthy but
buyers were seeking domestic cargoes.
The local price in India was reported at Rupees 73.50-74/kg,
or $790-$800/mt on an import parity basis. The arbitrage window
© 2024 by S&P Global Inc. All rights reserved. 6
from the US to India is currently closed due to high freight rates.
A trading source said offers from the US would be around $820/
mt CFR India based on rising freight, around $20/mt higher than
the current price level.
Looking forward for March arrival business, market sources
said the trend would likely firm as India's demand for import
material would likely return soon as a new fiscal year is starting
from April.
Market participants will closely monitor the 14th National
People's Congress March 5 as the Chinese government may
announce a package to stimulate the sluggish economy.
Upstream, the ethylene market firmed with the Platts-
assessed CFR Northeast Asia ethylene price rising $20/mt week
on week to $940/mt Feb. 7.
Platts is part of S&P Global Commodity Insights.
Platts Asian PVC Daily Rationale
Platts assessed CFR China polyvinyl chloride stable week on
week at $765/mt on Feb. 7 amid thin pre-holiday trading.
Platts assessed CFR Southeast Asia PVC price steady at $770/
mt during the period, after the latest tradable value was heard in
the $750-790/mt CFR SE Asia range.
Platts assessed CFR India PVC price stable on the week at
$780/mt on Feb. 7, considering tradable indications heard in the
$775-$790/mt range.
In the daily market, Platts assessed ethylene-based PVC price
unchanged day on day at $720/mt FOB China on Feb. 7, amid thin
price discussions.
Platts assessed carbide-based PVC price steady at $710/mt
FOB China on the day, as no fresh price indications were heard
with the Lunar New Year holidays approaching.
Platts is part of S&P Global Commodity Insights.
Latin American PVC:
Slightly higher prices in the WCSA
„ WCSA markets higher, demand still low
„ Brazil sees higher activity, offers seen higher on week
Spot import PVC prices in key Latin American markets were
assessed higher on Feb. 7 in the West Coast of South America
and flat in Brazil at the beginning of February, as a reflection of
higher prices from the USGC, and expectations of higher CFR
levels for Brazil considering pressure from international offers
and higher logistic costs.
West Coast of South America
On the Pacific coast of South America, PVC prices were
assessed $10/mt higher on week at $830/mt CFR WCSA. The
assessment was based on higher prices heard during the week,
while some believe market acceptance of higher levels if still
difficult in the region.
Higher WCSA levels are expected as a reflection of US rising
prices, sources said.
Polymerscan February 7, 2024
From North Asia to the WCSA, freight is at $72/mt, or $1,800/
container, while for Brazil it stands at $2,150/container, or $86/mt,
Platts data showed Feb. 7. From the USGC to Brazil, freight stands
at around $36/mt, or $900/container, according to Platts data.
Market feedback shared freight from the USGC to the WCSA at
$30-$50/mt.
The Panama Canal water levels are almost regular at the
beginning of February, with regularization of its levels fully expected
for the coming weeks. Delays in the Panama Canal were impacting
business in most of the WCSA region, as except for the Cartagena
port, as all vessels with other destinations coming from the USGC
have to go through the canal, impacting logistics for ports of
Buenaventura, Callao, Valparaiso and others in the WCSA region.
Freight costs from the USGC to the WCSA have averaged
$50/mt during 2023, reaching up to $80/mt depending on the
negotiation and destination port. Cartagena, Colombia, is usually
cheaper but busier, while the rest of the ports after the Panama
Canal are more expensive from Buenaventura, Colombia, to
Callao, Peru; Guayaquil, Ecuador; and San Antonio, Chile.
Brazil
In Brazil, prices were assessed flat at $850/mt CFR Brazil,
amid international pressure for increases especially considering
higher freight costs from Asia, sources said.
"There is demand in Brazil, but the concern is the delay
in arrival of products and this causes consumers to look for
materials that are closer, such as in Argentina, Colombia and the
USA, which even with an anti-dumping of 8% is cheaper than
Chinese prices due to high shipping costs," a local trader said.
Offers from China were heard at $875/mt CFR levels and
Europe at $890/mt. From the US, offers were heard at $850-
$860/mt, but with little availability.
"The market in general is buying well. There is a more positive
expectation, with civil construction demanding the material. It is
not yet an economic recovery though," the trader said.
A trade was heard for a large volume at $840/mt, while the
information was not corroborated and could not be confirmed.
Brazil relies most on imports from regional suppliers in
Colombia and overseas from Asia. Some European material, when
competitive, can be seen entering the country, however, with the
latest increases Brazil relies mostly on Asian offers.
Domestic-origin PVC pricing indications were heard at Real
5,200/mt ($1,050/mt) levels ex-taxes delivered Brazil, according
to market sources. To nationalize an imported product in Brazil,
costs are usually between 20% and 30% over the original price,
depending on the product, which makes the domestic product
very competitive.
Platts is part of S&P Global Commodity Insights.
Platts Latin American PVC Weekly Rationale
CFR WCSA: Platts assessed spot import PVC prices at $830/
mt Feb. 7, up $10/mt on the week at the bottom of an indication
range heard at $830/mt to $840/mt, within other range of $820/
mt to $840/mt.
© 2024 by S&P Global Inc. All rights reserved. 7
CFR Brazil: Platts assessed spot import PVC prices at $850/
mt Feb. 7, flat on the week at the bottom of an offer range heard
at $850/mt to $860/mt for US-origin material, and below other
offers at $875/mt from Asia and $890/mt from Europe. An
unconfirmed trade was heard at $840/mt and not considered
for the assessment as values could not be confirmed, pending
indications of lower levels.
Platts is part of S&P Global Commodity Insights.
Low Density Polyethylene
European LDPE: Push back against
higher spot price offers
„ Spot material availability tightens further
„ Demand fundamental unchanged: Sources
The European low density polyethylene market continued to
see rising spot prices in the week to Feb. 7, on the back of tighter
material availability.
Spot prices continued to increase in the week to Feb. 7,
with sellers also citing delayed imports as another reason for
higher offers. Some spot offers were heard at levels of Eur1,400/
mt, but consumer pushback was also heard against the firmer
price offers.
"Some converters are refusing the very high offers in the
market," a trader said.
Platts assessed the European LDPE grade spot price at
Eur1,220/mt FD NWE Feb. 7, up Eur30/mt on the week
Supply of the LDPE grade remained tight, with reduced
domestic production rates and limited imports into the region.
Producers continued to cite a lack of incentives to support an
increase in run rates, according to market sources.
The demand picture had varied over the week, amid different
opinions from market participants, but leaning more towards
indications of unchanged weak demand across the region.
"We see that the demand is not booming, clients are not
rushing to buy... Although price increases are there, we do not see
a rise in selling," a distributor said, while some other sources cited
some restocking activity ahead of a rising price trend.
The feedstock ethylene industry contract price settled at
Eur1,190/mt FD NWE Feb. 2, up Eur5/mt from January.
Platts is part of S&P Global Commodity Insights.
Platts European LDPE Weekly Rationale
Platts assessed the European low density polyethylene grade
spot price at Eur1,220/mt free-delivered northwest Europe Feb.
7, up Eur20/mt on the day and up Eur30/mt on the week, in line
with a distributor indication of pricing above Eur1,200/mt, within
a trader indication at Eur1,180-1,300/mt, within a distributor
indication at Eur1,200-1,300/mt, below a range of multiple offer
indications at Eur1,250-1,400/mt, below a consumer indication at
Eur1,250-1,320/mt, considering a distributor indication of some
Polymerscan February 7, 2024
material available at pricing below Eur1,200/mt, below a producer
indication of prices being more than Eur100/mt increases for
February, considering market feedback of tight supply against
weak demand fundamental.
The FD Germany LDPE freely-negotiated gross contract
price was assessed at Eur1,665/mt, up Eur5/mt on the week
and from the end of January, considering a Eur5/mt rise in
February contract pricing for feedstock ethylene and pending
further corroboration of concluded February settlements, below
a distributor indications of seller offers of increases at Eur150-
200/mt on the month and a consumer indication of increases at
Eur180-230/mt from January levels.
Platts is part of S&P Global Commodity Insights.
European Recycled LDPE: Prices continue to
firm amid tight availability for virgin material
„ Mixed market feedback on demand
„ Increased transportation costs
European recycled low density polyethylene prices maintained
steady increases in the week ended Feb. 7 amid mixed
market feedback on demand and tight availability within the
virgin market.
Market sources noted stable increases in demand for recycled
material as the virgin LDPE market continued to remain tight and
increasingly difficult to source.
Translucent grade R-LDPE prices saw significant increases on
the week, as recyclers commented on growing demand shifts.
Platts assessed recycled LDPE translucent pellets at Eur990/
mt DDP Northwest Europe Feb. 7, up Eur30 on the week. Grey
and black R-LDPE grades saw softer increases as market sources
noted lower grade pellets supply remained high, supported by
local sourcing.
In contrast, one Northwest European recycler did not see
the same trend, and reported low supply and demand for their
products as their customers' stocks remained ample and later
reduced their production activity during the week.
Meanwhile, market sources noted transport costs across
Northwest Europe had continued to rise, which was impacting
February pricing strategies.
"We are trying to raise our prices for all the grades … but the
problem is that all this increase has been taken away by the
forwarders," one recycler said. "Almost all the forwarders have
raised their transportation prices."
Platts is part of S&P Global Commodity Insights.
Platts European Recycled LDPE Weekly Rationale
Platts assessed recycled low density polyethylene translucent
pellets at Eur990/mt DDP Northwest Europe Feb. 7, unchanged
on the day and up Eur30 on the week, below a distributor's
indication at Eur1,040/mt and below a second indication from the
same distributor of increases of Eur50-60/mt, moving towards
a recycler's indication normalized to Eur1,010-1,020/mt heard at
© 2024 by S&P Global Inc. All rights reserved. 8
ex-works with an additional indication of Eur80-90/mt delivery
cost from the Baltics to Benelux, considering market feedback of
improved demand.
R-LDPE grey pellets were assessed at Eur710/mt DDP NWE,
stable on the day and up Eur20 on the week, moving towards a
recycler's indication normalized at Eur740-750/mt heard at ex-
works Baltics Eur660/mt with an additional indication of Eur80-
90/mt delivery cost from the Baltics to Benelux, considering a
recycler's indication heard at ex-works UK at above GBP600/mt,
moving towards a distributor's increase of Eur30/mt.
R-LDPE black pellets were assessed at Eur650/mt DDP NWE,
stable on the day and up Eur20 on the week, moving towards a
recycler's indication normalized at Eur740-750/mt heard at ex-
works Baltics Eur660/mt with an additional indication of Eur80-
90/mt delivery cost from the Baltics to Benelux, considering a
recycler's indication heard at ex-works UK at above GBP600/mt,
moving towards a distributor's increase of Eur30/mt.
Post-use LDPE Grade B bales were assessed at Eur310/mt
DDP NWE, stable on the day and on the week, pending fresh
indications.
Post-use Grade A bales were assessed at Eur340/mt DDP
NWE, stable on the day and on the week, tracking the stability
seen in Grade B bales while pending fresh indications.
Platts is part of S&P Global Commodity Insights.
US LDPE: Export prices firm
amid supply-side issues
„ Gulf Coast producers dealing with freeze impacts
„ Spot export rail car values varied on week
Spot export low density polyethylene prices rose on the week
Feb. 7, as sources reported supply-side issues and slim availability
while demand was heard to be picking up.
Indications of value for LDPE rail cars were heard as low as
41 cents/lb and as high as 45 cents/lb, with market participants
reporting varying transactable levels depending on producer.
Each producer is facing their own sets of challenges with
especially LDPE at this time, sources said, as PE makers grapple
with the impacts of the recent cold weather on the Gulf Coast.
While no sustained impacts to supply were noted as a result
of the freezing temperatures that hit the region for several days
in mid-January, sources said the event was still a factor lending
support to higher prices. LDPE production units are typically
older than the units producing other PE grades, one source said,
so even minor issues as plants were brought back from idling
could have an impact on output.
More than 80% of LDPE in the US is produced in the Gulf
Coast region, according to S&P Global Commodity Insights data.
Continued geopolitical tensions impacting supply security in
Europe, as well as healthy buying appetite in key export region
Latin America, are also contributing to the bullish sentiment.
Platts assessed spot export LDPE $11/mt higher on the day and
$33/mt higher on the week Feb. 7.
Polymerscan February 7, 2024
"We saw demand still bullish in Latin America, particularly in
Brazil," one source said in early February. "Europe also showed a
lot of signs of life."
Overall, sources said customers were more and more willing
to accept higher prices so far in February, although it is still
being determined how much more the customers are willing to
pay. Various US and North American PE makers have announced
February price hikes of 5 cents/lb, including Chevron Phillips
Chemical, Formosa Plastics USA, Dow Chemical, ExxonMobil
and LyondellBasell subsidiary Equistar Chemicals, S&P Global
reported earlier.
In company earnings news, company leaders at Phillips 66 and
Shell Polymers said during the recent earnings calls that their
feedstock-advantaged polyethylene assets in the US and beyond
will continue operating close to or above full capacity in Q1 2024,
even amid delays to startup timelines and macroeconomic
challenges.
Among the positive market indicators is that inflation
beginning to moderate, Shell CFO Sinead Gorman said during the
company's Feb. 1 earnings call.
Conversely, some complicating factors for upstream business
especially include the geopolitical conflict in the Red Sea and the
ongoing Russia-Ukraine war, Phillips 66's executive vice president
of marketing and commercial, Brian Mandell, said during the
company's Jan. 31 call. Mandell noted that company executives
have observed "different arbitrage, different places," adding
that the major impact has been in increased freight rates and
transit time.
Leaders at both companies mentioned robust run rates
projected for the first quarter of 2024 for polymers and olefins
assets, including at Shell's newest chemical complex in Monaca,
Pennsylvania.
Platts is part of S&P Global Commodity Insights.
Platts US LDPE Weekly Rationale
Platts assessed spot export low-density polyethylene at
$1,047/mt FAS Houston on Feb. 7, $11/mt higher on the day and
firming $33/mt on the week. The assessment was in line with the
most repeatable rail car indications of value heard at 43 cents/
lb, or $1,047/mt FAS Houston, on Feb. 6 and 7 and also considered
talk of tight supply.
The FAS Houston assessment includes 4.50 cents/lb to
account for the fees associated with packaging the resin and
transporting it to ports for export.
Platts assessed spot export LDPE on a FAS US East
Coast basis at $1,058/mt, also up $11/mt on the day and
$33/mt higher from the prior-week assessment, based on
Houston rail car pricing plus 5 cents/lb for packaging and
transportation.
Domestic contract LDPE was assessed at 69.50 cents/lb
delivered basis, unchanged from a week ago, pending further
corroboration of concluded contract discussions.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 9
US Recycled LDPE: Prices resist pressure
from weather-related supply constraints
„ Poor weather throughout the US dampened collection
„ Emphasis on film, flexibles to increase in 2024: source
Spot prices for US post-use low-density polyethylene A-grade
bales were heard flat to slightly higher in the week to Feb. 7.
Generation was heard at lower levels, due to poor weather
in many areas of the US, sources said, though the reduction in
supply had little if any effect on pricing, sources said.
Looking ahead into 2024, recyclers will see an increased
emphasis on film and flexible packaging, according to one
US seller.
Recent packaging trends have favored flexible materials,
which are lighter weight and often smaller than traditional rigid
packaging, helping to reduce carbon footprint.
However, flexible packaging typically consists of multiple
layers of different types of polymers, making it difficult to recycle
via mechanical methods.
Platts US Recycled LDPE Daily Rationale
Platts assessed post-use LDPE grade A 95/5 film bales at 17
cents/lb FOB Chicago Feb. 7, higher by 1 cent on the day, within
indications heard at 16-17 cents/lb FOB Midwest and 17-18 cents/
lb FOB Midwest, considering market feedback of slightly firmer
demand on the week.
Grade B 80/20 post-use LDPE film bales were assessed at
8 cents/lb FOB Chicago, flat on the day, at the top end of an
indication heard at 7-8 cents/lb FOB Midwest, and considering
market feedback of stable pricing from January levels.
Light gray recycled LDPE pellets were assessed at 33.5
cents/lb FOB Chicago, flat on the day, mirroring stability in the
feedstock B-grade bales market amid no disproving indications.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbols
<ARNPG00>,<ARNPH00>,<ARNPI00>
Asia LDPE: Market stays quiet amid thin discussions
„ Thin demand in China
„ India LDPE stable on week
The Asian low density polyethylene market stayed quiet amid
thin discussions in the week to Feb. 7.
Few offers were heard throughout the week in China with the
Lunar New Year holidays approaching.
There is less demand this week as many companies are closed
or about to close for the holidays, a China-based trader said.
"Supply is also stable and there was not much reduction in
inventory levels," another source added.
The Southeast Asia market was also quiet with trading activity
slowing down ahead of the holidays.
Polymerscan February 7, 2024
In India, LDPE film sustained at the $1,145/mt level through the
week amid a stable market.
Most tradable indications remained around $1,140-$1,150/mt
this week as well.
Platts assessed South Asian general-purpose, low-density
grade polyethylene stable on the day at $1,145/mt CFR South
Asia Feb. 7.
The suppliers are discussing higher levels but there is
resistance to further price increases of LDPE film from buyers, a
trader said.
Another source said there are less import bookings for LDPE
film now.
Supply continues to be tight and fresh LDPE film offers may
be at higher levels, the source added.
Platts is part of S&P Global Commodity Insights.
Platts Asian LDPE Weekly Rationale
Platts assessed Asia LDPE film stable on the week to Feb. 7 at
$1,035/mt CFR FE Asia, based on tradable indications at $1,035/
mt. LDPE film was assessed down $5/mt on the week at $1,095/
mt CFR SE Asia, below offers at $1,100-$1,200/mt.
Platts assessed South Asian general-purpose, low-density
grade polyethylene stable on the day at $1,145/mt CFR South Asia
Feb. 7, considering tradable ideas heard in the range of $1,140-
$1,150/mt.
Platts assessed Chinese domestic LDPE stable week on
week at Yuan 9,125/mt ex-works east China, considering trading
indications at Yuan 9,100-9,150/mt.
Platts is part of S&P Global Commodity Insights.
Platts Asian LDPE Daily Rationale
Platts assessed South Asian general-purpose, low-density
grade polyethylene stable on the day at $1,145/mt CFR South Asia
Feb. 7, considering tradable ideas heard in the $1,140-$1,150/mt
range.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <ALDPA00>.
Asia Recycled LDPE: Prices stable
ahead of Lunar New Year holidays
„ Trading activity slows
„ Consumers not willing to pay more for recycled
The Asian recycled low density polyethylene market was
stable in the week to Feb. 7, amid slow trading ahead of the Lunar
New Year holidays.
Demand in Asia was lukewarm due to the upcoming holidays.
Demand has been hampered by poor economic growth,
while sustainability projects are facing a funding slowdown,
producers said.
Market sources said that renewable products of higher quality
close to the virgin material tend to be more costly and they were
not prepared to pay more to recycle. Some market participants
© 2024 by S&P Global Inc. All rights reserved. 10
were considering using bio-based material to reduce the usage
of fossil-based plastics. However, the cost was more than double
the current fossil fuel-based polymer price and prohibitive,
they said.
No laws have been enforced in Asia that force consumers to
pay much higher.
There has been inconsistent application of extended producer
responsibility rules, with not much enforcement. Currently,
Vietnam and India are implementing such rules this year, while
Thailand is coming up with a draft, but most Asian countries have
limited enforcement, market sources said.
Recycling in Asia has been geared more toward
mechanical recycling due to lower operation costs and its less
technical nature.
Unlike the European Union, there is no standardization of
legislation or business practices in Asia, market sources said.
Platts is part of S&P Global Commodity Insights.
Asian Recycled LDPE Daily Rationale
Platts assessed Asian recycled low density polyethylene
natural film pellets stable on the day at $750/mt FOB Southeast
Asia Feb. 7, on a discussion at the same level.
The intraday value was uncontested.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <ARNFA00>.
Latin American LDPE:
Brazil continues to see rising prices
„ Domestic Brazilian prices higher for February
„ Mercosur see higher prices on week
Spot prices in the Latin American low-density polyethylene
market were slightly higher in West Coast South America, with
rising prices in the Mercosur region and Brazil on Feb. 7.
West Coast of South America
Along the West Coast of South America, prices were slightly
up by $5/mt on the week based on indications from the US Gulf
Coast and Asia. Sources continued to say that, in most cases,
US material remained more competitive than Asian product,
especially considering stable logistics from the US and lower
from China.
"Producers are pushing prices hard, and trend is up, but
customers are taking their time," a US-based trader said. "I
expect the same as January and demand will pick up [in the]
second half of the month when customers realize that the
increase is real."
According to several traders, the ongoing lack of offers from
US producers has impacted the market and backed for higher
February offers.
"Producers [are] trying to pass increases as high as possible,"
a second US-based trader said. "Latin American markets [are
slowly] reacting, however, prices for sure [are] firming up. If you
Polymerscan February 7, 2024
repurchase at the current replacement costs, it may take a while
to pass the increases."
A third source said increases were around $20-$40/mt
compared to January levels, adding, "Suppliers are still trying to
push increases, but I can say there's little acceptance."
Colombia
Platts assessed Colombian LDPE domestic delivered prices
flat at $1,155/mt based on pricing indications heard from a local
producer, considering domestic and imported product already
nationalized at higher levels.
According to a local trader, domestic producers kept prices
stable during the week. The information was corroborated by
other sources.
Other indications were also heard at $1,160-$1,170/mt
Brazil-origin.
Brazil
CFR Brazil LDPE prices rose at the beginning of February,
aligned with the elevated values seen for all imports of PE grades.
Even though the LDPE increase was not the highest for the
week on the spot market, sources have seen booming prices for
contract prices.
"Asia materials are rising at least $200/mt, it's absurd," a
local trader said, considering that other PE grades registered
an increase of around $110/mt-$150/mt. "Now there are a lot of
offers coming from Asia, as normally LDPE stays in the region and
is not shipped this way. Usually, we have no offers at all."
The raise in prices and LDPE offers were seen by some as a
result of more demand coming from Brazil, after a less active
market throughout January. Even so, the looming prices could
cause a disruption in demand, as clients have not been satisfied
with the offers made.
"Market in Brazil is slow right now. It is not easy," another
trader said.
On the domestic market, LDPE was the product with
the highest raise registered, after local producer Braskem
established its new price policy for February. The LDPE increase
is around $60/mt more expensive than other PE grades.
Mercosur
Platts assessed spot low-density polyethylene at $1,145/mt
CFR Mercosur Feb. 7, up $70/mt on the week.
Prices are expected to go higher in the coming weeks,
according to Mercosur market sources.
An Argentina-based source said that in December prices
reached the floor and there is still space to correct and go higher,
adding that it will be driven by the supply and demand balance,
producers in the US and the Red Sea conflict.
"The upward trend is very consolidated and if everything
continues up to now, March will see a new increase," the same
source said.
A Paraguay-based source said that traders have already
announced a price increase of $40-$50/mt but has not yet
© 2024 by S&P Global Inc. All rights reserved. 11
applied to the market. This is added to the fact that producers
and traders have been receiving letters from shipping companies
announcing freight cost increases.
Argentina
In Argentina, weekly LDPE prices remained stable amid limited
imports.
Market feedback indicated that imports were still
complicated. As a medium-term solution, the new import
mechanism is intended to allow customers with previous debts to
use bonds as a means of financing, a source said.
The US dollar was trading at its highest point at Peso 830.15/$
on Feb. 7. After trading from Peso 366.51/$ on Dec. 12 to an
exchange rate of 800 Argentinian pesos or higher as of Dec. 13,
according to S&P Capital IQ data.
Mexico
Mexico prices for LDPE were high on the week ended Feb. 7.
Demand has picked up in the prior week. Buyers were hesitant
during the first half of the month, however, due to constant price
increase announcements, market activity has picked up.
Platts is part of S&P Global Commodity Insights.
Platts Latin American LDPE Weekly Rationale
CFR WCSA: Platts assessed spot low-density polyethylene at
$1,120/mt CFR Feb. 7, up $5/mt on week, at the bottom of a range
heard at $1,120/mt to $1,140/mt, within indications of $1,100/mt to
$1,150/mt, amid talks of higher prices at $20/mt to $40/mt on the
week.
LDPE: CFR Brazil: Platts assessed spot LDPE film pricing at
$1160/mt Feb. 7, up $50/mt on the week, in line with indications at
that level and on top of a range of indications varying from $1110/
mt to $1160/mt, amid talks of higher prices on the week.
CFR Mercosur: Platts assessed spot low-density polyethylene
at $1,145/mt CFR Mercosur Feb. 7, up $70/mt on the week. The
assessment is below one offer heard at $1,150/mt and below
a range of offers heard at $1,260-$1,390/mt from two traders,
considering talk of increasing demand and talk of tight supply on
the week. The assessment was based on indications of imported
material from Argentina, Paraguay and Uruguay.
Delivered Sao Paulo: Platts assessed spot LDPE film pricing at
Real 9,500/mt Feb. 7, up Real 1,000/mt, in line with a price raise
established by local producer, corroborated and accepted by
market participants.
Delivered Buenos Aires: Platts assessed Spot LDPE film at
$2,500/mt Feb. 7, stable on the week, in line with the bottom of
a range heard around $2500-$2600/mt Delivered Argentina and
feedback of stable pricing.
Delivered Bogota: Platts assessed spot LDPE at $1,155/mt on
Feb. 7, flat on week. The assessment was based on flat offers
from a local producer, below CFR WCSA assessments with
nationalization costs heard at $100/mt, and also below other
indications from local traders for material already nationalized.
Delivered Mexico City: LDPE film was assessed at $1100/mt
Polymerscan February 7, 2024
Feb. 7, up $50/mt on the week. The assessment was below the
range of a producer heard at $1120-1220, it came within a pricing
indication heard at $1080-1102/mt from a trader.
Platts is part of S&P Global Commodity Insights.
Linear Low Density Polyethylene
European LLDPE: Sellers push for
price increases amid tight supply
„ Sales stop enforced amid supply constraint: source
„ Ethylene contract price settles up Eur5/mt
Supply in the European linear low density polyethylene
markets tightened in the week ended Feb. 7, amid ongoing
import delays from the Middle East and reduced export offers
from the US.
"The [polyethylene] volumes are very few from the US now,
the offers have been very reduced, and this is putting a lot of
pressure on the LLDPE markets in Europe. Customers are worried
about supply," a distributor said.
Varying degrees of supply tightness had been reflected in the
market across the week, with some sellers heard to be putting a
stop on sales, citing supply shortage.
"Our headquarters has now put a sale stop on all
[polyethylene] grades," a trader said.
Constraints on LLDPE supply have supported sellers offering
material on the spot market at higher price levels. Despite
the tight supply and higher pricing trend, demand for material
continued to remain weak overall.
The European LLDPE C4 grade spot price was assessed at
Eur1,150/mt FD NWE Feb. 7, unchanged on the week, according to
Platts data.
Some buyers were heard refusing to accept higher spot offers
around the Eur1,300/mt range, citing that market fundamentals
had yet to support these levels. Consumers who were found not
in immediate need of material, were heard considering imports,
with a two-month delivery window if offers were competitive
enough, according to market sources.
"Customers are starting to question if these high levels will
continue because they see that the fundamentals do not support
these high prices," a trader said.
In upstream market, the feedstock ethylene industry contract
price had settled at Eur1,190/mt FD NWE Feb. 2, up Eur5 from
January.
Platts is part of S&P Global Commodity Insights.
Platts European LLDPE Weekly Rationale
Platts assessed the European linear low density polyethylene
C4 grade spot price at Eur1,150/mt free-delivered Northwest
Europe Feb. 7, unchanged on the day and on the week, at the
bottom of a corroborated indication at Eur1,150-1,300/mt, at the
bottom of a distributor indication at Eur1,150-1,275/mt, a trader
© 2024 by S&P Global Inc. All rights reserved. 12
indication at Eur1,150-1,200/mt, below the same trader indication
of offers at Eur1,170-1,320/mt, below a consumer indication at
Eur1,230-1,280/mt, and considering feedback of tighter supply
weighed against weak buying interest.
The European LLDPE C6 grade spot price was assessed
at Eur1,200/mt FD NWE, up Eur20/mt on the week, moving up
towards the bottom of a distributor indication at Eur1,250-1,350/
mt, below a producer indication of price increases more than
Eur100/mt for February, considering market feedback of a tighter
supply compared with LLDPE C4 weighed against weak demand.
The European LLDPE Metallocene grade spot price was
assessed at Eur1,230/mt FD NWE, up Eur30/mt on the week,
moving up towards a corroborated indication at Eur1,250-1,350/
mt, below a trader indication of offers at Eur1,250-1,350/mt,
within a consumer indication at Eur1,190-1,200/mt, below a
consumer indication at Eur1,280-1,350/mt, considering feedback
of tighter supply weighed against weak demand.
The FD Germany LLDPE C4 freely-negotiated gross contract
price was assessed at Eur1,495/mt, up Eur5/mt on the week and
from the end of January, considering a Eur5/mt rise in February
contract pricing for feedstock ethylene and pending further
corroboration of concluded February settlements, below a
distributor indication of seller offers of increases at Eur150/mt on
the month and a consumer indication of increases at Eur150-180/
mt from January levels.
The FD NWE LLDPE C6 freely-negotiated gross contract
price was assessed at Eur1,695/mt, up Eur5/mt on the week and
from the end of January, considering a Eur5/mt rise in February
contract pricing for feedstock ethylene and pending further
corroboration of concluded February settlements, below a
distributor indication of seller offers of increases at Eur150/mt on
the month and a consumer indication of increases at Eur150-180/
mt from January levels.
Platts is part of S&P Global Commodity Insights.
US LLDPE: Export prices rise uniformly across
grades on week amid bullish sentiment
„ Butene-grade export rail cars heard in 3-cent range as
producers seek increases
„ Normal seasonal PE demand to surface toward end-Q1:
LyondellBasell execs
Butene, hexene and metallocene-grade linear low density
butene prices rose $55/mt week on week on an FAS Houston
basis Feb. 7, with market participants bullish as various tradeable
levels emerged to begin the month.
No new spot indications were heard for metallocene or hexene
grades, with a distributor source saying demand for the former
grade is sluggish. February prices for overall PE were heard
anywhere from 3 to 5 cents/lb, up compared to January.
LLDPE butene rail-car indications of value were heard as low
as 42 cents/lb and as high as 45 cents/lb from Feb. 6-7, with
market feedback indicating PE makers were each facing their
Polymerscan February 7, 2024
own sets of challenges on the supply side amid a combination of
planned maintenance and unplanned outages.
While no sustained impacts to supply were noted as a result
of the freezing temperatures that hit the Gulf Coast for several
days in mid-January, sources said the event was still a factor
lending support to higher prices. Continued geopolitical tensions
impacting supply security in Europe, as well as healthy buying
appetite in key export region Latin America, are also contributing
to bullish sentiment.
"Prices all over the place," a trader source said.
Various US and North American PE makers have announced
February price hikes of 5 cents/lb, including Chevron Phillips
Chemical, Formosa Plastics USA, Dow Chemical, ExxonMobil
and LyondellBasell subsidiary Equistar Chemicals, S&P Global
Commodity Insights reported earlier.
"They want to test the waters with distributors and traders
and see how much we can pay," the distributor source said
regarding the range of tradeable levels heard across PE grades.
Market participants were mixed on the domestic contract
side, with monthly negotiations considered ongoing amid
resistance to multiple-cent increases as sources report
slow demand.
In company earnings news, normal seasonal demand
improvements for North American olefins and polyolefins are
expected to begin near the end of the first quarter and continue
through the summer, LyondellBasell executives said Feb. 2.
For the second half of 2024, moderating interest rates,
reduced inflation and infrastructure stimulus spending should
support demand for durable goods, a key end market for
LyondellBasell, CEO Peter Vanacker said during a quarterly
earnings call.
Platts US LLDPE Weekly Rationale
Platts assessed linear low-density polyethylene butene prices
at $1,025/mt FAS Houston on Feb. 7, flat on the day and up $55
from a week ago.
The assessment was in line with the most repeatable rail
car indications of value heard at 42 cents/lb, or $1,025/mt FAS
Houston, on Feb. 6 and 7.
Platts assessed hexene-grade LLDPE at $1,047/mt FAS
Houston, rising $55 week on week, mirroring the movement in the
spot butene market amid no disproving indications.
Platts assessed LLDPE metallocene at $1,069/mt FAS
Houston, up $55 from a week ago, likewise tracking the
movement in the spot butene market amid no disproving
indications.
The FAS assessment includes 4.50 cents/lb to cover the fees
associated with packaging resin and transporting it to ports for
export.
Platts assessed spot export LLDPE butene on a FAS US East
Coast basis at $1,036/mt, stable on the day and $55 higher on
the week, based on Houston rail car pricing with an additional 5
cents/lb to cover packaging and transportation costs, according
to market feedback.
© 2024 by S&P Global Inc. All rights reserved. 13
Domestic contract LLDPE was assessed at 59 cents/
lb delivered basis, unchanged from Jan. 31, pending further
confirmation of concluded contracts.
Platts is part of S&P Global Commodity Insights.
Asia LLDPE: Stable amid thin trade
„ Price trending up in Southeast Asia
„ Petro Rabigh to shut LLDPE unit for maintenance in Feb
The Chinese low-linear density polyethylene market was
stable in the week ended Feb. 7 amid thin trading activity due to
the upcoming Lunar New Year holidays.
Meanwhile, Southeast Asia LLDPE trended up slightly on
higher discussions amid tight supply in the Middle East and
Southeast Asia.
Some producers are stocking up for this month and the next
month, so the quantity provided to the market was low, said
a source.
This is due to the turnaround season in the Middle East and
Southeast Asia, where several plants have shut or are shutting for
maintenance.
Saudi Arabia's Sharq has been running its three LLDPE lines
with a combined capacity of 1.15 million mt/year in Al Jubail at
a low rate, below 50% since January, due to the shutdown of its
ethylene and propylene unit.
Saudi Arabia's Rabigh Refining and Petrochemical, or Petro
Rabigh, will shut its 350,000 mt/year LLDPE unit for maintenance
in February.
It will do so after restarting its high density polyethylene
plant in the first half of February, multiple sources close to the
company said Feb. 5.
In India, the LLDPE film price was slightly down amid stable
supply and moderate demand, sources said.
CFR South Asia linear low-density polyethylene was assessed
down $5/mt on the week at $990/mt Feb. 7.
Most LLDPE film tradable indications remained in the $980-
$1,000/mt range.
A source said the LLDPE film market was stable and supply
was moderate, adding that this price level may not be sustainable
for long with supply now coming from all major domestic
producers.
However, another source said the LLDPE price level will hold
as imports have been less in the last few months and supply was
slightly tight.
Platts is part of S&P Global Commodity Insights.
Platts Asian LLDPE Weekly Rationale
Platts assessed LLDPE stable on the week at $940/mt CFR
FE Asia on Feb. 7, based on a trading indication of $940/mt. Platts
assessed LLDPE up $10/mt on the week at $1,000/mt CFR SE
Asia, based on a tradable indication of $1,000/mt. CFR South Asia
LLDPE was assessed down $5 on the week at $990/mt, considering
tradable indications heard in the $980-$1,000/mt range.
Polymerscan February 7, 2024
Platts assessed Chinese domestic LLDPE down Yuan 65/mt
week on week at Yuan 8,170/mt ex-works east China, considering
trading indications in the Yuan 8,150-8,200/mt range.
Metallocene LLDPE was assessed stable on the week at
$1,000/mt CFR FE Asia, stable in tandem with C4 LLDPE price
movements. Metallocene LLDPE was assessed stable on the
week at $1,040/mt CFR SE Asia, based on a price differential of
metallocene LLDPE CFR FE Asia plus $40/mt. Platts assessed
metallocene LLDPE CFR South Asia stable on the week at $1,180/
mt, considering tradable indication heard at $1,180/mt.
Platts is part of S&P Global Commodity Insights.
Latin American LLDPE: Brazil and
WCSA see big increases on week
„ Domestic Brazilian prices higher for February
„ Mexico domestic markets up on week
Spot prices in the Latin American linear low-density
polyethylene market were higher in the West Coast of South
America and in Brazil while kept stability in the Mercosur region.
Argentinian domestic market was the only which was stability,
while Brazil, Colombia and Mexico saw higher prices on the week.
West Coast of South America
Along the West Coast of South America, prices were $40/
mt higher on the week, pressured by higher offers and limited
availability from the US Gulf Coast.
According to one trader, there's still scarce polyethylene
availability from the US, with a slight additional increase in prices.
"There is some shortage due to the continuous delay in
shipments from the US," a second trader said, adding delays are
between two to four weeks to load.
According to a well-placed source, slightly higher Asian prices
are still lagging behind the magnitudes from America's or Europe.
"It is concerning to me as China's futures market have slide
significantly the past week ahead of long Lunar New Year layoff,"
the source said. "The outlook in Asia is still quite dim and that will
affect not only the rest of the Asian market, but globally as well."
Colombia
In Colombia, LLDPE film prices were $40/mt higher Feb. 7 at
$1,200/mt. Indications were seen higher from market participants,
considering mostly imported material nationalized equivalents
calculated off the WCSA price, considering material from the US,
which does not face import-duties. Around $100/mt is considered
for nationalizing material in Colombia.
"We have a stable demand currently," a local trader
said, adding that market has seen increases for some
consecutive weeks.
Brazil
LLDPE prices for Brazil imports spiked on the second week of
February, alongside other PE grades. Market sources see both
© 2024 by S&P Global Inc. All rights reserved. 14
Asia and US origin products increased for the week, which could
impact the number of trades made, as customers may not get
satisfied with the new prices.
"They are seeing this moment as an opportunity to raise
prices," said a local trader.
Another market source pointed out that while small increases
on the spot market are seen, raises for contract prices revolve
around $110/mt to $150/mt.
On the domestic market, LLDPE price also raised after local
producer Braskem released the February price policy. The
increase for LLDPE products follows the same amount of other
PE grades, coming just behind the LDPE increase, the highest in
the market.
Market participants had already anticipated last week's
increase before the official announcement.
Mercosur
Platts assessed spot linear low-density polyethylene butene
at $1,115/mt CFR Mercosur Feb. 7, stable on the week.
Polyethylene grades were talked tight on the week. According
to an Argentina-based player, all Latin American high-density
polyethylene supply has been tight; HDPE blowmolding, LDPE
and LLDPE specifically have been talked tight for the Americas.
The same source said the winter storm has been the main cause
of the tightness of product. However, it has been beneficial for
some producers as consumers have been buying and accepting
the price increases.
A Paraguay-based source noted that there is no tightness
of product in Paraguay, while a Uruguay-based source said that
there is no availability of US-origin HDPE blowmolding, adding
that, in general, product from the US and Middle East is tight.
Argentina
Argentinian domestic prices were flat for LLDPE across all
grades amid product availability.
Pending updates on the start up of the Dow Chemical site
in Bahía Blanca, market feedback indicated that almost all the
plants are already up and running, which has normalized the
supply of materials.
Mexico
Mexican LLDPE's prices were up $40/mt on the week of Jan.
17. This came amid ongoing low inventories and a generalized
upward trend in polyethylene prices in the region.
Platts is part of S&P Global Commodity Insights.
Platts Latin American LLDPE Weekly Rationale
CFR WCSA: Platts assessed spot linear low-density
polyethylene at $1,100/mt CFR Feb. 7, up $40/mt on the week,
based on most repeatable level within a range heard at $980/
mt to $1,150/mt, below an offer heard at $1,130/mt, amid talks of
higher prices at $20/mt to $40/mt on the week.
LLDPE: CFR Brazil: Platts assessed spot LLDPE butene pricing
at $1,100/mt Feb. 7, up $30/mt on the week, within a range of
Polymerscan February 7, 2024
indications varying from $1,070/mt to $1,120/mt, amid talks of
higher prices on the week.
CFR Mercosur: Platts assessed spot linear low-density
polyethylene butene at $1,115/mt CFR Mercosur Feb. 7, stable
on the week. The assessment is below two corroborated offers
heard at $1,120/mt from two traders and a third offer heard at
$1,270/mt. The assessment was based on indications of imported
material from Argentina, Paraguay and Uruguay.
Delivered Sao Paulo: Platts assessed spot LLDPE butene
pricing at Real 8,750/mt Feb. 7, up Real 700/mt, in line with a price
raise established by local producer, corroborated and accepted
by market participants.
Delivered Buenos Aires: Platts assessed Spot LLDPE butene
at $2,430/mt Feb. 7, stable on the week, based on feedback of
stable pricing. A price indication heard around $2,500-$2,600/mt
on Feb. 6 was not considered, pending corroboration of market
activity at that level.
Delivered Bogota: Platts assessed LLDPE at $1,200/mt Feb. 7,
up $40/mt on the week. The assessment was based at CFR WCSA
assessments with nationalization costs heard at $100/mt, above
traders' indications at $1,080-$1,190/mt of imported product
already nationalized.
Delivered Mexico City: LLDPE butene was assessed at $1,000/
mt on Feb. 7, up $40/mt on the week. The assessment came
below a price indication heard at $1,014-$1,036/mt from a trader.
Platts is part of S&P Global Commodity Insights.
High-Density Polyethylene
European HDPE: Weak end-user
demand weighs against tighter supply
„ Higher spot price offers heard: Sources
„ Buying interest in HDPE grades remains weak
The European high density polyethylene spot prices remained
stable amid a balancing supply and demand fundamentals in the
week to Feb. 7.
Buying interest in HDPE grades remained weak as the month
started, with most consumers citing persisting weak end-
user demand.
"We see that the demand is not rising... A lot of customers are
claiming weak demand from their end-users," a distributor said.
"Structurally demand is still poor. All we are facing is a short-
term supply glitch," another distributor said.
The supply fundamental had tightened further over the past
week, amid continued reduced domestic production, delayed
imports from the Middle East and lower export offers from the
US. Compared with other polyethylene markets, HDPE was seen
to be more available.
"Availability [of HDPE] is reduced compared to January, but not
as tight as LDPE and LLDPE," another distributor said.
On the spot market, offers were significantly higher priced,
© 2024 by S&P Global Inc. All rights reserved. 15
with sellers heard citing a lack of material availability as a reason,
according to market sources. Despite higher prices and tighter
supply, demand fundamentals remained unchanged.
The European HDPE blowmolding grade spot price was
assessed at Eur1,150/mt FD NWE Feb. 7, unchanged on the week,
according to S&P Global Commodity Insights data.
In the contractual market, price increase of up to Eur150/
mt from January were heard to be targeted by producers, citing
tighter availability and delayed vessel imports into Europe.
Platts is part of S&P Global Commodity Insights.
Platts European HDPE Weekly Rationale
Platts assessed the European high density polyethylene
blowmolding grade spot price at Eur1,150/mt free-delivered
northwest Europe Feb. 7, unchanged on the day and on the
week, at the bottom of corroborated indications at Eur1,150-
1,300/mt, in line with a distributor indication of pricing parity to
LLDPE C4, above the same distributor indication of some deals
at Eur1,130/mt, below a producer indication of more than Eur100/
mt increases for February, and considering feedback of reduced
availability weighed against weak demand.
The European HDPE injection grade spot price was assessed
at Eur1,130/mt FD NWE, unchanged on the day and on the
week, in line with a distributor indication of deals at Eur1,130/
mt, below the same distributor indication at Eur1,150-1,300/mt,
below a trader indication at Eur1,150-1,250/mt, below a producer
indication of more than Eur100/mt increases for February, and
considering feedback of reduced availability weighed against
weak demand.
The European HDPE unimodal film grade spot price was
assessed at Eur1,170/mt FD NWE, unchanged on the day and on
the week, within corroborated indications ranging at Eur1,150-
1,300/mt, above a distributor indication of some deals at Eur1,130/
mt, above the same distributor indication of pricing parity to
LLDPE C4, considering feedback of reduced availability weighed
against weak demand.
The FD Germany freely-negotiated gross contract price for
blowmolding grade HDPE was assessed at Eur1,455/mt, up Eur5
on the week and from the end of January, considering a Eur5 rise
in February contract pricing for feedstock ethylene and pending
further corroboration of concluded February settlements, below
a distributor indication of seller offers of increases at Eur150/mt
on the month.
The FD Germany freely-negotiated gross contract price for
injection grade HDPE was assessed at Eur1,405/mt, up Eur5 on
the week and from the end of January, considering a Eur5 rise
in February contract pricing for feedstock ethylene and pending
further corroboration of concluded February settlements, below
a distributor indication of seller offers of increases at Eur150/mt
on the month.
The FD Germany HDPE unimodal film grade freely-negotiated
gross contract price was assessed at Eur1,475/mt, up Eur5 on
the week and from the end of January, considering a Eur5 rise
in February contract pricing for feedstock ethylene and pending
Polymerscan February 7, 2024
further corroboration of concluded February settlements, below
a distributor indication of seller offers of increases at Eur150/mt
on the month.
Platts is part of S&P Global Commodity Insights.
Turkish and African Polyethylene:
Higher logistics costs raise CFR prices
„ PE prices rise in February
„ Imports impacted by Red Sea crisis
The Turkish polyethylene market rose in the week to Feb. 7, on
less availability due to import disruptions.
Platts assessed the CFR Turkey high-density polyethylene
film-grade spot price up $40/mt on the week at $1,130/mt.
Fundamentals in Turkey remained supportive amid less
prompt availability against firmer freight costs due to the
ongoing Red Sea crisis. Producers announced higher prices for
February, taking into account the rise in freight costs. Offers were
heard from several origins, including Saudi Arabia, Iran, the US
and Europe.
US offer prices for LLDPE were the most competitive in
the market.
Sources said there was an uptick in buying interest for
European material as lead times from other origins were too high.
Saudi Arabian producers said that lead times to Turkey were now
around two months, compared to under two-weeks before the
Houthi attacks in the Red Sea began.
Firmer freight costs led prices in the North African market
to rise. Demand for spot material remained healthy despite the
higher prices, sources said. In West Africa, buying activity in
the key Nigerian market was impacted by forex volatility as the
Nigerian naira plummeted against the dollar on Jan. 31.
"The situation is a bit worrying, because if the local exchange
rate increased and local prices will also increase, prices are
growing but demand is not," a seller said.
Platts is part of S&P Global Commodity Insights.
Platts African and Turkish Polyethylene Weekly Rationale
Platts assessed the CFR Turkey high density polyethylene
film grade spot price up $40/mt on the week at $1,130/mt Feb. 7,
towards an offer heard at $1,200/mt while weighing feedback of
higher prices, against mixed demand sentiment.
The CFR Turkey HDPE blowmolding grade spot price was
assessed up $10/mt on the week at $1,090/mt, at the top of deals
heard at $1,080-$1,090/mt and below an offer heard at $1,180/mt.
CFR Turkey HDPE injection grade spot prices were assessed
up $10/mt on the week at $1,080/mt, tracking the price increase
in blowmolding grade HDPE, pending fresh indications.
CFR Turkey linear low-density PE spot prices were assessed
up $20/mt on the week at $1,090/mt, towards a trader indication
heard at $1,150-$1,170/mt whilst considering a US origin offer
heard at $1,050/mt, the arrival date of which was not ascertained.
The CFR Turkey low-density PE spot price was assessed up
© 2024 by S&P Global Inc. All rights reserved. 16
$60/mt on the week at $1,170/mt, at the top of a trader indication
heard at $1,150-$1,170/mt, towards producer indications heard
at $1,250/mt, below a bid heard from a producer at $1,180/mt,
pending corroboration of higher levels.
CFR West Africa HDPE film grade spot prices were assessed
up $40/mt on the week at $1,140/mt, towards a producer
indication heard at $1,180/mt and below offers heard at $1,220/
mt, pending further corroboration at higher values.
CFR West Africa HDPE blowmolding grade spot prices were
assessed up $40/mt on the week at $1,120/mt, below a producer
indication heard at $1,130-$1,140/mt and below offers heard at
$1,220-$1,230/mt.
CFR West Africa HDPE injection grade spot prices were
assessed up $40/mt on the week at $1,100/mt, mirroring the
increase in the price of the other HDPE grades and below an offer
heard at $1,250/mt, pending corroboration of higher levels whilst
considering feedback of soft demand.
CFR West Africa LLDPE spot prices were assessed up $20/mt
on the week at $1,090/mt, towards an offer heard at $1,120/mt,
considering feedback of soft demand.
CFR West Africa LDPE spot prices were assessed up $20/mt
on the week at $1,110/mt, moving towards an offer heard at $1,140/
mt whilst mirroring the increase in the LLDPE price.
CFR North Africa HDPE film spot prices were assessed up
$60/mt on the week at $1,140/mt, moving in line with a deal heard
at $1,140/mt and below an offer heard at $1,250/mt, pending
corroboration of higher prices.
CFR North Africa HDPE blowmolding spot prices were
assessed unchanged on the week at $1,080/mt, above a deal
heard at $1,070/mt and below an offer heard at $1,260/mt.
CFR North Africa HDPE injection spot prices were assessed
up $10/mt on the week at $1,070/mt, weighing the increase the
film grade HDPE price against stable pricing in blowmoding grade
HDPE spot values and considering firmer injection grade HDPE
spot values in West Africa and Turkey.
CFR North Africa LLDPE spot prices were assessed up $20/
mt on the week at $1,090/mt, towards an offer heard at $1,150/mt,
pending corroboration of higher levels and tracking the increase
seen in LLDPE spot values in West Africa.
CFR North Africa LDPE spot prices were assessed up $40/
mt on the week at $1,140/mt, towards a producer bid indication
heard at $1,170-$1,180/mt, pending corroboration of higher levels.
Platts is part of S&P Global Commodity Insights.
US HDPE: FAS Houston prices up
1-3 cents/lb on week
„ Supply-side issues constrict blowmolding availability
„ Shell starting third PE unit at Monaca: CEO
Spot export high density polyethylene prices rose $22-$66/
mt across grades on the week Feb. 7, with supply-side constraints
for blowmolding and film grades spurring auction interest as
demand was talked healthy from key export regions.
Polymerscan February 7, 2024
Trading activity on a spot basis was not abundant on the
week, with blowmolding-grade offers especially scarce as several
sources reported supply tightness for the grade. Platts, part of
S&P Global Commodity Insights, assessed the blowmolding $55/
mt higher from a week ago in line with multiple rail car indications
at 42 cents/lb ($1,025/mt FAS Houston).
One producer held an auction for blowmolding on Feb. 6,
which was reported to have ended just above 45 cents/lb. While
market participants said this is not a workable spot export price
to Latin America purchases at this price point may be attractive
to traders and distributors looking to cover prompt orders
Mexico. Demand was stronger for the wider Latin American
market at lower prices.
"Blowmolding demand on the auction was really high all the
way [until] the end," one source commented.
Dynamics for film-grade HDPE were talked similarly, with a
general lack of offers reported and overall supply seen as snug.
Platts assessed the film $22/mt higher week-on-week, at the high
end of a range of rail car indications repeatedly heard at 42-43
cents/lb ($1,025-$1,047/mt FAS Houston) on Feb. 6 and 7.
The same producer plans who had the blowmolding auction
has planned one for HDPE film on Feb. 8, according to market
feedback.
US PE makers were heard to each be facing their own sets
of challenges on the supply side amid a combination of planned
maintenance and unplanned outages.
While no sustained impacts to supply were noted as a result
of the freezing temperatures that hit the Gulf Coast for several
days in mid-January, sources said the event was still a factor
lending support to higher prices. Continued geopolitical tensions
impacting supply security in Europe, as well as healthy buying
appetite in key export region Latin America, are also contributing
to bullish sentiment.
"[Blowmolding] surged the fastest due to supply issues," a
second source said regarding price increases in February. "I
expect HD film to follow and may get tight as weather warms up
and more bi-modal capacity transition to make more pipe."
Various US and North American producers have announced
February price hikes of 5 cents/lb, including Chevron Phillips
Chemical, Formosa Plastics USA, Dow Chemical, ExxonMobil
and LyondellBasell subsidiary Equistar Chemicals, S&P Global
reported earlier.
In the domestic contract market, participants were mixed,
with monthly negotiations considered ongoing amid resistance to
multiple cents/lb increases as sources report slow demand.
In company operations and earnings news, two of the three
new PE units at Shell Polymers' complex in the US Northeast
continue to run at or above nameplate capacity, and the third
unit is progressing toward startup, CEO Wael Sawan said Feb. 1.
The complex, which began operations in mid-November 2022,
has two HDPE units with capacities of 550,000 mt/year, and
the third unit can produce up to 500,000 mt/year of linear low
density PE, according to S&P Global data. One of the HDPE units
has had ongoing equipment issues, according to Shell executives
© 2024 by S&P Global Inc. All rights reserved. 17
and PE market participants.
Sawan said the piece of equipment in the third unit, a
compressor, has been installed, and the unit is in the process of
starting up over the course of the coming weeks.
Platts US HDPE Weekly Rationale
Platts assessed blowmolding grade high density polyethylene
at $1,025/mt FAS Houston on Feb. 7, holding steady on the day
and but rising $55 on the week.
The assessment was in line with the most repeatable
indications of value heard at 42 cents/lb rail car basis on Feb. 6
and 7.
Injection-grade HDPE was assessed at $937/mt FAS Houston,
$66 higher week on week, at the high end of repeatable
indications of rail car value heard at 37-38 cents/lb ($915-$937/mt
FAS Houston) based on source feedback indicating export prices
rose by 3 cents in February from January.
HDPE film was assessed at $1,047/mt FAS Houston, $22 higher
on the week, at the high end of repeatable indications of rail
car value heard at 42-43 cents/lb during the week ended Feb. 7
considering talk of limited supply.
The FAS assessment includes 4.50 cents/lb to account for the
costs of packaging and transporting resin to ports for export.
Platts assessed spot export HDPE blowmolding on a FAS US
East Coast basis at $1,036/mt, unchanged day on day and $55
higher from a week ago, based on Houston rail car pricing with
an additional 5 cents/lb to cover packaging and transportation
costs, according to market feedback.
Domestic contract prices for blowmolding, film and
injection grades were assessed unchanged from a week ago,
pending further corroboration of concluded monthly contracts.
Blowmolding was assessed at 53.50 cents/lb delivered basis,
with injection grade assessed at 52.50 cents/lb delivered basis
and film grade assessed at 55 cents/lb delivered basis.
Platts is part of S&P Global Commodity Insights.
US Recycled HDPE: Market welcomes
price stability even at low levels
„ Natural bale prices are less than half year-ago levels
„ EPR policies could help reduce volatility: source
Market sources welcomed stable prices for US post-consumer
high-density polyethylene in the week to Feb. 7, despite remaining
54% below year-ago levels.
"It's good news because this time of year there can be a slump
in pricing," one seller said . "If we can get through February with
steady pricing, that can set us up for a good year."
Tradeable levels so far have resisted slightly firmer demand
heard in some areas and reduced generation due to poor weather
in many areas of the US, sources said.
However, the gap between buying and selling indications has
narrowed for color bales, as converters who may have previously
resisted raising their bids were heard at slightly firmer levels.
Polymerscan February 7, 2024
Natural bottle bales have hovered at 31-33 cents/lb FOB
Chicago since early November, according to Platts data. In
comparison, prices were at 70 cents/lb on Feb. 7, 2023.
Despite the sharp contrast in prices on the year, sources said
stability at lower levels was preferable to volatility.
Moving toward more widespread Extended Producer
Responsibility (EPR) could encourage price consistency for post-
consumer commodity plastics, said one seller.
Platts US Recycled HDPE Daily Rationale
Platts assessed natural HDPE post-consumer bales at 32
cents/lb FOB Chicago Feb. 7, flat on the day, at the bottom of
indications heard from two sellers at 32-33 cents/lb FOB Midwest
and considering market feedback of stable pricing on the month.
Mixed-color HDPE post-consumer bales were assessed at 26
cents/lb FOB Chicago, flat on the day, in line with an indication
heard from a seller at mid-20s cents/lb FOB Midwest and
considering market feedback of stable levels from January.
Natural recycled HDPE pellets for blowmolding applications
were assessed at 75 cents/lb FOB Chicago, flat on the day,
mirroring stability in the feedstock natural bales market and amid
no disproving indications.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <ARNPC04> <ARNPE04 >
<ARNPA04>.
Asia HDPE: Prices rise in SE Asia
on higher discussions
„ Chinese market stable
„ Prices stable in India
The Southeast Asian high density polyethylene market rose
marginally in the week ended Feb. 7 on higher discussions.
Platts assessed CFR SE Asia HDPE film up $5/mt on the week
at $995/mt CFR SE Asia. 7, while blowmolding-grade HDPE was
up $25 on the week at $985/mt CFR SE Asia and HDPE injection
was up $35/mt on the week at $980/mt CFR SE Asia.
"Even though we see weak demand this week, with the
holidays approaching, prices are higher due to tight supply," one
trader said.
The supply is tight due to ongoing plant maintenance in the
Middle East and Southeast Asia, as well as global shipping issues,
sources said.
Rabigh Refining and Petrochemical, or Petro Rabigh in Saudi
Arabia had shut its 350,000 mt/year HDPE plant in Rabigh for
maintenance since late December 2023. It plans to restart in
the first half of February, multiple sources close to the company
said Feb. 5.
Saudi Arabia's Eastern Petrochemical Company, or Sharq,
has been running its 400,000 mt/year HDPE line in Al Jubail at
a low rate, below 50% since January, due to the shutdown of its
ethylene and propylene units, S&P Global Commodity Insights
reported earlier.
© 2024 by S&P Global Inc. All rights reserved. 18
The Chinese market remained stable amid thin discussions.
In India, HDPE prices were stable amid less bookings and
moderate demand, sources said.
Platts assessed CFR South Asia HDPE film stable on the week
at $1,050/mt Feb. 7, while blowmolding-grade HDPE was stable on
the week at $1,035/mt CFR South Asia.
HDPE film discussions are now around $1,060/mt, but
bookings are less, a source said.
Another source said that HDPE demand was stable while
supply is moderate.
Platts is part of S&P Global Commodity Insights.
Platts Asian HDPE Weekly Rationale
Platts assessed HDPE yarn stable on the week at $960/
mt CFR Far East Asia on Feb. 7, based on tradable indications
of $960/mt. HDPE yarn was assessed up $5/mt on the week
at $1,005/mt CFR Southeast Asia, based on a typical price
difference of $10/mt higher than HDPE film, which stood at $995/
mt.
HDPE injection was assessed stable on the week at $905/mt
CFR FE Asia, based on tradable indications of $905/mt. HDPE
injection was assessed up $35/mt on the week at $980/mt
CFR SE Asia, based on tradable indications in the $980-$1,030/
mt range. Platts assessed injection-grade HDPE stable on the
week at $990/mt CFR South Asia on Feb. 7, considering tradable
indications in the $990-$1,000/mt range.
HDPE blow molding was assessed stable on the week at $910/
mt CFR FE Asia, based on tradable indications of $910/mt. HDPE
blow molding was assessed up $25 on the week at $985/mt CFR
SE Asia, based on a price differential of HDPE film CFR SE Asia
minus $10/mt. Blow-molding grade HDPE was assessed stable
on the week at $1,035/mt CFR South Asia on Feb. 7, considering
tradable indications heard in the $1,030-$1,060/mt range.
HDPE film was assessed stable on the week at $950/mt CFR
FE Asia, based on tradable indications of $950/mt. HDPE film was
assessed up $5/mt on the week at $995/mt CFR SE Asia, below
an offer in the $1,000-$1,010/mt range. Platts assessed CFR
South Asia HDPE film stable on the week at $1,050/mt on Feb. 7,
considering tradable ideas heard in the $1,030-$1,060/mt range.
Platts assessed Chinese domestic HDPE stable week on
week at Yuan 8075/mt ex-works east China, considering trading
indications in the Yuan 8,050-8,100/mt range.
Platts is part of S&P Global Commodity Insights.
Latin American HDPE: WCSA and
Brazil see higher prices on week
„ Domestic markets mostly higher on week; Argentina flat
„ Mercosur sees HDPE injection higher, other grades down
High-density polyethylene prices rose for all grades in the West
Coast of South America and Brazil, while they were mixed for the
Mercosur market, and mostly climbed across domestic markets of
Brazil, Colombia and Mexico, while staying flat in Argentina.
Polymerscan February 7, 2024
West Coast of South America
Prices increased for all HDPE grades during the week in the
WCSA region, considering still limited availability for most of the
grades and longer transit times, sources said.
"We see US export prices continue to escalate in February," a
US trader said. "Definitely all PE prices except HD injection are
firmly above $900 FOB from producers. All availabilities are tight,
particularly HD blowmolding."
According to the trader, although HDPE injection prices have
increased from December, their levels are still lagging behind
other grades such as blowmolding and film.
According to traders, all polyethylene prices from the US are
up $20 to $40/mt compared with last week.
Colombia
In Colombia's domestic market, all HDPE grades were higher
considering the movements in the WCSA markets and higher
offers heard to the Colombian market.
"Prices started to climb from $20/mt and above for all
polyethylenes," a local trader said.
A second trader said demand has been stable to low.
"Suppliers have limited availability, and lead time at least has
been normalized," the second trader said.
Brazil
HDPE prices all increased in February for CFR Brazil, especially
blowmolding, seen as a more restricted product by traders, with a
rise of $70/mt in comparison with the previous week.
"Blowmolding now is at the same price level of film, which is
usually more expensive," a market source said. "But this could
be a temporary situation until the Northern Hemisphere enters
summer season." He said he believed HDPE film might sell out in
the near future, as blowmolding is right now by his distributor.
Another trader pointed to fewer offers being seen in Brazil for
HDPE grades, pressured by Formosa Plastics stockage, which is
still not in regular conditions after freezing weather in the US.
"From what we have heard, Formosa has low product
availability right now, and we haven't had any answers yet for our
proposed bids this week," the trader said.
On the domestic market, all HDPE grades saw increases with
local producer Braskem's February price policy. The injection
increase was smaller than those for film and blowmolding for
local trades.
Mercosur
HDPE film fell $50/mt on the week to $1,095/mt, HDPE
blowmolding dropped $30/mt to $1,095/mt, and HDPE injection
climbed $65/mt to $1,095/mt CFR Mercosur
Mercosur market participants saw mixed demand behaviors.
An Argentina-based player said demand has been stable at
"heathy" levels but could be affected at some point, with inflation
and the Argentinean peso devaluation driving increasing demand
as domestic consumers do not want to hold pesos. The same
source said demand could decline as inflation decreases.
© 2024 by S&P Global Inc. All rights reserved. 19
The same source added that demand for imports has not
recovered and that the market does not see any impact of import
incentive measures. Clients who used to import polyethylene still
cannot do so due to their debt levels in foreign currency, which
they have not overcome.
"The import mechanism in place requires finance, especially
for those indebted customers," the source said.
Argentina
Domestic prices in Argentina remained stable on the week
across all HDPE grades amid price increase expectations.
A source said that depending on supply from US and the limits
on product passing through the Red Sea, the upward trend in
polyethylene prices could remain solid, with a possible increase
in March.
A second source added that the recent constraints in the
supply of polyethylene and the continuing limitations for imports
could also lead to a price increase.
Mexico
Mexico HDPE domestic prices rose in the week to Feb. 7.
This came as producers announced increments in the first
weeks of the year in response to a generalized increase in export
prices from the US to Mexico.
Some producers announced increments for both January
and February amid a material shortage, in particular HDPE
blowmolding.
Platts is part of S&P Global Commodity Insights.
Platts Latin American HDPE Weekly Rationale
CFR WCSA: Platts assessed high-density polyethylene film-
grade at $1,120/mt CFR Feb. 7, up $20/mt on week, based on the
most repeatable value at that level within a range of $1,020/mt
and $1,190/mt, below an offer at $1,130/mt, amid talks of higher
prices from $20/mt to $40/mt. HDPE injection was assessed at
$1,000/mt CFR Feb. 7, up $10/mt on week, based on the most
repeatable value at that level within a range of $990/mt and
$1,150/mt, amid talks of higher prices from $20/mt to $40/mt.
HDPE blowmolding was assessed at $1,120/mt CFR Feb. 7, up $50/
mt on week, based on the most repeatable value at that level
within a range of $1,030/mt and $1,160/mt, amid talks of higher
prices from $20/mt to $40/mt.
HDPE: CFR Brazil: Platts assessed spot HDPE film pricing at
$1160/mt Feb. 7, up $30/mt on the week, in line with indications
at that level and within a range of indications varying from
$1130/mt to $1180/mt, amid talks of higher prices on the week.
HDPE injection was assessed at $1050/mt Feb. 7, up $20/mt
on the week, within a range of indications varying from $1030/
mt to $1080/mt, amid talks of higher prices on the week. HDPE
blowmolding was assessed at $1150/mt Feb. 7, up $70/mt on
the week, in line with an indication at that level, above a range
of indications varying from $1080/mt to $1130/mt, and below an
indication at $1160/mt, amid talks of higher prices on the week.
CFR Mercosur: Platts assessed spot high density
Polymerscan February 7, 2024
polyethylene film at $1,095/mt CFR Mercosur Feb. 7, down $50/
mt on the week. The assessment is below an offer heard from
one trader at $1,100/mt and below a range of offers heard from
a second trader at $1,130-$1,370/mt. Spot HDPE injection was
assessed at $1,095/mt CFR Mercosur, up $65/mt on the week.
The assessment is below one offer heard at $1,100/mt and a
second offer heard at $1,290/mt, considering talk of increasing
demand on the week. Spot HDPE blowmolding was assessed
at $1,095/mt CFR Mercosur, down $30/mt on the week. The
assessment is below one offer heard at $1,100/mt and a
second offer heard at $1,310/mt. The assessment was based
on indications of imported material from Argentina, Paraguay
and Uruguay.
Delivered Sao Paulo: Platts assessed spot HDPE film pricing
at Real 10,400/mt Feb. 7, up Real 700/mt, in line with a price
increase established by local producer, corroborated and
accepted by market participants. HDPE injection pricing was
assessed at Real 9,680/mt Feb. 7, up Real 500/mt, in line with a
price increase established by local producer, corroborated and
accepted by market participants. HDPE blowmolding pricing was
assessed at Real 9,350/mt Feb. 7, up Real 700/mt, in line with a
price increase established by local producer, corroborated and
accepted by market participants.
Delivered Buenos Aires: Platts assessed Spot HDPE film at
$2,410/mt Feb. 7, stable on the week, based on feedback of stable
pricing. A price indication heard around $2500-$2600/mt on Feb.
6 was not considered, pending corroboration of market activity at
that level.
Delivered Bogota: Platts assessed HDPE film at $1,220/mt
Feb. 7, up $20/mt on week. The assessment was based at CFR
WCSA assessments with nationalization costs heard at $100/
mt, within traders' indications at $1,180-$1,250/mt of imported
product already nationalized. HDPE injection was assessed at
$1,100/mt, up $10/mt on week. The assessment was based on
CFR WCSA assessments with nationalization costs heard at $100/
mt, below traders' indications at $1,150-$1,250/mt of imported
product already nationalized. HDPE blowmolding was assessed
at $1,220/mt, up $50/mt on week. The assessment was based on
CFR WCSA assessments with nationalization costs heard at $100/
mt, within traders' indications at $1,180-$1,250/mt of imported
product already nationalized.
Delivered Mexico City: Spot HDPE blowmolding was assessed
at $1030/mt Feb. 7, up $50/mt on the week. The assessment
was at the bottom of the range of a producer range heard at
$1030-1130, came below a pricing indication heard at $1058/
mt from a trader and below another pricing indication heard at
$1070/mt from a trader. HDPE injection was assessed at $1020/
mt, up $40/mt on the week. The assessment was at the bottom
of the range of a producer heard at $1020-1130, came below a
pricing indication heard at $1080/mt from a trader. HDPE film
was assessed at $1100/mt, flat on the week. The assessment was
at the bottom of the range of a producer heard at $1100-1150, it
came slightly below a pricing indication heard at $1102/mt from a
trader.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 20
European Recycled HDPE: Improved
demand supports higher pricing
„ Steady improvement in demand for packaging
„ Narrowing premium over virgin grade
The European recycled high density polyethylene market
sustained price increases in the week to Feb. 7, as the packaging
derivative segment saw demand for virgin-replacement grade
material amid a narrowing premium of recycled product over
virgin grades.
Availability of virgin material is understood to be short which
has led to an improvement in demand in recent weeks for
recycled material, aided by a narrowing spread between virgin
and recycled HDPE and the approaching 2025 deadline for
increased recycled content in packaging in Europe.
"Two weeks ago, I would say I saw mostly technical demand,
materials for trailing and qualification, but this week I started
to get a lot of calls about new projects lining up… people want
to move to PCR (Post-consumer Recycled material), [they are]
looking to switch from virgin," one converter said.
Platts assessed recycled HDPE natural pellets at Eur1,650/
mt FD NWE Feb. 7, up Eur30/mt on the week, with R-HDPE
natural pellets trading at a premium to virgin at below Eur500/
mt Feb. 7, down over Eur100/mt since the start of the year. Some
virgin polymer suppliers were heard to be targeting a three-digit
increase in February for the virgin grade.
Platts is part of S&P Global Commodity Insights.
Platts European Recycled HDPE Weekly Rationale
Platts assessed recycled high-density polyethylene natural
pellets at Eur1,650/mt FD Northwest Europe Feb. 7, up Eur10/
mt on the day and up Eur30/mt on the week, moving above
corroboration at this level from a converter and in line with a
distributor indication of a Eur30/mt increase in pricing, while
considering feedback of improving demand.
R-HDPE light pellets were assessed at Eur980/mt FD NWE, up
Eur10/mt on the day and Eur30/mt on the week, moving in line
with a converter indication heard at above Eur970/mt, moving
towards a recycler indication at Eur1,150/mt while remaining
below a distributor indication heard at above Eur1,000/mt,
pending further corroboration at higher values.
Post-consumer HDPE mixed bales were assessed at Eur200/
mt FD NWE, stable on the day and on the week, pending fresh
indications.
Platts is part of S&P Global Commodity Insights.
Asia recycled HDPE: Prices stable on thin trade
„ Thin trading due to upcoming Lunar New Year holidays
„ Lack of mandates to use recycled resin
Platts assessed Asian recycled high density polyethylene
stable in the week to Feb. 7 on thin discussions in the lead up to
the Lunar New Year holidays.
Polymerscan February 7, 2024
Some sources were using post-industrial resin, instead of
post-consumer resin, for cleaner ease of use, although some
brand owners rejected this as resolving sustainability issues.
Throughout 2023, demand for Asia recycled HDPE resin was
depressed, with market sources citing a lack of Asia mandates
and a wide price spread between post-consumer and virgin resin
as the primary reasons.
At the same time, virgin HDPE prices were pressured
downward by new domestic capacity and weak consumer
demand, while recycled resin was slower to soften.
Throughout 2023, sellers relied on sustainability-focused
buyers, as the converters who were not bound by mandates
were opting for virgin resin to help maintain margins,
sources said.
In other news, Saudi Arabia's Rabigh Refining and
Petrochemical, or Petro Rabigh, plans to restart its 350,000 mt/
year high density polyethylene plant in Rabigh in the first half
of February following a maintenance that began late December,
multiple sources close to the company said.
Petro Rabigh also operates a 160,000 mt/year low density
polyethylene unit and No. 1 and No. 2 linear LDPE units at the
same location. The No. 1 unit has a production capacity of
350,000 mt/year, while the No. 2 unit has a production capacity of
250,000 mt/year.
The No. 1 unit will be shut for scheduled maintenance after the
HDPE line resumes operations, one of the sources said.
Platts is part of S&P Global Commodity Insights.
Platts Asian Recycled HDPE Daily Rationale
Platts assessed Asian recycled high density polyethylene
natural film unchanged on the session at $750/mt FOB Southeast
Asia on Feb. 7, amid thin trading.
Platts assessed Asian recycled HDPE black blowmolding
pellets stable on the session at $580/mt FOB Southeast Asia.
The intraday value was uncontested.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <PHALH00>.
Polypropylene
European Polypropylene: Domestic
tightness exacerbates dearth of imports
„ Supply fundamentals drive market direction
„ Contract prices see slight rise with monomer
Upwards pricing trends continued across the European
polypropylene market in the week to Feb. 7, as tight supply
provoked volatility in market conditions.
Security tensions in the Red Sea continued to significantly
reduce import supply from the Middle East and Asia, pushing a
variety of buyers back to domestic sellers in search of material.
© 2024 by S&P Global Inc. All rights reserved. 21
Outage activity in Europe exacerbated these issues,
cementing a lack of material availability across the continent and
driving spot prices higher.
Both homopolymer and copolymer material rose by Eur40 on
the week, to Eur1,200/mt FD NWE and Eur1,270/mt, respectively.
Despite the bullish pricing trends, market participants noted
the upswing was solely down to supply constraints, with demand
from the bulk of key derivative markets remaining muted.
"Demand is not the right word — if it was picking up, this
situation would be a disaster" one producer said. "Some
consumption normally goes to import material, and with this not
here the interest moves elsewhere".
In the contractual market, pricing saw a Eur15/mt rise for
both homopolymer and copolymer material, following the rise in
February contract pricing for key feedstock propylene.
Sellers were heard targeting triple digit increases on the
month in the contractual segment, as a result of the supply
tightness. Despite this, consumers were heard initially reluctant
to concede to these strong movements in the early stages of
the month.
Platts European Polypropylene Weekly Rationale
Platts assessed homo injection grade polypropylene spot
prices at Eur1,200/mt Feb. 7, unchanged on the day and up
Eur40/mt on the week, moving in line with a distributor indication
of prices at this level, considering a second distributor indication
placing pricing at or above Eur1,200/mt and below a producer
indication of offers at Eur1,220/mt and above, while taking into
consideration feedback of tight supply.
FD Germany freely negotiated gross contract prices for homo
injection grade PP were assessed at Eur1,385/mt, up Eur15/mt on
the week and from the end of January, partially moving towards
seller offers of increases on the month heard at Eur150/mt and
Eur170/mt respectively, and towards a producer indication of
increases of at least Eur100/mt, while considering a Eur15/mt rise
in February contract pricing for feedstock propylene and pending
further corroboration of concluded February settlements.
The FD NWE copolymer PP spot price was assessed at
Eur1,270/mt, up Eur40/mt on the week within a distributor
indication at between Eur1,250-1,350/mt, moving towards a
second distributor indication of minimum pricing at Eur1,300/mt,
while remaining below a producer indication of offers at Eur1,280/
mt and above, considering feedback of tight supply.
FD Germany freely negotiated gross contract prices for
copolymer grade PP were assessed at Eur1,455/mt, up Eur15/
mt on the week and from the end of January, moving towards
seller offers of increases on the month heard at Eur150/mt
and Eur170/mt respectively, and towards a producer indication
three digit increases from January, while considering a Eur15/
mt rise in February contract pricing for feedstock propylene
and pending further corroboration of concluded February
settlements.
Platts is part of S&P Global Commodity Insights.
Polymerscan February 7, 2024
Petchem EMEA Weekly Recycled PP Commentary
„ Pricing ticks up despite weak derivatives
„ Virgin pricing spikes remain focus of
market participants' attention
The European recycled polypropylene market continued
to see pricing increases in the week to Feb. 7, with stronger
pricing in virgin markets taking precedence in dictating market
conditions over generally quiet buyer appetite.
Demand from derivative industries remains muted, with key
automotive, construction, gardening and packaging industries
remaining weak in the face of macro-economic pressure.
Despite this, prices continued on the uptrend in the market
across the week, buoyed by clipped import supply in virgin
polypropylene markets, with some buyers turning back to
recycled markets for material.
Some recyclers were heard pushing up offer levels in an
attempt to take advantage of a slight increase in consumption.
Spot pricing in the market rose as a result, jumping by
Eur20/mt on the week in both black and natural pellet markets,
according to Platts data.
Some divergence in market interpretations was expressed
by market players, with material heard sold at a wide range
of indications, reflecting differences in market approach and
dynamics based on region, clientele and participant position.
"Every country is different, every rule surrounding waste is
different, but also every customer is different," a recycler said.
A slight increase in optimism was the united trend amongst
players, driven by the increased liquidity and stronger
pricing levels.
"[It] seems the recycling trend is coming back a little, mixture
of technical demand for more recycled content with 2025
commitments from brand owners around the corner," a converter
explained.
Platts is part of S&P Global Commodity Insights.
Petchem EMEA Weekly Recycled PP Rationale
Platts assessed recycled polypropylene black pellet spot
prices at Eur795/mt DDP Northwest Europe Feb. 7, unchanged
on the day and up Eur20/mt on the week, moving towards a
distributor indication at Eur880/mt, remaining below a recycler
indication at Eur800/mt, within a second recycler corroboration
at between Eur775-825/mt, while considering stronger virgin
pricing and feedback of stronger offer levels against a converter
indication of rollover pricing for February.
Natural pellet spot prices were assessed at Eur1,620/mt
DDP NWE, up Eur20/mt on the day and on the week, remaining
below a distributor offer heard at Eur1,625/mt for MFI 12-35
material, while remaining within a recycler indication of between
Eur1,600-1,800/mt which was corroborated by a converter, and
within a second recycler corroboration of between Eur1,600-
1,700/mt.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 22
Turkish and African polypropylene:
Africa prices climb, copolymer tight in Turkey
„ PP Fiber prices steady
„ Red Sea crisis continues to impact trade
The Turkish polypropylene fibre market was steady in the
week to Feb. 7 as buyers faced higher offer prices for February.
Platts assessed CFR Turkey polypropylene fiber spot prices at
$1,210/mt Feb. 7, unchanged on the day and on the week.
Players in the Turkish market were digesting higher offer
prices revealed by the suppliers. Sources said that higher prices
did not reflect a change in demand with end-consumption
remaining soft for PP derivative such as carpets, but were instead
a result of reduced supply. As a result, buyers were on the
sideline with limited transactions heard during the week.
"We are trying to be picky with the offers we have received
from our suppliers, these prices are too high," a trader said.
PP copolymer was tight, according to market participants in
Turkey, with prices climbing $50/mt on the week.
Producers said that the increase in the CFR prices reflected
less supply and higher freight costs as a result of the ongoing
Red Sea crisis. Saudi producers said that lead times to Turkey
were now around two months, compared to under two-weeks
before the Red Sea Houthi attacks began.
Some pre-buying was also taking place as at least two
Saudi Arabian PP plants were expected to enter maintenance
in February. Sources said that players were taking positions in
anticipation of some supply tightness.
Prices increased in the North African markets reflecting
stronger freight costs and buoyant demand. In West Africa prices
were also higher following increases in producer offer prices,
although sources said that trading activity was limited due to
ongoing forex challenges in Nigeria.
Platts is part of S&P Global Commodity Insights.
Platts African and Turkish Polypropylene Weekly
Rationale
Platts assessed CFR Turkey polypropylene fiber spot prices at
$1,210/mt Feb. 7, unchanged on the day and on the week, within a
trader indication heard at $1,200-$1,230/mt, above a deal heard
at $1,200/mt, towards the low end of producer indications heard
at $1,200-$1,300/mt and below an offer heard at $1,330/mt,
considering feedback of more constrained availability.
CFR Turkey PP raffia spot prices were assessed up $10/mt on
the week at $1,180/mt, at the bottom of a trader indication heard
at $1,180-$1,210/mt and below an offer heard at Eur1,240/mt
($1,334/mt) for European origin material.
CFR Turkey PP homo injection spot prices were assessed up
$10/mt on the week at $1,180/mt, mirroring the increase in the
raffia spot price.
CFR Turkey PP copolymer spot prices were assessed up $50/
mt on the week at $1,280/mt, moving towards deals heard at
Eur1,300-1,320/mt ($1,399-$1,313/mt) for European origin material
Polymerscan February 7, 2024
and below a trader indication heard at $1,310-$1,350/mt, pending
further corroboration at higher values.
CFR North Africa PP raffia spot prices were assessed up $30/
mt on the week at $1,130/mt, towards an offer heard at $1,250/mt,
pending corroboration of higher levels.
CFR North Africa PP homopolymer spot prices were assessed
up $30/mt on the week at $1,130/mt, mirroring the increase in the
PP raffia grade price.
CFR North Africa PP copolymer spot prices were assessed up
$70/mt on the week at $1,230/mt, the bottom of deals heard at
$1,230-$1,250/mt and below offers heard at $1,310/mt.
CFR West Africa PP raffia spot prices were assessed up $10/
mt on the week at $1,140/mt, towards a producer indication heard
at $1,200/mt and below an offer heard at $1,210/mt, considering
feedback of soft demand.
CFR West Africa PP homo injection spot prices were assessed
up $10/mt on the week at $1,140/mt, mirroring the increase in the
PP raffia spot price.
CFR West Africa PP copolymer spot prices were assessed up
$30/mt on the week at $1,200/mt, below an offer heard at $1,220/
mt, towards a producer indication heard at $1,260/mt and above
a producer indication of bids below $1,200/mt.
Platts is part of S&P Global Commodity Insights.
Middle Eastern Polypropylene: Red Sea crisis,
prebuying push export prices higher in Feb
„ Logistical challenges persist
„ PP prices up in Feb
The Saudi Arabian polypropylene market was higher in the
week to Feb. 7, supported by steady demand and some prebuying
from export destinations.
Platts assessed the FOB Saudi Arabia PP Raffia spot price at
$990/mt Feb. 7, up $15/mt on the day and on the week, toward
a producer indication heard at $1,010-$1,020/mt for Indian
destinations and toward a second indication from the same
producer of prices above $1,020/mt for Turkish destinations,
pending corroboration of higher values.
Export price levels climbed for February as producers
continued to experience upbeat buying interest from customers
at destinations impacted by the disruption to imports as a
result of the Red Sea crisis. Sellers said Turkey remained highly
attractive as it provided the best netbacks, although logistics
remained a challenge. Market sources said that lead times
for exports to Europe or Turkey now sit around two months, in
comparison to less than two weeks prior to the Houthi attacks in
the Red Sea.
"We used to ship material to customers within 15 days, now it
takes 20-25 days to get it on a container," a seller said.
Consumers were also weary of upcoming maintenances in
Saudi Arabia with two polypropylene plants expected to go offline
in February for turnarounds. Some players were prebuying in
anticipation of reduced supply in the coming weeks. The DDP
© 2024 by S&P Global Inc. All rights reserved. 23
GCC spot price was assessed at $1,035/mt, up $15/mt on the day
and on the week, toward a producer indication heard at $1,050-
$1,100/mt, pending corroboration of higher prices.
Platts is part of S&P Global Commodity Insights.
US PP: Domestic contracts strengthen on week
„ Exports remain stable amid continually high feedstock costs
„ Domestic demand talked slow as inventories remain high
Spot export market conditions remained unworkable for US-
origin polypropylene during the week ended Feb. 7 as monthly
domestic contracts settled higher for January.
No new spot export indications were heard during the Feb. 1-7
period, with one source saying no producers were heard offering
resin for export so far in February. Upstream spot polymer-grade
propylene costs remained elevated, with trading activity heard at
49.125 cents/lb on Feb. 7.
Exports from the US will not be profitable until monomer
costs further recede, according to market feedback. On the
domestic side, one source said there was plenty of material
available but a lack of buying appetite. Overall US operating rates
were believed to be just below 80%.
"There's inventory and there just isn't the demand for it," the
source said.
Monthly domestic contracts were confirmed to have settled 3
cents higher in January from December, in line with PGP contract
price movement.
Enterprise Products Partners' new 750,000 mt/year propane
dehydrogenation unit at its Mont Belvieu, Texas, hub ran at 20%
of its nameplate capacity in the fourth quarter of 2023, but is
expected to ramp up in 2024, co-CEO Jim Teague said Feb. 1.
In Asian PP, prices were stable to higher week on week on Feb.
7, and exports from China slowed during the week as the Lunar
New Year holidays drew closer.
Logistical issues in the Red Sea kept Middle East-origin
exports out of competition, leading Chinese-origin exports to be
the most competitively priced for buyers in Southeast, South Asia
as well as South America, regional traders said.
Platts US PP Weekly Rationale
Platts assessed spot export homopolymer polypropylene
prices at 45 cents/lb rail car basis ($1,091/mt FAS Houston) on
Feb. 7, steady on the day and week. The assessment was based
on last-heard market feedback indicating spot exports remain
unworkable given high feedstock propylene costs.
Platts assessed spot export copolymer PP prices at 47 cents/
lb rail car basis ($1,135/mt FAS Houston), mirroring the stability in
the homopolymer PP market amid no disproving indications.
The FAS assessment includes 4.50 cents/lb to account for the
fees associated with packaging and transport to ports.
Platts assessed domestic contract PP prices at 75.50 cents/
lb for homopolymer grade and 77.50 cents/lb for copolymer
grade on Feb. 7, 3 cents/lb higher from Jan. 31. The assessment
Polymerscan February 7, 2024
was in line with market feedback indicating monthly contracts
settled up 3 cents/lb in January, in line with the month-on-month
movement in the upstream spot propylene market.
Platts is part of S&P Global Commodity Insights.
Asian PP: Southeast Asia prices higher
on tighter supplies, South Asia stable
„ Strong Chinese exports support sentiment
„ Limited offers from Middle East to South Asia
Asian polypropylene prices were stable to higher week on
week Feb. 7, with the CFR Southeast Asia raffia grade marker
rising $5/mt on the week to $955/mt.
In China, exports slowed this week as the Lunar New Year
holidays drew closer, although sentiment was strong following
robust outflows over the past few weeks.
Logistical issues in the Red Sea kept Middle East-origin
exports out of competition, leading Chinese-origin exports to be
the most competitively priced for buyers in Southeast, South Asia
as well as South America, regional traders said.
"Most Chinese producers are already fully committed for
February and March," said a Chinese producer.
However, domestic spot prices were trailing behind the futures
market, with tradable levels for PP raffia grade domestic east
China prices heard in the Yuan 7,250-7,300/mt range.
"Futures prices are likely being influenced by the volatile
Chinese stock market right now, but spot and futures prices
should converge in the longer term," said a China-based trader.
Operation rates at the country's propane dehydrogenation
plants were around 75%-78% for PP and 64% for propylene,
although low propane prices were expected to boost the
propylene production rate to around 70%, said a trader.
Chinese PP prices were expected to remain rangebound
post the Lunar New Year, with producer inventory levels in the
country unlikely to balloon during the holiday season. However,
market sources said that a price rally was unlikely unless demand
fundamentals improved.
In Southeast Asia, trade volumes were thin ahead of a slew
of holidays in the region. Producers were yet to see the effects
of sharp declines in upstream naphtha and propane prices last
week, but tighter supplies supported offer levels.
In Vietnam, local producers were prioritizing exports over
domestic sales due to better netbacks, tightening domestic
supplies, although converters continued to buy on a need-
only basis.
"We are hoping that market prices go up post the New Year.
The Red Sea issue is ongoing, but Korean and Chinese export
volumes remain a concern, alongside soft LPG prices," said a
regional trader.
In South Asia, Indian producers continued to offer PP at
competitive prices, an Indian trader source said. He added that
some companies in close proximity to the Red Sea could not
offer cargoes due to lower availability of vessels.
Another trader said that supply was tight, but demand was
© 2024 by S&P Global Inc. All rights reserved. 24
low in the northern region of India. He said that reduced sales
resulted in slower money rotation, which led to weaker demand.
Another Indian PP trader said that Chinese cargoes were
available at better prices, but it was difficult to find buyers as
the order size should be large that required higher capital to be
invested.
Platts is part of S&P Global Commodity Insights.
Platts Asian PP Weekly Rationale
Platts assessed CFR Far East Asia raffia/injection grade
unchanged day on day at $870/mt Feb. 7, below an offer heard at
$890/mt and in line with tradable indications heard at $870/mt.
Platts assessed Chinese domestic raffia grade PP Yuan 10/mt
higher on the day at Yuan 7,275/mt, below an offer heard at Yuan
7,400/mt and on tradable indications heard at Yuan 7,250-7,300/
mt. The assessment is down Yuan 100/mt on the week.
Platts assessed CFR FE Asia IPP film grade prices unchanged
from the last assessment at $880/mt, on a tradable indication
heard at that level.
Platts assessed CFR FE Asia BOPP grade prices unchanged
from the last assessment at $880/mt, on a tradable indication
heard at that level.
Platts assessed CFR FE Asia block COPOL unchanged from
the last assessment at $905/mt, amid a tradable indication heard
at that level.
Platts assessed raffia/injection grade PP up $5/mt from the
last assessment at $955/mt CFR Southeast Asia, below offers
heard at $960-$970/mt and in line with tradable indications
heard at $950-$970/mt from various market sources. An offer
heard at $950/mt was not fully considered as it was not deemed
representative of the broader market by market participants.
Platts assessed IPP film grade PP up $5/mt from the last
assessment at $975/mt CFR SE Asia, tracking price changes in
raffia grade amid thin trade indications.
Platts assessed CFR SE Asia BOPP grade unchanged at $975/
mt, in line with tradable indications heard at flat-$20/mt above
raffia grade.
Platts assessed copolymer grade PP up $5/mt at $985/mt
CFR SE Asia, in line with tradable indications heard at $20-$50/
mt above raffia grade and tracking a stronger adjacent market.
Platts assessed raffia/injection grade stable from the last
assessment at $1,010/mt CFR South Asia, following a deal heard
at $1,010/mt, below offers heard at $1,020-$1,050/mt and above
buying indications heard at $990/mt. The assessment was also
in line with tradable indications heard at $990-$1020/mt. A deal
heard at $1000/mt and separate offers heard at $990-$1,000/
mt and $1,010/mt were not considered as they were not deemed
representative of the broader market.
Platts assessed film grade PP stable from the last assessment
at $1,035/mt CFR South Asia, on the higher end of tradable
indications heard at $15-$25/mt over raffia grade.
Platts assessed CFR South Asia BOPP grade at $1,025/mt,
stable from the last assessment, between tradable indications
heard at $10-$25/mt above raffia grade and below an offer heard
at $1,080/mt.
Polymerscan February 7, 2024
Platts assessed copolymer grade PP at $1,045/mt CFR South
Asia, stable from the last assessment, in line with tradable
indications heard at $15-$40/mt above raffia grade and below an
offer heard at $1,150/mt.
Platts is part of S&P Global Commodity Insights.
Latin American PP: Region sees
mostly flat prices for PP grades
„ Mercosur, WCSA see stability for both grades
„ Brazil sees small increase for PP homopolymer on week
Latin American polypropylene prices were flat in the
West Coast of South America and the Mercosur region for
homopolymer and for copolymer grades, while in Brazil the
market saw higher prices for the homopolymer grade.
West Coast of South America
Along the West Coast South America, prices were flat for
the homopolymer and copolymer grades. Products were heard
available for delivery in Chile, Colombia, Ecuador and Peru.
Platts assessed spot homopolymer flat at $1,150/mt on Feb. 7,
based on the most repeatable levels at $1,150/mt, amid talks of
higher prices pushed by Asian logistics, as the main supplier for
the region.
"I've been receiving offers from Asia at very high levels," a
Colombia-based player said, sharing the $1,180-$1,200/mt levels.
"We already see demand normalizing, obviously February is a slow
month, but we see it moving faster."
A Chile-based player shared availability from China at lower
levels, around $1,080/mt for April loading, while February and
March loadings from Asia at $1,150-$1,180/mt.
"I've heard a North American producer moving product sub-
$1,100/mt levels, but can't confirm it," a US-based trader said.
Platts assessed copolymer-grade PP flat at $1,175/mt Feb. 7.
An Asia-based producer shared prices of copolymer grade
at $1,150-$1,170/mt levels. However, the great majority of other
indications for the grade was heard at $1,200/mt, still pending
market corroboration of higher copolymer pricing levels.
"Some customers are waiting and just see the market, saying
that spot freight is going down," the Asia-based player said.
A second US-based trader said PP prices coming out of Asia
have generally increased quite a bit since many facilities have
shut down due to bad economics. "We are also seeing higher PP
prices coming out of Middle East. Latin American PP prices are
looking to go higher," the source said.
According to Platts data from Feb. 7, the freight from North
Asia to WCSA was at $72/mt, or $1,800/container, while for Brazil
it stood at $2,150/container, or $86/mt. From the USGC to Brazil,
freight stood at around $36/mt, or $900/container. Market
feedback shared freight from the USGC to WCSA at $30-$50/mt.
According to a big trader, logistics costs eased in the previous
weeks due to the Lunar New Year holiday, believing costs should
increase once activities pick up again.
© 2024 by S&P Global Inc. All rights reserved. 25
Brazil
PP CFR market prices for Brazil did not see many differences
from the prior week, a quiet market in comparison to PE grades.
While homopolymer grade rose $10/mt on the week, copolymer
was stable.
Most market participants noticed stability on PP prices and
regular offers as well.
"Even so, we still see some issues with freight and routes
coming from the Red Sea," a market source said. Shipments
which need to divert from the region and pass by South Africa
usually still see a 10-day delay. "The difference is that now we
anticipate those problems. There is no lack of containers as it
used to have in the beginning of the conflict."
On the domestic market, which Platts does not assess, PP
prices increased Real 350/mt, the lowest raise established by
local producer Braskem for February, in comparison to PE grades.
Homopolymer was assessed at Real 9,050/mt, while
copolymer was assessed at Real 9,350/mt delivered Sao Paulo.
Mercosur
Platts assessed polypropylene pricing for homopolymer and
spot copolymer-grade PP stable at $1,175/mt and $1,200/mt,
respectively, CFR Mercosur Feb. 7.
Market participants in Mercosur have followed polypropylene
pricing in the region and in international markets.
A Paraguay-based source noted that PP prices have gradually
increased for the product coming from abroad, mainly driven by
the increasing freight prices and not on the feedstocks.
The same source noted that PP coming from Asia has
remained very competitive against the PP coming from the US,
mainly explained by the poor economic performance of China and
the lack of buying appetite of the Asian market, that has pushed
producers and traders to expand their trading activities to new
markets such as those in the Mercosur region.
A Paraguay-based source said that demand has been slow on
the week. The market was buying strongly during December and
January when the price was low, however, the market will need to
replenish stocks at some point in the future, the source said.
Particularly for the Brazil-origin product demand has been
slow due to their higher prices and the availability of extra-zone
product at lower prices. End users are now looking for most
competitive offers from abroad to remain competitive in the
market, the same source said.
Platts is part of S&P Global Commodity Insights.
Platts Latin American PP Weekly Rationale
CFR WCSA: Platts assessed spot homopolymer-grade
polypropylene prices at $1,150/mt Feb. 7, flat on week, based on
most repeatable levels at $1,150/mt, within tradable levels of
$1,080/mt to $1,220/mt. The copolymer-grade PP was assessed at
$1,175/mt, flat on the week, within prices heard at $1,150/mt and
$1,250/mt, maintaining the same market structure.
CFR Brazil: Platts assessed spot homopolymer polypropylene
pricing at $1,150/mt Feb. 7, up $10 on the week, at the bottom of
Polymerscan February 7, 2024
a price range varying from $1,150/mt to $1,200/mt, above a price
range of $1,080-$1,100/mt and below an indication at $1,250/mt.
Copolymer grade was assessed at $1,200/mt Feb. 7, stable on
the week, at the bottom of a price range of $1,200-$1250/mt and
above a price range varying from $1,140/mt to $1,160/mt.
CFR Mercosur: Platts assessed polypropylene pricing for
homopolymer at $1,175/mt CFR Mercosur Feb. 7, stable on the
week. The assessment is below one offer heard from one trader
at $1,180/mt, and at below of a range of offers heard from two
traders at $1,290-$1,470/mt. Spot copolymer-grade PP was
assessed at $1,200/mt, stable on the week. The assessment is
below one offer heard from one trader at $1,310/mt, and a second
offer heard from a second trader at $1,560/mt, pending further
corroboration of higher offers. The assessment was based on
indications of imported material from Argentina, Paraguay and
Uruguay.
Platts is part of S&P Global Commodity Insights.
Polystyrene
European PS: Increased activity
as monomer costs rise
„ Price increases announced due to rise in styrene
monomer prices
„ Increased buying activity due to supply tightness
The European polystyrene market witnessed increased
activity in the week leading to Feb. 7, with an increase in prices
targeted owing to rise in monomer costs.
Red Sea attacks persist and have continued to affect Asian
imports into Europe and have led to an increase of Eur150-200/
mt for the shipment. Previously delayed shipments have started
to arrive into the continent.
The polystyrene market saw a revival of activity following
the settlement of the styrene monomer contract. The heard
increase in the monomer price has seen producers announcing a
subsequent change in their prices to reflect this increase.
The rise in buying activity was attributed to slight supply
tightness due to the de-stocking carried out by participants
at 2023 year end rather than an increase in the demand. The
consensus of participants is that the second half of the year
would see an improvement in the fundamentals.
The EPS market has seen a similar increase in prices and
activity due to the rising monomer costs. Buyers were heard to
be asking for a rollover despite the rising monomer, citing their
availability of stock until March.
Platts is part of S&P Global Commodity Insights.
Platts European Polystyrene Weekly Rationale
Platts general purpose polystyrene spot price was assessed
at Eur1,700/mt FD NWE on Feb. 7, up Eur200/mt on the week, in
line with a trader's indication, below a producer and distributor's
corroboration at Eur1,720/mt.
© 2024 by S&P Global Inc. All rights reserved. 26
The high impact polystyrene spot price was assessed at
Eur1,800/mt FD NWE, up Eur200/mt on the week, weighing a
producer and a distributor's corroboration at Eur1,820/mt against
a trader's indication of a premium of Eur50-75/mt for HIPS over
GPPS prices.
The expandable polystyrene spot price was assessed at
Eur1,850/mt FD NWE, up Eur150/mt on the week, partially
tracking the increase seen for feedstock and other grades,
pending further market feedback.
Platts assessed the freely negotiated GPPS net contract
price at Eur1,745/mt, up Eur100/mt on the week and on
the month, moving toward a producer and distributor's
corroboration of prices at Eur1,865/mt, and below two
producers' indications of targeted month-on-month price
increases heard within a range at Eur200-230/mt, pending
further market feedback.
The HIPS net contract price was assessed at Eur1,845/
mt, up Eur90/mt on the week and on the month, in line with
corroboration from a producer and distributor of a Eur100/mt
premium over GPPS, moving toward corroboration from the same
producer and distributor of prices at Eur1,965/mt, below another
producer's targeted increase of Eur230/mt, pending further
market feedback
The EPS net contract price was assessed at Eur2,200/mt,
up Eur65/mt on the week and on the month, considering a
producer's indication of a targeted month-on-month increase
heard within a range at Eur100-150/mt, below a convertor's
indication of a Eur200/mt increase, and partially reflecting the
increase seen across the feedstock and other grades, pending
further market feedback.
Platts is part of S&P Global Commodity Insights
European Recycled Polystyrene: Largely steady
amid unchanged fundamentals
„ R-PS prices unmoved by virgin trends
„ Food-grade applications to be submitted as early as Q2
The European recycled polystyrene market saw limited
improvement in supply and demand fundaments in the week to
Feb. 7, while virgin producers were aiming at and pushing for a
sharp rise in prices for February.
More players were heard to be following suits of recycled
polystyrene being offered at lower prices, as supply availability
outpaced demand.
"Trying to keep the same price," a recycler said.
In the food-grade development segment, polymer producers
were heard expecting to submit their application for legislative
approval as early as the second quarter of 2024, with 2025
expected to be the year for more significant volume ramp-up.
"If we as a supplier can already get the materials approved for
food grade without asking brands and converters to do certain
things, it would help take the burden away from them [when
compared with Styrenics Circular Solutions' mechanical recycling
ABA structure technology]," a recycler said.
Polymerscan February 7, 2024
In the virgin polystyrene, import availability and underlying
monomer's pricing trend came under the spotlight to many
market participants, as numerous producers were heard pushing
for a three-digit increase in February.
Despite this, in the recycled polystyrene market, limited
immediate reaction was seen from the demand and supply
side, as recycled polystyrene is generally regarded as having a
narrower application pool when compared with virgin polystyrene.
Platts is part of S&P Global Commodity Insights.
Platts European Recycled Polystyrene Weekly Rationale
Platts assessed recycled polystyrene black pellets at Eur800/
mt DDP Northwest Europe Feb. 7, unchanged on the day and on
the week, in line with a recycler's indication heard at the same
level and considering market feedback of unimproved demand.
R-PS grey pellets were assessed at Eur1,020/mt DDP NWE,
unchanged on the day and on the week, mirroring stability in
black pellet grade and pending fresh indications.
Platts is part of S&P Global Commodity Insights.
Turkish and African Polystyrene:
Spot prices rise on logistical costs
„ Spot prices jump in Turkey, Africa
„ Styrene feedstock prices rise
The Turkish polystyrene market strengthened in the week
to Feb. 7 as availability remained limited and feedstock prices
climbed.
Platts assessed the CFR Turkey general purpose polystyrene
spot price up $50/mt on the week at $1,420/mt.
Prompt supply remained constrained in Turkey as the Red
Sea continued to disrupt import flows. Market sources said that
both lead times and container prices were up significantly, with
shipments from Saudi Arabia now taking around two months,
compared to under two-weeks before the Red Sea Houthi
attacks began.
As a result, producers increased their offer prices to take into
account higher logistical costs. Prices were also supported by the
increase in the European industry settled styrene contract price
which was up by Eur190/mt for February.
Platts is part of S&P Global Commodity Insights.
Platts African and Turkish Polystyrene Weekly Rationale
Platts assessed the CFR Turkey general purpose polystyrene
spot price at $1,420/mt Feb. 7, up $50 on the week, taking
direction from a producer's ex-works Turkey offer indication
heard at $1,600-$1,650/mt, pending fresh CFR indications.
The CFR Turkey high impact polystyrene spot price was
assessed at $1,490/mt, up $50 on the week, maintaining a stable
premium to the GPPS prices.
The CFR Turkey expandable polystyrene spot price was
assessed at $1,690/mt, up $50 on the week, mirroring the
increase in other polystyrene grade prices.
© 2024 by S&P Global Inc. All rights reserved. 27
The CFR North Africa GPPS spot price was assessed at
$1,460/mt, up $50 on the week, towards an offer heard at $1,500/
mt, pending corroboration of higher levels.
The CFR North Africa HIPS price was assessed at $1,520/
mt, up $50 on the week, towards an offer heard at $1,550/mt,
pending corroboration of higher levels while maintaining a stable
premium to the GPPS price.
Platts is part of S&P Global Commodity Insights.
US PS: Demand, upstream
increases push spot higher
„ Sources see uptick in PS buying interest
„ Upstream benzene hits three-month highs
US spot export polystyrene prices rose on the week ended
Feb. 7, as demand rose and the upstream benzene market rose to
three-month highs.
Although more attention was turning to polystyrene
demand this week, little activity was heard in the spot export
polystyrene market.
Upstream, spot front month DDP benzene prices were last
assessed Feb. 6 at 391 cents/gal DDP USG. As well as increasing
derivative demand, lack of vessel availability and tight benzene
supply were helping to push benzene prices higher.
Platts US PS Weekly Rationale
Platts assessed spot export general purpose polystyrene
prices at $1,761/mt FAS Houston Feb. 7, up $33 on the week,
taking direction from high feedstock benzene spot pricing on the
week ended Feb. 6, pending fresh indications.
Spot export high impact PS prices at $1,921/mt FAS Houston,
up $33/mt on the week, taking direction from high feedstock
benzene spot pricing on the week ended Feb. 6, pending fresh
indications.
Domestic GPPS and HIPS prices were assessed at 91 cents/
lb and 101.50 cents/lb, respectively, both 1.50 cents higher on the
week, mirroring the rise in the spot market.
Platts is part of S&P Global Commodity Insights.
Asian Polystyrene: Prices rise on stronger
upstream styrene monomer costs
„ Upstream SM prices rise $38/mt on week
„ PS operating rate drops to 60.21% in China as of Feb. 2
Platts assessed GPPS CFR China at $1,200/mt and HIPS CFR
China at $1,250/mt, up $20/mt week on week, amid strengthened
prices in the upstream markets.
Platts assessed the CFR China styrene monomer and FOB
Korea markers at $1,119/mt and $1,094/mt Feb. 7, up $38/mt and
$28/mt, respectively from the previous week.
Increased discussions for SM were heard in the week mainly
due to the rise in upstream benzene costs, market sources
Polymerscan February 7, 2024
said, despite SM inventory levels were heard to have increased
in the week, with sources crediting lower demand on the back
of reduced operating rates in downstream markets such as
polystyrene and expandable polystyrene.
SM inventory levels were heard to be at 129,000 mt in east
China, an increase of about 36,000 mt compared with the
previous week, market sources said.
In the week ended Feb. 2., the operating rates for PS
production were heard to be around 60.21% in China, a drop
of about 4.07 percentage points week on week, S&P Global
Commodity Insights reported earlier.
In the EPS market, the operating rates for EPS production
were heard to be around 50.75% in China over the same time
period, a drop of about 5.79 percentage points week on week.
While demand for Asian PS was heard to be stale in the region
as the Lunar New Year holidays approach, market participants have
raised their offers and discussion levels due to the increase in SM.
"Overall, prices have to increase due to the high upstream
materials costs. While we understand that the market is quiet this
week, it is normal to expect higher discussion levels as the costs
have increased," a market source told S&P Global Commodity
Insights.
Platts is part of S&P Global Commodity Insights.
Platts Asian PS Weekly Rationale
Platts assessed GPPS CFR China up $20/mt week on week at
$1,200/mt Feb. 7, below an offer heard at $1,280-$1,290/mt from a
producer.
Platts assessed GPPS CFR Southeast Asia up $20/mt week on
week at $1,200/mt, below offers heard at $1,280-$1,320/mt from a
producer and a trader.
Platts assessed HIPS CFR China up $20/mt week on week Feb.
7 at $1,250/mt, below an offer heard from a producer heard at
$1,340-$1,350/mt.
Platts assessed HIPS CFR Southeast Asia up $20/mt on the
week at $1,250/mt, below offers heard at $1,340-$1,365/mt from a
producer and a trader.
Platts assessed EPS general grade up $20/mt on the week at
$1,205/mt FOB Northeast Asia, below an offer heard at $1,300-
$1,320/mt from a producer.
The fire-retardant grade of EPS was up $20/mt on the week
at $1,305/mt FOB Northeast Asia, reflecting a spread of $100/mt
against EPS GP based on a tradeable indication.
The increase in upstream costs was considered in the
assessment.
Platts is part of S&P Global Commodity Insights.
Acrylonitrile Butadiene Styrene
European ABS: Producer heard
targeting Eur150/mt CP increase
„ Spot demand heard improving
„ Operating rates heard expected to increase
© 2024 by S&P Global Inc. All rights reserved. 28
A producer in the European ABS market was heard to be
targeting Eur150/mt increase for the February contract price,
amid improved demand and higher feedstocks costs, a source
said on the week leading to Feb. 7.
Demand in the European ABS market was heard to ameliorate.
"February is starting to look good, " a trader said.
The imports from Asia in the European market were restricted,
the source said.
A producer was heard to consider increasing operational rates
amid the increased demand, another source said. A producer was
heard to be targeting Eur150/mt increase on the contract price
for February, amid higher feedstock prices, a source said. "It is
also important to consider that the increase in demand is also
affecting the price increase," according to the source.
"Most likely, producers need to source raw materials from
the spot market at a higher cost to cover this extra demand,"
the source said. "Despite the available capacity, this is a good
example of the risks associated with imports from Asia," the
source added. "While the costs are lower, any disruption on the
supply chain has immediate impact on the delivery dates," the
source added.
Platts is part of S&P Global Commodity Insights.
Platts European ABS Weekly Rationale
Platts assessed FD NWE acrylonitrile-butadiene-styrene spot
prices up Eur100/mt on the week at Eur1,850/mt Feb. 7, at the
low end of a producer's indicated range heard at Eur1,850-2,050/
mt, moving toward a trader's indicative range heard at Eur1,900-
2,010/mt, pending further corroboration of higher levels from the
market.
FD Germany freely negotiated general purpose ABS gross
contract prices were stable on the week and from the end
of January at Eur1,825/mt, considering an indication of a
targeted increase at Eur150/mt heard from a producer, awaiting
confirmation of outright settlement levels, and pending further
corroboration.
CFR NWE spot prices were assessed up $50/mt on the week
at $1,750/mt, taking direction from a producer's indication heard
at Eur1,800/mt ($1,937.52/mt), pending further corroboration.
Platts is part of S&P Global Commodity Insights.
US ABS spot up 1 cent/lb on the week
„ ABS demand increasing on the week
„ Freight and feedstock costs pressuring prices
Platts assessed US acrylonitrile-butadiene-styrene at 77
cents/lb delivered rail-car basis on Feb. 7, up 1 cent on the week,
mirroring the increase in upstream styrene spot pricing over the
week to Feb. 6.
Prices could see higher levels in the coming weeks due to
increasing costs, particularly that of feedstocks, sources said. It
was added that current prices are not aligned to costs.
Market sources shared that demand has been increasing
recently which has driven producers to import material from
Polymerscan February 7, 2024
Europe and Asia. However, higher freight prices have been
creating pressure over this imported material, which adds to the
current increasing feedstock costs, sources said.
In Asia, sources noted that trading is slow due to the CNY,
however, suppliers in Asia have been affected by the increasing
ocean freight to Europe and to the Americas.
In related markets, Spot styrene prices were last assessed
Feb. 6 at 54.43 cents/lb, up 0.9 cent/lb from 53.52 cents/lb on
Jan. 30, Platts data showed.
Platts assessed US spot butadiene at 32.8 cents/lb CIF USG
on Feb. 2, up 0.8 centslb on the week.
Platts is part of S&P Global Commodity Insights.
Platts US ABS Weekly Rationale
Platts assessed US acrylonitrile-butadiene-styrene at 77
cents/lb delivered rail car basis Feb. 7, up 1 cent on the week,
mirroring the increase in upstream styrene spot pricing over the
week to Feb. 6.
Platts is part of S&P Global Commodity Insights.
Asian ABS: Prices rise tracking
stronger upstream costs
„ Upstream SM price up $38/mt on week
„ China ABS production operating rate at 63.7%
Asian acrylonitrile-butadiene-styrene prices rose Feb. 7, on the
back of an increase in upstream prices such as styrene monomer.
Platts assessed the ABS CFR China and CFR Southeast Asia
markers up $20/mt week on week at $1,300/mt Feb. 7.
Platts assessed CFR China styrene monomer and FOB Korea
markers at $1,119/mt and $1,094/mt Feb. 7, up $38/mt and $28/mt,
respectively, from the previous week.
Increased discussions for SM were heard in the week mainly
due to the increase in upstream benzene costs, market sources
said, despite SM inventory levels heard to have increased in the
week, with sources crediting low demand on the back of reduced
operating rates in downstream markets such as polystyrene.
SM inventory levels were heard to be at 129,000 mt in east
China, an increase of about 36,000 mt compared with the
previous week, market sources estimated.
Platts assessed Butadiene CFR China up $70/mt on the week
at $1,180/mt on Feb. 7, while Platts assessed Acrylonitrile CFR Far
East Asia stable on the week at $1,235/mt on Feb. 6.
The increase in upstream butadiene costs was heard to be
due to tightened spot supplies in the local China market because
of logistical constrains amid heavy snow, sources said.
China ABS production rate was heard to be around 63.7% in
the week ended Feb. 2, around 0.2 percentage point higher than
the previous week, market sources estimated. ABS production
output was estimated to be at 95,900 mt last week, market
sources shared.
Price discussions in the week are likely to remain quiet due
to the Lunar New Year holidays, and price discussions are mainly
adjusted based on upstream costs, market sources said.
© 2024 by S&P Global Inc. All rights reserved. 29
"This week, there is not much indications as everyone is away,
however, there are some expectations on the market prices
increasing once the holiday ends as everyone comes back to
work," a market source said.
Platts is part of S&P Global Commodity Insights.
Platts Asian ABS Weekly rationale
Platts assessed the Asian acrylonitrile-butadiene-styrene
(ABS) CFR China marker up $20/mt week on week at $1,300/
mt Feb. 7, below an offer heard at $1,360-$1,370/mt from a
producer.
Platts assessed the CFR Southeast Asia marker stable week
on week at $1,300/mt, below an offer heard at $1,360-$1,370/mt
from a producer. Indications for CFR China and CFR SEA spread
were heard at flat.
The increase in upstream costs was considered in the
assessment.
Platts is part of S&P Global Commodity Insights.
Polyethylene Terephthalate
European PET : PET market
continues to see supply tightness
„ Poor availability of PET continues
„ Market players attend PETCORE conference
The European polyethylene terephthalate spot market saw
continuing tightness in the week to Feb. 7.
Due to continued attacks in the Red Sea from Houthi rebels,
shipping times alongside costs have remained high for PTA,
paraxylene and PET imports. As a result, supply of PET in Europe
has tightened, with consumers scouring the market in order to
secure supply.
The end-consumer demand, however, was heard to have
remained limited, with almost all of the demand currently seen
in Europe coming from the market players looking to keep
maintain stock levels, and not be left without stock in the current
uncertain market conditions.
In addition market players attended Petcore, a conference on
PET in Brussels from Feb. 7-8, leaving the spot market quiet, with
limited activity seen.
In the UK market, limited liquidity was heard in the week, with
no trades having being heard done during February.
Platts is part of S&P Global Commodity Insights.
Platts European PET Weekly Rationale
Platts assessed the polyethylene terephthalate Northwest
Europe three- to 30-day forward free delivered spot price at
Eur1,150/mt Feb. 7, steady on the week, at the bottom of a range
of indications heard at Eur1,150-1,200/mt from a distributor and a
recycler.
The FD UK spot price was assessed at GBP1,025/mt, stable on
the week, pending further market feedback.
Polymerscan February 7, 2024
FD Northwest Europe net contract prices were assessed
stable on the week and from the end of January at Eur1,150/mt,
amid no disproving indications.
FD UK net contract prices were assessed steady on the week
and from the end of January at GBP1,000/mt, pending fresh
indications.
Platts is part of S&P Global Commodity Insights.
European R-PET: Post consumer
bale market climbs on week
„ Bale market continues to rise
„ Market players attend Petcore conference
The European recycled polyethylene terephthalate spot
market saw a continued surge in post-consumer bottle bale price
in the week ended Feb. 7.
The post-consumer bottle bale market continued to see
a tightening market, with market players in the spot market
searching Europe for material in order to secure their tenuous
supply. Similarly in the Spanish bale market, poor availability
was heard to be prevalent, with some bales heard to be leaving
Europe entirely in order to be shipped to North Africa.
Market players attended Petcore, a conference on PET in
Brussels on Feb. 7-8, leaving the spot market quiet, with limited
activity seen.
In the food grade recycled PET pellets market, low availability
was heard to be a slight issue in the week, with some consumers
heard to be struggling to find material.
Tightness was also heard in the light blue pellets market
in Spain, with limited volumes heard to be purchase at the
beginning of February.
Post-consumer bales in Poland were heard to be sold at level
higher than their Western European counterparts, as a large
portion of the Polish bale market is based on spot volumes,
rather than contractually based.
Platts is part of S&P Global Commodity Insights.
Platts European Recycled PET Weekly Rationale
Platts assessed the recycled polyethylene terephthalate
free delivered Northwest Europe food grade pellet spot price
at Eur1,350/mt Feb. 7, stable on the day and on the week, at the
top of a range of heard and corroborated at Eur1,300-1,350/mt
from a recycler and a converter, amid feedback of firm pricing
fundamentals.
FD UK R-PET food grade pellet spot prices were assessed at
GBP1,220/mt, stable on the day and on the week, tracking the
stability in the market in Northwest Europe.
FD NWE clear flake spot prices were assessed at Eur950/mt,
stable on the day and on the week, in line with an indication from
a recycler, above an indication heard from a second recycler at
Eur870/mt, considering feedback of a tight market.
FD UK R-PET clear flake spot prices were assessed at
GBP750/mt, unchanged on the day and on the week, tracking the
© 2024 by S&P Global Inc. All rights reserved. 30
stability in the market in Northwest Europe.
FD NWE mixed-colored flakes were assessed at Eur690/
mt, unchanged on the day and on the week, amid no disproving
indications.
FD UK mixed colored flakes were assessed at GBP650/mt,
unchanged on the day and on the week, tracking stability in
Northwest European values.
FD NWE post-consumer bottle bales were assessed at
Eur470/mt, up Eur20/mt on the day and on the week, moving
towards an indication heard at Eur500/mt from a recycler, within
a range heard at Eur100-600/mt from a second recycler.
Platts is part of S&P Global Commodity Insights.
US PET: Market steady amid seasonally
lackluster demand
„ US PET market slow on week
„ Asian polyester operating rates below 80%
Thin market activity persisted for polyethylene terephthalate
in the week to Feb. 7 amid seasonally weak demand.
PET feels slower, haven't seen any changes lately, a California
based source said.
Impacts in Asian import ocean freight prices, resulting from
Houthi attacks on commercial shipping in the Red Sea and transit
limitations at the Panama Canal were still heard on the week.
Suppliers are still adjusting freight costs and operating with
reduced margins, a source said.
Platts last assessed freight rates from Northeast Asia to the
US West Coast at $4,600/FEU on Feb. 6, up $100/FEU from Jan. 31.
Rates from Southeast Asia to the US West Coast were assessed by
Platts at $4,500/FEU on Feb. 7, unchanged from Jan. 31.
Platts assessed rates from Northeast Asia to the US East
Coast at $6,100/FEU on Feb. 6, down $700/mt FEU from Jan. 31.
Rates from Southeast Asia to the US East Coast were assessed
by Platts at $5,800/FEU on Feb. 7, unchanged from Jan. 31.
Upstream, spot prices for mixed xylenes — the feedstock for
paraxylene, which is used to make PTA and then PET – increased
slightly by 10 cents/gal from Feb. 2, according to S&P Global
Commodity Insights data.
In Asia, several participants said plants were winding down in
preparation for the Lunar New Year holidays.
Polyester operating rates in Asia were likely to remain below
80% during the Lunar New Year festivities as finished goods
manufacturing facilities were expected to keep operating rates
low in order to manage inventory pile-ups, Asian sources said.
Platts is part of S&P Global Commodity Insights.
Platts US PET Weekly Rationale
Platts assessed US spot PET prices at $1,235/mt (56 cents/lb)
DDP US West Coast Feb. 7, stable on the week, at the bottom of an
indication heard at 56-58.5 cents/lb ($1,235-1,290/mt) DDP West
Coast and above an indication heard at 53 cents/lb ($1,168/mt)
DDP West Coast, pending further corroboration of lower prices.
Polymerscan February 7, 2024
Domestic PET contract prices were assessed at $1,367/mt (62
cents/lb) delivered railcar, stable on the week, amid no disproving
indications.
Platts is part of S&P Global Commodity Insights.
US Recycled PET: Lack of optimism as bale prices rise
„ Limited generation due to rainy weather in California
„ Eastman pushes back France and US plant startups to 2027
California recycled polyethylene terephthalate participants
were less optimistic over market conditions in the week to Feb. 7,
as bale high prices continue to squeeze recycler's margins.
In recent weeks, the bottle bale market has been facing
ongoing tightness, mainly attributed to some Mexican buyers
sourcing post-consumer and low bottle generation levels due to
cold and rainy weather conditions in Southern California.
I've been hearing from some Mexican buyers, but I don't have
the extra supply, heavy rains in Southern California are limiting
generation, a broker said.
Post-consumer bottle bale prices in Mexico have increased
significantly in the past three months, a Mexican source said.
Tradable levels for premium post-consumer bottle bales were
heard at 32-37 cents/lb delivered Central Mexico.
As a result, Californian recyclers have been struggling with
squeezed margins resulting from elevated post-consumer bottle
bale prices.
"Everyone is selling flake at breakeven level, it's
unsustainable," a source said.
In the Midwest, market participants saw demand firming
on the week. Still, prices remain stable from January levels,
sources said.
"Recycled PET is gradually trending up, but expect no
significant changes," a source said.
In company news, the world's largest polyester molecular
recycling facility completed its commissioning phase and started
introducing feedstock, US-based Eastman Chemical CEO Mark
Costa said Feb. 2.
The plant, located in Kingsport, Tennessee, will use the
methanolysis process to break down polyethylene terephthalate
into its monomers to be used as a circular feedstock for virgin
polyesters.
Eastman will likely start up its next two advanced recycling
plants in 2027 rather than 2026, a delay of six to nine months,
CEO Mark Costa said during the company's fourth-quarter
earnings call.
The company is planning a similar facility in Normandy, France,
as well as a second US location.
Platts is part of S&P Global Commodity Insights.
Platts US Recycled PET Daily Rationale
Platts assessed post-consumer PET premium bales at 19
cents/lb FOB Los Angeles Feb. 7, stable on the day, at the top of
an indication heard at 18-19 cents/lb FOB Southern California,
© 2024 by S&P Global Inc. All rights reserved. 31
and considering market feedback of tight supply on the week.
Post-consumer PET curbside bales were assessed at 13
cents/lb FOB Los Angeles, stable on the day, at the top of an
indication heard at 12-13 cents/lb FOB Southern California and
above an indication heard at 11-11.5 cents/lb FOB Los Angeles.
The assessment also considered market feedback of tight supply
on the week.
Recycled PET clear flakes were assessed at 48 cents/lb FOB
Los Angeles, stable on the day, amid no disproving indications
and mirroring the stability of post-consumer bottle bales.
Recycled PET food-grade pellets were assessed at 68 cents/
lb FOB Los Angeles, stable on the day, below an indication heard
at 72-76 cents/lb FOB Southern California, pending further
corroboration of higher prices.
Post-consumer PET curbside bales were assessed at 14
cents/lb FOB Chicago, stable on the day, at the top of a buyer's
indication heard at 13-14 cents/lb FOB Midwest and at the
top of an indication heard at 13-14 cents/lb FOB Chicago. The
assessment also considered market feedback of firming demand.
Recycled PET packaging-grade flakes were assessed at
52.5 cents/lb FOB Chicago, down 1 cent on the day, toward an
indication heard at 48-50 cents/lb FOB Chicago.
Post-consumer PET curbside bales were assessed at 14 cents/
lb ex-works Southeast, stable on the day, at the bottom of an
indication heard at 14-15 cents/lb ex-works Southeast, pending
further corroboration of higher prices.
Recycled PET clear flakes were assessed at 60 cents/lb ex-
works Southeast, stable on the day, amid no disproving indications
and mirroring the stability of post-consumer bottle bales.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbols <APCLA00> <APCLB00>
<APCCH00>.
Asian PET: Trade wanes on falling run rates
„ Bottle-grade PET activity slow as buyers covered
„ Polyester run rates fall to 79.2% in the week
Trade in the Asian PET markets waned in the week ending Feb.
7, with several participants saying plants were winding down in
preparation for the Lunar New Year holidays.
Bottle-grade PET chip activity was slow as most buyers were
covered for the near-term, with limited bids and offers heard in
the week.
In the polyester fiber and yarn sector, ongoing shutdowns and
operating rate cuts at polyester plants in China meant trade was
thin as well.
Run rates in the week were estimated at 79.2% according to a
producer.
Polyester operating rates were likely to remain below
80% during the Lunar New Year festivities as finished goods
manufacturing facilities were expected to keep operating rates low
in order to manage inventory pile-ups, reducing polyester demand.
Platts is part of S&P Global Commodity Insights.
Polymerscan February 7, 2024
Platts Asian PET Weekly Rationale
The Platts FOB Northeast Asia PET assessment was flat on
the week at $920/mt Feb. 7, while the FOB Southeast Asia PET
was assessed stable at $955/mt, in view of limited firm bids and
offers.
China prompt domestic POY150D/48F was assessed stable
on the week at Yuan 7,750/mt ex-works, reflecting deals heard at
Yuan 7,750/mt.
China prompt domestic DTY150D/48F was unchanged at Yuan
9,000/mt ex-works, reflecting deals heard at Yuan 9,000/mt.
China prompt domestic FDY150D/96F was flat at Yuan 8,400/
mt ex-works, reflecting deals heard at Yuan 8,400/mt.
China prompt domestic PSF 1.4D was stable at Yuan 7,400/mt
ex-works, reflecting deals heard at Yuan 7,400/mt.
Platts is part of S&P Global Commodity Insights.
(Price assessments are found on PCA625)
Asian Recycled PET: Southeast Asia
prices rise due to higher demand
„ Southeast Asia sees increased feedstock costs
„ India FOB prices pressured by higher freight
Asian recycled polyethylene terephthalate prices were mixed
week on week Feb. 7, with Southeast Asian resin rising $5/mt on
the week due to higher demand and tighter supplies, while FOB
India prices fell by the same amount.
In Southeast Asia, strong Chinese buying before the Lunar
New Year holidays helped offset logistical issues for Europe-
bound cargoes, with Indonesian and Thai flakes in demand.
In Indonesia, import restrictions slated to come into effect
March 10 also led to price hikes in local virgin and recycled PET,
an Indonesia-based producer said. Regional virgin PET prices
have risen $25/mt since the start of January to $955/mt as Feb. 7,
Platts data showed.
Offers for food-grade pellets were heard in the $1,250-$1,350/
mt FOB Southeast Asia range.
Production costs were high due to tight supplies in the
© 2024 by S&P Global Inc. All rights reserved. 32
feedstock market. High-quality bales in Indonesia have seen
prices rise to $570-$600/mt, while feedstock prices have cooled
slightly in Thailand to around Baht 18-19/kg, according to market
sources.
Market sources said higher freight due to Red Sea tensions
was putting pressure on demand for recycled PET flakes of Indian
origin in Europe and the US. However overall demand in India
was stable and supported by strong domestic consumption, with
prices slightly weaker at $846/mt FOB India, down $5/mt on the
week. A buyer from Europe said that while negotiations for India-
origin flakes continue, Southeast Asia-origin flakes may be more
attractive in the short term because of higher freight.
In adjacent markets, European recycled PET flake prices have
risen steadily since the start of the year, with the recycled PET
flakes NWE marker rising by Eur100/mt since Jan. 2 to Eur950/mt
on Feb. 6 due to tight feedstock availability.
Platts is part of S&P Global Commodity Insights.
Platts Asian Recycled PET Daily Rationale
Platts assessed Asian R-PET clear flakes with PVC content
of 50-100 ppm up $5/mt on the day at $775/mt FOB Southeast
Asia Feb. 7, below an offer heard at $780/mt and in view of tighter
supplies.
Platts assessed premium R-PET clear flakes with PVC content
of less than 30 ppm up $5/mt on the day at $830/mt FOB
Southeast Asia Feb. 7, below an offer heard at $900/mt and amid
tighter supplies.
Platts assessed R-PET food grade pellets with a minimum IV
of 0.8 up $5/mt on the day at $1,155/mt FOB Southeast Asia Feb.
7, below an offer heard in the $1,250-$1,350/mt range and amid
higher feedstock costs.
Platts assessed premium R-PET clear flakes with PVC content
of less than 30 ppm unchanged on the day at $846/mt FOB India,
taking into consideration a buy idea heard in the $810-$815/mt
range FOB India and amid thin trading activities heard.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <RPTSE00>, <RPTSF00>
and <ARINA00>.
Polymerscan February 7, 2024

Polymer Feedstocks: Olefins

Polymer Feedstocks – Ethylene Polymer Feedstocks – Ethylene Glycol Assessments (cont)
Europe US (¢/lb)
Spot Friday Weekly Average Spot Friday
FD NWE (Eur/mt) 712.00-716.00 715.900-719.900 FOB USG 21.00-23.00
CIF NWE ($/mt) 756.00-760.00 741.700-745.700
CIF MED ($/mt) 756.00-760.00 741.70-745.70 Fiber Grade Monthly Contract Price (Feb):N/S-N/S FOB USG

Monthly Contract Price (Feb): 1190.00-1190.00 FD NWE (Eur/mt) Asia ($/mt)

US (¢/lb) Spot Friday Weekly Average
Spot Friday Weekly Average CFR China 554-556 552.8-554.8
FD Mont Belvieu M1 Feb 19.250-19.750 19.125-19.625 CFR SE Asia 562-564 (1) –
FD Mont Belvieu M2 Mar 19.125-19.625 19.300-19.800
MEG CP Nomination (Jan) – CFR Asia
FD Choctaw M1 Feb 19.500 19.525
MEGlobal: 840 Sabic: 800 Shell: 900
FD Choctaw M2 Mar 19.500 19.425
(1) CFR SE Asia = CFR Indonesia. Note: Asian ethylene glycol assessments are basis L/C 90 days.
Net Contract Price (January): NA-NA Delivered
Asia ($/mt)
Spot Friday Weekly Average
FOB Korea 909-911 – Polymer Feedstocks – Butadiene
CFR SE Asia 949-951 929.0-931.0 Europe
CFR NE Asia 939-941 923.0-925.0 Spot Friday Weekly Average
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand. FD NWE (Eur/mt) 788.00-792.00 780.000-784.000
FOB Rdam ($/mt) 768.00-772.00 760.000-764.000

Polymer Feedstocks – Propylene Butadiene Monthly Contract FD NWE FEB:795.00-795.00 (Eur/mt)

Europe (Eur/mt) US (¢/lb)
Poly Grade Spot Friday Weekly Average Spot Friday
FD NWE 989.50-993.50 990.700-994.700 CIF USG 32.55-33.05
CIF NWE 989.50-993.50 990.700-994.700
Chem Grade Spot Friday Weekly Average Monthly Contract Price (Feb) 33.50-34.00
FD NWE 979.00-983.00 954.50-958.50
Asia ($/mt)
CIF NWE 949.00-953.00 924.50-928.50
Spot Friday Weekly Average
Poly Grade Monthly Contract Price (Feb): 1065.00-1065.00 FOB Korea 1109-1111 1077.00-1079.00
CFR Taiwan 1149-1151
US (¢/lb)
CFR SE Asia 1079-1081 (1)
Spot Friday Weekly Average
CFR China 1159-1161 1119.00-1121.00
dlvd USG dlvd USG
Poly Grade M1 Feb 49.500-50.000 49.700-50.200 (1) CFR SE Asia = CFR Indonesia.
Poly Grade M2 Mar 49.500-50.000 49.700-50.200
Ref Grade 11.750-12.250 11.750-12.250

Poly Grade Contract Price (January): NA-NA Delivered

Chem Grade Contract Price (January): NA-NA Delivered
Asia ($/mt)
Spot Friday Weekly Average
FOB Korea 814-816 813.0-815.0
CFR Taiwan 864-866 –
CFR SE Asia 994-996 –
FOB Japan 819-821 –
CFR China 849-851 849.00-851.00
Asian ethylene spot assessments reflect LC 0-30 days. CFR SEA = CFR Indonesia/Thailand.

Polymer Feedstocks – Ethylene Glycol Assessments

Europe
Spot Friday
FCA NWE T2 (Eur/mt) 548.00-552.00
FD NWE T2 (Eur/mt) 588.00-592.00
CIF NWE T2 (Eur/mt) 518.00-522.00
CIF NWE T2 ($/mt) 559.00-563.00

Monthly Contract Price (Feb ) – (Eur/mt) NA-NA Notes: All olefin prices reflect assessments at close of previous Friday.

© 2024 by S&P Global Inc. All rights reserved. 33

Polymerscan February 7, 2024
Ethylene
European Ethylene: Spot activity
muted as month begins
„ MCP settles up Eur5/mt on the month
„ Derivative EO adder fees soften on year
Spot trading activity in the European ethylene market
remained muted in the week to Feb. 2, as market participants
waited for a delayed monthly contract price settlement.
The three- to 30-day forward free-delivered northwest
European ethylene spot price was assessed at Eur714/mt Feb. 2,
up Eur21.50 on the week, according to Platts, part of S&P Global
Commodity Insights, data.
The February monthly industry-settled contract price
was agreed at Eur1,190/mt Feb. 2, up Eur5 from January. The
settlement was slightly delayed, with negotiations concluded
almost two days after the propylene contract price settlement on
Jan. 31.
The delay in settlement emerged due to different opinions
on the pricing's direction, according to market sources. Some
market players were heard to have targeted a rollover or slight
increase amid tighter supply in the latter stages of January and a
slight rise in derivative buying interest.
By contrast, some buyers had expressed targets of a slight
decrease citing continued structural weak derivative demand and
minimal volatility noted in the feedstock naphtha cost through
January.
Naphtha prices averaged $638.13/mt CIF NWE in January, a
negligible rise of $3.49/mt from December levels, according to
S&P Global Commodity Insights data.
On market fundamentals, the supply was heard to be tighter
with some market participants noting a lack of availability of
prompt material. Demand was heard to be slightly improved off
the back of limited imports into downstream markets, according
to market sources.
Despite the slight increase in derivative demand and tighter
supply, market participants continued to highlight a lack of
structural changes to weak end-user market fundamentals.
In the European ethylene-oxide market, price adder fees
softened on the year amid significant downwards pressure
from weak derivative demand seen through 2023 and that has
continued into 2024, according to market sources.
Platts is part of S&P Global Commodity Insights.
Platts European Ethylene Weekly Rationale
Platts assessed the three- to 30-day forward free-delivered
Northwest European ethylene spot price at Eur714/mt Feb. 2, up
Eur2/mt on the day and up Eur21.50/mt on the week.
The February FD NWE spot differential was assessed at a
40% discount to the industry-settled contract price, unchanged
on the day and two percentage points narrower on the week, at
the wide end of a producer indication placing discounts at 38%-
40%, while considering a trader indication placing spot prices
© 2024 by S&P Global Inc. All rights reserved. 34
at a competitive level to the coastal markets and feedback of a
limited improvement in demand from some derivatives.
The March FD NWE spot differential was assessed at a 40%
discount, unchanged on the day, in line with the February FD
NWE differential, at the top of a producer indication placing
discounts at 35%-40%.
The February CIF NWE spot differential was assessed at a 41%
discount to the industry-settled contract price, two percentage
points narrower on the day and on the week, considering a
producer indication of spot offers heard at a 40% discount
and wider, the same producer placing spot prices at discounts
of 40%, wider than a trader indication at 35%-40% discounts,
placing spot prices below the same trader indication of prices at
$800-$850/mt, considering feedback of muted spot activity.
The March CIF NWE spot differential was assessed at a 41%
discount, narrower two percentage points on the day, at parity to
the February CIF NWE spot differential, considering a producer
indication of spot offer heard at a 40% discount and wider for
early March delivery, pending further indications of March spot
prices.
The February CIF Mediterranean spot differential was
assessed at a 41% discount to the industry-settled contract price,
two percentage points narrower on the day and two percentage
points narrower on the week, mirroring the move seen in the
February CIF NWE market, in line with producer and trader
indications of spot prices at parity to the CIF NWE market.
The March CIF MED spot differential was assessed at a 41%
discount, two percentage points narrower on the day, mirroring
the move in the February CIF MED market, pending indications of
March spot prices.
Platts assessed the three- to 30-day delivered duty-paid
Northwest European ethylene-oxide spot price at Eur808.50/mt
Feb. 2, up Eur1.50/mt on the day and up Eur17.50/mt on the week,
partially tracking the movement in upstream ethylene price,
assessing a stable factor to the daily ethylene FD NWE spot price
and an adder of Eur230/mt, weighing a producer indication of the
adder being at or above Eur250/mt, against feedback of muted
activity and downwards pressure from weak derivative demand,
pending corroboration at higher values.
Platts is part of S&P Global Commodity Insights.
US Ethylene: Spot ethylene keeps upward
trend amid continued drop in feedstock prices
„ Market activity limited
„ Ethane drops on day
Spot ethylene levels in the US have seen a slight upward trend
so far in the week ending Feb. 9 amid ethane levels dropping.
Platts assessed ethylene at 19.875 cents/lb both Mont Belvieu
up 0.25 cents and at 19.75 cents/lb for Choctaw, up 0.125 cents on
the day.
Trading activity was scarce, with only one trade seen on the
day for Choctaw. However, bids kept pushing prices up amid an
ongoing long market.
Polymerscan February 7, 2024
Upstream, Platts assessed Enterprise ethane down 0.125
cents on the day at 19.375 cents/gal on Feb. 7. Ethane is used as
feedstock to produce ethylene.
In Asia, ethylene market remained flat amid limited
discussions ahead of the Lunar New Year holiday.
Downstream, prices for US spot export high density
polyethylene rose on the week amid supply constraints.
Platts is part of S&P Global Commodity Insights.
Platts US Ethylene Daily Rationale
Platts assessed February spot Mont Belvieu ethylene at
19.875 cents/lb FD Mont Belvieu Feb. 7, up 0.25 cents/lb on the
day. The assessment came within the most competitive bid/offer
range heard at 19.625-20 cents/lb MtB-Pipe.
Forward-month March spot Mont Belvieu ethylene was
assessed at 19.625 cents/lb FD Mont Belvieu, up 0.375 cent/lb
on the day. The assessment came above the most recent bid at
19.5 cents/lb MtB-Pipe and considered a February/March bid/
offer range heard at minus 0.125 to plus 0.125 cent/lb MtB-Pipe.
February Choctaw ethylene was assessed at 19.75 cents/lb FD
Choctaw Feb. 7, up 0.125 cent/lb on the day. The assessment was
in line with a trade heard at that level and came within the most
competitive bid/offer range heard at 19.25-20 cents/lb Choctaw
Pipe.
Forward-month March Choctaw ethylene was assessed
at 19.75 cents/lb, also up 0.125 cent/lb on the day. The
assessment kept previous market structure, came within the
most competitive bid/offer range heard at 19.25-19.875 cents/lb
Choctaw Pipe and considered a considered a February/March bid
heard at minus 0.25 cent/lb Choctaw Pipe.
Platts assessed US Gulf Coast spot export ethylene at 25.875
cents/lb, or $570.440/ mt FOB USG, up 0.25 cents/lb on the day,
based on market feedback of export FOB USG ethylene at 6-7
cents/lb premium to EPC, forgoing a netback calculation.
Platts is part of S&P Global Commodity Insights
Asian Ethylene: Trades limited as holidays approach
„ Selling indications heard at $960-$980/mt CFR NE Asia
„ Bids limited amid a quiet downstream market
Trades were limited in the Asian ethylene market Feb. 7 as the
Lunar New Year holidays approach.
Selling indications were heard at $960-$980/mt CFR
Northeast Asia as supply remained tight, but few bids were heard
amid quiet buying activity ahead of the holiday season.
In the upstream market, the benchmark C+F Japan naphtha
marker was assessed up by $5.25/mt on the day at $665.75/mt at
the Feb. 7 Asian close.
The ethylene-naphtha spread was calculated at $274.25/mt,
above the typical spread of $250/mt for integrated producers and
below the typical $300-$350/mt for non-integrated producers,
Platts data showed.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 35
Platts Asian Ethylene Daily Rationale
The ethylene CFR Northeast Asia assessment was flat on the
day at $940/mt Feb. 7, while the CFR Southeast Asia assessment
was stable on the day at $950/mt, amid a lack of firm trade.
Ethylene Glycol
Platts European Glycols: DEG prices jump
Eur200/mt amid production shortages
„ DEG supply shortages increase 40% traded spot price
„ Glycols supply tights amid production shortages,
freight delays
The traded spot price for diethylene glycol has jumped around
40% as a perfect storm for the market has sparked amid import
delays, concerns at the Red Sea, January production issues and
industrial disruptions.
These conditions have led European diethylene trucks to
trade as high as Eur1,000/mt FCA ARA in the week ending Feb 2.
Platts assessed DEG prices at Eur950/mt FCA ARA Feb. 2, up
Eur200/mt on the week.
"DEG is the hot topic, and now the main one is for MEG for
February loading," a trader said Jan. 30 referring to supply issues.
A producer said Feb. 2 there's a DEG shortage. "DEG goes
into production of alcohol ethoxylates, a key ingredient in the
manufacture of detergents, soap, shower gels and shampoos."
Alcohol ethoxylates are doing better demand-wise, and
this pulls in demand for DEG. The producer pointed to the
combination of the improved demand for DEG and supply
issues to explain the 26% increase in the traded price of
DEG trucks.
MEG spot prices also rose in part due to the supply shortages,
with barges now trading above the Eur500/mt CIF ARA mark and
expected to rise further.
The current glycols volatility stems from a combination
of import vessel delays due to the Red Sea freight chaos,
production issues and French farmers' protest against the
European Union in Belgium, impacting BASF's complex in
Antwerp, a major loading facility.
The blockade's impact at the site was easing, but loading
delays for all glycols were likely to be hampered until next week.
"From today there is one exit for the plant, but there are also
queues," a BASF company source said Feb. 2. "There is one exit
open, but the other remains blocked."
The more immediate concern was over DEG supply. Shell
declared force majeure at its Moerdijk cracker Jan. 16, according
to a customer letter seen by Platts Jan. 26.
Shell's Moerdijk is a key supplier of glycols in the continent.
The company produces more than 300,000 mt/year of ethylene
oxide and around 150,000 mt/year of MEG at the Dutch site.
At the time of writing, Shell could not be reached for further
comment.
Polymerscan February 7, 2024
Platts European Glycols Weekly Rationale
Platts assessed FCA ARA diethylene glycol spot prices
up Eur200/mt on the week at Eur950/mt on Feb. 2, toward a
distributor indication at Eur1,000/mt plus Feb. 1, moving above
a trader indication heard around Eur850/mt on Feb. 2, above a
trader indication heard at Eur900/mt on Feb. 1, pending further
indications, and on the feedback of tight supply after a producer
force majeure declaration in January.
FD Northwest Europe DEG spot prices were assessed up
Eur200/mt on the week at Eur990/mt, maintaining FD NWE spot
pricing at a Eur40/mt premium to FCA ARA values.
Platts assessed FCA ARA triethylene glycols up Eur260/mt
on the week at Eur1,800/mt, on a trader indication heard at that
level, below a producer indication heard at Eur1,900-2,000/mt,
pending further FCA indications, while considering feedback of
tight glycol availability.
CIF ARA MEG spot prices were assessed up Eur40/mt on
the week at Eur520/mt on Feb. 2, on corroborations heard at
that level Feb. 1 from a trader, above a selling indication heard
above Eur500/mt from a consumer Feb. 1, weighing a distributor
indication heard at Eur520-530/mt on Feb. 1, and considering
feedback of import vessel delays.
FCA ARA monoethylene glycol spot prices were assessed
at Eur550/mt on Feb. 2, up Eur30/mt on the week, on a
corroborated trader indication heard at Eur550/mt FCA ARA on
Feb. 1, below a trader indication heard at Eur560/mt plus on Feb.
1, above a distributor and trader deal heard at Eur520-540/mt
done through the week, moving in the direction of a trader deal
heard at Eur585/mt, pending further corroboration, at the bottom
end of a trader indication heard at Eur550-580/mt FCA on Feb. 1,
while considering feedback of tighter supply and firmer demand.
FD Northwest Europe MEG spot prices were assessed up
Eur30/mt on the week at Eur590/mt, maintaining FD NWE spot
pricing at a Eur40/mt premium to FCA ARA spot prices.
Platts is part of S&P Global Commodity Insights.
US Ethylene Glycols: Spot prices
rise amid low MEG run rates
„ USGC run rates heard at 60%-70%: source
„ Asia market quiet amid Lunar New Year
Prices for US monoethylene glycol, or MEG, rose 1 cent for the
second consecutive week on Feb. 2, amid run rates of 60%-70%
on the USGC, according to a market source.
With much of US capacity built for export, and buyers in
China holding back from purchasing ahead of the Lunar New
Year Holidays, producers are keeping run rates low amid an
oversupplied market, according to market sources.
Platts assessed US spot MEG at 22 cents/lb FOB USG
on Feb. 2.
As a result of low MEG output, market participants saw
more limited availability of co-products diethylene glycol and
triethylene glycol, driving prices up.
© 2024 by S&P Global Inc. All rights reserved. 36
Platts assessed US spot DEG at 36 cents/lb FOB USG, up 1
cent on the week.
Platts assessed US spot TEG at 110 cents/lb FOB USG, up 4
cents on the week.
Ethylene glycol is most commonly produced in the US by
conventional ethylene oxide hydration. A typical yield sees 90%
MEG, 9% DEG, and 1% TEG, according to S&P Global data.
The largest application for DEG is as a raw material for the
production of polyurethanes and unsaturated polyester resins.
DEG can also be used for on-purpose production of TEG, which is
primarily consumed in the US for dehydrating natural gas liquids
or other oilfield applications.
Market participants said TEG availability was even more
limited on the week. Offers for DEG were seen only in small
volumes, according to a trader, who said that no offers for TEG
were seen on Feb. 2.
Operating rates at polyester plants in China were estimated at
80%-82%, according to market sources in Asia, down from 84%
the week prior. Run rates are expected to be cut further in the
weeks to come owing to the Lunar New Year.
Polyester is the key demand segment for MEG, accounting
for over 90% of global demand in 2023, according to S&P
Global data.
Platts is part of S&P Global Commodity Insights.
Petchem USGC Weekly Glycols Rationale
Platts assessed US spot MEG at 22 cents/lb FOB USG Feb.
2, up 1 cent on the week. The assessment came below a pricing
indication heard at 22.5 cents/lb for bulk and 26 cents/lb for
truck and rail, pending corroboration of higher prices.
Platts assessed US spot DEG at 36 cents/lb FOB USG Feb. 2,
up 1 cent on the week. The assessment came in line with a pricing
indication heard at 36 cents/lb FOB USG for truck and rail.
The assessment considered market feedback of tighter supply
due to low run rates for co-product MEG.
Platts assessed US spot TEG at 110 cents/lb FOB USG Feb. 2,
up 4 cents on the week.
The assessment came at the bottom of a pricing indication
heard at 110-115 cents/lb FOB USG for truck and rail.
Platts considered market feedback of tight supply and low run
rates for co-product MEG.
Platts is part of S&P Global Commodity Insights.
Asian Glycols: Lower polyester
run rates weigh on demand
„ Polyester run rates estimated at 79.2%
„ April ICE Brent rises $0.50/b on day
Discussions were few in the Asian glycol markets Feb. 7, as
lowered downstream operating rates weighed on spot demand.
Run rates at polyester facilities in China were lowered below
80% in the week, with some estimates heard at 79.2% from a
producer. This could slide further as finished goods plants were
Polymerscan February 7, 2024
expected to maintain low run rates to manage the inventory
levels during the holidays.
Upstream, April ICE Brent futures were up $0.50/b on day at
$78.73/b Feb. 7.
Platts is part of S&P Global Commodity Insights.
Petchem Asia Glycols Daily Rationale
Platts assessed the MEG CFR China stable on the day at
$543/mt Feb. 7, amid a lack of firm discussions.
The domestic China assessment was Yuan 45/mt higher at
Yuan 4,645/mt ex-tank, reflecting discussions at Yuan 4,645/mt.
Platts is part of S&P Global Commodity Insights.
Propylene
European Propylene: Quiet conditions
to begin February amid lack of material
„ February contract price settles up Eur15/mt
„ Underlying demand remains weak
Tight market conditions remained the dominant trend in the
European propylene market in the week ended Feb. 2, despite a
slowing of upwards pricing movements across the week.
Material shortage across both polymer and chemical grade
markets were cemented throughout the week, with cracker
outages and logistical difficulties limiting access to material.
As a result, the spot market was generally quiet throughout,
due to scare product availability rather than any lack of
immediate buyer appetite.
"Discount level ideas and offers can't be tested — the material
simply isn't there," one trader said.
The upwards pricing trend, which has dominated the market
across 2024 to date, slowed down. Platts assessed the FD NWE
polymer grade propylene three- to 30-day forward spot price at
Eur991.50/mt Feb. 2, up 50 euro cent on the day and up Eur4.50/
mt on the week.
Players continued to stress the lack of structural demand in
the market, noting that any rise in prices was primarily driven by
clipped supply from both import and domestic sources.
In contract news, the European propylene industry-settled
monthly contract price for February was at Eur1,065/mt
($1,154.35/mt) Jan. 31, up Eur15/mt from January, market sources
told S&P Global Commodity Insights.
The rise in pricing was driven by the aforementioned tight
supply in the market across January, with scarcity of material
provoked by cracker outages, restocking from consumers and
logistical disruptions due to vessel shortages on the coast and
train driver strikes in Germany.
These shorter market conditions offset the limited movement
seen in pricing for key feedstock naphtha across January in
pushing February MCP levels higher.
Naphtha prices averaged at $638.13/mt CIF NWE in January
© 2024 by S&P Global Inc. All rights reserved. 37
to date, a negligible rise of $3.49/mt from December levels,
according to S&P Global Commodity Insights data.
Platts is part of S&P Global Commodity Insights data.
Platts European Propylene Weekly Rationale
Platts assessed the FD NWE polymer grade propylene three-
to 30-day forward spot price at Eur991.50/mt on Feb. 2, higher by
Eur0.50/mt on the day and Eur4.50/mt on the week.
The February PGP FD NWE spot differential was assessed at a
7% discount to the monthly contract price, unchanged on the day
and week, at the wide end of a producer indication of discounts
between 5% and 7%, weighing feedback of tight supply against
limited transactional activity due to low availability, pending
further corroboration of narrower levels.
The March PGP FD NWE spot differential was assessed at a
7% discount to the industry-settled contract price, unchanged
on the day, weighing producer feedback of wider levels than
February against limited trading activity for March.
The February PGP CIF NWE spot differential was assessed
at a 7% discount to the MCP, unchanged on the day and week,
below an offer heard at 8% against, above a trader indication of
discounts as narrow as 3%, while considering feedback of tight
supply and limited transactional activity due to low availability.
The March PGP CIF NWE spot differential was assessed at a
7% discount to the industry-settled contract price, unchanged on
the day, in line with a trader indication of parity between February
and March discounts, while considering limited trading activity for
March.
The February chemical grade propylene FD NWE spot
differential was assessed at an 8% discount, three percentage
points narrower on the day and week, narrower than a 1,000 mt
CPT NWE deal heard completed at a 9% discount, and narrower
than a trader indication for CIF material at a 10% discount, while
considering feedback of tight supply.
The March CGP FD NWE spot differential was assessed at
an 8% discount to the industry-settled contract price, three
percentage points narrower on the day, at parity with the
February differential, considering limited trading activity for
March.
Platts is part of S&P Global Commodity Insights.
US Propylene: Propylene drops on day
following traded levels from previous day
„ Thin market activity
„ Propane drops for fourth consecutive day
Platts assessed February spot polymer-grade propylene at 50
cents/lb FD USG Feb. 7, flat on the day.
There was little market activity on the day, with a wide gap
between bids and offers and no buying appetite seen.
There were trades heard after Platts Market on Close at Feb.
6, which supported the assessed levels.
Market participants remain viewing market from the
Polymerscan February 7, 2024
sidelines amid ongoing weak downstream demand and drop in
upstream levels.
Upstream, Platts assessed Enterprise propane down 1 cents/
gal on the day at 91.25 cents/gal Feb. 7. Propane is used as
feedstock for propylene production.
US propane and propylene inventories fell for the 12th straight
week, dropping 2.018 million barrels, according to production,
inventory and export data released by the US Energy Information
Administration Feb. 7.
In Asia, spot propylene prices were stable on the day amid
absence from Chinese participants due to regional holidays.
Platts is part of S&P Global Commodity Insights.
Platts US Propylene Daily Rationale
Platts assessed February spot polymer-grade propylene at
49.125 cents/lb FD USG Feb. 7, down 0.875 cent/lb on the day.
The assessment was in line with a trade corroborated at that
level heard done on Feb. 6 and came within the most recent bid/
offer range heard at 48.5-52 cents/lb MtB-Pipe.
Forward-month March PGP was assessed at 49.125 cents/lb
FD USG, also down 0.875 cent/lb on the day.
The assessment kept previous market structure amid no
disproving information.
US prompt refinery-grade propylene was assessed at 12
cents/ lb FD USG, flat on the day. The assessment was in line with
a trade heard at that level.
Platts is part of S&P Global Commodity Insights.
Asian Propylene: Stable amid tepid buying interest
„ Offers heard to be sparse
„ Taiwan's CPDC to run 240,000 mt/year Kaohsiung ACN plant
at 80% in Feb
The Asian propylene market was steady Feb. 7 amid the
absence of interest from Chinese buyers.
The selling indication was heard at $860/mt CFR China from a
trader while the buying indication was heard at $845/mt from an
end-user. Offers were heard to be sparse as some Chinese buyers
were away for the Lunar New Year holiday.
A Taiwanese buyer said he received an offer at $900/mt CFR
Taiwan. Other traders in China also received queries from end-
users on the availability of spot cargoes after the Lunar New Year.
Propylene inventory with the South Korean producers was
heard to be low with some reducing their steam cracker run rates
for February, S&P Global Commodity insights reported earlier.
"This offer ($900/mt CFR Taiwan) is very high; buyers
can afford to buy at the $850-$860/mt level only," said the
Taiwanese buyer.
In plant news, Taiwan's China Petrochemical Development
Corp. plans to run its 240,000 mt/year acrylonitrile plant in
Kaohsiung at 80% in February, up from around 70% in January, a
company source said Feb. 7.
"We will run at 80% in February, slightly higher than 70% [in]
© 2024 by S&P Global Inc. All rights reserved. 38
January," the company source said.
The ACN plant in Kaohsiung, southern Taiwan, has two lines.
Supplies have increased in the Asian ACN market after the
restart of Chinese plants from turnarounds and the startup of
Jiangsu Sailboat Petrochemical's new 260,000 mt/year No. 4
ACN plant in Lianyungang on Nov. 29, while demand from the
downstream acrylic fiber and acrylonitrile-butadiene-styrene
sectors has been slow due to weak end-user consumption.
Meanwhile, a slew of planned and unplanned shutdowns in
China drove up spot prices of ACN in late November, but spot
values faced downward pressure after Jiangsu Sailboat started
producing on-spec material from its new No. 4 ACN plant.
Some restocking ahead of the Lunar New Year holidays and a
lower run rate among producers in Northeast Asia, however, are
expected to provide support.
Propylene is a feedstock for ACN.
Platts assessed CFR Far East Asia ACN stable on the week at
$1,235/mt on Feb. 6.
Platts is part of S&P Global Commodity Insights.
Platts Asian Propylene Daily Rationale
Platts assessed CFR China propylene unchanged day on day
at $850/mt Feb. 7, below a selling indication heard at $860/mt
by a seller and above a buying indication heard at $845/mt CFR
China by an end-user.
Platts assessed FOB Korea propylene unchanged over the
same period at $815/mt Feb. 7, above the buying indication heard
at $790/mt and below the selling indication heard at $820/mt
FOB Korea.
The propylene price in Shandong was assessed up Yuan 40/mt
on the day at Yuan 6,930/mt on price discussion heard at Yuan
6,930/mt.
Platts assessed the east China propylene price unchanged
on the day at Yuan 6,950/mt on a price discussion heard at Yuan
6,950/mt.
Platts is part of S&P Global Commodity Insights.
Butadiene
European C4 Olefins: Supplies tighten
amid production outages
„ Supply may improve in H2 Feb at earliest
„ Crude C4 demand strengthens
Supplies in the European butadiene market tightened in the
week to Feb. 2 amid some cracker outages, prompting consumers
to look for spot material from producers that were operating.
Talk of spot domestic deals were heard in the market, as
some market participants pointed to the second half of February
when tightness in supplies could potentially ease at that earliest
with some crackers and/or butadiene extraction units coming
back online.
Polymerscan February 7, 2024
"Market seems tightish, driving supply constraints," a
consumer said. Butadiene demand from domestic consumers
was improving for the tire and rubber segment due to expected
delays in Asian material arrivals, while it was stable from other
sectors, according to a producer.
Because of hiccups at some of our competitors, we see more
demand for us, a producer said.
Surging freight rates from Europe to Asia as well as the
supply tightness weighed on export discussions. Comparing
a trader indication below naphtha to producers' ask near the
monthly contract price, the wide gap between buyer and seller
expectations resulted in limited discussions on both sides.
In the crude C4 market, demand strengthened in the wake of
the upward pricing pressure along downstream butadiene.
In the downstream raffinate-1 market, the demand and supply
balance was stable this week, with market sources citing demand
from MTBE producers continuing to come through.
Platts is part of S&P Global Commodity Insights.
Platts European C4 Olefins Weekly Rationale
Platts assessed the free delivered Northwest Europe
butadiene spot price at Eur790/mt on Feb. 2, up Eur10/mt on
the day and week, moving toward a trader indication heard near
Eur795/mt, below a producer indication heard above Eur795/
mt, considering a second producer indication heard at Eur770/
mt or slightly above, against market feedback of tightening
supply.
The FOB Rotterdam butadiene spot price was assessed
at $770/mt, up $10/mt on the day and week, moving toward a
producer indication heard at dollar equivalent of domestic spot
$867/mt, considering a trader indication below naphtha $654.25/
mt, against increasing Asian prices and market feedback of
tightening supply.
The crude C4 factor to naphtha was assessed up 0.08 on the
week at 1.10 CIF NWE, in line with a producer indication heard at
the same level, at the bottom end of a buyer indication heard at
1.1-1.15 and in line with a trader indication of or above 1.10.
The raffinate-1 factor to naphtha was assessed unchanged
on the week at 1.40 CIF NWE, in line with a trader corroboration
at that level, within a producer indication of 1.38-1.42, while
considering indications from a second producer of the factor
above 1.38 and at or above 1.40.
Platts is part of S&P Global Commodity Insights.
US spot butadiene price rises
on week amid supply pressure
„ Price indications heard from discount to parity with CP
„ Feb US CP settles higher at 33.75 cents/lb
Platts assessed US spot butadiene at 32.8 cents/lb CIF USG
on Feb. 2, up 0.8 cents/lb on the week. Price indications were
heard from 24.8 cents/lb to 33.8 cents/lb from market sources.
© 2024 by S&P Global Inc. All rights reserved. 39
A market source said that supply was tight on the week. "Spot
has gotten tighter and tighter. I would say around February US
[contract price] flat or 33.8 cents/lb. It is extremely limited at this
point," the source said.
Sources pointed to different factors that led supplies in the
US butadiene market to tighten on the week, such as current
weather conditions and planned exports.
US butadiene contract price for February settled 2.25 cents/
lb higher from January at 33.75 cents/lb, according to market
sources.
Market sources Jan. 26 said that settlement for the February
contract price was expected to be in the 32-33 cents/lb range.
However, US CP settled higher, driven by tight availability and
stronger European and Asian prices.
"Exports and some small operating blips have made the
market tighter in the short term," a market source said.
During January, producers nominated with customers at
different levels. One producer was heard nominating at 35 cents/
lb, a second producer was heard nominating at 33 cents/lb, a
third producer was heard nominating at 33 cents/lb, while a
fourth producer was heard nominating at 34 cents/lb. Settlement
CPs remained unchanged compared with nominations heard in
early January.
The industry can use an average of the four settlements
for the CP.
Platts is part of S&P Global Commodity Insights.
Platts US Butadiene Weekly Rationale
Platts assessed US spot butadiene at 32.8 cents/lb CIF USG
on Feb. 2, up 0.8 cents/lb on the week. The assessment was at
the upper part of a range from a producer heard at 30.8-32.8
cents/lb, considering talk of tight supply on the week and above
a pricing indication heard at 24.8 cents/lb pending further
corroboration of lower prices.
Platts is part of S&P Global Commodity Insights.
Asian Butadiene: Stable as price
discussions slow ahead of holidays
„ China's Sinopec raises local list price by Yuan 300/mt
„ China's butadiene inventory rises 4,000 mt on week
Asian butadiene was stable day on day at $1,180/mt CFR China
on Feb. 7. Spot price discussions had slowed as the Lunar New
Year holidays approached.
On Feb. 7, China's key supplier Sinopec raised its local list price
by Yuan 300/mt to Yuan 10,200/mt, or $1,245/mt on an import-
parity basis, according to sources close to the company.
Platts-assessed local China butadiene price fell Yuan 100/
mt day on day to Yuan 9,900/mt on Feb. 7, or $1,208/mt on an
import-parity basis. China's butadiene inventory rose about
4,000 mt from a week earlier to 27,000 mt. The inventory level
was around the so-called suitable level in the 25,000-30,000
Polymerscan February 7, 2024
mt range, according to market sources.
Market sources expected Asia's butadiene supplies to likely
remain tight as some steam crackers preferred using LPG amid
high naphtha costs. LPG cracking lowers butadiene production
yield, which reduces butadiene output.
Upstream, Platts-assessed CFR Japan naphtha price rose
$5.25/mt day on day to $665.75/mt on Feb. 7, with the spread
between butadiene and naphtha calculated at $514.25/mt. The
price spread is higher than the breakeven spread in the $300-
$350/mt range.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 40
Platts Asian Butadiene Daily Rationale
Platts assessed the CFR China butadiene price stable day on
day at $1,180/mt Feb. 7 based on a tradable level heard at $1,180/
mt CFR China.
Platts assessed the FOB China butadiene price steady at
$1,130/mt during the same period amid thin price discussions.
Platts assessed the FOB Korea butadiene price at $1,130/mt
and CFR Northeast Asia at $1,170/mt Feb. 7, unchanged from a
day before as no fresh price indications were heard on a fixed
price basis.
Platts is part of S&P Global Commodity Insights.
Polymerscan February 7, 2024

Polymer Feedstocks: Aromatics

Paraxylene Polymer Feedstocks – Aromatics

Weekly Average Spot*
European Xylenes: Paraxylene market Styrene FOB Korea ($/mt) 1065.90-1066.90

sees uptick in demand Styrene FOB ARA ($/mt) 1271.85-1272.35

Styrene FOB USG (cts/lb) 53.27-53.77
„ PTA producers search for PX Styrene FOB USG ($/mt) 1180.000

„ MX sees continued bidding activity Paraxylene FOB Korea ($/mt) 1004.80-1006.80

Paraxylene FOB Rdam ($/mt) 1104.75-1105.25
Paraxylene FOB USG ($/mt) 1084.89-1094.89
The European paraxylene market saw increased demand in
the week ended Feb. 2, as consumers looked to secure material. Monthly Contract Price
Demand for paraxylene from producers of purified Styrene FOB USG (cts/lb) (Feb) 49.79-50.29
terephthalic acid and polyethylene terephthalate within
Paraxylene CFR Asia Average (Feb ) NA
Europe continued to strengthen on the week, with consumers Paraxylene FD NWE (Eur/mt) (Feb) NA-NA
entering the market in search of any spare material, as supply of Paraxylene FOB USG (¢/lb) (Feb) N/S-N/S#
paraxylene continued to see pressure from logistical constraints. * Average prices for week ending the previous Friday. # PX CP is typically settled retroactively. The
Tightness persisted in the mixed xylenes spot market in the most recent settlement appears on this page.

week, with market participants highlighting the speed at which

availability dried up within the spot market.
"Market got tight very quickly," a producer said.
The mixed xylenes spot market saw bidding activity again in the
week, with Shell entering the Platts Market on Close assessment
process on Jan. 31 in search of spare spot volumes of product.
Shell Trading Rotterdam B.V. bid for 2,000 mt mixed xylenes at
a $200/mt premium to the Platts daily Gasoline Eurobob FOB AR
Barge, pricing February, delivery February, against no offers.
Downstream demand for orthoxylene was heard to be poor in
the week, with limited phthalic anhydride producers heard to be
searching for OX spot parcels. However, concerns around supply
from South Korea has caused ripples of doubt among market
participants about the availability of OX.
"Limited downstream demand," a producer said.
Platts is part of S&P Global Commodity Insights.

Platts European Xylenes Daily Rationale
Platts assessed the M1 February MX CIF ARA premium to
Eurobob gasoline up $20.25/mt at $220.25/mt Feb. 7, above
an outstanding bid seen during the Platts Market on Close
assessment process.
Shell bid for 2,000 mt for February delivery dates at $220/mt,
against no offers.
The M2 March MX CIF ARA premium was assessed up $20.25/
mt at $220.25/mt, at parity to February levels, pending fresh
indications on the intermonth structure.
The M1 February paraxylene FOB ARA spot price was assessed
unchanged at $1,120/mt, amid no disproving indications.
M2 March paraxylene FOB ARA prices were assessed stable at
$1,120/mt, at parity to February levels.
The paraxylene FOB ARA five- to 30-day forward spot price
was assessed as the average of the period at $1,120/mt, steady
on the day.
The orthoxylene FOB ARA five-to 30-day forward spot price
was assessed unchanged at $1,280/mt, amid no disproving
indications.
Platts is part of S&P Global Commodity Insights.
Notes: All aromatics prices reflect assessments at close of previous Friday.
USGC Aromatics: MX and NGT prices stabilize
US mixed xylenes and nitration-grade toluene prices stabilized
after a 19-cent decrease seen the prior week.
Meanwhile, commercial grade toluene market saw increased
buying interest and tightening of bid/offer ranges, resulting
in a price increase of 23 cents/gal on the week. In Europe,
toluene arbitrage opportunities to the US were heard to be
found at decreasing frequency, as appetite in the US for spot
parcels slowed.
US prompt spot paraxylene prices fell $25/mt on the
week. USGC PX prices moved in line with CFR Taiwan/China
paraxylene marker, which traced movements in crude prices
and reflected softening market activity ahead of Lunar New
Year holidays.
Platts assessed the spread between US MX and PX at minus
$24.94/mt Feb 2. PX prices have been at a discount to MX since
Jan. 17. PX prices were previously at a premium to MX prices since

© 2024 by S&P Global Inc. All rights reserved. 41

Polymerscan February 7, 2024
October 2023. PX prices in the US were now at about a $41.91/mt
discount to European FOB ARA prices and stood at a $70.09/mt
premium to CFR Taiwan/China marker.
In related energy news, stocks of gasoline blending
components stood at 235.3 million barrels for the week ended
Jan. 26, relatively stable on the week and higher by 8.1% on the
year, according to the US Energy Information Administration data
released Jan. 31. Finished motor gasoline supplied, which implies
demand, stood at 8.144 million b/d in the most recent reporting
week, 264,000 b/d higher on the week. US refinery rates stood at
82.9% in the week ended Jan. 26, 2.6 points lower on the week
and 2.8 points lower on the year. Operable capacity, however, was
nearly stable on the week and on the year at 18.272 million b/d,
EIA data showed.
Platts is part of S&P Global Commodity Insights.
Platts USGC Aromatics Daily Rationale
Platts assessed spot front-month February nitration-grade
toluene at 369 cents/gal FOB USG Feb. 7, stable on the day.
The assessment came below the most competitive February
offer heard at 370 cents/gal FOB ITC Deer Park, and above the
most competitive February bid heard at 355 cents/gal FOB ITC
Deer Park.
Forward-month March NGT was assessed at 369 cents/gal
FOB USG, stable on the day, maintaining the previous market
structure with February NGT, pending fresh pricing indications.
Spot front-month February mixed xylenes was assessed at
374 cents/gal FOB USG Feb. 7, stable on the day.
The assessment came within the most recent, most
competitive February bid/offer range heard at 370-390 cents/gal
FOB ITC Deer Park.
Forward-month March MX was assessed at 374 cents/gal FOB
USG, stable on the day.
The assessment came below a March offer heard at 395
cents/gal FOB ITC Deer Park.
Prompt spot paraxylene was assessed at $1078.76/mt FOB
USG, down $4 on the day. The assessment moved down in line
with CFR Taiwan/China marker.
Platts is part of S&P Global Commodity Insights.
Asian Paraxylene: Prices decline
due to weak March spot demand
„ PX down $4/mt on day at $1,016.67/mt CFR Taiwan/China
„ Participants optimistic about post LNY demand rebound
Asian paraxylene prices declined on the day Feb. 7, as unsold
March cargoes struggled to attract buyers.
Platts assessed Asian PX down $4/mt on the day at $1,016.67/
mt CFR Taiwan/China.
While PX prices rose the previous day, sentiment was yet to
turnaround completely, a trader in Singapore said.
Unsold cargoes for March were still visible and that was
putting some pressure on PX prices, the trader said.
© 2024 by S&P Global Inc. All rights reserved. 42
The recent rise in PX prices was minimal compared with the
strength seen in other products such as benzene.
Meanwhile, market participants were hoping for better
demand post the Lunar New Year holidays.
Downstream activity in China has been sluggish in the recent
days but from March onward there could be a sharp rebound, a
PX producer in China said.
Buying interest for polyester products in the Chinese domestic
market may also turn out to be better than expectations, the
producer said.
"Many people think that this year demand is not so bad, [so]
based on this market is optimistic," the producer said.
The Asian PX Platts Market on Close assessment process Feb.
7 saw several bids and offers for March and April delivery near-
haul cargoes.
The MOC also saw a bid and an offer for the March-April
intermonth spread, while two trades were reported.
Platts is part of S&P Global Commodity Insights.
Platts Asian Paraxylene Daily Rationale & Exclusions
Platts assessed Asian paraxylene CFR Taiwan/China and FOB
Korea markers respectively at $1,016.67/mt and $994.67/mt on
Feb. 7, both down $4/mt on the day.
The marker takes the average of H2 March laycan and H1 and
H2 April laycans.
The H1 and H2 April laycans were assessed at $1,024/mt, in
line with a trade for a near haul cargo between BP and Total at
the same price.
The H2 March laycan was assessed at $1,002/mt, below an
offer for a near haul cargo by OQ at $1,003/mt, while widening the
March-April intermonth spread to minus $22/mt.
Platts is part of S&P Global Commodity Insights.
(Daily price can be found on PC214, and weekly assessments
on PC337)
Exclusions: No market on close data was excluded from the
Feb. 7 assessment process
Styrene
European Benzene & Styrene: Benzene arbitrage
from Europe to the US heard potentially open
„ Styrene arbitrage from China to Europe heard closed
„ Styrene supply heard 'balanced to tight'
Benzene arbitrage from Europe to the US was potentially
open, while styrene arbitrage from Asia to Europe remained
closed, sources told S&P Global Platts Feb. 7.
Benzene arbitrage from Europe to the US could be open,
according to a source. "The Panama Canal limitations made
Europe the preferred outlet for benzene," a source said.
"The driving season in the US is already in preparation and is
expected to be strong this year," the source added.
Polymerscan February 7, 2024
Styrene supply was heard to be "balanced to tight," according
to a styrene buyer, however, there were no issues sourcing the
material. "There are definitely restrictions on [styrene] supply,"
another source said.
Styrene arbitrage from China to Europe was heard to be
closed, according to a source.
Platts is part of S&P Global Commodity Insights.
Platts European Styrene Daily Rationale
Platts assessed styrene for loading five- to 30-days forward at
$1,250/mt FOB ARA on Feb. 7, unchanged from Feb. 6.
M1 February was assessed stable at $1,250/mt, considering
two trader indications placing value at $1,250/mt and within the
latest bid-offer range heard at $1,230-$1,270/mt for any February
dates.
M2 March was assessed stable at $1,250/mt, within the
latest bid-offer range heard at $1,230-$1,270/mt, maintaining flat
structure between February and March, in line with indications of
a flat structure between the two months heard from two traders
and mirroring the flat structure in bid-offer ranges heard for
February and March.
Platts is part of S&P Global Commodity Insights.
Platts USGC Styrene Monomer:
Spot prices stable on week
„ Spot prices stable at $1,180/mt
„ Upstream markets mixed
US Gulf Coast spot styrene was stable on the week at $1,180/
mt Feb. 2.
Front-month spot prices and forward-month spot prices
remain at parity, with a flat inter-month structure.
US contract styrene was assessed at 50.04 cents/gal.
The styrene market was said to be quiet throughout the week,
with no reported activity.
In wider energy markets, crude futures settled lower on the
day. NYMEX March WTI settled $1.54 lower at $72.28/b and ICE
April Brent settled $1.37 higher at $77.33/b.
Ethylbenzene prices were nearly 6% higher on the week,
with February DDP spot prices being assessed at 339 cents/
gal, and benzene prices continued to rise on the week,
assessed at 375 cents/gal February DDP and 385 cents/gal
February FOB.
Platts is part of S&P Global Commodity Insights.
Platts US Gulf Styrene Monomer Weekly Rationale
Platts assessed February spot styrene at $1,180/mt FOB USG
on Feb. 2, steady on the day.
The assessment was stable amid no disproving indications.
Forward-month March spot styrene was assessed at $1,180/
mt FOB USG, unchanged on the day.
The assessment was stable amid no disproving indications.
Platts is part of S&P Global Commodity Insights.
© 2024 by S&P Global Inc. All rights reserved. 43
Asian Styrene Monomer: Prices rise
amid climbing upstream costs
„ Upstream benzene price rises on day
„ SM inventory levels higher on week
Platts assessed the CFR China styrene monomer and FOB
Korea markers Feb. 7 at $1,119/mt and $1,094/mt, up $21/mt and
$19/mt, respectively, from the previous trading day.
Discussions for Asian SM in the Chinese domestic markets
were heard to have increased in recent days despite higher
inventory levels in China, due to increased upstream benzene
prices amid a stronger FOB market due to the strength in US
markets.
SM stocks were heard to have increased in the week,
with sources attributing it to lower demand amid reduced
operating rates in downstream markets such as polystyrene and
expandable polystyrene.
SM inventory levels were at 129,000 mt in East China, an
increase of about 36,000 mt from the previous week, market
sources said.
However, prices for styrene monomer in Asia continued to
increase on the back of higher prices in upstream markets.
Furthermore, East China inventories fell on the week ending
Feb. 7 to approximately 42,000 mt, down 11,000 mt on the week,
market sources said.
In the upstream benzene market, the Platts-assessed
benzene FOB Korea and CFR China markers were at $1,032.33/mt
and $1,038/mt, up $9.66/mt and $9/mt on the day, respectively.
Asian benzene prices continued to rise on the fourth
consecutive day amid higher US prices and tight supply.
Crude futures strengthened during morning trading in Europe
Feb. 7, extending the gains made in the early hours of the session
as preliminary data showed a lower-than-expected build in US
crude inventories, S&P Global Commodity Insights reported earlier.
Overall, the ICE April Brent crude oil futures contract rose
$0.50/b on the day to $78.73/b on Feb. 7.
Following the rise in upstream benzene prices, there was
increased interest in SM futures on the Dalian Commodities
Exchange, market sources said.
The DCE EB2403 futures contract closed at Yuan 9,091/mt at
3 pm Singapore time Feb. 7, up Yuan 185/mt from the previous
trading day.
Platts is part of S&P Global Commodity Insights.
Platts Asian Styrene Monomer Daily Rationale
Plats assessed Asian styrene monomer up $21/mt on the day
at $1,119/mt CFR China and up $19/mt on the day at $1,094/mt
FOB Korea on Feb. 7.
There were no transparent bids and offers heard during the
Platts Market on Close assessment process.
The marker considers the third- and fourth half-month
laycans, currently H1 March and H2 March.
The CFR China marker was assessed up $21/mt on the day at
Polymerscan February 7, 2024
$1,119/mt based on stronger domestic prices.
The domestic China prompt marker was assessed Yuan 185/
mt higher at Yuan 9,130/mt on an ex-tank basis, which was around
$1,114.90/mt on an import-parity basis.
The FOB Korea marker was assessed up $19/mt on the day
at $1,094/mt, representing a spread against CFR China of minus
$25/mt based on tradeable indications.
The FOB China marker, which takes into consideration H2
February and H1 March, was assessed up $21/mt at $1,131/mt,
maintaining a spread with CFR China of plus $15/mt for the
© 2024 by S&P Global Inc. All rights reserved. 44
same period.
The CFR Taiwan marker was assessed up $31/mt on the day
at $1,154/mt, representing a premium of $35/mt to the CFR China
marker based on tradeable indications.
The domestic ethylbenzene market in China saw limited
activity in a slow market. Based on the change in downstream
styrene monomer, the China domestic ethylbenzene spot price
was assessed at Yuan 8,630/mt, up Yuan 185/mt from the last
trading day.
Platts is part of S&P Global Commodity Insights.
Polymerscan February 7, 2024

Polymer Feedstocks: Intermediates

Purified Terephthalic Acid Polymer Feedstocks – Intermediates

Weekly Spot
Asian PTA: Run rates drop as margins decline PTA FOB China ($/mt) 769.40
PTA CFR China ($/mt) 768.40-770.40
„ Chinese economy shows little improvement PTA CFR SE Asia ($/mt) 774.0-778.0
PTA CFR India ($/mt) 827.4-829.4
„ Slow Indian demand cushions hike in freights
EDC CFR FE Asia ($/mt) 344-346
Run rates for PTA plants in China are expected to drop on the EDC CFR SE Asia ($/mt) 359-361
EDC FOB NWE ($/mt) 363-367
back of weak margins and in the run up to the Lunar new year
EDC FOB USG ($/mt) 280-290
festivities, sources said.
PTA margins had shown some improvement over the past few VCM CFR FE Asia ($/mt) 589-591
weeks but have now weakened again, traders said. VCM CFR SE Asia ($/mt) 649-651
Earlier this week, China's Fuhaichuang Petroleum and VCM FOB NWE ($/mt) 678-682
VCM FOB USG ($/mt) 480-490
Petrochemical lowered the operating rate of its purified terephthalic
acid plant to 50% following weak margins, S&P Global reported Acrylonitrile CFR FE Asia ($/mt) 1234-1236
earlier. "PTA margin is so bad," a Chinese PTA producer said. Acrylonitrile CFR SE Asia ($/mt) 1234-1236
China's economy has also not shown any signs of recovery Acrylonitrile CFR South Asia ($/mt) 1309-1311
with tepid domestic consumption trends visible for now, the Acrylonitrile FOB USG ($/mt) 1335-1345
Acrylonitrile CIF ARA ($/mt) 1298-1302
producer added.
Platts assessed PTA CFR China down $3/mt on the day at Monthly Contract Price
$761/mt Feb. 2, in line with a fall in PX prices. PTA FD NWE (Eur/mt) (Feb) 782-792
PTA Delivered USG (¢/lb) (Dec) 61.44-61.44
An Indian source reported Polyester operating rates to have
VCM Delivered USG (¢/lb) (Feb) 47.25-47.75
been stable in the range of 77%-78%, compared with the week
Global ACN, European and US prices of EDC and VCM reflect assessments at close of
ended Jan. 23. Tuesday. PTA CFR China, PTA FOB China and PTA CFR India prices reflect average prices
An Indian buyer of PTA said that demand is not good, and for week ending previous Friday. All other intermediates prices reflect assessments at the
close of previous Thursday. US domestic prices reflect transaction pricing for medium-
supply is consistent, therefore prices of PTA are not expected to sized customers.
vary a lot despite the positive movement in freight.
A PTA seller to India explained that freights are higher but
spot demand is quite slow and they were not getting many spot
inquires, and that the spread between CFR China and CFR India
prices could be below $60/mt.
Another source said that "buyers have maintained some
inventories which could cover a few weeks into February, so
demand as of now in the domestic market is softer, but we
expect it to pick up in mid-February or later in February."
Platts is part of S&P Global Commodity Insights.

Platts Asian PTA Weekly Rationale

Platts assessed PTA CFR China down $3/mt on the day at
$761/mt Feb. 2, in line with the fall in PX prices.
The FOB China assessment was down $3/mt on the day at
$761/mt, in line with the PTA CFR China assessment.
In the Chinese domestic markets, prices were assessed Yuan
15/mt lower at Yuan 5,852/mt, above bids at TA 2405 plus Yuan 5/ Acrylonitrile
mt and below offers at TA2405 plus 10/mt.
PTA CFR India was assessed down $3/mt on the day at $820/ European acrylonitrile: Broad pricing spread
mt, below an offer heard at $830/mt FOB Taiwan, which can be as tight supply remains dominant market force
normalized to $857-$871/mt CFR India depending on freights heard
„ Divergence in buyer-seller pricing expectations
at $27-$41/mt, maintaining the spread with CFR China and CFR
India at $59/mt, following the spread indications heard at $45-$65/ „ Import supply remains tight in market, derivatives
mt from buyers and sellers amid limited spot discussions.
The CFR Southeast Asia assessment was down $18/mt on the European acrylonitrile spot prices were stable in the week
week at $776/mt, maintaining the spread with CFR China at $15/ ended Feb. 6, with a broad range of pricing clouding market
mt given freight costs from Northeast Asia to Southeast Asia at liquidity despite ongoing tightness of supply.
$10-$15/mt from a producer. A broad pricing range was heard from market participants
Platts is part of S&P Global Commodity Insights. across the week, with the lowest indication in Northwest Europe

© 2024 by S&P Global Inc. All rights reserved. 45

Polymerscan February 7, 2024
heard at below $1,170/mt CIF ARA, and higher levels indicated at
$1,350/mt CIF ARA from a producer.
This broad range of pricing limited the room for spot
transactions in the market across the week, with buyers and
sellers divided on their expectations for pricing.
Consequently, spot levels were stable on the week at $1,300/
mt CIF ARA, halting a four-week upwards pricing trend seen
since Jan. 9.
The lack of pricing movement stands in contrast to generally
tight market conditions across the week, with import supply
remaining reduced due to security tensions in the Red Sea.
"It's true that there is no import via the Red Sea due to these
issues," a trader said, but clarified that there remained "no
demand for spot material."
The primary impact on acrylonitrile from the Red Sea issues
was seen in the sectors downstream markets, with diverted
import cargoes of downstream products ABS and acrylic fiber
driving European consumers to domestic sources of material.
This trend has supported ACN market fundamentals, exerting
a slight increase on downstream producers needs for acrylonitrile
feedstock.
Platts is part of S&P Global Commodity Insights.
Platts European Acrylonitrile Weekly Rationale
Platts assessed the European acrylonitrile spot price at
$1,300/mt CIF ARA Feb. 6, unchanged on the week, below a
producer indication of $1,350/mt, in line with a distributor
indication of prices above $1,280/mt, weighing feedback of tight
supply against a trader indication of limited buying interest at
$1,170/mt, while tracking stable prices across the Asian market.
Platts is part of S&P Global Commodity Insights.
Platts US Acrylonitrile:
Spot prices rise amid quiet market
„ Domestic demand increases from 2023
„ Potential for supply to become tight
Spot export acrylonitrile prices on an FOB US Gulf Coast
basis rose $20 on Feb. 6 from the previous week, with domestic
contract levels remaining flat on the week.
A producer source indicated that tradable levels for domestic
acrylonitrile were around $1340/mt, and Platts assessed spot
ACN at that level on the day.
Domestic ACN contracts remained unchanged at 74.50
cents/lb.
At its current level, there is "not much incentive to produce,"
and ACN is most workable for "near export," according to market
sources, as Far East exports have been uneconomical due to high
shipping costs and long voyages.
Sources said competing in the Asian ACN market would cause
producers to operate "well below costs," and that it is "just not
worth it."
Demand was talked higher now than it was in the fourth
© 2024 by S&P Global Inc. All rights reserved. 46
quarter of 2023, and sources said the domestic ACN market was
"pretty much a regular market" now.
With many producers running low inventories due to previous
low demand, market participants said there was potential
to be very short into February and March based on current
inventory levels.
Upstream, Platts assessed January spot polymer-grade
propylene at 50 cents/lb FD USG, flat on the day and week.
Globally, the CFR Far East Asia ACN marker was assessed $95
lower than FOB USGC prices on Feb. 6, stable on the week at
$1,235/mt.
In Europe, Platts assessed the CIF ARA marker $20 higher on
the week at $1,300/mt.
Platts is part of S&P Global Commodity Insights.
Platts US Acrylonitrile Weekly Rationale
Platts assessed US spot acrylonitrile at $1,340/mt FOB US
Gulf on Feb. 6, up $20 on the week.
The assessment was based on tradable levels talked at $1340/
mt FOB USG.
The domestic ACN contract price was assessed at 74.50
cents/lb delivered, unchanged on the week.
The assessment was based on an industry-accepted formula,
considering the 49.50-cent/lb January chemical-grade propylene
contract settlement and January ammonia contract price of
$445/mt.
Platts is part of S&P Global Commodity Insights.
Asian ACN: Markets stay stable as buying wanes
„ Shandong Haijiang Chemical to keep Zibo plant run rate at 100%
„ Supply tightens in India
The acrylonitrile market in Far East Asia remained stable
in the week Feb. 6 as many buyers have completed restocking
ahead of the Lunar New Year holidays.
"The market is very quiet this week, buyers have finished their
buying," said a major producer in Northeast Asian that sold a
cargo at $1,310/mt CFR South Asia this week.
In plant news, China's Shandong Haijiang Chemical plans to
run its 130,000 mt/year ACN plant in Zibo, Shandong province,
at 100% in February, unchanged on the month, according to a
company source.
The company restarted the plant Dec. 10 following a planned
shutdown Nov. 1 and has been running it at full capacity since
then, S&P Global Commodity Insights reported earlier.
"We will continue to run our plant at 100% in February," the
company source said.
Restocking ahead of the Lunar New Year holidays and a lower
run rate among producers in Northeast Asia are expected to
provide support to ACN markets.
China's Jiangsu Sailboat Petrochemical plans to maintain an
80% run rate at its four 260,000 mt/year ACN plants in Lianyungang
in February, stable from January, a company source said Feb. 6.
Polymerscan February 7, 2024

The company is the largest ACN producer in China, with a total Platts assessed ACN CFR South Asia stable on the week at
capacity of 1.04 million mt/year. $1,310/mt Feb. 6, based on a first-half March arriving 2,000 mt
After a $20/mt rise last week, India ACN prices sustained parcel heard concluded at $1,310/mt CFR South Asia.
at the $1,310/mt level on the back of tight supply and higher The availability is tighter and local prices are increasing, a
discussions. source said.

Global Production Update

Company Location Capacity* Timing Status

Baystar Bayport, TX 625,000 HDPE Startup in progress, some production issues reported in Q1 2024 New
Bangkok Polyethylene Map Ta Phut 850,000 HDPE 9/1/2023 PL
Borouge Ruwais 1,400,000 PE 2025 New
CP Chem Jurong 200,000 HDPE July-August 2023 UN
Formosa Plastics Corporation Point Comfort, TX 939,000 HDPE Planned maintenance Feb-April 2024 TA
Formosa Plastics Corporation Point Comfort, TX 462,000 LLDPE Planned maintenance Feb-April 2024 TA
Formosa Plastics Corporation Point Comfort, TX 400,000 LDPE Planned maintenance Feb-April 2024 TA
GAIL Pata 100,000 HDPE 12/1/2022 UN
Guangdong Petrochemical Guangdong 400,000 HDPE Q4 2022 New
Guangdong Petrochemical Guangdong 800,000 HDPE/LLDPE Q4 2022 New
Hainan Petrochemical Hainan 300,000 HDPE Q4 2022 New
Hainan Petrochemical Hainan 300,000 HDPE/LLDPE Q4 2022 New
NOVA Chemicals Sarnia, Ontario, Canada 450,000 LLDPE Startup in progress New
PTT Global Chemical Map Ta Phut 300,000 LDPE 2/1/2023 PL
PTT Global Chemical #1 Map Ta Phut 400,000 LLDPE Apr-May 2023 PL
PTT Global Chemical #2 Map Ta Phut 400,000 LLDPE 11/1/2023 PL
SCG Chemicals Long Son 1,350,000 PE/PP Q1 2023 BN
SHARQ Saudi Arabia 400,000 HDPE Dec 2 022 PL
Shell Chemicals Monaca, PA 550,000 HDPE RS mid-Jan, remaining HDPE unit expected startup by mid-Feb 2024 RS
Shell Chemicals Monaca, PA 550,000 HDPE RS mid-Jan, remaining HDPE unit expected startup by mid-Feb 2024 RS
Shell Chemicals Monaca, PA 500,000 LLDPE RS mid-Jan, remaining HDPE unit expected startup by mid-Feb 2024 RS
Sinopec Shanghai 140,000 HDPE 12/1/2022 PL
Sinopec Shanghai 165,000 LDPE 12/1/2022 PL
Sinopec, INEOS JV Tianjin 500,000 HDPE end-2023 New

TA = scheduled turnaround; SD! = unplanned shutdown; SU = startup; DB = debottlenecking; OR = operating rate

Polymerscan
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© 2024 by S&P Global Inc. All rights reserved. 47

Polymerscan February 7, 2024
There is desperation for cargoes in the market and people
would book whatever deals they get, a trader said.
The ACN price in the domestic market was around $1,400/mt
on an import-parity basis, a source said.
Meanwhile, a buyer said the ACN price above $1,300/mt level
will not be sustainable in India and would fall in coming days as
demand is not strong.
Platts is part of S&P Global Commodity Insights.
Platts Asian ACN Weekly Rationale
Platts assessed CFR Far East Asia acrylonitrile stable on the
week at $1,235/mt on Feb. 6, above buy indications heard at
$1,200/mt from end-users and below sell indications heard in the
$1,320-$1,350/mt range from sellers.
Platts assessed CFR Southeast Asia ACN unchanged on the
week at $1,235/mt on Feb. 6, amid a stable adjacent market and
below a sell indication heard in the $1,320-$1,350/mt range from
producers.
Platts assessed CFR South Asia ACN steady on the week at
$1,310/mt on Feb. 6, based on a first-half March-arriving 2,000-
mt parcel heard concluded at $1,310/mt CFR South Asia. The
assessment considered tradable ideas heard in the $1,250-
$1,325/mt range and was below a sell indication heard in the
$1,320-$1,350/mt range from producers.
Platts is part of S&P Global Commodity Insights.
Ethylene Dichloride, Vinyl Chloride Monomer,
Chlorine
Platts European Chlor-Alkali, EDC/VCM: Med
caustic prices rise amid low local production rates
„ Spot prices rise amid tight supply, limited import flows
„ Med spot caustic prices rise due to tight supply availability
Caustic soda: European spot prices rose this week amid
tighter supply and firmer global monomer pricing. Southern
European spot prices were heard moving towards the $600s/
dmt, but with T1 duty free material heard in the mid $500s/dmt
CFR. Sources pointed to the reduced output as leading buyers
increased their offers in order to secure limited material.
"Duties are 5.5% on incoming material so high $400s would
be low $500s duty paid," a trader said. "But it's an unreasonable
price. You say T2 then refer to mid-$550s CFR, but CFR implies no
duties. I still see mid-$500s CFR i.e. before import duties and that
would be the low end."
Although chlorine supply remained in the long side. Caustic
supplies were lower on a month-by-month and year-on-year
basis. European chlorine production in December rose 18.6%
year on year to 609,418 mt, which was also 1.6% higher month on
month, data from industry body Eurochlor showed.
Capacity utilization in December was 60.9%, up from 51.7 % in
December 2022, the data showed.
© 2024 by S&P Global Inc. All rights reserved. 48
Caustic soda stocks in December, meanwhile, stood at 221,781
mt, 4.5% higher than November and almost 14% lower than the
December 2022 figure.
Eurochlor represents 38 member companies producing
chlorine at 62 manufacturing locations in 19 countries.
Chlorine producer Kem One has been running at reduced
operating rates across its French chlorine plants since the start
of 2024 amid technical issues and low chlorine offtake, with the
situation expected to last through February, a source at Kem
One said.
Demand has since recovered prompted by a jump in freight
costs since December, prompting buyers of imported product
to look to Europe as an alternative. This has had the impact of
lending support to pricing and giving Northwest European supply
length an outlet into the Mediterranean.
Although FOB export prices out of the continent had been
hovering around the $400/dmt mark, export pricing into the
Mediterranean was heard above this level on a FOB basis,
according to some trading sources.
Spot prices continued to firm in Southern Europe where
supply was more limited and amid longer transit times. The
disruption has affected the traditional transit routes via the
Panama Canal and Suez Straits, following geopolitical tensions in
the Middle East.
EDC/VCM: Spot prices in Europe rose on the back of limited
supply and higher import costs as the impact of the Red Sea
freight chaos continued to bite. In Asia, both EDC and VCM spot
prices rose, while in the US, VCM spot prices were firmer Jan.
30-Feb. 1, according to Platts data. CFR Far East Asia ethylene
dichloride prices rose $5/mt week on week at $345/mt Feb. 1,
while CFR Far East Asia vinyl chloride monomer prices increased
$20/mt on the week to $590/mt Feb. 1.
Platts is part of S&P Global Commodity Insights.
Platts European Chlor-Alkali, EDC/VCM Weekly Rationale
Platts assessed CFR Mediterranean caustic soda spot prices
up $20/dmt at $570/dmt Feb. 6, above an indication that placed
T1 material above the low-end of mid-$500s/dmt CFR Med on
Feb. 5, above a corroborated trader T2 indication heard in the
high $490/dmt CFR Med on Feb. 5, pending further corroboration
at higher prices, and on feedback of limited import re-supply.
Platts assessed FOB Northwest European caustic soda spot
prices up $10/dmt on the week at $420/dmt Feb. 6, moving in
the direction of a producer indication heard at $450/dmt FOB,
partially reflecting the rise in CFR Med prices, pending further
corroboration, and tighter European supply.
Platts assessed vinyl chloride monomer spot prices up $20/mt
on the week at $680/mt FOB NWE Feb. 6, on firmer global pricing,
in line with a rise in the US and Asian spot prices, pending fresh
FOB NWE indications, and on tighter global supply.
Platts assessed FOB NWE ethylene dichloride up $5/mt on the
week at $365/mt, in line with a rise in Asian spot prices, partially
reflecting the rise in European VCM spot prices, pending fresh
FOB NWE indications.
Polymerscan February 7, 2024
The chlorine contract price was calculated at Eur262/mt Feb.
6, up Eur44/mt from January.
Platts is part of S&P Global Commodity Insights.
US EDC/VCM: US spot VCM prices rise on week
„ US spot export EDC prices remain stable on week
„ US EDC spot export market activity thin: sources
„ US spot VCM prices rise, mirroring PVC increase
EDC:
US spot export ethylene dichloride prices held steady on the
week on Feb. 6 amid thin market activity.
Platts assessed spot export EDC prices at $285/mt FOB USG
on Feb. 6, stable on the week, in line with an indication heard at
that level.
Sources said EDC market activity overall remained thin, as
producers with downstream PVC operations had little incentive
to sell spot export material, with PVC prices steadily increasing in
recent weeks.
However, supply was seen tighter than usual as a result of
persistent logistics issues, mainly attributed to limited transits at
the Panama Canal, a source said.
In Asia, Platts last assessed EDC prices at $345/mt CFR Far
East Asia on Feb. 1, up $5 on the week, and at $360/mt CFR
Southeast Asia on Feb. 1, up $5 on the week.
In Europe, Platts assessed EDC prices at $365/mt FOB NWE
Feb. 6, up $5 on the week.
VCM:
US spot export vinyl chloride monomer prices rose on the
week on Feb. 6, in line with stronger downstream PVC prices.
Platts assessed VCM at $485/mt FOB USG Feb. 6, up $20 on
the week, mirroring the increase in US spot export PVC prices on
Jan. 31.
Platts also assessed domestic VCM prices at 47.50 cents/lb
Feb. 6, stable on the week, in line with stable downstream PVC
contracts.
The vast majority of spot export VCM is sold on contract in
Mexico, Colombia and Canada, leaving very little available for spot
deals. As such, prices tend to move in tandem with PVC.
In Asia, Platts last assessed VCM prices at $590/mt CFR Far
East Asia on Feb. 1, up $20 on the week, and at $650/mt CFR
Southeast Asia on Feb. 1, up $20 on the week.
In Europe, Platts assessed VCM prices at $680/mt FOB NWE
on Feb. 6, up $20 on the week.
Platts is part of S&P Global Commodity Insights.
Platts US EDC/VCM Weekly Rationale
EDC: Platts assessed US spot export EDC prices at $285/mt
FOB USG Feb. 6, stable on the week, in line with an indication
heard at that level.
VCM: Platts assessed US spot export VCM at $485/mt FOB
USG Feb. 6, up $20/mt on the week, mirroring the same rise in US
spot export PVC prices on Jan. 31.
© 2024 by S&P Global Inc. All rights reserved. 49
Platts also assessed domestic VCM prices at 47.50 cents/lb
Feb. 6, stable on the week, in line with stable downstream PVC
contracts.
Platts is part of S&P Global Commodity Insights.
Asian EDC/VCM/Chlorine:
EDC rises $5/mt, VCM up $20/mt
„ EDC hits highest since Aug 2022
„ VCM supplies seen tight amid plant issues
„ Asia's cost-based chlorine price at minus $97.90/mt
EDC: Asian ethylene dichloride rose $5/mt week on week Feb.
1, driven by firmer ethylene feedstock market.
Platts-assessed CFR Far East Asia EDC price rose $5/mt week
on week to $345/mt Feb. 1, the highest since it was assessed at
$350/mt on Aug. 11, 2022. Platts assessed CFR Southeast Asia
EDC price $5/mt higher at $360/mt during the same period, the
highest level since Aug. 4, 2022, when the price was assessed at
$390/mt.
Platts-assessed CFR Northeast Asia ethylene price rose $40/
mt week on week to $940/mt.
Market sources said due to limited deepsea supplies amid
logistics disruptions, Asian chlor-alkali producers are eying
to increase plant operations in a bid to cover deepsea supply
shortfall, which will also increase chlorine production.
Asia's cost-based chlorine production is calculated at minus
$97.90/mt, according to S&P Global Commodity Insights data.
Spot EDC demand was sluggish in FE Asia due to the Lunar
New Year holiday season. In addition, VCM production margin
from EDC is currently negative, which also kept spot EDC
demand scarce.
Asian VCM production cost is calculated at $687/mt, around
$100/mt higher than the current VCM price.
VCM: Asian vinyl chloride monomer rose $20/mt week on week
to $590/mt CFR Far East Asia and $650/mt CFR Southeast Asia
Feb. 1, buoyed by tight supplies amid an unplanned plant issue in
Northeast Asia.
Some market sources said VCM demand is not bullish due to
the Lunar New Year holiday season as well as unfavorable spread
with downstream polyvinyl chloride.
Platts assessed CFR China PVC price steady at $765/mt Jan.
31, with the price spread between PVC and VCM was calculated
at $175/mt, narrowing $20/mt from a week earlier.
Market sources said Asian PVC producers were reluctant to
buy VCM to increase PVC production due to gloomy near-term
outlook of Asian PVC market.
Platts is part of S&P Global Commodity Insights.
Platts Asian EDC/VCM/Chlorine Weekly Rationale
EDC: Platts assessed the CFR Far East Asia ethylene
dichloride price $5/mt higher week on week at $345/mt Feb.
1 based on a tradable value heard at $340-$350/mt CFR FE
Asia.
Polymerscan February 7, 2024
The Platts-assessed CFR Southeast Asia EDC price rose $5/
mt to $360/mt during the same period in line with firmer FE Asia
market.
Meanwhile, the Northeast Asia cost-based chlorine value was
calculated at minus $97.90/mt.
VCM: The Platts-assessed CFR Far East Asia vinyl chloride
monomer price rose $20/mt on the week to $590/mt Feb. 1 after
a tradable indication was reported by several market participants
at $590/mt CFR FE Asia.
A buying idea was heard at $550/mt CFR FE Asia against a
selling indication heard at $600/mt CFR FE Asia.
Platts assessed the CFR Southeast Asia VCM price $20/mt
higher at $650/mt during the same period based on a deal done
level reported at $650/mt CFR SE Asia.
Platts is part of S&P Global Commodity Insights.
Methyl Methacrylate, Poly Methyl Methacrylate
Asia MMA: Prices stable on limited buying interest
„ Market participants likely to be away amid Lunar New Year
„ PMMA rises on higher feedstock prices
Asian methyl methacrylate prices were stable in the week to
Feb. 7, as limited buying interest were heard in the market amid
the approaching Lunar New Year, sources said.
Platts assessed MMA CFR China unchanged on the week
at $1,625/mt Feb. 7, while the CFR Southeast Asia marker was
unchanged on the week at $1,705/mt Feb. 7.
Due to the Lunar New Year, many market participants are
© 2024 by S&P Global Inc. All rights reserved. 50
expected to be away in Asia with market activity likely to be
largely quiet during the week, a source said.
Early in the week to Feb. 7, offers were heard at CFR Kandla
$1,720/mt, 1,000 mt, March arrival, Chinese origin, a source said.
However, no trade deals or discussions were heard at that
offer level, the same source said.
Platts assessed the PMMA CFR China up $140/mt on the week
at $2,020/mt Feb. 7, and the CFR Southeast Asia up $20/mt on
the week at $2,150/mt Feb. 7.
An increase in selling indications was heard this week for
PMMA due to higher feedstock prices, and sellers' guidance was
firm, a trader said.
Platts is part of S&P Global Commodity Insights.
Platts Asian MMA Daily Rationale
Platts assessed the Asian methyl methacrylate CFR China
marker unchanged on the day at $1,625/mt on Feb. 7, amid no
new information heard.
Platts assessed the CFR Southeast Asia marker stable on the
day at $1,705/mt on Feb. 7.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <AMMAC00>, <AMMAS00>.
Platts Asian PMMA Daily Rationale
Platts assessed the Asian polymethyl methacrylate CFR China
marker unchanged on the day at $2,020/mt on Feb. 7, amid no
new information heard.
Platts assessed the CFR Southeast Asia marker stable on the
day at $2,150/mt on Feb. 7.
Platts is part of S&P Global Commodity Insights.
This rationale applies to symbol(s) <PMMAA00>, <PMMAC00>.
Polymerscan February 7, 2024

Subscriber Notes 10 days for cargoes delivered against a near-haul trade published
in the Platts MOC assessment process. There would continue to
Platts proposes to discontinue US PE, PP domestic contract be no sailing time restriction for long-haul cargoes. The sailing
price assessments time refers to the typical time taken from the loading port to the
Platts, part of S&P Global Commodity Insights, proposes discharge port.
to discontinue the weekly price assessments for US domestic Companies general terms and conditions (GT&Cs) are normally
contract polyethylene and polypropylene effective July 1, recognized provided they are consistently applied and accepted
2024, considering a lack of contract market transparency and as part of normal trading practice. Counterparties are expected to
consistency. perform on trades reported in the MOC based on typical GT&Cs
After the discontinuation date, Platts will continue to provide that have been applied and accepted by both counterparties in
insight into the domestic PE and PP markets as part of its export the open market. For more details about Platts' approach, please
PE and PP coverage. refer to the Platts assessment methodology guide. https://www.
The PE and PP assessments are currently published in spglobal.com/commodityinsights/plattscontent/_assets/_files/
Polymerscan, Platts Dimensions Pro/Platts Connect and Platts en/our-methodology/methodology-specifications/platts-
Market Center, as well as in the Price point database under the assessments-methodology-guide.pdf.
following symbols: Please send all comments, feedback, and questions to
Description Symbol $/mt conversion M.Avg petchems@spglobal.com and pricegroup@spglobal.com by
HDPE B/Mldg US Domestic Dlvd Railcar cts/lb
AALBL00 AASJG00 AALBM00 Feb. 20.
Weekly
HDPE Inj US Domestic Dlvd Railcar cts/lb Weekly AALBN00 AASJH00 AALBO00 For written comments, please provide a clear indication if
HDPE Film US Domestic Dlvd Railcar cts/lb Weekly AALBP00 AASJA00 AALBQ00 comments are not intended for publication by Platts for public
LDPE US Domestic Dlvd Railcar cts/lb Weekly AAGZN00 AASIY00 AAGNL00
LLDPE Butene US Domestic Dlvd Railcar cts/lb viewing. Platts will consider all comments received and will make
AAGZO00 AASIZ00 AAGNM00
Weekly comments not marked as confidential available upon request.
PP Homo Inj US Domestic Dlvd Railcar cts/lb
AAGZL00 AASJK00 AAGNJ00
Weekly
PP Fiber US Domestic Dlvd Railcar cts/lb Weekly AAGZM00 AASJL00 AALBS00 Platts launches Platts Industrial Materials Index Feb 1, 2024
Platts, part of S&P Global Commodity Insights, has launched
Please send any questions, comments or feedback the Platts Industrial Materials Index, effective Feb. 1, 2024.
by March 29, 2024, to petchems@spglobal.com and This index is published on Platts Live and represents a global
pricegroup@spglobal.com. price of some of Platts' key physical assessments of commodities
For written comments, please provide a clear indication if in the metals and chemicals sectors, used in industrial
comments are not intended for publication by Platts for public production.
viewing. Details of the new index and symbols are as follows:
Symbol Description Currency/UoM
Platts proposes changes to Asia PX assessment specifications PLINM00 Platts Industrial Materials Index $/mt
PLINM03 Platts Industrial Materials Index Monthly Average $/mt
Platts, part of S&P Global Commodity Insights, proposes to
update the methodology for its Asia paraxylene (PX) CFR Taiwan/
China assessment effective March 1, 2024. This is a daily weighted average index, in $/mt, of the following
The proposed changes aim to align with market feedback component assessments and indexes.
regarding standard market practice for credit terms and sailing Current
Currency/ UoM Assessment
times for near-haul cargoes delivered into the five ports reflected Commodity Assessment Symbol
UoM conversion frequency
weighting in
index
in the existing methodology. Global LDPE
Polyethylene AAXVR00 $/mt 1 Daily 8.475%
Index
Global PP
Credit terms: Polypropylene
Index
AAXVS00 $/mt 1 Daily 5.482%
Platts proposes to update credit terms for near-haul PX to 30 Purified
PTA FOB
days, in line with standard market practice for typical observable Terephthalic
China
PTFCA00 $/mt 1 Daily 3.668%
Acid
trading activity. Market information with non-standard terms Polyvinyl PVC Susp
PHAIT00 $/mt 1 Weekly 0.680%
may be considered for the assessment and may be subject to chloride FAS Houston
Polyvinyl PVC Susp
normalization to the standard terms. chloride FOB China
EBPVS00 $/mt 1 Daily 1.807%
ESBR 1502
Rubber AAWZI04 $/mt 1 Weekly 2.688%
Sailing time: CFR NE Asia
ABS Inj CFR
Additionally, Platts proposes to specify sailing time ABS
China
PHAHF00 $/mt 1 Weekly 0.670%

commensurate with the definition of the near-haul cargoes and Heavy

Melting
the proposed credit terms, as the voyage time for PX cargoes is Scrap Grade
Steel scrap TS01011 $/mt 1 Daily 14.287%
deemed as an important trading criteria for buyers and sellers. 1 and 2
Under this proposal, Platts expects a typical sailing time of up to 80/20 CFR
Turkey

© 2024 by S&P Global Inc. All rights reserved. 51

Polymerscan February 7, 2024

IODEX 62%
Iron ore
Fe CFR China
IODBZ00 $/mt 1 Daily 17.902% Platts launches three R-PET price assessments in
Prem Low North America and Asia
Coking coal Vol HCC FOB PLVHA00 $/mt 1 Daily 19.239%
Platts, part of S&P Global Commodity Insights, has launched
Aus
Copper three daily recycled polyethylene terephthalate assessments
CIF China effective Feb. 1, 2024, for the US Southeast and Southeast Asia
Copper Fixed Price MMCUC00 $/mt 1 Daily 12.987%
markets.
Equivalent
(All-in) The new assessments build on Platts' existing suite of
Aluminum US recycled polymers price assessments, adding further depth
Aluminum Transaction MMAAF10 cents/lb 22.0462442 Daily 12.115%
(All-in)
and granularity to the Platts market coverage across different
regions.
The weight of each commodity, to be reviewed and updated For the US Southeast market, Platts has launched new
periodically, is determined by the market value of the commodity daily US Ex-works Southeast region recycled polyethylene
relative to the total market value of all the commodities terephthalate assessments for curbside bottle bales and
represented in this composite index. clear flake, effective Feb. 1, 2024, to reflect current market
Market value is in turn approximated by the product of the fundamentals.
latest global production volume of the commodity and the latest In Southeast Asia, Platts has launched a daily FOB Southeast
two-year average price of the component assessment or index Asia recycled polyethylene terephthalate food grade pellets
selected to represent the commodity. assessment, effective Feb. 1, 2024.
For PVC, global production is further divided between the FOB The terms and specifications of the new assessments are as
China and FAS Houston assessments 3:1 according to the relative follows:
market sizes between China and the US, for the calculation of Post-Consumer PET
Recycled PET Clear R-PET food grade
their respective weightings. Description Bottle Bales Standard
Flake EXW Southeast pellets FOB SE Asia
Grade EXW Southeast
For ABS and steel scrap, global consumption volumes, as a Daily code APOSA00 APOSB00 PETF000
proxy for their respective global production volumes, are used to W Avg APOSA04 APOSB04 PETF004
M Avg code APOSA03 APOSB03 PETF003
calculate their weightings. Type Spot Spot Spot
For steel scrap, Platts estimates global steel scrap UOM Cts/lb Cts/lb $/mt
Basis EXW Southeast EXW Southeast FOB SE Asia
consumption using the global crude steel production number, North Carolina, South North Carolina, South
published by the World Steel Association, and a scrap Location Carolina, Florida, Carolina, Florida, Southeast Asia
Georgia and Alabama Georgia and Alabama
consumption ratio, derived from recycled steel consumption and Cargo size 35,000-44,000 lb 40,000-45,000 lb 20-200 mt
crude steel production in key countries and regions, published by Loading period 0-30 days 1-30 days 3-21 days
Mixed color, excluding
the Bureau of International Recycling.
black and solid colors;
The following table details the sources of the production or Color clear, transparent Clear Clear
consumption numbers used to calculate the weightings of each green, transparent
light blue bottles
commodity. Post-consumer,
Feedstock origin Post-consumer Post-consumer
Commodity Source curbside collection
Polyethylene S&P Global Commodity Insights Intrinsic viscosity N/A 0.72-0.78 dl/g Minimum 0.80 dl/g
Polypropylene S&P Global Commodity Insights Timing 4pm CST daily 4pm CST daily 4:30pm SGT daily
Purified Terephthalic Acid S&P Global Commodity Insights Publication schedule US US Singapore
Polyvinyl chloride S&P Global Commodity Insights
Rubber S&P Global Commodity Insights
ABS S&P Global Commodity Insights Price information for the material with other terms and
Steel scrap World Steel Association, Bureau of International Recycling specifications may be normalized to the above stated
Iron ore United States Geological Survey
Coking coal International Energy Agency standard.
Copper United States Geological Survey The new assessments will be based on firm bids, offers,
Aluminum United States Geological Survey
trades, and indicative values as well as any other data deemed
When a component assessment or index is not published on a relevant to the assessment process.
particular day, the price published from the previous working day The new assessments will be published in Polymerscan and
is used in the calculation. Asia Petrochemicalscan (Asia prices only), the Platts real-time
Platts announced the launch of the index Jan. 18, via a petrochemical service, Platts Connect and on the fixed pages
subscriber note available here, following a proposal Dec. 26, via a PC0624 (US) and PC409 (Asia).
subscriber note available here. Please send all comments, feedback, and questions to
Please send any feedback or questions to petchems@spglobal.com and pricegroup@spglobal.com.
pricegroup@spglobal.com. For written comments, please provide For written comments, please provide a clear indication if
a clear indication if comments are not intended for publication by comments are not intended for publication by Platts for public
Platts for public viewing. viewing.
Platts will consider all comments received and will make Platts will consider all comments received and will make
comments not marked as confidential available upon request. comments not marked as confidential available upon request.

© 2024 by S&P Global Inc. All rights reserved. 52

Polymerscan February 7, 2024

Platts proposes to launch MMA NWE DDP spot assessment Full details of Platts Asia Chemicals specifications can be
April 2 found here.
Platts, part of S&P Global Commodity Insights, is proposing Please send all comments, feedback, and questions to
the launch of a new daily DDP NWE methyl methacrylate spot petchems@spglobal.com and pricegroup@spglobal.com by
assessment, effective April 2. Feb. 16.
The proposed assessment would complement Platts existing For written comments, please provide a clear indication if
assessments for feedstock acetone in Northwest Europe. comments are not intended for publication by Platts for public
Under this proposal, Platts would start assessing MMA on a viewing.
daily basis, providing a weekly commentary. Platts will consider all comments received and will make
The assessment would reflect the product with the following comments not marked as confidential available upon request.
specifications:
Purity: Min 99.8% Platts to launch three new daily Ethylene Vinyl-Acetate DDP
Color APHA: Max 10 Hazen NWE spot assessments
Water content: Max 0.05% Platts, part of S&P Global Commodity Insights, will launch
Inhibitor: 10-20 ppm daily spot price assessments for three European ethylene vinyl-
Laycan: 3-30 days forward delivery acetate grades, effective March 1.
Basis: DDP NWE The assessments were first proposed in the subscriber
Location: Northwest Europe (Eur/mt) note below:
Quantity: 20-25 mt https://www.spglobal.com/commodityinsights/en/our-
All market information reported to Platts may be considered methodology/subscriber-notes/011024-platts-proposes-to-
and would be published, including firm bids and offers, trades launch-three-new-daily-ethylene-vinyl-acetate-ddp-nwe-spot-
and indicative values, as well as any other data deemed relevant assessments
to the assessment process. The daily assessments will be based on the latest
Please send all comments, feedback, and questions to information sourced from the market up to the close
petchems@spglobal.com and pricegroup@spglobal.com by of the assessment process at 4:30 pm UK time on a
Feb. 22. daily basis.
For written comments, please provide a clear indication if Details of the proposed assessments are as follows:
comments are not intended for publication by Platts for public Product specifications:
viewing. Platts will consider all comments received and will make Low EVA – below 10% vinyl-acetate content
comments not marked as confidential available upon request. Medium EVA – Between 10-25% vinyl-acetate content
High EVA – above 25% vinyl-acetate content
Platts proposes to discontinue redundant chemicals codes Laycan:
March 1 3-30 days forward from date of assessment
Platts, part of S&P Global Commodity Insights, proposes to Currency: Eur/mt
discontinue redundant chemicals codes, effective March 1. Cargo size: Between 25-100 mt lots for domestic business
Platts never databased any values against these codes Basis and location: DDP NWE
and there will be no impact on subscribers from this Mode of transport: Trucks
discontinuation. The assessments will follow the London publication schedule,
Platts would discontinue the following price codes: with weekly averages published every Wednesday.
Code Description The new assessments will be published in Platts Polymerscan
AAAZJ00 PP Copol HMI CFR SE Asia Weekly and on Platts Connect.
AAAZK00 PP Copol HMI CFR SE Asia MAvg
AAAZG00 PP Copol HMI CFR W Asia Weekly Please send all comments, feedback, and questions to
AAAZW00 PP Copol HMI CFR W Asia MAvg petchems@spglobal.com and pricegroup@spglobal.com.
For written comments, please provide a clear indication if
Platts will continue to provide a full coverage of propylene comments are not intended for publication by Platts for public
markets in Asia, and will continue publishing its Asia viewing.
copolymer grade polypropylene assessments under the Platts will consider all comments received and will make
following codes: comments not marked as confidential available upon request.
Code Description
PHAIA00 PP Copol CFR SE Asia Weekly Platts to launch European, US hydrochloric acid contract prices
PHBCI03 PP Copol CFR SE Asia MAvg
PHAHZ00 PP Copol CFR FE Asia Weekly Platts, part of S&P Global Commodity Insights, has decided to
PHBCJ03 PP Copol CFR FE Asia MAvg launch weekly hydrochloric acid contract prices for Northwest
AAAZA00 PP Copol CFR S Asia Weekly
AAAZB00 PP Copol CFR S Asia MAvg Europe and the US, effective Feb.6.

© 2024 by S&P Global Inc. All rights reserved. 53

Polymerscan February 7, 2024

Details of the new assessments are as follows: Platts reviews all methodologies annually to ensure they
US Europe continue to reflect the physical markets under assessment,
Basis and location: Delivered US Gulf Coast DDP Northwest Europe and regularly assesses the relevance of methodologies through
Long-term freely negotiated Long-term freely negotiated
Type:
contract contract
continuous contact with the market. Feedback on methodologies
Size: 5,000-15,000 st/year 3,000-5,000 mt/year is always welcome by Platts.
Delivered in current quarter Delivered in current quarter
Please send all feedback, comments or questions to
(Qr01) (Qr01)
Delivery period: petchems@spglobal.com and pricegroup@spglobal.com
Delivered in the following Delivered in the following
quarter (Qr02) quarter (Qr02) preferably by Feb. 29, 2024.
UOM: $/wet short ton (wst) Eur/liquid metric ton
Technical grade muriatric
For written comments, please provide a clear indication if
hydrochloric acid produced by comments are not intended for publication by Platts for public
Technical grade materials
burner or as a byproduct
produced as a by-product viewing. Platts will consider all comments received and will make
22 degrees Baume (HCL
Product specifications:
content:35.21%-36.95%)HCL
during polyurethane comments not marked as confidential available upon request.
production
content: 30%-33%
HCL content: 30%-33%
Iron content of less than 5.0 Platts backfills European December PX CP
ppm
Mode of transport: Truck or rail car Truck Platts, part of S&P Global Commodity Insights, has backfilled
the industry-settled European contract price for paraxylene
The prices will reflect contract prices for medium size deliveries in December in its database, following confirmation
customers, purchasing 5,000-15,000 st/year in the US and 3,000- that settlement was reached.
5,000 mt/year in Europe. The following symbols have been updated:
Pricing information deviating from the standard may be Paraxylene NWE CP AALHZ00 Eur960/mt
reflected in the assessments, subject to normalization. Paraxylene NWE CP AALHZ10 $1,063.58/mt
Platts defines a contract price as one freely negotiated against These are now available in Platts Connect, Platts Market
an annual commitment to supply or procure regular volumes. Center and Platts Market Data.
The assessments will reflect deliveries within specified Please direct any questions or comments to
quarters, reflecting both the direction of ongoing negotiations petchems@spglobal.com and pricegroup@spglobal.com.
and concluded deals.
All market information reported to Platts may be considered Platts to discontinue publication of monthly European PX
and would be published weekly, including firm offers and bids contract price
in negotiations and indicative values, as well as any other data Platts, part of S&P Global Commodity Insights, will discontinue
deemed relevant to the assessment process. the monthly industry-settled European paraxylene FD NWE
Platts will prioritize transparent and verifiable data that contract price, effective May 31, on limited participation in the
has been tested in the market and reflects the negotiated and settlement process for European contract prices since 2022 and
mutually-agreed absolute price. an increasing use of the Platts Asia Paraxylene CFR China/Taiwan
The new assessments will be published in line with each benchmark as a pricing reference by market participants.
regional publication calendar and will be based on the latest Platts first began publishing the industry-settled European
information sourced from the market up to the close of the paraxylene contract price in 2003 and recognizes that
assessment process every Tuesday at 1:30 pm Central time for participation in the PX industry-settled contract price mechanism
the US, and at 4:30 pm London time for Northwest Europe. has decreased since 2022.
Please send any comments or feedback to The decision follows a proposal published Dec. 11, which can
petchems@spglobal.com and pricegroup@spglobal.com. be found here: Platts proposes to discontinue publication of
For written comments, please provide a clear indication if monthly European PX contract price | S&P Global Commodity
comments are not intended for publication by Platts for public Insights (spglobal.com)
viewing. The discontinuation will affect the following symbols:
Platts will consider all comments received and will make Paraxylene FD NWE CP Eur/mt AALHZ00
comments not marked as confidential available upon request. Paraxylene FD NWE CP $/mt AALHZ10
The affected assessments appear on Platts Petrochemical
Platts invites feedback on its Asian chemicals specifications Alert fixed pages 375 on Platts Connect and Platts Market Center,
guide in Polymerscan, Europe and Americas Petrochemicalscan and in
As part of its commitment to open and transparent pricing the Platts database.
and product specifications, Platts, part of S&P Global Commodity Please send all comments, feedback and questions to
Insights, would like to invite feedback on its Asian chemicals petchems@spglobal.com and pricegroup@spglobal.com. For
specifications guide, posted online at https://www.spglobal. written comments, please provide a clear indication if comments
com/commodityinsights/PlattsContent/_assets/_files/en/ are not intended for publication by Platts for public viewing.
our-methodology/methodology-specifications/asia_pacific_ Platts will consider all comments received and will make
petrochemicals.pdf. comments not marked as confidential available upon request.

© 2024 by S&P Global Inc. All rights reserved. 54