Asia petrochemicals: Key market indicators for Nov 15-19

For Asian petrochemicals, the week ending Nov. 15 is expected to be a mixed bag with some commodities seeing lower demand, while others seen trading in a range. Commodities markets will also keep a close eye on the virtual meet between US President Joe Biden and Chinese President Xi Jinping this week.

Market participants may look for signs of a thaw between the two countries, engaged in a trade war since 2018.

Isomer-MX

** Asian isomer-MX is in its typical low-demand season and gasoline blending demand in China is likely to remain sluggish for the time being.

** The price decline in MX saw its spread to naphtha hit its lowest on record Nov. 10 at $12.25/mt and end the week at $13.13/mt on Nov. 12, S&P Global Platts data showed.

** On a more positive note, the spread to paraxylene widened $35.67/mt week on week to $106.17/mt on Nov. 12, as PX rose $15.67/mt over the period to $923.17/mt CFR Taiwan/China.

Toluene

** Asian toluene prices are likely going to be softer as most buyers are well placed through to the end of the year, sources said. The prices have come off in line with poor demand.

** India requirements have slowed after the festivals-led buying, with port congestions and shipment delays continuing to plague trades.

** In Southeast Asia, December prices are looking weaker with demand slowing across the regions and with term negotiations underway.

Methanol

** Asian methanol prices could trade in a narrow range in the week of Nov. 14 in search of clearer price direction.

** Market participants felt the adjustment was an overreach when Chinese domestic methanol prices on Nov. 12 tumbled Yuan 180/mt week on week.

** Middle East methanol producers are expected to place more spot volume in Asia as Europe turns unattractive after prices fell from lofty heights last week.

Styrene

** Asian styrene monomer prices are likely to be pressured in December because of capacity additions.

** The margin for non-integrated SM producers in China are expected to be weak amid firm upstream prices and high freight cost.

** The non-integrated SM margin was calculated at negative $65.45/mt on Nov. 12.

PVC

** PVC prices would depend on fresh December offers by key players expected this week. For November, monthly offers were increased by $250/mt from a month earlier.

** For December, the outlook on monthly offers is mixed with some sources expecting the offers to fall by up to $100/mt on month, while others believe the offers may be steady.