(1888PressRelease)
June 25, 2008 - Crude oil shed some of it gains as Saudi Arabia (World’s largest Crude oil Producer) announced it would increase production by 200,000 barrels a month. China intends on increasing fuel prices by 16 percent to bring fuel in line with international crude oil prices. The combination of these two factors helped crude oil shed some of its gains Europe Brent and US Light crude oil shed $3 and $2.8 respectively.
According to Reuters a plastics shortage in China will keep naphtha demand strong until year-end, but Asian interest in the feedstock will ease in 2009 with the start-up of new petrochemical plants in China and the Middle East. Naphtha Prices decline marginally owing to the decline in crude oil prices. Naphtha in Mediterranean and Singapore decline by US$9 and US$13 respectively. Prices in Japan and Rotterdam fell marginally by US$4 and US$6 respectively.
PSF prices increased another week of marginal price increases as the higher cost of raw materials increased overall production costs POY 75D in Malaysia and Indonesia increased 1 cent to US$1.60/kg.PFY prices in India rose remained steady after the previous week 20 cents gain at US$2/kg. Sustained high levels of crude oil prices have had a trickled down affect on PTA prices pushing them higher for a second consecutive week.
Shell successfully launched its first new Shell OMEGA (Only Mono-Ethylene Glycol Advanced) process technology plant. The plant uses catalytic conversion of ethylene oxide to monoethylene glycol (MEG) as opposed to the traditional thermal conversion technology. The Nippon Oil Paraxylene Plant is undergoing its scheduled maintenance from June 10 and will last for another 20 days.
Crude oil prices and operational prices have affected Paraxylene prices, pushing them upwards for a second consecutive week. Exxon’s nomination prices increased by $330 to $1,770 per contract, Indemitsu’s nomination prices moved in line by $290 to $1,770 per contract. Ethylene prices in Europe CIF increased by US$60 to US$1,675/ton. Ethylene prices in NE Asia and SE Asia increased by US$70 and US$75 respectively. Ethylene prices in NE Asia and SE Asia increased by US$80 and US$20 respectively.
China's production of plastics -- polypropylene and polyethylene used to make shopping bags, foam for cars, bottle caps and wire coatings -- has lagged demand since 2004, said Steve Zinger, managing director for Asia operations at Chemical Market Associates (CMAI). Benzene prices reacted immediately to crude oil prices decline. Benzene prices in Korea witnessed a $13 decline to $1,323/ton. While prices in US gulf decline by US$ 40 to US$ 1,218.
Propylene prices remained steady this week after Asia's propylene FOB Korea price, benchmark gained $85/ton on Last week to $1740/ton after a fire affected China's Sinopec propylene supplies. Viscose Staple Fiber remained steady this week. 1.2D dull VSF in India was at US$2.71/kg(1 cent lower). VSF in China fell by 1 cent to US$2.25/kg.
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