MUMBAI (Commoditiescontrol) – Crude oil prices slipped weekend, extending losses after data suggested drilling was ramped up in the US, raising investor concern about how effective will be OPEC’s plan of cutting supplies. Earlier prices had jumped more than US$1 after Saudi Arabia’s Energy Minister Khalid al-Falih told the World Economic Forum in Davos, that 1.5 million barrels a day, of the roughly 1.8 million cut, were already been taken out of the market. However, US oil production was rising and filling the gap OPEC has left, as IEA forecast US output in 2017 to average of 12.8 million bpd. US crude futures for March delivery settled US cents 61 or 1.4 per cent up on the week at US$53.17 a barrel while European Brent was up US cents 3 at US$55.52 a barrel.
Polyester Intermediates
MEG markets in China extended their gains early in the week amid bullish outlook post-Lunar New Year and concerns about tighter supply in February. Prices were up although the market was quiet as Chins was off for the Lunar New Year holidays. Asian MEG was dearer by US$35 week on week, with CFR China at US$950-955 a ton while CFR South East Asia marker was up at US$952-954 a ton. In China, Sinopec retain its February MEG contract price nomination at 8,200 Yuan a ton (US$1,194 a ton), unchanged from January.
In US, MEG spot climbed to a fresh 18-month high as February contracts are expected higher with continued pressure from rising Asian pricing. Spot was assessed at US cents 39.75-40.75 per pound (US$876-898 a ton) FOB USG, up US cent 1.25 from last week. In Europe, MEG and DEG markets saw some firmer sentiment, but prices were not reacting to usual drivers as severely as expected due to mute end of year conditions. Spot climbed on bullish ethylene by Euro30 this week to Euro930 a ton FCA NWE.
PTA spot market activity in Asia was limited, with China mostly out, but price gains may continue into February. Prices rose on surging feedstock costs in India while Southeast marker, in turn, tracked the Indian market up. Prices were up US$11 week on week with CFR China at US$663-665 a ton and CFR Southeast Asia marker at US$678-680 a ton. The CFR India marker was assessed at US$682 a ton, based on trading indications.
In US, PTA spot prices were at a 15-month high at US cents 42.84 per pound (US$944.45 a ton) FOB USG, although down US cents 2.68 on the week.
Polyester chip markets were quiet as holiday atmosphere on Chinese Spring Festival and enquiring and trading were mute. In semi dull chip market, mainstream offers rolled over, and firm deal discussions were range bound. SB chip market mirrored the trend in SD chip market as offers rolled over amid insipid enquiring. CDP chip markets were quiet with mainstream offers higher in some cases, and firm deal discussions were range bound. In China, semi dull chip offers were up US$10 on the week at US$1,115-1,130 a ton, while super bright chip offers were up at US$1,095-1,115 a ton.
Nylon Intermediates
Caprolactum markets remained firm in China amid thin trading as the Spring Festival approached during the week and trading activities had mostly ended. Mainstream offers and trading values were firm. Asian markers were up US$50 at the lower end with SE and FE markers at US$2,000-2,050 a ton while East European goods were stable at US$2,000-2,050 a ton. In China, Sinopec hiked its February contract nomination to US$2,720 a ton, up US$65.
Nylon chip prices were lifted on firm cost support as benzene and caprolactum prices increased over the past two weeks. In China, bright conventional spinning nylon-6 offers were raised US$95 to US$2,795-2,880 a ton. Offers for semi-dull high-speed spinning chip were also raised US$2,895-2,925 a ton. Taiwan‐origin high-speed chip from majors were offered at US$2,300-2,350 a ton.
Acrylic Fibre Intermediates
Acrylonitrile prices surged further on tighter supply and rising feedstock propylene cost. However, weakening demand for downstream acrylic fiber limited the hike. Asian prices surged US$5-20 on the week with CFR Far East Asia at US$1,369-1,371 a ton while Southeast Asia gained US$5 at US$1,314-1,316 a ton. In India, ACN prices held stable at US$1,200-1,300 a ton.
In US, acrylonitrile spot surged US$135 on global tightness and supported by the significantly higher January propylene settlement. Export assessment were at US$1,285-1,295a ton FOB USG while spot prices were assessed US$100 higher at US$1,300-1,400 a ton FOB US Gulf.
European acrylonitrile fundamentals continued to support price rise with the rise in feedstock expectations. Spot prices were assessed at US$1,258-1,262 a ton CIF Mediterranean.
(By Commoditiescontrol Bureau; +91-22-40015522)