MUMBAI (Commoditiescontrol) – Crude oil prices declined nearly 1 per cent on 24 February on worries about rising US supplies which outweighed OPEC pledge to boost compliance with output curbs. However, prices were on a weekly rise as traders began to pull out barrels from pricey storage, with physical markets showing signs of tightening. The IEA has pegged OPEC's average compliance at a record 90 percent in January. European Brent crude oil was down 1 percent, at US$55.99 a barrel while US West Texas Intermediate fell 0.8 per cent to US$53.99 a barrel. But for the week, both benchmarks gained 0.3 percent and 1.1 per cent respectively.
Polyester Intermediates
MEG prices tumbles for second straight week
MEG prices tumbled further for the second consecutive week on lower demand and rising stock at Chinese ports. Falling downstream PET prices also influence MEG markets. Asian MEG marker was sharply down US$23 week on week with CFR China at US$865-870 a ton and CFR South East Asia at US$867-869 a ton. In US, MEG spot was set at new 21-month high as supply in the market was heard to be tight and goods moved to Asia with open arbitrage. Spot was up US cents 2 on the week at US cents 42-44 per pound FOB USG. European MEG prices were stable at Euro910 a ton as demand weakened while availability was described as tight.
Asian PTA prices fluctuates at lower level
PTA markets in Asia were under fluctuation and prices fell as raw material paraxylene cost fell. In China, offers were raised beginning of this week only to slightly weaken basically corrected midweek. Asian PTA markers fell US$11 week on week with CFR China at US$677-679 a ton while CFR Southeast Asia at US$689-691 a ton. In Europe, BP declared force majeure on Belgian PTA plants while European February contract price was assessed stable at Euro720 a ton. In US, February PTA price remained unsettled while January settled at a 17-month high at US cents 44.10 per pound (US$972.23 a ton), the highest level since in August 2015.
Polyester Chips
Polyester chip markets weakened in the week of 24 February after insipid trading over the week. Early this week, offer for semi dull chips dropped in line with the weakness in feedstock market and thin trade. Subsequently, as feedstock market extended weakness, some producers lowered offers, and discussions headed down. Asian marker for semi-dull continuous spinning fibre grade chip fell US$25 to US$1,225-1,275 a ton FOB Taiwan/Korea.
Nylon Intermediates
Caprolactum dearer on sustain demand
Caprolactum prices remained firm to up this week on the back of range‐bound benzene markets and sustained downstream demand. Offers for liquid goods moved up in China while mainstream values for solid goods stood firm. Asian SE and FE markers gained US$50 on the week at US$2,250-2,300 a ton. Sinopec settled its February contract at US$2,830 a ton, down US$60 from its nomination for liquid while Fibrant settled at US$2,840 a ton, down US$80 from nomination.
Nylon chips up on cost support
As caprolactum went up and with limited inventory, high‐speed spinning nylon chip maintained strong momentum while conventional spinning nylon chip softened. Downstream converters ramped up production, leading to rigid demand for nylon chip and thus active liquidity. Taiwan‐origin high-speed chip from majors were offered at US$2,550 a ton, up US$50 up on the week. In China, semi-dull high-speed spinning chip offers were hiked US$35 to US$3,060-3,160 a ton.
Acrylic Fibre Intermediates
Acrylonitrile surges on tight supply
Asian acrylonitrile prices were driven up again by tight supply and high propylene cost. The shortage was created by Shanghai Secco shutting its plant for turnaround from 20 February 20 to 25 March for maintenance. In China, spot prices continued to climb after one major announced monthly settlement higher, which fueled spot again and players were expecting further hikes. For the week, acrylonitrile prices increased US$30 with CFR Far East Asia at US$1,499-1,501 a ton while Southeast Asia at US$1,469-1,471 a ton. Indian ACN prices further rose US$20 on the week to US$1,520-1,550 a ton.
In US, acrylonitrile spot firmed up US$10 week on week, assessed at US$1,480-1,490 a ton FOB USG amid tight supply and anticipating propylene and ammonia CP could rise. European acrylonitrile rise showed no signs of slowing amid significant surge in global prices. Spot was up US$20 on the week assessed at US$1,478-1,482 a ton CIF Mediterranean while sellers aim for prices closer to US$1,600 a ton.
(By Commoditiescontrol Bureau; +91-22-40015522)