rice of Ethylene-based polymers to remain high in India on continuance of feedstock supply tightness in Asia – 28 Feb 2014

Manufacturers of products based on PE, PS, PVC, EVA and ABS in India will have to continue to sustain high raw material cost pressure as there is no prospect for price of the key feedstock--Ethylene--going down in the Asian region. Price of the feedstock will, in fact, continue to remain high as some new maintenance shut-down of crackers in Asia are being planned, according to inputs received. 
 

In India, prices of the Ethylene-based polymers have been at high rates, driven by prices of the corresponding polymers going up in the Asian region, which was due to surging Ethylene prices, on supply issues. Readers can visit the International Prices section of the website to gain access to historical price trends in respect to the said polymers.
 

Many market participants expected price of Ethylene to moderate in Asia after idled plants resuming operations. But, the recent maintenance shut-down schedules have indicated that shortage of the feedstock will continue further, to prevent any decline in the feedstock price in the region. As a result of which, raw material cost pressure will continue further on manufacturers of PE,PVC,PS, EVA and ABS products in India.
 

According to a secondary source, Showa Denka, based in Japan, plans to idle its 690,000 tonne per annum cracker in March 2014; and China-based Shaghai Secco schedules a maintenance shut-down for its 11,00,000 per metric tonne cracker in the same month.