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[email protected] China Polyether Polyols Weekly Report
Version: 201314(20130408-20130412) URL: www.pudaily.com
(1$=CNY 6.19)
1. Weekly News Headlines
China's Q1 Auto Sales Top 5.42 Million Units
China's FAW Opens New Auto Plant in Jilin
Lanxess Buys PCTS Specialty Chemicals
Naphtha Prices Spoil the Mood in Polymer Markets2013-04
PTTCG, Pertamina Team Up for Thailand Integrated Complex
China Furniture and Its Components Exports Increased 34.2% Year on Year in March, 2013
2. Weekly Market Analysis
2.1 Summary
Weekly Polyols Markets Glance
Polyols market still sinks in the stalemate after ChingMing festival. Polyols transactions are insipid
as downstream buying market is bleak with only rigid demands and polyols distributers declare that there
are hardly any enquiries. As for polyols downstream market:: sponge factories’ demands for polyols are
limited as they have limited orders, automobile factories’ demands for polyols are normal, plastics track
factories’ demands warp up a little but it is not powerful to promote polyols market.
Polyols Facilities Latest Movement:
Table 1: China Polyols Facilities Latest Movement （Unit: KT）
Factories Locations Capacity Remarks
Fujian Fujian Fujian Meizhouwan Polyols facilities were shut down for
Meizhouwan Meizhouwan 50 maintenance on April 8 for about two weeks.
Shanghai Shanghai
Gaoqiao Gaoqiao 180 80% loads
Guangdong
CNNOC Shell Huizhou 220 normal
Jiangsu Jiangsu
Zhongshan Zhongshan 200 80% loads
NKGC Jiangsu Nanjin 130 80% loads
Shangdong Shandong
Dongda Zibo 200 70% loads
Dexin Lianbang Shandong
Zibo 330 70% loads
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Chinese Polyether Polyols Weekly Report 201314
Tianjin Dagu Tianjin Dagu 120 60% loads
Liaoning
Fangda Jinhua Huludao 150 50% loads
Table 2: Regional Prices for Polyether Polyols in China (RMB/ton)
Grades E-China S-China N-China Remark
This Week 12400-12600 12400-12600 12200-12300
Flexible Slabstock
Last Week 12400-12600 12400-12600 12200-12300 Bulk With Delivery
Polyols
Fluctuation n/c, n/c n/c, n/c n/c, n/c
This Week 13700-14000 13700-14000 13500-13800
Flexible Polyols (HR) Last Week 13600-13800 13600-13800 13400-13600 Drum With Delivery
Fluctuation 100，200 100，200 100，200
This Week 13500-13700 13500-13700 13400-13500
Elastomer Polyols Last Week 13500-13700 13500-13700 13400-13500 Drum With Delivery
Fluctuation n/c, n/c n/c, n/c n/c, n/c
This Week 11000-12000 11000-12100 11500-11800
Rigid Polyols Last Week 11000-12200 11000-12500 11500-12000 Drum With Delivery
Fluctuation 0，-200 0，-400 0，-200
This Week 14500-14800 14500-14800 14200-14500
POP (slabstock) Last Week 14500-14800 14500-14800 14200-14500
Drum With Delivery
Fluctuation n/c, n/c n/c, n/c n/c, n/c
This Week 14800-15000 14800-15000 14500-14800
POP (HR) Last Week 14800-15000 14800-15000 14500-14800 Drum With Delivery
Fluctuation n/c, n/c n/c, n/c n/c, n/c
Notes: ① Flexible Slabstock Polyols brands: 5623、5613、560S、3031K、5616, etc.
② Flexible Polyols (HR) brands: 330N、820、703、3603, etc.
③ Elastomer Polyols brands: 220, 210, etc.
④ Rigid Polyols brands: Conventional rigid Polyol 4110.
⑤ POP (slabstock) brands: 2045、2042; ⑥ POP (HR) brands: 3628、3630, etc.
⑦ n/c refers to “No Change”.
Flexible Slabstock Polyols
Flexible polyols transactions are insipid as downstream buying interests are low and PO prices
continuously decrease after ChingMing festival. At present, polyols suppliers sell the stocks fluctuating in
line with market changes with unsatisfactory transactions and downstream buyers make purchasing in
once a week or 15 days.
Flexible Polyols (HR)
This week, HR polyols market is still slack. Most downstream buyers make purchasing in small
deals and they are indifferent to high-priced stocks. Downstream buying interests become even lower
with PO prices’ decreasing and accordingly polyols suppliers limit their sale plans.
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Chinese Polyether Polyols Weekly Report 201314
Rigid Polyols
This week, rigid polyols quotations slightly decrease. Polyols suppliers are cautious about later
market as downstream demands are not as good as it has expected in spite of PO prices’ decreasing.
Polyols facilities run with no high loads and polyols stocks are hard to sell. At present, rigid polyols
mainstream negotiationprices are set at RMB 11500-11800/ton in N-China, RMB11000-12000/ton in
E-China, and RMB11000-12100 in S-China.
POP
This week, POP polyols prices haven’t changed too much compared with last week and high-price
transactions are insipid. Polyols suppliers intended to decrease the quotations before ChingMing festival
resisted buy downstream buyers. At present, POP mainstream negotiation prices remain stable and
downstream buying market demands are slack with only rigid demands. Till weekend, POP quotations
are cited at RMB 14500-15000/ton (DEL, drum).
Elastomer Polyols
This week, domestic elastomer polyols transactions outshine other polyols pulled by better
demands as downstream factories like plastic track factories witness better transactions due to
increasing temperature. But it is difficult for elastomer polyols market to remain upward trend as these
demands are not powerful enough to promote whole polyols market. Till weekend, mainstream
negotiation prices are cited at RMB 13500-13700/ton (DEL, drum) in E-China and S-China.
Graph1: Flexible Polyols Weekly Price Trend From 2010 to 2013(E-China)
26000 4700
22000 4100
RMB/ton USD/ton
3500
18000
2900
14000
2300
10000
1700
6000
Date Source: Pudaily.com 1100
2000 500
0
2
02 1 0
06 1 2
29 1 1
16 -1 2
-M 0
08 -11
-M 2
3
17 t-10
11 -10
22 -10
-N 1
20 -11
-N 2
-D 2
29 -12
03 -11
27 l-1
25 l-1
31 l-1
07 r-1
11 r-1
-1
-1
-1
-
-
-
-
un
an
eb
ay
ay
ar
ec
ov
ov
ec
ug
ep
ug
u
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pr
c
a
a
-J
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-J
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-M
-M
-M
-A
-J
-J
-F
-D
-A
-S
-A
12
25
02
28
Notes: ① RMB Price: East China/in drum
② USD Price: Drummed, CIF China
Table 3: Importing Prices for Polyether Polyols in China (USD/ton/Drum, CIF)
Types This Week Four Weeks Ago Fluctuation Origin
Flexible Slabstock Polyols 1830-1850 1800-1850 30, n/c S-Korea, America, Singapore
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Chinese Polyether Polyols Weekly Report 201314
POP (slabstock) 2050-2100 2050-2100 n/c S-Korea
Notes: ① Flexible Slabstock Polyols brands include: 5613、2025A、5616, etc.
② POP (slabstock) refers to 42-45% concentrations polymeric Polyols.
③ RMB Cost=USD CIF price *(1+17%)*(1+6.5%)*Exchange Rate+ Import Port Charge
(Only available for calculating the costs of China polyether Polyols imports. 17%: VAT
Rate; 6.5%: Import Duty Rate but Singapore with zero duty.).
Table 4: Exporting Prices for Chinese Polyether Polyols (USD/ton/Drum, FOB)
Types This Week Four Weeks Ago Fluctuation
Flexible Slabstock Polyols 1900-2000 1900-1950 n/c/+50
POP (slabstock) 2150-2200 2100-2200 +50/n/c
HR Polyols 1950-2050 1950-2050 n/c
Elastomer Polyols 1950-2050 1950-2050 n/c
Notes: ① Flexible Slabstock Polyols includes the MW 3000;
② POP (common-grade) refers to 42-45% concentrations polymeric Polyol;
③ HR Polyols: MW 4800-5000, such as 330N;
④ Elastomer Polyols: MW 1000 and MW 2000, such as 210/220.
⑤ n/c refers to “No Change”.
2.2 Quotes from Suppliers
2.2.1 Quotes From Domestic Suppliers
Table 5: Quotations by Flexible Polyol Producers (Bulk, Ex-factory/RMB/ton)
Capacity
Supplier Location This Week Four Weeks Ago Fluctuation
(10KT)
Shanghai Gao-qiao Petrochemical
18 Shanghai 12700 12700 n/c
Corporation PU Division
Fujian Meizhouwan Chlor-alkali
5 Quanzhou 12500 12500 n/c
Industry Co.,Ltd
Shandong Dongda Chemical
20 Zibo 12500 12500 n/c
Industry Co.,Ltd
Tianjin Dagu Fine Chemical Co.,Ltd 11 Tianjin 12500 12500 n/c
Fangda Jinhua Chemical
12 Liaoning 12300 12300 n/c
Technology Co.,Ltd
Jiangsu Zhongshan Chemical
12 Nanjing 12700 12700 n/c
Co.,Ltd
Nanjing KUMHO GPRO Chemical
13 Nanjing 12700 12500 200
Co.,Ltd
CNOOC and Shell Petrochemicals Guangdong
22 12400 12300 100
Co.,Ltd Huizhou
3. Weekly Analysis of Upstream Feedstock and Relative Applications
3.1 Crude Oil
Table 6: Weekly Crude Oil Pricing ($/bbl)
Date Nymex WTI IPE Brent OPEC Basket
2013-4-12 93.51 104.27 103.26
2013-4-5 92.7 104.12 103.1
Fluctuation 0.81 0.15 0.16
Notes: Futures prices for recent months.
3.2 Propylene
Table 7: Weekly Propylene Pricing Comparison
Date Shandong (RMB/ton) CFR China (USD/ton)
2013-4-12 9650-9750 1329-1331
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Chinese Polyether Polyols Weekly Report 201314
2013-3-29 9650-9700 1339-1341
Fluctuation 0，50 -10，-10
3.3 Weekly Pricing of Propylene Oxide and Ethylene Oxide
Table 8: Primary Raw Materials Prices of Polyether Polyols (RMB/ton, E-China)
Data PO EO DEG SM ACN
2013-4-12 11800-12000 10800-10800 8150-8200 12550-12600 12600-12700
2013-3-29 11900-12100 12600-12600 7750-7800 12400-12450 13000-13200
Fluctuation -100，-100 -1800，-1800 400，400 150，150 -400，-500
4. Market Forecast
It is predicted that polyols market will remain stable with small fluctuations in a short term under the
following two forces: On one hand, upstream PO prices’ decreasing weaken its support for polyols
market and downstream buying market cools off after its large replenishing during polyols prices’
decreasing. On the other hand, domestic polyols inventories decrease a lot and polyols market is in the
coordination of production and marketing.
Notes:
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