A Review of Polyether Polyols Markets in Southeast Asia and India in 2017
2018-01-05    [Source:PUdaily]
share:

PUdaily, Shanghai-- Time flies! The New Year has come. But what change happened in foreign polyether polyols markets in 2017. Today, PUdaily will present you a review of the polyether polyols markets in Southeast Asia and India in 2017.

1. General market trend

In the first half of 2017, polyether polyols markets in Southeast Asia and India remained stable, with little fluctuation. But in early September, the market rallied sharply and the price remained high until the end of the year. In 2017, the average price for slab polyols in Southeast Asia is about USD 1,510/ton, up about USD 80/ton from 2016, or 5.5%. Meanwhile, the average price for slab polyols in India is about USD 1,580/ton, up about USD 110/ton from 2016, or 7.8%. The highest prices in Southeast Asia and India markets were both seen in October.

2. Market analysis

In January, there was fierce competition among local major polyether polyols suppliers, particularly those in Indonesia and Malaysia. Meanwhile, downstream demand was sluggish. All this made the price of polyether polyols stay low, and slab polyols price in Southeast Asia is heard at around 1,400 USD/ton CIF in drum. When it comes to the market in India, as both supply and demand were sluggish, and buying offer stayed low, the CIF price in drum for slab polyols was heard at about USD 1,450/ton. In February, the price of propylene oxide in Asia rose sharply by more than USD 100/ton, forcing the polyether polyols manufacturers to raise their prices. Into April, Thailand's New Year holiday arrived. At the time, the price of TDI was high, which met strong resistance from downstream manufacturers. The polyether polyols markets were indirectly affected, and the downstream purchasing enthusiasm was dented. At the end of April, the Indian government announced an anti-dumping duty of USD 135.4/ton on slab polyols from Dow Thailand. However, as downstream manufacturers made purchase on the basis of rigid demand, the market was still tepid. Previously, the Indian government only imposed an anti-dumping duty on slab polyols from Shell Singapore, with a tax rate of USD 68/ton. In May, Indonesia celebrated the traditional Lesser Bairam. Meanwhile, Thailand entered its rainy season. As a result, the demand for polyether polyols declined. But Indian market began to pick up as downstream manufacturers increased purchase of polyether polyols in preparation for Diwali.

Into the second half of the year, due to the impact of the U.S. hurricane occurring at the end of August, Covestro America declared force majeure on the delivery of its polyether-polyols products, which resulted in restricted supply of polyether polyols in Southeast Asia and India. Added to that is a tight supply of PO. Consequently, the price of polyether polyols surged in September. The CIF price in drum for slab polyols in Southeast Asia was heard at USD 1,630-1,700/ton, up about USD130/ton than August. And the CIF price in drum for slab polyols in India was 1,750-1,800 USD/ton, up about 200 USD/ton than August. With the arrival of winter, both Europe and China saw a "gas shortage" in December, resulting in intense speculation of chemicals. At the same time, there was a shortage of PO in China. All this boosted the price of polyether polyols. Against this backdrop, price of polyether polyols in south-east Asia and India were pushed up and remained high until the end of the year.

3. Market outlook

In 2017, the capacity for polyether polyols in Southeast Asia and India amounted to 657,000 tons. Plus the 400,000 tons/year capacity of polyether-polyols facilities put into production by Sadara in July, the total capacity aimed at this region has reached 1.05 million tons/year. It is reported that the annual consumption of polyether polyols in Southeast Asia and India is around 400,000 tons. Thus, the problem of overcapacity has become prominent.

From April to June of 2018, some of the main PO manufacturers in Asia will carry out maintenance, involving production capacity of over 3 million tons. So, the supply of polyether polyols is bound to be affected, and thus the price will probably remain high.

For more information about the polyether polyols markets in Southeast Asia and India in 2017, please subscribe to our 2017 Southeast Asia & India PU Yearly Report.

Subscription Hotline: 021-61250986 Miss Tan

Copyright Statement: 2005-2018 Suntower Consulting Limited. All Rights Reserved. The material including but not limited to text, photo, multimedia information, etc on this site may not be reproduced, modified or used in any form without the original author or copyright holder's permission. PUdaily is a member of Suntower Consulting Limited.

Any questions please contact at email: Lucy.tang@pudaily.com; Tel: 021-61250980

Disclaimer: This information published in this website is only for reference and no responsibilities or liabilities will be accepted by PUdaily for commercial decisions claimed to have been based on information.

About Us  |  Feedback  |  Clients  |  Contact
Tel: 0086-21-61250980 E-mail: info@pudaily.com Fax: 0086-21-61159277
© 2007 Suntower Consulting Limited.  All Rights Reserved  沪ICP备07503201号 gs沪公网安备31011202002186号