Oil prices rose on Friday, registering the strongest weekly gains in more than a month as support from optimism over a U.S.-China trade deal, falling U.S. crude stocks and possible action from OPEC to extend output cuts outweighed broader economic concerns.
The U.S. PE industry has spent massive resources during the past decade to capitalize on abundant, low-cost raw materials that emerged from the shale oil and gas revolution. The hope was that the products produced would find a home in places like China, the fastest-growing PE market.
Data from ChemOrbis Price Index reveal that the gap between import PP and PE prices in China has been widening since around May due to the fact that the PP market has witnessed smaller drops when compared to PE.
Small rally in Vietnamese local PP, PE markets proves short-lived.
In Vietnam, domestic PP and PE markets enjoyed a brief respite from late September into early October. The resurgence from ten-year lows came on the heels of the oil disruption in Saudi Arabia, which sent shock waves into the markets.
Flex-feed crackers favouring LPG because of higher propylene.
A number of flex-crackers are likely to continue favouring liquefied petroleum gas (LPG) as a feedstock because costs for propane and butane remain at a relatively small spread to those for ethane and because of higher co-product prices for propylene.