Chemicals BiobasedFilm Composites
Crude Oil Prices Trend
LyondellBasell intends to raise April polyethylene (PE) prices in North America by 6 cents / lb (USD132 / t) on the back of higher propylene feedstock prices, according to the company’s letter to customers.
According to the letter, the increase is in addition to the company ‘s earlier announced price hike of 7 cents per pound in March.
The company also raised PE prices in North America by 4 cents / lb or USD88 / t in February on the back of higher ethylene feedstock.
Polyethylene demand has been strong since the start of the pandemic as changes in consumer behavior, including increased demand for food packaging and an increase in online shopping market share, have boosted demand for PE packaging.
Even before the recent winter storm in the US Gulf of Mexico, supplies were limited, which temporarily halted most of the US ethylene and polyethylene production facilities.
LyondellBasell intends to raise its April polypropylene (PP) prices in North America by 6 cents / lb (USD132 / t) on the back of higher propylene feedstock prices, according to the company’s letter to customers. Chemicals BiobasedFilm Composites
According to the letter, the increase is in addition to the previously announced price increase. For example, LyondellBasell raised its March polypropylene (PP) prices in North America by 6 cents per pound (USD132 per tonne).
And the increase was also in addition to any previously announced price increases, including the 6 c / lb increase that the company had previously announced in February.
PP demand has been strong in recent months on the back of continued growth in US manufacturing activity. Demand for non-durables such as packaging and filaments / fibers has been strong since the start of the pandemic, while demand for durables such as automotive parts and home appliances has grown in recent months.
Direct-spun PSF experienced sharp ups and downs like roller coasters alongside polyester feedstock after Spring Festival holiday. According to CCFGroup, direct-spun PSF price moved up from 6,250yuan/mt on Jan 30 to 8,075yuan/mt on Feb 26, with an increase of 29.2% in less than one month. Investment banks adjusted up assessment of crude oil price in Q2 successively, thus stocking up and reluctant selling spread along polyester industry chain from polyester feedstock to polyester yarn. However, polyester feedstock and direct-spun PSF started continuous decline since end-Feb, and the latter was even cut by one third of previous increase. Upstream and downstream players tasted mixed feelings when facing such a volatile market. Chemicals BiobasedFilm Composites
Difficult sales perplexed direct-spun PSF plants. Spot profit of direct-spun PSF reached 450yuan/mt at the lowest and 1,000yuan/mt at the highest, which was outstanding among polyester products to date. But currently downstream participants and middlemen hoarded a large amount of PSF, depriving the price advantage and resulting in hard sales of direct-spun PSF plants with sales ratio less than 10% in most of the time from early Mar to date.
10-year U. S. Treasury yields breached 1.5%, leading to the change of risk preference on the market. Risk-aversion mindset intensified on stock and commodity market worldwide. Price of many textile feedstock including spandex, nylon, polyester, cotton and viscose hiked after the Lunar Chinese New Year, and the increment of spandex was around 70% after Jan 1, 2021. Some downstream fabric mills on spandex market suffered apparent losses for orders taken earlier. Some middlemen also change operation strategy, turning to be active in selling and shortening stocks at hand. Negative feedback from downstream market escalated. Middlemen played weaker role as reservoir. Spandex companies have witnessed slower sales. How will spandex market fare later? Chemicals BiobasedFilm Composites
Operating rate of downstream market kept increasing in the first half of Mar. O/R of circular knitting plants and lace knitting plants in Zhejiang, Jiangsu and Guangdong was at 40-50%, that of cotton core-spun yarn, air covered yarn plants, conventional covered yarn plants and warp knitting mills rose to 60-80%. Some fabric mills turned to digest spandex purchased before with hiking spandex price.
Automotive seating supplier Adient said Friday it would sell its 50 percent interest in Yanfeng Adient Seating to its joint venture partner for $1.5 billion in cash, to pursue its strategy in China independently.
In turn, Adient will acquire YFAS’ 50 percent equity interest in Chongqing Yanfeng Adient Automotive Components and 100 percent equity interest in Yanfeng Adient Seating and consolidate those businesses. Chemicals BiobasedFilm Composites
Adient CEO Doug Del Grosso said in a statement the deals would offer an opportunity “to drive our China strategy independently and further position the company for future growth in the world’s largest automotive market.”
Adient designs and manufactures seating systems for passenger cars, commercial vehicles and light trucks.
The company, which operates in 32 countries, expects its China business to have nearly $4.5 billion in annual consolidated and unconsolidated sales after it has closed all deals.
Asian naphtha prices strengthening to an almost 12-month high as propylene prices weaken has narrowed the propylene-naphtha spread to a four-month low, S&P Global Platts data showed Jan. 13. Chemicals BiobasedFilm Composites
The spread between FOB Korea propylene and naphtha C+F Japan cargo assessments narrowed $7.75/mt day on day to $424.25/mt at the Jan. 12 Asian close. The spread was lower on Sept. 4, 2020, at $420/mt, Platts data showed.
The typical breakeven level for propylene production is around $250/mt, and the Asian propylene-naphtha spread has remained above this level since Jan. 9, 2020, Platts data showed.
Feedstock naphtha, used by steam crackers to produce propylene has been on a crude-driven price uptrend, which pushed benchmark naphtha C+F Japan cargo up $7.75/mt day on day to $525.75/mt at the Asian close Jan. 12, a level last higher on Jan. 24, 2020, at $531.75/mt, Platts data showed.
MEG prices were volatile in recently days and market sentiment was weighed by the weakness in oil and stock markets. Meanwhile, MEG spot availability increased as traders sold for profit takings. Spot/EG05 spread nearly halved compared with its previous high and MEG cash flow for naphtha-integrated units narrowed apparently from the high level of around $200/mt. Chemicals BiobasedFilm Composites
MEG prices surged since coming back from Chinese New Year holidays and spot/futures spread reached 525yuan/mt. The last bout of skyrocketing spot/futures spread was seen in mid-December 2019, at around 1,000 yuan/mt, affected by unit issue of Shell Singapore and ship channel closure in East China. Spot availability was much tighter in end 2019, but the rise was lower than that in this bout.
Spot MEG could be considered overvalued during the uptrend. When macro environment weakened, the decrease in MEG prices exacerbated despite healthy fundamentals.
Saudi Arabia’s bet that the golden age of U.S. shale is over appears to be a safe one — for now, at least. Chemicals BiobasedFilm Composites
A round-up of data on shale drillers shows they’re sticking to their pledge to cut costs, return money to shareholders and reduce debt. If they stay the course, it would validate the OPEC+ alliance’s high-stakes wager that it can curb output and drive crude prices higher without unleashing an onslaught of supply from U.S. rivals.
That’s still a big “if,” one that’s keeping the oil market on edge as crude’s rally makes it more tempting for shale producers to go back on their word. But the U.S. shale patch is showing little sign of a true comeback so far, and even a dramatic boost in activity would leave oil output below pre-pandemic levels until late next year. Drillers that have shown signs of straying from the script and boosting production have been punished by investors.
The transparent BOPET film uses a green and environment-friendly water-based coating formulation, applied through a gravure coating technology. Anand Prakash Gupta, head of innovations, Films at UFlex speaks to Rahul Kumar
The F-WSP film from UFlex is a transparent BOPET film with a water-based heat-sealable coating and a peelable surface on one side. According to Anand Prakash Gupta, head of innovations, Packaging Films at UFlex, the F-WSP film is suitable for all applications where packaging involves heat sealability and smooth peelability of the lid or pouch. Chemicals BiobasedFilm Composites
The film uses a green and environment- friendly water-based coating formulation, applied through gravure coating technology. The formulation has been created at UFlex’s R&D centre. The film is currently available at a thickness of 30-micron, which can be customised as per customers’ request.
Brand, textile and retail partners recognized for sustainability strides
Unifi, Inc. (NYSE: UFI), one of the world’s leading innovators in recycled and synthetic yarns, today announced the winners of its REPREVE Champions of Sustainability awards, which recognize brand, textile and retail partners that have demonstrated a true commitment to supporting a sustainable world. In its fourth year, a total of 93 companies are being recognized as REPREVE Champions of Sustainability, the most ever in the program’s history. This year, Walmart and H&M have each transformed more than a half billion bottles through their use of REPREVE, while VF Corporation and Levi Strauss & Co. have both now transformed more than 200 million bottles. Chemicals BiobasedFilm Composites
“Despite the COVID-19 pandemic, Unifi remains successful because of its customers,” said Unifi Chief Executive Officer Eddie Ingle. “With a nearly 20% increase in the number of winners from the previous year, our brand partners are demonstrating a steadfast commitment to sustainability. We want to thank them for their support for a more sustainable world during these unparalleled times.”
Chemicals BiobasedFilm Composites