Chemical Industry

Polyethylene foam is an important material with a wide variety of uses.
Polyethylene foam is an important material with a wide variety of uses.

 

The price of chemical products such as polyethylene (PE), polyvinyl chloride (PVC), and butadiene (BD) is on the rise.

According to the Korea Petrochemical Industry Association on June 18, the price of naphtha was US$982 per ton as of June 16, up US$36 from a week ago. The price plummeted in the first quarter and continued to fluctuate until recently. Now, it is showing an upward trend. 

Low-density polyethylene was valued at US$1586/t, a 1.6 percent week-on-week gain. The price of high-density polyethylene climbed 1.3 percent week-on-week to reach US$1521/t on June 16. PE prices slightly increased because of a rise in raw material prices like naphtha and ethylene, as well as decreased factory operating rates in Southeast Asia. 

Pxylene (PX) prices amounted to US$1336 per ton, up 4.3 percent from the previous week. The operation of new facilities has been delayed, since companies in Northeast Asia including Korea and China started regular maintenance. Growing concern about oversupply is another factor. Local firms lowered factory operating rates, and some Chinese companies are scheduled to begin maintenance work. Therefore, the price of chemical products is likely to increase further. 

Local PVC manufacturers are benefiting greatly from India’s anti-dumping ruling on Chinese products in April. In the case of synthetic rubber, the price of raw material BD has been stabilizing, and the price of synthetic rubber itself is on the rise, owing to an increasing demand stemming from the start of the tire replacement period.

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