The price of plastic raw materials in Southeast Asia has increased up USD 20-30 per ton. It was following a refinery explosion in the tsunami that occurred in Japan. Consequently, to meet the needs, Japan imported from the Middle East and Singapore. Strengthening the price is predicted to last until April 2011.
The earthquake and tsunami in Japan had caused the price of light sweet crude fell to levels below USD100 per barrel. However, different conditions occur in primary products and intermedia, including naphtha, monomers, and polymers. Crude oil prices are down, but the price of naphtha, monomers, and polymers have increased.
Based on latest developments, naphtha prices move in position around USD950-980 per ton. Meanwhile, the position of USD1.475 monomer-1500 per ton, ethylene-USD1.250 1,300 per ton, the price of polypropylene in the range of USD1.750 per ton, while the polyethylene approximately USD 1.320-1350 per ton.
Polymer increased by about $ 20 per ton, while the monomer $ 30 per ton compared with last month. The earthquake and tsunami had damaged oil refinery facilities that have a production capacity of naphtha, ethylene, and propylene were approximately one million tons per year. It took about six months for Japan to restore the condition of the refinery, operated by Cosmo Oil Co. was.
On the other hand, the movement of prices of petrochemical products, especially propylene, polypropylene, and polyethylene, are caused by routine maintenance plan a few refineries in Singapore and South Korea. Meanwhile, ethylene prices began to fall as refineries operated on after undergoing routine maintenance. Ethylene supply, prices will fall, while PE, propylene, and PP remained high.
However, due to domestic supply problems, Japan is likely to deplete petrochemical products from various sources, including from the Middle East and Singapore. In normal conditions Japan is the State of export. With the present conditions they are forced to import from various sources. This can cause problems in the supply and demand so that prices would climb.
