Japan Chemical Trading Blog
Prices of Petrochemical Products Falling Further in Asia
As has been repeatedly reported in this weblog, the price of every petrochemical product has been weakening since around this summer.
According to a Nikkei Newspaper article dated November 20, “the price of ethylene is USD1,200-1,240 per ton, down 20% since the summer, and the price of benzene is USD930-970 per ton, down 30% since June, when it marked its highest price”.
Although circumstances are specific to each product, all in all, the decreasing prices are due to the drop in demand for end products including resin, rubber, and paint.
This is all because there is a decline in house prices in China due to the downturn in the economy, leading to a drop in imports of raw materials for resin and the like.
Manufacturers of petrochemical products that implemented capital investments on the assumption demand would expand will be in a difficult phase for a while.