US polymer prices hit 17-year low while processors look to boost production of medical supplies.

⚫Berry Global has added capacity for polypropylene melted into fibers for specialized medical face masks in the US and Europe to help meet ever-increasing demand amid gloal coronavirus pandemic responses.

⚫Colombia's state-controlled oil giant Ecopetrol will invest Colombian Peso 48 billion ($12.5 billion) to fight the coronavirus pandemic in the country, allocating a large amount to the plastic industry.

⚫ExxonMobil has increased its capability to produce isopropyl alcohol, a key ingredient in many disinfectant and hand sanitizer products, by 3,000 mt/month at its facility in Baton Rouge, Louisiana. The additional volume of IPA is estimated to be able to facilitate production of up to 50 million 4-ounce bottles of medical-grade hand sanitizer, according to a press release by ExxonMobil.

⚫Mexican polymer producer Alpek has seen polyethylene terephthalate demand rise for plastic bottle production, particularly for water, as the global coronavirus pandemic spread across the globe, CEO Jose de Jesus Valdez said on Friday. However, Alpek expects 2020 polypropylene demand to be down 4% compared to the prior year given fallout from the global coronavirus pandemic on the automotive sector, Valdez said on Friday.

Petrotahlil — Polymer prices continued to slide this week, hitting levels not seen since 2003, while aromatics benefited from gains in the energy futures markets to see some rebounds.

Multiple firms this week announced plans to boost production for medical equipment as the coronavirus pandemic continues.

INFRASTRUCTURE

◼️TRADE FLOW

• Brazilian exports of polyvinyl chloride (PVC) products were up 205% year on year in March to 12,803 mt. The exports were valued at $8.9 million FOB. During March, the leading importer from Brazil was India, with 8,206 mt. Imports of PVC products in March increased 19% year on year to 27,303 mt, valued at $25.6 million. In March, Colombia was the leading exporter to Brazil, with 15,583 mt.
• Brazil's imports of polypropylene for both homopolymer and copolymer grades in March were down 35% year on year to 33,402 mt. Imports were valued at $40.7 million FOB. Exports of PP were also down 32% year on year to 14,926 mt, valued at $28.04 million FOB. The country exported 42,478 mt of PP last year, valued at $50.1 million FOB.
• Brazilian imports of linear low-density polyethylene (LLDPE) products in March were up 42.5% year on year to 53,389 mt, valued at $46.4 million FOB. During the most recent reporting month, the US was the leading exporter to Brazil, with 28,506 mt. Exports of LLDPE products fell 12.8% year on year in March to 22,017 mt. The exports were valued at $18.9 million FOB. During March, the leading importer from Brazil was Argentina, with 5,650 mt.
• Brazil's imports of low-density polyethylene (LDPE) products in March were up 0.8% year on year to 14,144 mt, valued at $14.6 million FOB. During the most recent reporting month, the US was the leading exporter to Brazil, with 7,726 mt. During March, the leading importer from Brazil was Argentina, with 2,982 mt.
• Brazilian imports of high-density polyethylene (HDPE) products in March were up 13% year on year to 25,480 mt, valued at $21.1 million FOB. During the most recent reporting month, the US was the leading exporter to Brazil, with 11,026 mt. Exports of HDPE products fell 29% year on year in March to 19,018 mt. The exports were valued at $19.9 million FOB. During March, the leading importer from Brazil was Belgium, with 3,227 mt.

◼️PRICES

Polymers:

• US spot MEG prices fell 0.50 cent on the week Friday to 14.15 cents/lb FOB USG.
• US HDPE film was assessed at $640/mt, the lowest level since July 2003. That's down 10.3% since January, 36.5% on the year.
• US LLDPE butene was assessed at $585/mt, the lowest level since January 2003. It was down 17% since January or 38% on the year.
• US Polyproplyene prices fell 9% on the week to $937/mt.
• US PVC was assessed at $610/mt, down $10/mt on the week.

Olefins

• US Mont Belvieu ethylene was assessed at 8.75 cents/lb Friday, up 9% on the week.
• US Mont Belvieu propylene was assessed at 24.25 cent/lb Friday, up 4% on the week.

Aromatics

• May NYMEX RBOB futures settled at 71.07 cents/gal Friday, up 3.8% on the week.
• US nitration-grade toluene was assessed at 101 cents/gal Friday, up 9% on the week.
• US mixed xylenes were assessed at 107 cents/gal Friday, up 9% on the week.
• US paraxylene was assessed at $490/mt, down 3% on the week.