Asia’s spot ethylene market extends losses, hits 2-month low
Despite the fact that the tightness persists amid ongoing shutdowns or reduced operating rates at some Asian crackers, improving supplies from overseas markets have weighed on the spot market over the past week, traders reported.
Asia’s ethylene market has offered better netbacks to global sellers for the past couple of months on the back of a relentless upward climb which was in place for nine consecutive weeks until the downward trend kicked off two weeks ago.
According to weekly average data on ChemOrbis Price Wizard, Asia’s premium over Europe’s ethylene market reached as high as $230-235/ton in around mid-June, which attracted more overseas attention to the region.
Apart from the pressure from increasing non-Asian supplies, spot ethylene prices have also been dragged down by the fact that several PE producers in the region, particularly in Southeast Asia, have reduced their operating rates in the face of negative margins, which has helped supply levels of ethylene slightly improve.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- China’s PP market set to receive massive capacity additions in 2019
- PS recovery continues in Asia amid slowly rising styrene prices
- Restriction on shopping bags exerts pressure on PE demand in Turkey
- LLDPE moves below €1000/ton in Europe, eyes on awaited US PE cargoes
- Import PVC soars to 4-month high in China, India
- European PET erases hefty gains of 2018, notching 4th month of weakness
- SE Asia PP market likely to remain under pressure amid upcoming capacities
- Saudi major issues drops for January in global PE markets
- PS producers’ January offers defy lower styrene in Europe
- Asian PVC market holds firm prior to Feb announcement