Spot ethylene moves below $1000 in Far East Asia
As of the end of last week, spot ethylene prices on CFR Far East Asia basis plunged by around $45/ton on a daily basis and moved below the $1000/ton level, breaking this threshold for the first time since November 2016.
According to ChemOrbis Price Wizard, spot prices on a weekly average basis have lost around $200/ton since early May while they are currently standing at a year-to-date low. In late February, ethylene prices had hit an almost 20-month high. Since then, prices decreased a total of $366/ton on a weekly average basis.
Softening ethylene prices were attributed to the pressure from improving supplies in Asia as the maintenance season is about to end in line with the restarts at several regional crackers.
Sources close to South Korea’s KPIC reported that the producer restarted its cracker in Ulsan after a planned maintenance that started in mid-April. The cracker has a production capacity of 470,000 tons/year of ethylene. According to market sources, the producer also conducted an expansion work during the maintenance. The cracker’s ethylene production capacity is expected to increase to 800,000 tons/year.
For further updates, you can visit ChemOrbis PE Production News in order to track capacity changes around the world at a glance and keep on top of new capacity additions.
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