Spot ethylene, propylene lose ground ahead of Feb contracts in Europe
For ethylene, spot prices on an FD NWE basis dropped by around €40/ton at the end of last week after holding largely steady since the beginning of the month in spite of plunging energy costs at the time. Crude oil prices, which traded below $30/barrel last week, as well as muted buying interest in the region were cited as the main reasons behind lower ethylene prices.
Players are projecting a lower ethylene settlement for the approaching month, with their initial expectations calling for decreases from €40/ton to €80/ton with respect to January. This week, a distributor in Italy reported that he expects February ethylene contracts to settle around €70-80/ton lower.
Spot propylene prices registered a larger decrease compared to ethylene, plunging by around €65/ton as of the end of last week. The recent drop in propylene costs was attributed to weak spot naphtha prices, which were below $300/ton at the time before edging up in tandem with the recent gains in crude.
Similar to ethylene, propylene contracts are also awaited lower for February. Some players in Italy voiced their expectations of seeing reductions between €30/ton and €50/ton on the awaited propylene contracts.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian PS retains firming path on supportive upstream
- June PE outlook under discussion in Europe
- Taiwanese major lowers June PVC offers to Asia despite firm China
- Local PP markets cautiously firmer in Vietnam, Indonesia
- Global ethylene prices continue to defy energy rally
- China’s import polyolefin markets up on soaring crude, futures
- Step-back from initial rollover attempts for ABS in Europe
- Mixed expectations in Asian PVC markets ahead of Taiwanese major’s June pricing
- Global PET markets sustain bullish run on tightness, healthy demand
- PS markets follow divergent paths in Asia and Europe