Spot propylene in Europe, US carries highest premium over ethylene in several years
In Europe, spot propylene prices have been steadily rising since mid-March due to tight availability amidst a series of maintenance shutdowns and production hiccups across the region. According to the weekly average data from ChemOrbis Price Wizard, spot prices on FD NWE basis have posted a cumulative increase of €225-230/ton since the market turned bullish while they currently stand at a four-year high. Spot ethylene, on the other hand, has been mostly softening for the past three weeks amidst long supplies.
As a result of their divergent paths, propylene prices have moved above ethylene in around early May for the first time since March 2015. The premium that propylene carries over spot ethylene prices has recently reached €145/ton, the largest gap since mid-September 2014.
When it comes to the US, spot propylene prices on FD USG basis are currently trading with a premium of $815/ton over spot ethylene prices with the same terms. Last week, the premium of propylene was standing at around $885-890/ton, the highest spread since ChemOrbis began keeping records at the start of 2008.
Meanwhile, it is the opposite situation in Asia, with spot ethylene trading with a premium relative to propylene. According to data, spot ethylene prices on CFR Far East Asia basis have been consistently carrying a premium over propylene prices on FOB Korea basis since December 2013. The spread between the two products is currently standing at around $305/ton, up by $125/ton when compared to mid-May.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Will it be supply or demand to set PP, PE outlook in Europe?
- Premium of HDPE over LLDPE hits 16-month high in Turkey
- Post-holiday hikes carry China homo-PP market to 1-year high
- Asia PVC markets see longest rising streak ever on extreme tightness
- Africa polymers: October offers higher amid reduced availability
- Stable to softer PE trend prevails in Europe amid soft demand, poor netbacks
- Turkey’s PP and PE markets move up, but riddled with uncertainties
- India, SEA PVC markets unlikely to take respite from bullish run for November
- Southeast Asia PET markets move sideways during China’s absence
- Egypt’s import PE market up on tight supply, domestic offers follow suit