In Asia, ethylene prices witnessed modest decreases during the past week. According to players, prices were $10/ton down on CFR Northeast Asia basis at $1170/ton while they inched down by $5/ton to reach $1135/ton on CFR Southeast Asia basis at the end of last week. FOB South Korea based offers also witnessed a slight weekly drop of $5/ton during the same period to be pegged at $1165/ton. These small drops were mostly attributed to slow demand amidst limited trading activities. Meanwhile, several players commented that reduced operating rates at some regional crackers prevented larger decreases on spot ethylene prices.
In Europe, a trader reported that spot ethylene prices decreased by around €10-15/ton on a weekly basis to reach €910/ton on FD NWE basis at the end of last week. Players stated that the recent losses in spot ethylene costs were mostly triggered by the soft PE outlook amidst ample supplies as well as bearish near term expectations.
In the US, spot ethylene prices retreated by around $8/ton (0.375 cents/lb) on a weekly basis at the end of last week to be quoted at $546-557/ton (24.75-25.25 cents/lb) on FD USG basis. Approaching restart dates of several crackers and the upcoming launch of Ineos’ new Texas steam cracker were cited as the main reasons behind lower spot prices.