Ethylene Prices Drop in Asia's Soaring Asia

In the past week, as the cost of upstream resources such as energy and naphtha fell globally, the spot ethylene price went out in the opposite direction. The spot ethylene price in Europe fell, and the prices in Asia and the United States soared, mainly because of the U.S. in these regions. Supply is limited.

The price of crude oil for delivery in January on the New York Mercantile Exchange fell by nearly $3 per barrel last week, while the price of ICE Brent crude oil in January fell by more than $4 per barrel. In the same period, the price of naphtha in Asia also fell sharply. , CFR Japan prices fell by 15 US dollars / ton, European CIF northeastern Europe, naphtha prices fell by 25 US dollars / ton. In Europe, due to weakening of the upstream industry chain, the spot ethylene price fell by 20 EUR/t last week (FD Northwest Europe).

On the supply side, Repsol closed its 410,000 tonne/year cracker in Portugal, and Dow Chemical's 670,000 tonne/year cracker in Spain also encountered some production problems. In Asian and U.S. markets, although upstream costs have fallen, ethylene prices have risen due to supply issues, and transactions in these regions have been active. Last week, spot ethylene prices in Asia rose by 100 US dollars per ton (CFR Northeast Asia).

CFR South East Asia prices rose modestly, with an increase of only US$25/tonne, but still lower than US$80/tonne at the beginning of November. In the United States last week, news of unplanned production problems pushed up spot ethylene prices. According to reports, Shell Pipeline Company's ethylene leak occurred and declared force majeure. . As a result, spot ethylene prices in the United States soared by 2.25 cents per pound of FD USG, but were still lower by 1.5 cents per pound compared to prices in early November.