Sunday 29 January 2017

Ehylene prices went higher due to limited supply

Asian traded ethylene went up between $30-$60/mt as on 27/01/2017. The CFR Northeast Asia marker hiked by $60/mt from Thursday to hit a five month high Friday, at the same period of time CFR Southeast Asia traded ethylene price increased by $30/mt went upto 3-months high. Due to olefins plant operations in China Asian ethylene market will be tightening in Feb-March. Some sources informed operation rates at methanol-to-olefins plants in China were falling due to high methanol price which made narrowed MTO margins. On Friday, the CFR China methanol price increased $6/mt day on day to be assessed at $342/mt. Ethylene demand in China noticed higher due to positive margins for ethylene derivatives production. Styrene monomer margin was assessing at plus $40-$100/mt,where monoethylene glycol margin was calculated at around plus $100/mt this week. Amid this, traders actively searching spot FOB cargoes this week due to coming demand from end users. An ethylene supplier in Northeast Asia said he received lots of inquiries for spot FOB cargoes from traders this week but not enough material to cater the demand. FOB ethylene supply was noticed short amid high run rates at ethylene derivative plants. The FOB Korea ethylene marker noticed up $35/mt week on week at 3-months high of $1,100/mt Friday. The price increased little at CFR SEA as spot supply was healthy in the region in line with a downstream plant turnarounds.
Price assessments: The CFR Northeast Asia ethylene noticed increased $60/mt on daily basis at $1,170/mt Friday. A deal was heard done at $1,155/mt CFR NEA, while the latest negotiation was heard in the high-$1,100s/mt CFR NEA. The CFR Southeast Asia ethylene marker was assessed at $1,035/mt, went up $30/mt day on day. A buying idea evaluated between $1,010-1,030/mt CFR SEA, against a selling assessments at $1,050/mt CFR SEA. The FOB Korea ethylene price increased $35/mt week on week to be assessed at $1,100/mt Friday. No spot cargoes were available from South Korea and regions at this offer for February, while two deals just rumoured  done at $1,100/mt FOB NEA for H2 February and H1 March loading.

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