Asian olefin prices gain despite soft sentiment

23-Oct-12
Spot olefin costs in Asia recorded increases over the week despite lower upstream costs and soft sentiments in downstream polymer markets, as per ChemOrbis. Spot propylene costs moved up slightly on the back of active buying interest, while ethylene prices soared owing to restricted spot availability. Crude on the Nymex fluctuated to close the week on a bearish note. Futures contracts represented a drop of nearly US$1.81/barrel for November delivery cargoes when compared to the previous week. Energy prices decreased by around US$2.43/barrel since the month of October started. Lower crude oil costs led to a volatile trend in the spot naphtha market in Asia with prices fluctuating for most of last week. Spot naphtha offers in Asia softened $10/ton on CFR Japan basis on a weekly basis although they held mostly steady with respect to early October levels. Despite soft upstream costs and unsupportive downstream polymer markets, olefin prices in the region recorded weekly increases owing to limited supply and active buying interest earlier last week. Spot propylene offers gained US$20/ton on FOB South Korea basis week over week. Market sources in the region reported a relatively active market scene before trading slowed down again. Demand from the end users’ side was reportedly muted in general given sufficient stock levels in line with limited activity in the downstream PP market. Meanwhile, prices still indicated a US$30/ton fall when compared to the beginning of this month. Spot ethylene prices recorded more significant gains with offers soaring by US$35/ton on CFR Northeast Asia basis on the week, as per ChemOrbis. Market sources attributed firmer offers to limited spot supplies in the region. When compared to the start of October, spot ethylene prices edged up around US$5/ton. Looking at the supply side, Mitsubishi Chemical shut its 476,000 tpa cracker in Japan earlier this month citing some power issues. Idemitsu Kosan was planning to restart its 623,000 tpa Tokuyama cracker at the end of October following a maintenance that started early last month. The cracker has a propylene capacity of 450,000 tpa Apart from these ongoing cracker shutdowns in Asia, several operators were running their crackers at lower rates. In Taiwan, CPC Corporation had cut the operating rates of its 380,000 tpa cracker to around 80-85% citing government inspections by late last month. The cracker is able to produce 193,000 tpa of propylene. In early October, Haldia Petrochemical lowered the capacity of its 670,000 tpa cracker to around 40% in the first week of October. The cracker produces 330,000 tpa of propylene.
  More News  Post Your Comment
{{comment.Name}} made a post.
{{comment.DateTimeStampDisplay}}

{{comment.Comments}}

COMMENTS

0

There are no comments to display. Be the first one to comment!

*

Name Required.

*

Email Id Required.

Email Id Not Valid.

*

Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.
*

Message Required.

Click to Change image  Refresh Captcha
Windmoller  and Holscher 5 layer cast film line

Windmoller and Holscher 5 layer cast film line