Asian ethylene, propylene prices move higher on tight supply

18-Dec-13

Spot ethylene and propylene prices posted increases in Asia this week, as per ChemOrbis. Tight supply in the region has been cited as the main reason behind the rising prices, while spot CFR Japan naphtha prices have not seen major changes from last week. Spot ethylene prices on a CFR Northeast Asia basis climbed US$35/ton on the week. Spot deals for propylene were also concluded with increases of US$30/ton on a CFR China basis and US$25/ton on an FOB South Korea basis. The tightness in ethylene and propylene avails is expected to continue throughout Q1-2014 due to a number of planned maintenance shutdowns in the region. Japan’s Asahi Kasei is planning to shut the 470,000 tpa Mizushima steam cracker for turnaround in February 2014 for 55 days. Japan’s Showa Denko is expected to start a maintenance shutdown at their naphtha cracker in Oita in the middle of March. The 695,000 tpa cracker is scheduled to remain offline between March 13 and April 25. China’s Shanghai Secco Petrochemical is mulling shut down of its naphtha-fed steam cracker for maintenance in March. The cracker has a capacity to produce 1.1 mln tpa of ethylene and 500,000 tpa of propylene. Market sources said that the shutdown could take longer than a month and added that the downstream units at the same site may also be shut in line with the cracker. According to ChemOrbis, South Korea’s Lotte Chemical is expected to conduct a brief maintenance at the Daesan cracker in in March. The naphtha-fed steam cracker, which has a capacity to produce 1 mln tpa of ethylene and 500,000 tpa of propylene, is expected to remain offline for four days. Sources said that the company will also start a four-day turnaround in May at its Yeosu cracker with capacity to produce 1 mln tpa of ethylene and 480,000 tpa of propylene.