Ethylene in Asia climbs past US$1000/ton - to 3 month high

10-Nov-15

Ethylene prices in Asia has climbed above US$1000/ton for the first time in three months as concern over the impact of the Chinese economic slowdown has receded, as per asia.nikkei.com. Ethylene spot price has risen by US$170- which marks a 20% increase from the six-year low marked in early September. With Chinese petrochemical plants operating steadily following the National Day holiday week in October, concern over a drop in demand has eased for now. South Koreans and others have increased procurement on the spot market. Major petrochemical companies in Japan foresee only a limited impact on demand from the Chinese economic deceleration, as a Tosoh official notes. A Mitsui Chemicals staffer also says the effect should be minimal, with China accounting for just 10% or so of overall sales. Exports of polyvinyl chloride has been brisk. "India is now the center of Asian demand, and we have already taken the Chinese slowdown into account," says an official at the Vinyl Environmental Council. While ethylene demand has leveled off at home, Japanese petrochemical companies' exports of the feedstock and products derived from it have remained high.