Ethylene and propylene spot prices have collapsed to a low not seen since December 2009 and January 2010 respectively, with both products falling on the back of the recent upstream slump creating oversupply, as per Platts. Ethylene and propylene were assessed at Eur705/mt and Eur758/mt FD NWE, at the start of the week, respectively. Naphtha prices were assessed at US$380.25/mt CIF NWE on Monday, after touching a near six-year low of US$377.50/mt CIF NWE Wednesday. The drop in spot prices followed the plunge in ethylene and propylene contract prices for January. Ethylene and propylene contract prices for January fully settled December 23 at Eur835/mt FD NWE and Eur880/mt FD NWE, down Eur120/mt and Eur130/mt on the month respectively, a low not seen for both since January 2010.
The overhang is not expected to ease with Versalis currently carrying out maintenance at its 490,000 m tpa steam cracker in Porto Marghera, ahead of a restart mid-February. Versalis' deal with Shell to supply it propylene and ethylene manufactured at its Porto Marghera cracker will run for 12-15 months, as per sources. In addition, Shell's 260,000 m tpa ethylene and 240,000 m tpa propylene steam cracker in Wesseling, Germany, is in the process of restart following maintenance that began in the middle of October, a company spokeswoman said
With both ethylene and propylene markets described as long by some sources, a pickup in downstream demand has not yet surfaced to change this following the vacation period. Low density polyethylene and polypropylene demand remained weak as some participants were said to be absent from the market, last week, following the holiday period, sources said.
15-Jan-15 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}