In an unprecedented move, arbitrage windows for three olefins open at the same time

23-Apr-14

For the first time, arbitrage windows for the three olefins - ethylene, butadiene and propylene, are open at the same time. With arbitrage windows between Asia, Europe and the Americas open for the three main olefins, traders are looking to move cargoes on rare routes and at lower freight rates between the three major markets, as reported by Platts. The ethylene arbitrage window for cargoes coming from Europe and Mexico to Asia opened in February first and then shut for a while to reopen in end March and it has remained opened since then. The propylene arbitrage window from Asia to Europe opened in the beginning of April and has remained opened till now, while the butadiene arbitrage window from Asia to the US has been open since early February till now. This is possibly the first time that the arbitrage windows for all the three olefins are open at the same time," said a trader April 15. In this rare trading situation, freight costs for the routes have dropped as well. "It is possible to get lower freight rates on rare routes as these vessels can load other material on their way back," said a Southeast Asia-based source.