Spot ethylene prices on downtrend in Asia

29-Oct-13

Spot ethylene prices have recently started on a downtrend in Asia, now that concerns about tight supplies have started to ease, as per ChemOrbis. These recent falls have ended the steady upward movement of the spot ethylene market for ten weeks in a row across the region. Shutdowns at major crackers had supported the buoyant sentiment in the spot ethylene market following the return of Chinese players from a week-long holiday in the beginning of October. Spot values continued to move higher until mid-October, when the sentiment started to falter. The softening sentiment was more visible this past week given easing concerns about supply, players in the region reported. Spot prices on CFR Northeast Asia basis lost US$25/ton in the past two weeks. Although many crackers are currently offline for maintenance shutdowns, they are expected to be back latest by December, remark players. Taiwan’s CPC has restarted its 720,000 tpa No 6 cracker at Linyuan following a three week shutdown, and plans to reach full capacity soon at the cracker. Japan’s Mitsubishi and Mitsui, Taiwan’s Formosa and South Korea’s KPIC had all shut their crackers since early September, although their maintenance durations are nearing an end soon as per their original plans. Over and above the expected return of these crackers, several Middle Eastern cargoes are slated to arrive in December, according to players. This news also played a role in relieving the concerns about tightness, according to ChemOrbis.