Traders are considering sending European ethylene cargoes to Asia for late May delivery amid weak European prices, as per sources in Platts. Market participants said they have been approached by several traders with selling indications around US$1450-1460/mt CFR Northeast Asia and in the low $1400s/mt CFR Southeast Asia. European ethylene prices have fallen due to abundant supply and weaker European naphtha. They have sunk US$44.25/mt since March 3 to US$902.750/mt CIF Northwest Europe. CIF Northwest Europe ethylene marker has fallen by over forty dollar in the same period to US$1218/mt. Asian ethylene prices were more than US$200/mt higher than the European market, at US$1460/mt CFR Northeast Asia and US$1440/mt CFR Southeast Asia Wednesday.
European ethylene was last offered to Asia in early February, when CIF Northwest Europe prices held steady at US$1217.50/mt for more than a week. That compared with Asian ethylene prices of US$1470/mt CFR Northeast Asia and US$1405/mt CFR Southeast Asia for the entire first week of February. Some Asian suppliers said they were concerned the European cargoes might cause a supply glut in May. "Maintenance will be over by then, and if these cargoes really come to Asia, our margins will be squeezed," said a producer in Northeast Asia.
28-Mar-14 
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