Two March loading NWE ethylene cargoes headed to Asia

04-Mar-14

Ethylene producers in Northwest Europe have fixed two cargoes to Asia for March loading driven by length in domestic market, the turnaround season in Asia and port congestion in the Middle East, as per sources in Platts. Europe, a net importer of ethylene, has already exported two vessels to Asia earlier this year -- Clipper Hermes and Clipper Helen. European-origin cargo of around 9,000 mt for end-April delivery was heard traded at US$1480/mt CFR China Wednesday, Asian sources said. Asian buyers were worried about affordability, with all derivatives margins in the red except for vinyl chloride monomer. CFR Northeast Asia prices were up US$18 week on week to US$1500/mt Friday. The main reason for the rise in the ethylene market is the upcoming steam cracker turnaround season in Asia over March-May, sources said. Congestion at the UAE port of Ruwais was adding to the tightness in the Mediterranean and Asia. "Our vessel should have sailed a week ago, but it is doing so tonight," an European buyer said. "If you are loading 12,000 mt at 100 mt/hour rather than the usual speed of 500-600 mt/hour there will be delays," he added. He added that it might be an issue at the port. Another source said it was a shortage of feedstock at Ruwais.