Ethylene Prices in the Asian Markets Suffer Decline

The prices of Ethylene were assessed lower in the Asian markets despite the firm upstream crude and naphtha rates. The reason for the price decline seems to be weaker buying trends in the region coupled with bearish downstream polyethylene demand fundamentals. CFR North-East Asia ethylene prices were assessed at USD 1120 per tonne on Wednesday which showed a drop of USD 15 per tonne from Tuesday’s assessed levels. CFR South-East Asia Ethylene prices were assessed a lower USD 1030 per tonne.

On the supply side, the supply seems to be ample given that Shell’s cracker in Singapore with an ethylene production capacity of 1.15 million tonnes per year which was shut down for a maintenance turnaround in early November has come back online recently. The cracker also has a propylene production capacity of 500000 tonnes per year.

Ethylene is a colourless, odourless, extremely flammable compressed gas with a faintly pleasant odour. It shows slight solubility in water and in liquid hydrocarbons. It reacts with strong oxidants causing fire and explosion hazard. Ethylene is mainly used to make polyethylene. Low density polyethylene and linear low density polyethylene mainly goes into film production for food and non-food packaging. High density polyethylene goes into the blow molding and injection molding applications. Other major uses of ethylene are ethylene oxide (EO), ethylene glycol (EG), vinyl chloride monomer (VCM) for polyvinyl chloride (PVC) and styrene. The global demand for ethylene stood at around 150 million tonnes in 2020 and is expected to grow at a CAGR of 3.5% during the upcoming years till 2030.

As per ChemAnalyst, “the prices of ethylene which have fallen on Wednesday are expected to fall for another week till the last week of November as the supply is sufficient and the buying activity remains stagnant. The prices once reach to relatively low levels will tend to stabilize due to buyers looking for stocking up the excess ethylene in the market.”

Comments

Post a Comment

Popular posts from this blog

Global Poly Vinyl Chloride sentiment shivers on growing demand concerns

Image
Poly Vinyl Chloride sentiment has recently showcased mixed sentiments across global markets due to growing demand amid many factors that weigh on consumption in the month of April. The world’s largest PVC producer, China, has been partly experiencing pressure as the resurgence of Covid has hit demand for Poly Vinyl Chloride . Additionally, import offers in Turkey and Egypt markets have already seen a downward trend for the product. China’s domestic PVC market reflected weak demand conditions amid the extended lockdowns in Shanghai as prices softened this week. Manufacturers indulged in procuring stable offtakes in the domestic market as delays in export activity due to a shortage of containers for shipment led to a reduction in prices of several commodities, such as PVC. The activity was limited as players had put up a wait-and-see attitude before the announcement next week. The European Spot PVC market showcased a high price trend in comparison to other regions amid ongoing geopolit...
Read more

Acrylonitrile market follows divergent trends across the globe

Image
The market for Acrylonitrile has been depicting contrasting trends at different latitudes on account of distinct upstream cost and downstream demand in different territories. Acrylonitrile, produced from ammoxidation of propylene, is the upstream for ABS and Acrylic fibres. Hence, the fluctuations in the demand or prices of propylene and ABS majorly influence the market for Acrylonitrile. The Asian countries are witnessing a complete turnaround of Acrylonitrile prices from the other parts of the world, making them an exception. In Asian countries, the price of Acrylonitrile is falling, owing to the ample supply of upstream propylene. The stable to marginally lower demand for Acrylonitrile Butadiene Styrene (ABS) has also supported the price drop of Acrylonitrile in Asia. The numerical data from the continuing week confirmed the reports about this price dip. The evaluated price value implied a decrement of USD 5/MT from Monday to Tuesday in the ongoing week at FOB Korea and CFR China...
Read more

Agilyx Partners with Kumho Petrochemical on Chemical Recycling Plant in South Korea

Image
 Agilyx Corp. which is a major plastic recycling company in the United States, has announced a partnership with Kumho Petrochemical which is a manufacturer of synthetic rubber in South korea to develop and construct a chemical recycling facility in South Korea. The project will be using Agilyx’s unique and novel chemical recycling technology for the production of pure Styrene from post use Polystyrene price . The Styrene obtained from recycling will be used as virgin equivalent raw material to produce Solution Styrene Butadiene Rubber (SSBR) which is a major component for manufacturing tires. The project would include a new application for Agilyx’s  Polystyrene market demand price   depolymerization technology which is introduction of a new pathway for converting Polystyrene into SSBR. Agilyx is an early market leader in the advanced recycling of post use plastics which are difficult to recycle. Agilyx’s chemical recycling technology includes recycling of mixed plasti...
Read more