Weekly report on the market price of ethylene, pro

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Weekly report of ethylene/propylene/butadiene market price in Asia Pacific region

week (up to)




fob South Korea

cfr Northeast Asia

cfr Southeast Asia

cfr Northeast Asia

cfr Southeast Asia

cfr Southeast Asia

august 17/p>

august 24



Market Overview:


Market Overview: the price difference between Northeast Asia and Southeast Asia narrowed this week. The trading in Northeast Asia market has slowed down significantly. As buyers are cautious about completing the low-speed and high-precision transformation, it is expected that the price will decline further in October. The weakness of polyethylene market is the main factor driving the trend of ethylene market this week. Traders said that the demand for storage capacity from South Korea and Japan increased significantly this week, but the details are unknown. In the Southeast Asian market, the only batch of shipping sales tenders from Iran are still attracting buyers' interest, leading to a slight rebound in prices in Southeast Asia

Northeast Asia: the spot price dropped. It is said that a batch of 3000 tons of goods arrived in October near the weekend at a selling price of 1250 US dollars/ton (CFR Taiwan), but it has not been confirmed. Traders said that due to the weakness of the downstream market, the ethylene market is expected to be abundant in mid October. Formosa Plastics said it would reduce demand after mid October, which also led to a weak market. This week, a manufacturer in Nanjing, China, sold a batch of spot cargo roller hearth quenching furnaces for trial production at an unknown price; December 8th, 2015. The failure of the downstream styrene monomer production unit resulted in the release of additional ethylene cargo supply to the market. The manufacturer may still have a shipment to sell, but this depends on the closing time of the overhaul unit. However, the conventional supplier Secco Petrochemical Company has supplied all the remaining ethylene cargoes to Shanghai Petrochemical's new MEG production unit, so there are few export supply cargoes. It is expected that the overhaul of CNOOC shell cracking unit next week will have little impact on the ethylene market. Weak polyethylene sales may be the main factor affecting the supply of ethylene market in Asia in October. Polyethylene sales are expected to slow down during China's National Day holiday. However, MEG prices soared. Anglo Dutch Shell chemical company announced that the contract price of MEG in October was 1400 US dollars/ton (CFR Asia), an increase of 360 US dollars/ton compared with the contract price in September. Although MEG producers' bearing capacity for ethylene price has been enhanced, its impact on the market is limited, because it is expected that the ethylene spot market is in abundant supply, and MEG producers' demand for ethylene spot is small. Therefore, Korean ethylene producers in Ruishan and Lishui have started to look for buyers, but Japanese traders said it was difficult to perform because of limited storage capacity. A seller in South Korea said that the sales target price of shipment in October was about 1200 US dollars/ton (FOB), but the trader said that the quotation of 1150 US dollars/ton (FOB South Korea) was feasible because the market situation was declining. Ethylene cargo supply from Japan has also emerged, partly due to the reduction of polymer production

Southeast Asia: a batch of 4500 tons of Iranian cargo loaded at the end of September was sold at a price slightly higher than 1250 US dollars/ton (CFR Indonesia), which is the only deal reached in the spot market this week. FOB trading in Southeast Asian ethylene market was also active this week. It is said that a batch of goods loaded in Malaysia in the first half of October were traded at the price of US dollars/ton (FOB Kot). The failure of a downstream production plant has caused additional ethylene cargo supply. However, another cracking unit located in Kete district was delayed for several days until mid September. It is said that the Singapore shipment was sold on FOB basis. ExxonMobil has a production capacity of 900000 tons/year, and the production unit is gradually returning to normal production. The Japanese trader quoted the Thai buyer US dollars per ton (CFR) for the shipment in October, but there was no buyer's interest. The bid price is US $per ton lower than the quoted price. Ethylene demand may increase in the fourth quarter. The production plant of Chandra ASRI company in Indonesia operates well, and its ethylene cargo is used for both export and domestic supply, so its domestic buyers' demand for imported cargo is reduced. There is no FOB cargo supply from Indonesia, but ethylene cargo supply may be in excess in October due to the expected slowdown in polyethylene sales


Market Overview: the propylene market in Asia was light this week. As China's major importers were committed to negotiating with the domestic producer Shanghai Secco, the company's acrylonitrile production unit with a capacity of 260000 T/a failed last Thursday. China's largest spot buyer will buy 1 from SECCO 60000 tons of propylene surplus cargo. The approach of China's National Day holiday has also affected the market, and the demand will be reduced by one third in October. In addition, the polypropylene market has peaked this week and will begin to decline in October, which also affected the propylene market. In the Asian polypropylene market this week, the intended valuation in China was stable, but in Southeast Asia, it fell by $10/ton. Although affected by many factors, some traders said that the sales price of the contracted cargo from Mailiao to Korean Buyers was still US dollars/ton (CFR Northeast Asia), so the market price remained stable this week. It is said that some small and medium-sized buyers in China also purchased the October delivery cargo at the price of US dollars/ton (CFR China)

Northeast Asia: this week in the propylene market in this region, both the buyer and the seller took a wait-and-see attitude, waiting for clearer price guidance. The seller is not willing to sell the cargo at a low price, because the tight market supply in October made the market firmer, and is not in a hurry to sell the cargo at present. Korean producers may have a ship to ship in October, but Japanese traders are reluctant to buy because they are not sure about the price level under the current weak market. Some traders' sales intention price is US dollars/ton (FOB). Traders said that some transactions may be concluded at the price of less than 1050 US dollars/ton (FOB) next week. However, Korean Buyers are not in a hurry to buy the cargo, as most of their October demand has been completed. Chinese buyers may stop work during the National Day holiday or wait for prices to fall next week before buying the shipment. However, it remains to be seen whether the future price will fall. Some traders expect that the rising price of acrylonitrile and the high operating rate of some acrylonitrile production plants in China may lead to an increase in propylene demand in China. However, this situation may have little impact on the market, as most acrylonitrile producers in China are comprehensive manufacturers, and they do not need to purchase spot shipments of propylene. Nippon Oil Company of Japan is said to have sold some polymer grade propylene cargoes from its new refinery to Korean Buyers. Taiwan will offer to sell the spot cargoes in the second half of October. About 4000 tons of cargoes are under negotiation. Some traders are confident that they will buy the cargoes at the price of 1050 US dollars/ton (FOB)

Southeast Asia: two shipments were traded at US dollars per ton (CFR Indonesia). One batch of South Korean cargoes delivered in October were sold at the price of US dollars/ton (CFR Indonesia). Another batch of Thai cargoes delivered at the end of September were sold at the price of US $1145/ton (CFR Indonesia). The Indonesian buyer's intention to purchase the shipment in the second half of October is US dollars/ton (CFR). Buyers in Singapore and the Philippines are not interested. Some frozen cargoes quoted us $1080/ton (FOB) to Malaysian buyers, but no deal was reached. Thailand's largest producer may still have a batch of late September shipments and two batches of October shipments for sale. Traders said the market was chaotic. On the one hand, some traders quoted us dollars/ton (CFR Southeast Asia) for the shipment delivered in October due to tight supply. On the other hand, most of the buyer's demand in October has been completed, so they are not eager to continue to purchase the shipment


Northeast Asia: the spot valuation of butadiene is USD/ton (CFR Northeast Asia). The negotiation is in progress. The buyer's intention price for the shipment in October is about 950 US dollars/ton (CFR Korea). 980 US dollars/ton (CFR Northeast Asia) is mentioned. The quotation of a Korean manufacturer is 980 US dollars/ton (FOB). Chinese buyers' interest emerged. The price of butadiene in China increased by yuan to yuan/ton (ex factory price). However, there are few firm bid prices for shipments imported to China. The rumors about the failure of China's cracking unit and production plant have been dissipated, and the storage capacity is full. The operating rate of CNOOC shell's naphtha cracking unit in Huizhou was about 95% due to the power failure at the beginning of the week. Lanzhou Petrochemical has a capacity of 150000 T/A. the operating rate of butadiene extraction unit is about 70%, which is affected by production failures. At the same time, the first cracking unit of Formosa Plastics Petrochemical Company is still being shut down and is expected to restart in the second half of September. The butadiene capacity of this unit is 110000 T/A. In South Korea, the contract settlement price of yncc in September was $897/ton (pipeline delivery), an increase of $49/ton compared with the settlement price of $848/ton in August. In Taiwan, i.e. tensile strength, the contract settlement price of fpccin July was $1069/ton (pipeline delivery), a decrease of $42/ton compared with the settlement price of $1111/ton (pipeline delivery) in June. The contract price of butadiene in the United States in September decreased by 1 cent compared with that in August to 55 cents/pound (FOB US Gulf)

Southeast Asia: spot trading is still light, with few offers. The market activities are mainly concentrated in Northeast Asia, and the transactions reached are mainly contract shipments, with only sporadic spot transactions. In the absence of transactions, the spot intentional valuation rose to USD/ton (CFR Southeast Asia), reflecting the current market bargaining level

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