Pricing and Markets

November 20, 2018

Spot Propylene

Spot C3 in Asia and Europe plunges on lower crude, US shows uptick

Spot propylene prices in Asia slid for the fifth consecutive week and hit their lowest levels in a year amid pressure from falls in crude oil futures and oversupply issues. European spot propylene prices also extended losses, spurred not only by decreasing feedstock costs but also by the continued logistical challenges arising from the River Rhine.

According to the weekly average data from ChemOrbis Price Wizard, spot propylene prices on FOB Korea basis have cumulatively lost $245/ton since they hit a four-year high in around mid-October. The continued erosion in Asia’s spot propylene prices was mostly attributed to supplies outpacing demand and the ongoing losses in crude oil futures.
In a similar vein, European spot propylene prices followed crude oil and naphtha prices lower and hit their lowest levels in almost eight months. The sentiment was also weighed down by lengthening propylene supply, which stemmed from the logistical constraints amid chronic low water levels in the Rhine River.

ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of $178/ton on weekly average since the downturn began in late September.

On the other hand, the spot propylene market in the US gave up its earlier weakness and rebounded amid production issues. Data from ChemOrbis Price Wizard reveal that spot propylene prices on FD USG basis snapped their four-week long losing streak with a modest gain of $22/ton from the previous week. However, prices were still below the peak levels recorded earlier this year.

The slight uptick was mostly driven by a short-lived shortage at Enterprise’s 750,000 tons/year PDH unit in Mont Belvieu, Texas last week.

https://www.chemorbis.com/en/plastics-news/Spot-c3-in-Asia-and-Europe-plunges-on-lower-crude-US-shows-uptick/2018/11/20/742162#reportH

November 20, 2018

Spot Propylene

Spot C3 in Asia and Europe plunges on lower crude, US shows uptick

Spot propylene prices in Asia slid for the fifth consecutive week and hit their lowest levels in a year amid pressure from falls in crude oil futures and oversupply issues. European spot propylene prices also extended losses, spurred not only by decreasing feedstock costs but also by the continued logistical challenges arising from the River Rhine.

According to the weekly average data from ChemOrbis Price Wizard, spot propylene prices on FOB Korea basis have cumulatively lost $245/ton since they hit a four-year high in around mid-October. The continued erosion in Asia’s spot propylene prices was mostly attributed to supplies outpacing demand and the ongoing losses in crude oil futures.
In a similar vein, European spot propylene prices followed crude oil and naphtha prices lower and hit their lowest levels in almost eight months. The sentiment was also weighed down by lengthening propylene supply, which stemmed from the logistical constraints amid chronic low water levels in the Rhine River.

ChemOrbis Price Wizard data reveal that spot propylene prices on FD NWE basis have witnessed a cumulative decrease of $178/ton on weekly average since the downturn began in late September.

On the other hand, the spot propylene market in the US gave up its earlier weakness and rebounded amid production issues. Data from ChemOrbis Price Wizard reveal that spot propylene prices on FD USG basis snapped their four-week long losing streak with a modest gain of $22/ton from the previous week. However, prices were still below the peak levels recorded earlier this year.

The slight uptick was mostly driven by a short-lived shortage at Enterprise’s 750,000 tons/year PDH unit in Mont Belvieu, Texas last week.

https://www.chemorbis.com/en/plastics-news/Spot-c3-in-Asia-and-Europe-plunges-on-lower-crude-US-shows-uptick/2018/11/20/742162#reportH

November 16, 2018

European Propylene Weakness

European Dec olefins contract price expectations turn bearish ahead of negotiations

London — Early expectations for December’s European contract prices for ethylene and propylene pointed to a decline, weighed down by falling feedstock costs among other factors, according to S&P Global Platts data and sources this week.

The two olefins serve as the building blocks for the largest set of petrochemicals in Europe.

European olefins contract negotiations for the upcoming month usually begin on the 21st of the previous month and it can take up to 10-11 days for a settlement to be reached.

An olefins monthly contract is deemed fully settled if two separate parties of buyers and sellers reach the settlement at the same price. The Platts ethylene contract price indicator for December stood at Eur1,074/mt FD NWE Thursday, Eur61 lower than the November settlement of Eur1,135/mt FD NWE. The indicator is based on the spot prices of feedstock naphtha and various co-products produced by steam crackers.

Spot ethylene, which plays a crucial role in deciding the contract settlements, dropped Eur109/mt month on month to be last assessed at Eur849/mt FD NWE Thursday.

Demand for ethylene from downstream polyethylene producers is currently weak and supply long, with the product expected to accumulate further length as shipments of downstream products remain difficult because of low Rhine water levels.

“I will not be surprised if ethylene settles at Eur1,035/mt FD for December,” a market source said. Another saw the CP dropping by as much Eur100 for December.

Three cracker restarts scheduled during November are expected to further lengthen ethylene supplies. This includes LyondellBasell’s cracker in Wesseling, Germany, Naphthachimie’s Lavera cracker in France and Czech Unipetrol’s cracker in Litvinov.

Meanwhile, in propylene, market players expected a drop of around Eur50 on the month, which means the December contract is expected to settle at Eur1,010/mt. The November contract price was settled at Eur1,060/mt.

The Platts propylene contract price indicator for December was assessed at Eur990.50/mt FD NWE Thursday, Eur69.50 below the November contract price.

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/111618-european-dec-olefins-contract-price-expectations-turn-bearish-ahead-of-negotiations

November 16, 2018

European Propylene Weakness

European Dec olefins contract price expectations turn bearish ahead of negotiations

London — Early expectations for December’s European contract prices for ethylene and propylene pointed to a decline, weighed down by falling feedstock costs among other factors, according to S&P Global Platts data and sources this week.

The two olefins serve as the building blocks for the largest set of petrochemicals in Europe.

European olefins contract negotiations for the upcoming month usually begin on the 21st of the previous month and it can take up to 10-11 days for a settlement to be reached.

An olefins monthly contract is deemed fully settled if two separate parties of buyers and sellers reach the settlement at the same price. The Platts ethylene contract price indicator for December stood at Eur1,074/mt FD NWE Thursday, Eur61 lower than the November settlement of Eur1,135/mt FD NWE. The indicator is based on the spot prices of feedstock naphtha and various co-products produced by steam crackers.

Spot ethylene, which plays a crucial role in deciding the contract settlements, dropped Eur109/mt month on month to be last assessed at Eur849/mt FD NWE Thursday.

Demand for ethylene from downstream polyethylene producers is currently weak and supply long, with the product expected to accumulate further length as shipments of downstream products remain difficult because of low Rhine water levels.

“I will not be surprised if ethylene settles at Eur1,035/mt FD for December,” a market source said. Another saw the CP dropping by as much Eur100 for December.

Three cracker restarts scheduled during November are expected to further lengthen ethylene supplies. This includes LyondellBasell’s cracker in Wesseling, Germany, Naphthachimie’s Lavera cracker in France and Czech Unipetrol’s cracker in Litvinov.

Meanwhile, in propylene, market players expected a drop of around Eur50 on the month, which means the December contract is expected to settle at Eur1,010/mt. The November contract price was settled at Eur1,060/mt.

The Platts propylene contract price indicator for December was assessed at Eur990.50/mt FD NWE Thursday, Eur69.50 below the November contract price.

https://www.spglobal.com/platts/en/market-insights/latest-news/petrochemicals/111618-european-dec-olefins-contract-price-expectations-turn-bearish-ahead-of-negotiations

November 15, 2018

Benzene Falls

US November benzene contracts fall to 13-month low

Source: ICIS News

2018/10/31

HOUSTON (ICIS)–US benzene contracts for November settled 5 cents/gal ($15/tonne) lower at $2.80/gal FOB (free on board) US Gulf, marking the lowest settlement since October 2017.

The drop in contract prices followed a decline in spot pricing over the past month.  Spot prices trended lower throughout October on sluggish demand for downstream styrene as well as globally long inventory levels.

A slowdown in refinery operating rates during the traditionally slow season for gasoline demand may help ease global length in benzene supply, while expectations of ongoing sluggishness in styrene demand may limit benzene consumption.

Selective toluene disproportionation (STDP) units have been running at high rates on persistently strong demand for paraxylene (PX), while toluene disproportionation (TDP) units have been running at low rates as toluene has traded at a premium over benzene for seven of the past eight weeks.

US benzene contract prices typically settle on the last day of the preceding month and are heavily influenced by late month movements in spot prices.

Major US benzene producers include ExxonMobil, Flint Hills Resources, LyondellBasell, Marathon Petroleum, Shell and Phillips 66.

CFA41EB06D9468B53360934047C59DCC.jpgPictured: Benzene molecule
Picture source: Shutterstock

https://www.icis.com/explore/resources/news/2018/10/31/10270172/us-november-benzene-contracts-fall-to-13-month-low/?cmpid=SOC%257CRSS%257Ctwitter%257CFreeNewsFeed