Home > Chemical News

Chemical News

Europe: The week ahead in petrochemicals, w/c July 24

https://www.chemnet.com   Jul 25,2017 Platts
The cause of the sudden tightness in material supply of ethylene and propylene was not immediately clear last week, but some participants speculated it was a function of a number of European crackers not running at full rates and the start of the turnaround season in August.

OLEFINS

"There are inquires but no cargo," a source said Friday. "I think it's due to a few minor issues at multiple crackers." August contract prices for ethylene, propylene and butadiene are expected to settle this week.

POLYMERS

In the European polystyrene market, there will be opposing price dynamics.

Demand activity will slow, but a lack of imports will keep supply relatively tight.

In the ABS market, a closed import arbitrage and firm demand will maintain seller margins.

European polyethylene terephthalate prices and demand are expected to remain firm as traders and converters continue with procurements.

Imports from Asia, active during end-June and early July, are expected to fall.

Homo injection grade PP supply remains more ample, as the copolymer market has withstood feedstock decreases in the first half of the month ahead of Sabic's Geleen PP turnaround in August.

SBR supply may tighten, with Versalis' 120,000 mt/year emulsion styrene butadiene rubber plant at Ravenna in northeast Italy having started maintenance at the weekend.

AROMATICS

Toluene was the most actively traded aromatics product in the spot market last week, with several traders participating in S&P Global Platts Market on Close process.

This could continue this week with demand still solid, although there are differing opinions over availability.

Ample supply amid the restart of Ellba's propylene oxide/styrene monomer unit and pending imports will put downward pressure on styrene prices ahead of contract price negotiations.

Feedstock benzene spot activity is expected to increase due to higher European styrene production.

All xylenes are expected to be well supplied following news that Slovnaft's Bratislava refinery is operating normally after a June restart.

However, stronger demand from India is expected to keep mixed xylenes supply tighter than other xylenes.

Paraxylene prices are expected to track Asia, while bids and offers for orthoxylene remain difficult to track.

METHANOL AND ETHERS

European methanol markets face a combination of upward and downward pressures in the week ahead.

Low Rhine water levels are complicating offtake by key consumers, while higher Asian methanol prices are reported to be pulling material away from European markets.

The overall direction of MTBE continues to be dictated by crude and gasoline prices. However, the factor has been steadily rising since early July.

West African and US Gulf demand continue to pull material.

INTERMEDIATES

Caustic soda is expected to touch fresh highs amid the ongoing force majeure at Vinnolit's German Knapsack unit.

MEG prices rose for a second week running last week on solid demand from the PET industry.

SOLVENTS

While most oxy solvents remain unchanged amid the summer lull, Etac and MEK have bucked the trend.

Etac availability is suffering as a result of Ineos' production problems while two of the three major MEK producers are also reported to be low on supply.
 Print  |    add to Favorites  |    Close