Ethylene prices journey southward in Asia

Last week, ethylene prices dropped in the Asian region.

An industry source in Asia requesting to remain unidentified informed a Polymerupdate team member, "Due to a combination of high supply and poor demand, buying and selling indicators, ethylene prices in the Asian markets. Bids for October cargoes are less than in October due to the ongoing weight of erased downstream margins.”

The source added, “owing to low demand and a lack of downstream assistance, several cargoes were still accessible. Given the weak demand and the usual winter slowdown, some derivative factories were thinking about reducing their operating rates in the fourth quarter. ”

On Friday, CFR North East Asia ethylene prices on Friday were assessed at the USD 835-845/mt levels, lower by USD (-20mt) from the previous week. CFR Southeast Asia ethylene prices were assessed at the USD 935-945/mt levels, a week on week decrease of USD (-25/mt).

Southeast Asia market sentiment also reported to be dull on the back of poor derivative margins, particularly in the polyethylene markets.

FOB Korea ethylene prices were assessed at the USD 790-800/mt levels while FOB Japan ethylene prices were assessed at the USD 785-795/mt levels, both week on week down by USD (-25/mt).

In plant news, Shandong Levima has taken off stream its Methanol-to-olefins (MTO) plant in mid-September 2024. Further details on the duration of the shutdown could not be ascertained.” Located in Shandong, China, the MTO plant has an ethylene and propylene capacity of 220,000 mt/year each .

In other plant news, LG Chem is likely to shut down its cracker in Quarter 4 2025 for a maintenance turnaround. The exact date and duration of the shutdown could not be ascertained.” Located in Daesan, South Korea, the cracker has an ethylene capacity of 1.270 million mt/year.

Petronas Chemicals Olefins has lowered run rates at its cracker. The reason behind the curtailed run rates could not be ascertained.” Located in Kerteh, Malaysia, the cracker has an ethylene production capacity of 600,000 mt/year and propylene production capacity of 95,000 mt/year.