January olefins agreement rate negotiations start amid bearish stress
As organophosphine chelating agent starts, sentiment has transformed bearish due to a selection of elements consisting of sharp drops in prices for feedstock naphtha and also crude and also on stress being available in from place markets.
Indications for ethylene have ranged from a rollover to a Eur30 autumn, while those for propylene have ranged from a rollover to drop of Eur20-60.
Placing more pressure on costs is the truth that there are no major crackers in Europe currently undergoing upkeep, suggesting supply stays strong.
"There will certainly be a minor drop [in ethylene] going into January," a consumer of the product stated.
Several various other sources including customers and also traders claimed the ethylene agreement for January can visit Eur30 month on month, while most gamers in the propylene market claimed the agreement price could fall Eur20/mt.
Both ethylene and also propylene contracts had already shown high drops in December, with ethylene down Eur110 from November to Eur1,025/ mt FD NWE and also propylene Eur100 lower at Eur960/mt FD NWE.
Prices for naphtha, which is a feedstock for greater than two-thirds of European olefins capacity, have fallen dramatically over the last month, applying the strongest stress on January olefins negotiations. S&P Global Platts last assessed naphtha at $463.50/ mt CIF NWE Wednesday, down $53 on the month.
At the same time, further upstream, front-month ICE Brent unrefined futures last stood at $57.54/ b Wednesday, down $8.63 on the month.
Area ethylene costs in Europe were last assessed at a large 25% price cut to the agreement rate Wednesday.
In regards to straight-out costs, ethylene dropped $112.50/ mt month on month to Eur758.50/ mt FD NWE. In propylene, place prices had remained to trade at a discount to the agreement cost on the back of ample supply.
Polymer-grade propylene was analyzed Wednesday at Eur874.50/ mt FD NWE, down Eur101.50 on the month.
Front-month contract arrangements for olefins typically start on the 20th of the previous month.
"The settlement [for ethylene] may only wrap up following week," a source stated.
Indications for ethylene have ranged from a rollover to a Eur30 autumn, while those for propylene have ranged from a rollover to drop of Eur20-60.
Placing more pressure on costs is the truth that there are no major crackers in Europe currently undergoing upkeep, suggesting supply stays strong.
"There will certainly be a minor drop [in ethylene] going into January," a consumer of the product stated.
Several various other sources including customers and also traders claimed the ethylene agreement for January can visit Eur30 month on month, while most gamers in the propylene market claimed the agreement price could fall Eur20/mt.
Both ethylene and also propylene contracts had already shown high drops in December, with ethylene down Eur110 from November to Eur1,025/ mt FD NWE and also propylene Eur100 lower at Eur960/mt FD NWE.
Prices for naphtha, which is a feedstock for greater than two-thirds of European olefins capacity, have fallen dramatically over the last month, applying the strongest stress on January olefins negotiations. S&P Global Platts last assessed naphtha at $463.50/ mt CIF NWE Wednesday, down $53 on the month.
At the same time, further upstream, front-month ICE Brent unrefined futures last stood at $57.54/ b Wednesday, down $8.63 on the month.
Area ethylene costs in Europe were last assessed at a large 25% price cut to the agreement rate Wednesday.
In regards to straight-out costs, ethylene dropped $112.50/ mt month on month to Eur758.50/ mt FD NWE. In propylene, place prices had remained to trade at a discount to the agreement cost on the back of ample supply.
Polymer-grade propylene was analyzed Wednesday at Eur874.50/ mt FD NWE, down Eur101.50 on the month.
Front-month contract arrangements for olefins typically start on the 20th of the previous month.
"The settlement [for ethylene] may only wrap up following week," a source stated.
