Ethylene spot prices were spiralling downwards last month

petrotahlil-Despite the cracker maintenance season in the region, ethylene spot prices were spiralling downwards last month. A reduction in the output of China's SECCO, FREP and LG Chemical resulted in smaller supply. Swelling imports and feeble demand from polymer producers, however, pushed the olefin prices down. A forced outage of one of consuming plants in Southeast Asia enabled a producer to put ethylene scheduled for mid- and late October shipment out to tender. Imports from the Middle East and Europe also increased in October.

Ethylene spot value is currently hovering around $935/t CFR Southeast Asia, $265/t below the average of early October. Nevertheless, trade is sluggish because market players bought enough of the material to satisfy production needs in November. The situation may change at the end of November. The olefin quotes have reached a critical low. Poor ethylene margins made owners of methanol-to-olefins plants reduce capacity utilisation. Smaller supply, coupled with the rising demand most market participants are reporting now, will reverse the commodity price trend at the end of this month.