Ethylene prices quote lower in South East Asia

Last week, ethylene prices down adjusted in Southeast Asia while remaining unchanged in other parts of the Asian region, as per Chemweek.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "The Asian ethylene markets have entered a period of relative inactivity, with minimal robust discussions taking place among industry participants. Caution prevails as stakeholders navigate the fluctuations in upstream prices, which pertain to the costs of raw materials essential for production. This price volatility introduces uncertainty, causing hesitation in investment and purchasing decisions. The region has also seen a decline in prices, driven by weak demand."

The source added, ?Moreover, there are considerable worries regarding sluggish demand in downstream trade, which involves the sale of finished products to consumers or businesses. This lack of demand is particularly evident in China, a crucial market, where economic conditions may be affecting consumer expenditure and overall industrial performance. The interplay of unstable upstream prices and diminished downstream demand is shaping market dynamics, prompting participants to adopt more conservative strategies and operations. This may result in cautious inventory management, price modifications, and a wait-and-see stance regarding future investments."

On Friday, CFR South East Asia ethylene prices were assessed at the USD 865-875/mt levels, a week on week decline of USD (-20/mt).

Meanwhile, FOB Korea ethylene prices were assessed at the USD 750-760/mt levels while FOB Japan ethylene prices were assessed at the USD 745-755/mt levels, both rolled over from the previous week. CFR North East Asia ethylene prices were assessed at the USD 785-795/mt levels, stable week on week.

In plant news, PTT Global Chemical (PTTGC) has shut down its No.2 cracker in mid-April 2025 for a maintenance turnaround. Further details on the duration of the shutdown could not be ascertained. Located in Map Ta Phut, Thailand, the No. 2 cracker has an ethylene production capacity of 515,000 mt/year and propylene production capacity of 295,000 mt/year.

In other plant news, Pengerang Refining and Petrochemical (PRefChem) has extended the shutdown of its cracker to the second half of May 2025. The cracker was taken off stream in early February 2025 for maintenance with operations initially scheduled to restart in April 2025.? Located in Pengerang, Malaysia, the cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 609,000 mt/year

Lotte Chemical has shut down its cracker on April 12, 2025 for a maintenance turnaround. The cracker is slated to remain offline until June 16, 2025. Located in Daesan, South Korea, the cracker has an ethylene production capacity of 1.1 million mt/year and propylene production capacity of 540,000 mt/year.

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Bio-based products firm Manus (Cambridge, MA) and life science company Inscripta (Boulder, CO), have announced a strategic merger. Financial terms were not disclosed, as per Chemweek.

The deal establishes an end-to-end platform for scalable development, biomanufacturing, and commercialization of bio-based alternatives by combining Inscripta’s advanced whole-genome engineering technologies with Manus’ proven cell factory engineering platform, biomanufacturing expertise, and commercialization capabilities.

The merged company, to be named Manus, is “uniquely positioned” to deliver commercial momentum and scaled profitability in next-generation industrial biotechnology, the companies said in a joint press release.

“Industrial biotech is at a turning point and needs to demonstrate execution at scale,” says Ajikumar Parayil, founder and CEO of Manus. “This merger brings together two cutting-edge technology and scale-up platforms and an un-matched commercial capability to meet the growing demand for bioalternatives.”

The two companies also have complementary product portfolios across food ingredients, beauty and wellness, and agricultural chemicals. The deal has been approved by shareholders of both companies and is effective immediately.

John Stuelpnagel, Inscripta’s current chairman, will serve as chairman of the board of the combined company. Parayil will lead the merged company and also serve on the board.

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Engineered materials producer Ascend Performance Materials (Houston, TX) announced today that it has filed for Chapter 11 bankruptcy protection as it looks to restructure its operations and deleverage its balance sheet, as per Chemweek.

The company, which is owned by private equity firm SK Capital Partners, said it has received $250 million in committed debtor-in-possession financing from its lenders. This is expected to be sufficient liquidity to operate as usual throughout the Chapter 11 process, which it aims to complete in approximately six months. Subsidiaries outside the US are not included in the filing in the U.S. Bankruptcy Court for the Southern District of Texas.

"Ascend has made significant strides in transforming our business, with a focus on efficiency and driving cost reductions while ensuring that we are able to operate safer than we ever have before," said Phil McDivitt, President and CEO of Ascend Performance Materials. "Over the last several months, we have been working with our lenders to define the best path forward for Ascend. We expect that the restructuring will substantially reduce Ascend's funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy.”

Ascend is advised in this matter by Kirkland & Ellis LLP as legal counsel, FTI Consulting as financial advisor, and PJT Partners as investment banker. The ad hoc group of first lien lenders to the Company is advised by Gibson, Dunn & Crutcher LLP as legal counsel and Evercore Group L.L.C. as investment banker.

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SM prices quoted higher in Asia last Thursday, as per Polymerupdate.

An industry source in Asia informed a Polymerupdate team member, 'SM prices rose on the back of stronger energy values coupled with bullish market sentiments in the Asian region.'

The source added, "Higher upstream benzene values further contributed to the pricing uptrend."

On Thursday, FOB Korea SM prices were assessed at the USD 910-920/mt levels, up USD (+5/mt) from Wednesday's assessed levels.

CFR China SM prices on Thursday were assessed at the USD 920-930/mt levels, a gain of USD (+5/mt) over from Wednesday.

Meanwhile, upstream benzene prices on Thursday were assessed at the USD 730-740/mt FOB Korea levels, a sharp day on day rise of USD (+10/mt).

It was previously reported that the Chinese company Ningbo Keyuan Petrochemical closed styrene production at Line 1 in Ningbo (China) in early April for scheduled maintenance. It was not possible to establish more detailed information about the duration of the shutdown at Line 1, which has a capacity of 100 thousand tons of styrene per year.

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Avilon Group, a major Russian car dealer, has lowered its 2025 forecast for new car sales in Russia to 1.1 million-1.2 million from the previously expected 1.4 million vehicles, and now expects its own new car sales to drop to about 20,000 from the 24,000 sold in 2024, company CEO Alexander Nikonov said, as per Interfax.

"In our budgeting we targeted a market of 1.4 million automobiles for 2025. Now I clearly see that it certainly won't be 1.4 million. The market will probably be around 1.1 million new automobiles, although I increasingly hear talk that it might even be a little less than 1 million. But my estimate is in the range of 1.1 million-1.2 million cars, not including LCVs," Nikonov told reporters.

He said Avilon's budgeting for this year anticipates a drop in revenue of about 5% to slightly below 100 billion rubles. The company's revenue grew by 20% to 100.9 billion rubles in 2024.

"Of the negative trends of this year, I'll note that our average price of a sold automobile is decreasing by about 10%. Not because vehicles are getting cheaper, but because the mix is changing within our sales. Last year we sold [about] 24,000 new automobiles. This year the mix has changed and the average price has changed, which could put pressure on revenue. Even if by units everything will be more or less good, we still might drop somewhat year-on-year. I see sales of new automobiles this year at a level of 20,000 units, though we might not quite get there," Nikonov said.

He said Avilon is not having a critical problem with inventory, which now totals about 2,800 new vehicles across the group, or the equivalent of 1.6-1.7 months of sales.

"This is not a high stock. There is an industry norm - two months of sales, if business is going alright. If business is growing and sales are growing, dealers go to 2.5 months. If, on the contrary, there is volatility, to 1-1.5 months. A dealer now needs stock for 1-1.2 months to work well and breathe financially. This will not slow sales and it won't be expensive to finance. We have 1.7 months and I see this level as more or less healthy. If it goes lower, we already won't be able to offer the buyer something," Nikonov said.

He also said the Central Bank's tight monetary policy, including its introduction of macroprudential restrictions that limit lending to heavily indebted individuals, continues to put significant pressure on the market.

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