Last week, ethylene prices dropped in Korea and Japan, while quoting steady in other parts of the Asian region, as per Polymerupdate.
An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, " Bids and offers for fixed-price cargoes are limited due to upstream uncertainty, highlighting a wider atmosphere of caution and risk management in commodity markets. Purchasers are maneuvering through a complicated interaction of geopolitical, economic, technological, and regulatory influences that result in a cautious market atmosphere. As participants respond to these uncertainties, market dynamics change, resulting in reduced long-term commitments and a greater emphasis on short-term flexibility.
The source added, ?Lower prices were reported in the Chinese market. The drop in prices in the domestic Chinese markets, linked to a surplus of supply and a pessimistic outlook for downstream demand, reflects the challenges of the commodity trading landscape. Participants are experiencing pressures from both the demand and supply sides, resulting in price changes that mirror current market conditions. Purchasers in this industry are closely observing these trends and adjusting their strategies to changing circumstances, as both the supply scenario and downstream demand may significantly affect market performance in the future.?
On Friday, FOB Korea ethylene prices were assessed at the USD 730-740/mt levels while FOB Japan ethylene prices were assessed at the USD 725-735/mt levels, both down USD (-5/mt) from the previous week
Meanwhile, CFR South East Asia ethylene prices were assessed flat at the USD 845-855/mt levels and CFR North East Asia ethylene prices were also assessed steady at the USD 775-785/mt levels.
In Southeast Asia, market players are vigilantly observing the possible launches of new crackers in Indonesia and Malaysia, since these changes could greatly impact the existing balanced market condition. Nonetheless, over the previous week, there have been limited firm conversations within the Southeast Asian markets. This reduced activity is due to persistent weakness in downstream polyethylene demand, which constrains total market participation. Therefore, although the start-up of new production facilities may alter market dynamics, existing demand limitations are maintaining discussions at a relatively low level.
In plant news, Chiba Chemicals is likely to shut down in mid-June 2025 for maintenance. Further details on the duration of the shutdown could not be ascertained. Located in Chiba, Japan, the cracker has an ethylene production capacity of 612,000 mt/year and propylene production capacity of 330,000 mt/year.
In other plant news, Zhejiang Petroleum & Chemical (ZPC) is likely to undertake a planned shutdown at its No.3 cracker in end June 2025 for a maintenance turnaround. Further details on the duration of the shutdown could not be ascertained. Located in Zhejiang, China, the No.3 cracker has an ethylene production capacity of 1.4 million mt/year.
In another plant news, Lotte Chemical Indonesia has shut down its cracker in early June 2025 owing to technical issues. Further details on the duration of the shutdown could not be ascertained. Located in Cilegon, Indonesia, the cracker has an ethylene production capacity of 1 million mt/year.
mrchub.com