Home / Knowledge / News / Textiles / Ethylene dealers reluctant to lower prices
Ethylene dealers reluctant to lower prices
10
Nov '10
In the just concluded week, spot ethylene market did not attract offers for November cargo, due to inadequate supply in the Middle East, physical demand was limited, because limited tank capacity weighed on the market, despite higher price of naphtha.

Mid-November cargo of Abu Dhabi and Saudi Arabia were sold through tenders, which are expected to be shipped to Europe, India and Southeast Asia, but market sources said more cargo from the Middle East would arrive in December.

Buyers offered below US $1000 / ton (CFR Asia), as supply was adequate, but dealers did not want to lower their offer level, due to strong naphtha costs which stood at $800 / ton (CFR Japan).

Some manufacturers have already started feeling the cost pressures and have reduced operating rates this month. Chandri Asri in Indonesia reduced its operating rate of naphtha cracker (production capacity 600,000 tons / year) to 75-80 percent by the end of October, due to loss in margins.

Operating rate of many local naphtha-cracking plants is still at 90-100 percent, partly because of firm prices of other olefins, such as propylene. Thus buyers expect the market will remain strong.

Derivatives markets were generally firm. Price of high-density PE film products rose $10 to $1230-1280 / ton (CFR China), while MEG price reached over $1,000 / ton (CFR China). PVC price rose $10 to $970-1000 / ton (CFR China).

In Northeast Asia, ethylene stock price fell $10-20 to $980-1000 / ton (CFR Northeast Asia), influenced by consultation level in the market. In Southeast Asia, spot price fell $30 to $970-1000 / ton (CFR South East Asia), reflecting the level of offers and bids on the week.

The FOB Southeast Asian market had no price consultations, as cargoes were mainly sold to derivatives market or contract customers.

Fibre2fashion News Desk

Must ReadView All

Textiles | On 7th Dec 2016

‘Price-competitiveness is crucial for China yarn market’

Kikani Exports, India based yarn supplier with 12 years of experience ...

Apparel/Garments | On 7th Dec 2016

Bangladesh RMG exports up 6.39% in July-Nov 2016

Readymade garment (RMG) exports from Bangladesh increased by 6.39 per ...

Courtesy: Fabindia

Apparel/Garments | On 7th Dec 2016

Infosys cofounder Nilekani invests in Fabindia

Through their family office Entrust, Infosys cofounder Nandan...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search