The January offers for ethylene in Asian markets saw a glut that pushed prices from Japan past US $970 per metric ton CFR levels.
Despite buyers taking a stand on the rising prices, sellers were not ready to give in and hinted at possible increase in the New Year.
Their justification stemmed from the fact that upstream energy figures were turning out in the upwards direction backed by narrow availability of ethylene within Asia added with better downstream PE sector demand.
A series of force majeure declaration particularly by CPC based in Taiwan, next months planned maintenance shutdown at Optimal (bearing 800 kilo ton per annum ethylene capacity) in Malaysia and PT Peni's PE facility in Merak breaking down due to depleting ethylene stock, are all forcing the Asian ethylene markets on a bull run, trader sources opined.
Market sentiments rule the current ethylene prices at $910 per metric tons on FOB Korea basis that will move up this week too, despite Christmas & holidays following it as low activity on the market front.
But, come January, sellers may hark for $950 per metric ton FOB Korea level, specifically on account of thin deliveries and quotes moving forward.
In such a situation, sellers are prompting buyers to commit for January requirements unless they pay more for stocks then.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
