In the past few days, ethylene spot prices in Asian market fell to new lows, due to ample supply and weak conditions in downstream product market. Although the 700,000 tons / year naphtha cracker of Taiwan's Formosa Petrochemical Corporation at Mai Liao closed down, the low trading levels reflects market weakness.
By mid-week, two August shipments with 3000-3500 tons for each were traded at US $870/ ton (CFR Taiwan). The bargaining price was about $860 / ton (CFR Taiwan) on Friday night, but details were unknown.
On FOB Northeast Asian market, purchase intention was $800 / ton (FOB Northeast Asia / Korea), but manufacturers focused on domestic or contract sales. August shipments of Japanese goods were intended at $800-900/ ton (FOB Northeast Asia) from sellers, while buyer's intention was $800 / ton. Intention price of FOB South Korea fell $20 to $830-880/ ton, but no deal was reached.
On downstream market, price of high-density film grade polyethylene remained stable at $1000-1050 / ton (CFR China). PVC price rose $10-20 to $850-880 / ton (CFR China). Styrene price fell $15-20 to $970-980 / ton (CFR China). MEG price dropped $10-15 to $690-700 / ton (CFR China).
In Northeast Asia, ethylene price dropped to $860-880 / ton (CFR Northeast Asia). Limited demand of spot cargo and weak market conditions of derivatives dragged ethylene price lower.
Singapore's Planning Department released the latest statistics showing that ethylene exports of Singapore reached 39,860 tons in June, of which more than 90 percent of the ethylene was sold to Indonesia.
In Southeast Asia, ethylene spot price fell $5-10 to $795-820 / ton (CFR South East Asia). A cargo of 3000-4000 tons ethylene for shipment in the second half of August from the Middle East was traded at $795 / ton (CFR South East Asia).
Selling intention was $820-830 / ton (CFR South East Asia), purchase intention was $790-800 / ton (CFR South East Asia). But one trader said he had received an inquiry at or below $780 / ton (CFR South East Asia), the information has not been confirmed.
In FOB Southeast Asia market, it was said some cargo was sold at $700/ ton (FOB Southeast Asia), but details were unknown.