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Ethylene Pricing Overview

Market Overview

Asia

Ethylene sentiments were heard muted-to-low, entering the third quarter on

the back of ample supplies and stable demand. Sharp reduction in prices

was observed in the first half of the quarter with offers bidding around USD

750-800/t CFR northeast Asia for July & August. However, as several major

producers went temporarily offline by the end of the third quarter to balance

out their inventory levels, supply started getting tightened. Singapore-based

ExxonMobil shut its 1mn tpy cracker for its long overdue maintenance in

mid-September till the end of October. To ease supply side issues, buyers

in Southeast Asia were seen opting for deep-sea and Middle East origin

cargoes. On the demand front, spot demand was bolstered by improved PE

operations due to the expected return in demand during the peak season in

several Asian countries.

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data/ethylene-40

North America

Ethylene margins showed substantial improvement after witnessing a

historic plunge in the second quarter in the Americas. Supply remained

tight as several US crackers remained shut in their battle with Hurricane

Laura and related storms with around 20 per cent still offline at the closing

of Q3. US’ Ethylene margins got tripled since mid-May, with exports rising

considerably on the back of recovering Asian demand and a continuing

arbitrage. The demand for Polyethylene (PE) started emerging strong due

to re-opening overseas economies and greater demand from the packaging

sector. US Ethylene spot prices surged nearly by 60% since mid-May

during Q3. Several US Polyethylene producers mainly Chevron Philips

Chemicals, Westlake Chemical, Ineos Olefins & Polymers, INVISTA among

others remained shut for specified durations during Aug-Sep period.

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Ethylene Pricing Overview

Europe

The European Ethylene market remained amply supplied despite some

unplanned cracker turnarounds during the quarter ending September. The

supply remained lengthened despite prolonged outage at 625,000 MTPA

Borealis Stenungsund cracker in Sweden which is likely to resume

operations in Q4FY20. The pricing curve remaining largely flat as the

market kept quiet amidst battered economy. While improvement in

derivatives demand from the construction sector and the automotive sector

served well for regional suppliers, dullness in the packaging sector kept the

sales pressured. The European Ethylene contract reference price for

August was maintained at USD 950/t, up by USD 25/t from July.

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with chemical and petrochemical business globally and enables the

decision-maker to make smart choices. It identifies and analyses factors

such as geopolitical risks, environmental risks, raw material availability,

supply chain functionality, disruption in technology and so on. It targets

market volatility and ensures clients navigate through challenges and

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well as global industry in tuning in to the real-time data points to execute

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Ethylene Pricing Overview

Services

Market Analysis

Company-wise installed capacity, production volume and plant operating

efficiency is captured directly from manufacturers. Import and Export

volume is captured from government sources and demand for Ethylene is

calculated considering the production, import, export and inventory-levels

on the country and regional level markets.

Pricing Analysis

Global Ethylene price is correlated with the price trend of Crude Oil,

Naphtha and the consumption of downstream derivatives such as

polyethylene, ethylene oxide, ethylene glycol etc.

Company Profile

Basic details and information on financial performance of leading global

players in the Ethylene market is presented in a visually captivating

manner. Expansion plans and the company’s strategy is also captured to

understand the vision and mission of the company to help understand the

areas where companies need to focus more.

News & Deals

Daily updates on industry-specific and product-specific news, exclusive

primary-based news capturing plant shutdowns/outages/closures, capacity

expansions, operating rates, insights on demand-supply situation, awarding

of technology licenses, new product launch and deals specifying mergers

and acquisitions, strategic investments and disinvestments, to help players

capitalize on market opportunity.

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Ethylene Pricing Overview

Methodology

ChemAnalyst gathers information through primary research surveys

conducted with various Ethylene manufacturers, spread across

the domestic and international markets, suppliers and

dealers/distributors to gain insights into value-chains and demand-supply

scenario to assess the market situation. Thorough study of the company’s

annual reports and secondary sources such as exhaustive search on

credible paid databases, including our internal database is done to verify

the information. All the collected information is analyzed, evaluated and

presented in chronological order to depict a meaningful and clear picture of

the concerned market.

Our dedicated team of industry experts comprehensively monitors and

analyzes various aspects of the Global Ethylene market. The team

analyzes various industrial segments, strategic viewpoints and provides

an analysis of the industry’s performance in the long run. This would enable

our clients in efficiently plan their future investments, mitigate risk,

understand the cost dynamics and strike out a balance amidst market

volatility.

Critical examination of the impact of COVID-19 pandemic on the global

supply chains and shift in demand patterns with change in buying

behavior of consumers across the globe.

Several ongoing development projects across industries are tracked,

followed by the details of major projects in the development stage, which

can positively or negatively influence the Global Ethylene market.

Pricing is captured through exhaustive primary interviews with domestic

and international manufacturers, traders and importers and customers

on monthly and yearly basis.

Finally, region-specific markets for Ethylene are analyzed and region-

wise demand pattern is tracked.

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Ethylene Pricing Overview

About

Ethylene is a colorless, odorless, flammable and compressed gas with a

faintly pleasant odor. Ethylene is the simplest olefin and is one of the most

important petrochemical intermediates for the synthesis of several products

across plastics, solvents, cosmetics, pneumatics, paints and packaging

industries. Some of the widely used petrochemicals produced from

Ethylene are polyethylene, ethylene dichloride, ethylene oxide, ethylene

glycol, ethylbenzene, vinyl acetate etc. There are a variety of associated

proprietary technologies used for Ethylene production across the globe.

Ethylene is commercially produced by the steam cracking of a wide range

of hydrocarbon feedstocks which are heated to 750–950 deg Celsius.

Ethylene is separated from the resulting mixture by repeated compression

and distillation. In Europe and Asia, Ethylene is mainly produced from

cracking naphtha, gasoil and condensates while in the US, Canada and the

Middle East, the production is carried out through ethane and propane

cracking. Global Ethylene capacities have been unevenly spread across

the global, influenced by infrastructure and port facilities, feedstock

availability, economic growth, and downstream demand patterns.