Ethylene prices slip in Asia on Tuesday

On Tuesday, ethylene prices in Asia journeyed south.

The price fall was triggered by weaker upstream energy values, dull buying sentiments and a fall in downstream PE rates in the region.

CFR North East Asia prices of ethylene were assessed down at the USD 1275/mt mark, a day on day decline of USD 10/mt. CFR South East Asia prices were assessed lower at the USD 1260/mt levels, a fall of USD 10/mt from Monday’s assessed levels.

A trader when contacted said, “ buying trends are seen slowing across the Asian region. We expect ethylene prices to remain under pressure with the falling upstream energy values coupled with bearish downstream PE demand and pricing sentiments.”

He added, “ many PE makers are no more able to work with the severely negative margins given the high price of ethylene. These producers of PE have lowered runs at their plants. This has resulted in extra avails of upstream ethylene and has further weakened the pricing undertone in the region.”

In the downstream markets, HDPE prices were assessed down at the USD 1315/mt CFR Far East Asia levels, a day on day drop of USD 15/mt. LLDPE prices were lower at the USD 1275/mt CFR Far East Asia levels, a fall of USD 15/mt from Monday. LDPE prices were steady at the USD 1335/mt CFR Far East Asia levels.