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Weekly Summary

Petrochemicals: Mar 30- Apr 3: Ethylene falls on COVID-19 and weak naphtha

Aromatics

The aromatics market in Northeast Asia was lower than the previous week. But in the middle of the week, crude prices rebounded sharply and the aromatics market also recovered from previous low levels. Due to the COVID-19 outbreak, petrochemical demand was still falling globally. On the other hand, production was only reduced by a limited degree at facilities and supply/demand for each product was not tight.

 

Olefins

The CFR Northeast Asia ethylene market fell due to receding demand as measures to prevent the spread of COVID-19 was taking place in Asian countries. In talks in the current week, a cargo to be delivered to China in the second half of April was reportedly traded at $450/mt. Considering a previous fall in benchmark feedstock crude and naphtha prices, views were heard that there was room for ethylene prices to decrease further.

 

The Asia propylene market fell. Owing to the COVID-19 outbreak, demand was sluggish and many derivative makers were reducing production. On the other hand, upstream naphtha crackers were maintaining production due to low feedstock costs and propylene supply was in surplus. As a result, market sentiment weakened. In Southeast Asia, Thailand's PTTGC conducted a sell tender.

 

The Asia butadiene market posted losses. In view of the impact from COVID-19, tire exports slowed down and sales of synthetic rubber were sluggish. Under such circumstances, many synthetic rubber makers cut production and buying interest for butadiene was thin. On the other hand, cargoes from Europe and the US flowed in and supply/demand was slack. In Southeast Asia, Thailand's PTTGC and Malaysia's Lotte Chemical Titan conducted sell tenders.

 

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Tokyo : Petrochemicals Team  Shinnosuke Tagusari   +81-3-3552-2411Copyright © RIM Intelligence Co. ALL RIGHTS RESERVED.