Category

Countries

Ethylene Prices Decrease in the USA and Europe Amidst Lackluster Downstream Demand

Ethylene Prices Decrease in the USA and Europe Amidst Lackluster Downstream Demand

Ethylene Prices Decrease in the USA and Europe Amidst Lackluster Downstream Demand

  • 09-Dec-2022 3:53 PM
  • Journalist: Robert Hume

Ethylene prices have witnessed a downward trend in the USA and German markets during the first week of December 2022, backed by the weak feedstock prices coupled with gloomy demand from the downstream industries.

According to the data, prices of Ethylene have continued their bearish rally in the German market owing to the weakening in domestic demand and the negative lag effect from the falling feedstock Naphtha prices. Meanwhile, imported Ethylene prices have also remained comparatively lower than the domestic prices, supporting the current price trend of Ethylene in the domestic market. In terms of domestic production costs, operating rates remained under check amid weak demand dynamics from end-user industries.

Additionally, supply chain dynamics have improved in the European continent with no major port congestions, thus, facilitating the availability of imports and inter-European transportation, respectively. Overall, demand from downstream polyethylene and glycol chains has dropped as consumer sentiment continues to remain sluggish in the European region. According to the ifo, Germany may prevent the recession, whose fear loomed substantially in the previous months. In conclusion, prices of Ethylene FD Hamburg were assessed at USD 845/MT with a weekly declination of around 1.7% during the same time frame.

Similarly, in the USA, the Ethylene prices were narrowed down. The ChemAnalyst database has shown that Ethylene prices have demonstrated a decline of 1.2% on a week-on-week basis. The downstream polyethylene and glycol chain transactions were average, and the market operated at low levels. As a result, prices of Ethylene were settled at USD 480/MT on 2nd December 2022.

According to ChemAnalyst estimation, " Ethylene prices will expect to come under pressure in the USA and European market owing to the weak demand from the end-user polyethylene and allied industries ahead of seasonal dullness. At the same time, feedstock Naphtha prices would decline, which might impact the production cost of Ethylene in the upcoming weeks.

24X7

Track Real Time Prices

Related News

Amidst Bleak Demand, Ethylene Prices Exhibit a Downtrend in the USA and European Market
  • 10-Jan-2023 3:50 PM
  • Journalist: Kim Chul Son
Global Ethylene Prices Continue to Decline at the End of December 2022
  • 29-Dec-2022 3:55 PM
  • Journalist: Jacob Kutchner
Slow Downstream Demand Drives the Ethylene Prices in the USA and European Market
  • 29-Nov-2022 4:24 PM
  • Journalist: Kim Chul Son
Despite Weak Downstream Demand, Ethylene Prices Continue to Increase in the European Market
  • 10-Oct-2022 6:39 PM
  • Journalist: Peter Schmidt