Global Linear Alpha Olefins Market Drops Steeply In June 2022
- 08-Jun-2022 2:21 PM
- Journalist: Peter Schmidt
In the latest turn of events, Linear Alpha Olefins prices have fallen significantly worldwide due to the easing supply chains and a sharp decline in feedstock prices. Global supply chains have observed recovery as China moves to lift covid restriction from its key cities. Meanwhile, olefins contracts prices deteriorated in the latest assessment.
In Middle East Asia, Linear Alpha Olefins prices have declined to owe to the recent decrease in feedstock ethylene and other olefins prices. After a couple of months of upheaval, Ethylene prices have declined, providing end-users with much-needed relief in these torrent times. Consequently, ease in feedstock has translated into a drop in downstream prices. Export prices have also shown a similar trend as Saudi Arabia forms a key supplier of Linear Alpha Olefins in the global market given the presence of SABIC and has a tremendous capacity to cater to domestic and international markets. OPEC+ has announced an increase in output rates of crude oil in the next couple of months which is expected to ease the cost pressure from crude oil on downstream derivatives.
In India, Linear Alpha Olefins prices have declined significantly in the early June assessment as per ChemAnalyst, easing supply woes along with declining pricing trend in the exporting nations have prompted the market participants to drop the pricing during first week of June. Saudi Arabia exports a hefty amount of Linear Alpha Olefins to India and the recent decline in domestic prices has sent a wave of optimism in the international market. Meanwhile, easing restrictions in China has caused ease in supply chains as port and shipping activities return to normalcy. India also imports Linear Alpha Olefins from the US, and the bearish trend in the US market has also provided significant relief to the Indian traders.
As per the latest assessment by ChemAnalyst, the Belgium Linear Alpha Olefin market has witnessed a steep fall in prices as the feedstock prices went bearish, continuing the previous month's trend. Ethylene and Propylene contracts have been secured at a reduced price compared to April 2022 and futures also displayed a similar market trend. Consequently, downstream Linear Alpha Olefins have significantly declined from month earlier numbers. As of the first week of June 2022, Linear Alpha Olefins prices were assessed at USD 1620 per MT for C10 blend while C12-14 blend prices were placed at USD 1732 per MT on FD basis. Meanwhile, downstream demand has shown early signs of recovery after the European economy has been in turmoil since the beginning of the Ukrainian crisis.
As per ChemAnalyst, "The bearish trend in the global Linear Alpha olefin market is expected to continue in the short term as olefins contracts have settled at reduced prices while futures have been forecasted to be stable."