Linear Alpha Olefin Prices Soar in Europe as Demand Surge
- 14-Apr-2023 2:46 PM
- Journalist: Harold Finch
In the most recent development, there has been a significant price increase of Linear Alpha Olefin owing to several factors, including increased demand from the polyethylene markets, higher feedstock Ethylene prices, and improved supply chain operations. Supply chains of Linear Alpha Olefin all over the world have improved after China lifted its strict covid restrictions and the workforce began returning to work following the Lunar New Year festivities. Recently, INEOS Olefins Belgium made a significant move to increase the entire European chemical industry's strength and open up new potential for the Antwerp chemical cluster.
In February 2023, INEOS Olefins Belgium announced Project ONE, a USD 3.8 billion investment to support the development and operation of Europe's first ecologically friendly cracker.
"Project ONE is a game changer for Europe," states Jason Meers, CFO of INEOS Project ONE.
The cracker will produce Ethylene, an essential raw ingredient for many goods that are necessary for everyday life, including insulation, lightweight cars, plastics for medical, healthcare, and food hygiene, and technology for renewable energy.
Since then, market sentiments have risen substantially across all of Europe, which has positively affected the dynamics of the Lineae Alpha Olefin market.
The offered quotations in the German market for Linear Alpha Olefin C10 FD Hamburg increased by 17.3% in February 2023 to USD 1120 per tonne from USD 955 per tonne in January 2023. Again, in March 2023, the prices soared by 27.2% to USD 1425 per tonne. Similarly, the prices for Linear Alpha Olefin C12-14, C16-18, and C20 (FD Hamburg) increased by 20-30% in Germany.
In another European nation, Belgium, the prices for Linear Alpha Olefin C10 FD Antwerp rose by 12.3% to USD 1145 per tonne from USD 1020 in January, and another spike of 25.8% was registered in March as the offered quotes stood at USD 1440 per tonne. The other blends of Linear Alpha Olefin, such as C12-14, C16-18, and C20, exhibited a surge of 17-23% cumulatively in February and March 2023.
As per ChemAnalyst, "the Linear Alpha olefin market is anticipated to stay strong in the upcoming weeks as the crude oil prices are expected to rise culminating in strong cost pressure on downstream Linear Alpha Olefins amidst OPEC+'s move to limit oil production."
