Staggering Naphtha Weighs on Global Ethylene Oxide Prices
- 17-Mar-2022 4:10 PM
- Journalist: Henry Locke
In late February, as the world witnesses, the worst conflicts unfold in the Eastern European region between Russia and Ukraine levy a deep impact on the global economy. As a matter of the fact that the stock market crumbled and the commodity futures soared drastically, even the Crude Oil benchmark crossed the USD 100 per barrel mark for WTI and Crude both in the international market. At the same time, it clouded the market with numerous uncertainties in the freight industries and prevailed its impact in the major downstream major feedstocks commodities.
The persistent increment in the offers had vastly impacted the quotations of the feedstock Naphtha, as it is witnessed that the prices observed a consistent increment. The market dynamics were bullish for a significant period as the demand outlook outweighs the supply capabilities after the global economy showcases a strong rebound for the recovery of pandemic-induced losses. Although, the OPEC+ alliance remained stayed on their decision to gradually increase the output of Crude. As a ripple effect, the prices observed a constant increment since the third quarter of 2021.
Such development has a major impact on the petrochemical commodities that are not traded overseas as the regional market fundamentals were the major driving factors. Such as Ethylene Oxide, the inquiries were observed to ease as the winter season ended and the overall demand outlook plunged globally; considering the additional facts, it is anticipated that the pricing trajectory will move downwards. Although, the current development's layout has an opposite trend in the prices of Ethylene Oxide globally despite the inadequate support from the downstream.
As per ChemAnalyst, the prices of Ethylene Oxide in the Northeast Asian region observed an increment of 5.32% in the quoted offers since the starting of 2022, and the spread between Naphtha and Ethylene Oxide is consistently fluctuating and currently narrowing due to the significant plunge in the demand of Ethylene Oxide from the downstream industries.