For the Quarter Ending March 2023
North America
The Ethylene Oxide price movement oscillated during Q1 of 2023. At the beginning of Q1, Ethylene Oxide prices sank after EPA affirmed health hazards due to its carcinogenic air emissions. In the mid-quarter, prices rebounded and witnessed a surge due to affected production rates amid stressed availability of feedstock Ethylene supplies due to various plant shutdowns. It raised the cost support significantly, and Ethylene Oxide prices rose till the end of the quarter. The supply chain activities improved from the mid-quarter, which improved offtakes amid rising inflation and high-interest rates by Federal Reserve. At the end of the quarter, Ethylene Oxide prices in the USA hovered at USD 1515/MT.
Asia
The Ethylene Oxide price trend shifted sentiments during the 1st quarter of 2023. Initially, the prices fell due to sluggish demand and excess availability of feedstock Ethylene supplies from the middle east. However, from the mid-quarter, the price trend revamped, and production costs rose due to the stressed availability of the feedstock Ethylene. Because of inconsistent Crude Oil imports because of increased sanctions on Russian products, the feedstock Ethylene prices rose till the end of Q1. Due to high energy import prices in Japan amid noticeable currency depreciations and increased demand from downstream Glycol producers, the Ethylene Oxide prices remained bullish. At the end of Q1, 2023, Ethylene Oxide prices in China and Japan witnessed USD 1055/MT and USD 1035/MT, respectively.
Europe
Like the Asian region, the Ethylene oxide price trend fluctuated in the European region during Q1. Initially, the prices plunged amid weak demand from Glycol industries. While the upstream costs support was low as the feedstock Prices remained stable at the beginning of the month. However, in the mid-quarter, Ethylene prices soared due to stressed availability amid the European ban on seaborne imports of Russian Crude oil from February 5. It negatively affected the production rates and raised the cost pressure on Ethylene Oxide. Then, in the final month of Q1, prices increased marginally amid consistent demand from downstream value chains. At the end of the quarter, the Ethylene Oxide prices in Germany hovered at USD 1495/MT.
For the Quarter Ending December 2022
North America
The Ethylene Oxide price trend showcased mixed sentiments during the final quarter of 2022. Initially, the prices decreased as USA’s EPA identified risks from commercial sterilization facilities using Ethylene oxide, which negatively impacted the product demand and consumption levels in the downstream industries. In the mid-quarter, the trend shifted, and prices rose due to a rise in production costs amid high feedstock Ethylene demand from Polyethylene producers. In the final month of the quarter, prices again declined due to a reduction in the upstream WTI Crude oil and natural gas prices due to a decline in demand from Chinese importers amid the rise in the covid cases. At the end of Q4 2022, Ethylene Oxide prices in the USA hovered at USD 730/MT.
Asia
Ethylene Oxide prices showcased mixed sentiments in the Asian region during the Quarter IV of 2022. During the first month of the quarter, prices remained stable and rose marginally due to decreased feedstock Ethylene availability in countries like Japan because of plant shutdowns and rising inflation. In the mid-quarter, feedstock plants like Idemitsu Kosan, with a capacity of 6,90,000/MT, restarted, and feedstock availability improved due to this production cost of EtO decreased. Towards the end of the quarter, prices decreased in Asia amid destocking practices by producers. While in China, prices were stable and inclined slightly due to currency depreciation because of the economic slowdown. At the end of Q4 2022, Ethylene Oxide prices in China and Japan hovered at USD 975/MT and USD 1030/MT, respectively.
Europe
In the European region, Ethylene Oxide prices oscillated during Q4. Initially, prices plunged amid the decline in consumption and firm production rates due to the surplus availability of feedstock Ethylene supplies and the consequent reduction in production costs of EtO. However, during the mid-quarter, prices inclined upward due to increased upstream Naphtha and Dutch TTF natural gas prices. Towards the end of the quarter, EtO prices plunged noticeably on the back of weak offtakes and a decrease in the feedstock and production costs amid a reduction in the input costs. At the end of Q4 2022, Ethylene Oxide prices in Germany settled at USD 895/MT. Meanwhile, the sharp drop in freight charges resulted in increased Asian EO imports to European shores.
In the Q3 of 2022, Ethylene Oxide prices declined in the USA on the back of stable demand sentiments by the downstream processors. In the first half of the quarter, prices decreased sharply due to the issued embargo on its transportation through rail, increasing domestic inventory levels. While in the second half of Q3 2022, producers like LyondellBasell went under unplanned shutdown and inventory levels remained under stress. At the same time, EPA revised its EtO emissions regulations which negatively impacted the demand from importers. Subsequently, after a plunge of almost 23% against the previous quarter's prices, Ethylene Oxide in the USA settled at USD 1205/MT.
Like the previous quarter, Ethylene Oxide prices continued to decline in H1 of Q3 in the Asian countries on the back of average orders from the downstream industries. In August, Shenhua Xinjiang in China went under maintenance turnaround, due to which domestic inventory levels decreased due to moderate demand from downstream glycol producers. Consequently, the price trend revived in the final month of Q3 in China and Japan but remained the same in India as the previous one. At the end of the quarter, Ethylene Oxide China's discussions settled at USD 1060/MT, after an average decrease of 17.2% in the previous quarter's prices.
Ethylene Oxide prices decreased throughout quarter III of 2022. Initially, sluggish demand and weak feedstock costs reduced the product prices in the region. Key producer LyondellBasell, with a capacity of 3.56 MTPA, went under planned shutdown in August amid high energy prices and rationing of input supplies which affected the domestic inventory levels. However, the product prices decreased noticeably in the H2 of the quarter due to a significant plunge in feedstock costs and simultaneous revised regulation by the EU commission on Ethylene oxide presence in food derivatives. After witnessing a decrease of 13.5% in the previous quarter's prices, Ethylene Oxide discussions in Germany settled at USD 1285/MT at the end of Q3, 2022.
