CFR China prices were assessed around USD 1135/MTS increased by USD 35/MTS in compare to last week’s closing values. On other side similar trend were observed in FOB Korea values. Prices for FOB Korea were assessed around USD 1305/MT, hike of USD 50/MT in compare to last week’s closing values.
The initial offers for 2018 for Ethylene have been offered with premium of USD 30-35/MT. Hike in premium is basically due to limited supply in the region, specially from Japan. Many crackers are scheduled for maintenance in the first quarter of 2018 in Japan in turn leading to limited supply.
Similar scenario is observed in Middle East as well. The supplies from Saudi will reduced as new ethylene downstream plant will start soon in the region. In 2017, Saudi Arabia's ethylene exports increased due to a delay in the start of a new local polyethylene plant. This is the reason why Ethylene is offered at very high premium.
