Ethylene prices bounce back

20 October 1997 00:00  [Source: ACN]

ETHYLENE prices have rebounded by as much as US$50/tonne cfr SEA due to a shortage of cargoes from Libya, South Korea and Japan and strong Thai buying interest, ACN was told.

Prices could rise even further if the expected turnaround at the 330 000 tonne/year Ras Lanuf plant in Libya goes ahead in November. One deal was confirmed at US$465/tonne cfr SEA for October lifting with negotiations said to have been settled on several others at US$470/tonne cfr SEA.

These prices represent a welcome increase on the US$420-430/tonne cfr SEA levels reported earlier this month.

'The increases have been triggered by the lack of availability of Libyan cargoes. They have completely sold out for October, and the South Koreans and Japanese having very little material available for spot business,' said an industry source.

A Thai ethylene producer confirmed it has raised buying ideas for the 1000-2000 tonne/month it needs to satisfy high demand from downstream customers (ACN 6 Oct, p52). 'We are still negotiating for ethylene and have had to revise our buying idea upwards from US$420-430/tonne cfr Thailand to US$460/tonne cfr Thailand,' said a spokesman.

Rumours were also rife that a Thai PE producer had bought ethylene at US$465/tonne cfr Thailand. However, a spokesman for the company insisted: 'Our last purchase was concluded at end-September, at US$410/tonne cfr Thailand. If prices have gone above US$440/ tonne cfr Thailand, the maximum we can possibly pay, we will have to consider reducing our operating rate.'

A PE producer in Indonesia reacted with amazement to suggestions that prices have reached US$465/tonne cfr SEA, saying the price level is still at US$440/tonne cfr SEA.

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