Tag Archives | ethylene

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Petchem markets become more complex

Our annual Asian conference in Singapore (co-organised as always with ICIS) was very interesting this week. We had some fascinating presentations from major companies including Reliance and Thai Oil, and China insights from CICCC and Chemease. Shell’s GM for strategy, Alexander Farina, discussed changes in cost competitiveness between benzene (grey column) and propylene (red) over […]

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Europe’s supply-led ethylene market continues

Q1 saw near record margins for European petchem producers. And there was also a scramble for product, as buyers rushed to secure product ahead of feedstock price-related increases. But this remained a supply-led market. As the chart above shows, based on APPE data, Q1 production (red triangle) was just 5.1 million tonnes. It was slightly […]

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US crackers feast on ethane feeds

There has been a dramatic shift in cracker feedstocks in the USA over the past 2 years, as crude oil prices have risen. Many US producers have been able to switch to ethane feed, and as a result have become some of the lowest-cost ethylene producers in the world. As the chart* shows: • In […]

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Ethylene derivative imports threaten European markets

The chart above is a flashing amber light for European cracker operators. Based on ICIS Pricing data, it shows the delta between (a) European and US ethylene contract prices (blue line), and (b) Europe and the North East Asian spot price (red line). Usually, these deltas range between -$50/t and $100/t. H2 2008 was clearly […]

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Japan’s petchem exports focus on PX and styrene

The blog is still shocked by the terrible events in Japan. It would like to express its deepest sympathy to all those who have suffered loss. For those of us far away from the disaster, life has to go on. It will be some time before its full impact becomes clear. But in a crisis […]

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Libya’s ethylene, propylene, methanol export position

Uncertainty over the Libyan situation is raising questions over the potential impact to its exports. The blog’s IeC colleague, Bob Townsend, has therefore done a quick analysis of the 3 main products that might be impacted – ethylene and propylene (blue columns), and methanol (green, right hand scale). As the chart shows, using data from […]

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Asia’s olefin margins weaken vs Europe, USA

The ICIS weekly margin reports continue to provide essential reading for anyone in the petrochemical value chain. The above chart is particularly fascinating, as it highlights the significant differences between cracker margins on a regional basis over the past 2 years: • Europe (red column) is the clear winner over the period. Its margin bottomed […]

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European ethylene at 82% operating rate in 2010

European operating rates (OR%) for ethylene averaged just 82% in 2010, according to APPE data this week. This meant there was no improvement over H1 OR%, suggesting the recovery from 2009′s 76% OR% has stalled. Of course, in terms of profitability, 2010 will have been a great year. The industry did its usual excellent job […]

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Olefin ‘spreads’ remain volatile

Last March, the blog highlighted the major changes taking place in ethylene, propylene and butadiene prices versus naphtha. It also analysed them in ICIS Chemical Business in September. The above chart now summarises the 2010 outcome, using European prices to enable comparison over the last 30 years. It was a most remarkable year. The chart […]

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Major changes underway in chemicals markets

This week’s ICIS Chemical Business includes the blog’s article on the changes taking place in global markets for ethylene, propylene, butadiene, benzene and paraxylene. These have a potential impact on buyers and sellers all the way down the various value chains. The article updates the blog’s major series on these issues in the summer, and […]

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