OLEFINS
While ethylene and propylene markets are seen tight and their prices bullish, the butadiene market has turned bearish primarily on signals from Asia.
European spot ethylene prices are likely to continue trading at a premium to the March contract price as availability remains, tight with a number of crackers offline for maintenance.
Scheduled maintenance at a number of monoethylene glycol plants could tighten availability.
POLYMERS
European polyethylene prices look set to remain stable heading into the last week of March as consumers defer material purchases and seek to gain greater clarity on April pricing.
Those converters with a stock position are expected to continue to purchase just enough material to cover their needs compared with large volume pre-buys as prices are expected to fall in May.
Supply in the European polypropylene market is tight, and demand is strong in a market where buyers have a lack of alternatives in the shape of imports.
The polystyrene market is bearish as styrene prices head south.
AROMATICS
Benzene prices in Europe, Asia and the US are largely at parity and all arbitrages are closed. Run rates at European benzene extraction units are generally robust despite the ongoing cracker turnaround season.
Increased downstream demand from styrene startups in Europe could prove supportive to benzene prices in the second half of March and April.
The toluene arbitrage to the US is open on paper, but few are willing to commit volumes across to the US.
Conversion to benzene remains the highest priced end use for toluene in Europe and the US.
The restart of Trinseo's Terneuzen styrene unit this week will place downward pressure on styrene prices.
The import arbitrage from Asia is expected to remain closed as well as Europe's export arbitrage to the US.
Orthoxylene prices will be supported by tight fundamentals because of maintenance being conducted by Shell.
The spot paraxylene price is expected to track Asian markets as an export arbitrage is in place.
Downstream, purified terephthalic acid supply will be tight as a force majeure at BP's Geel units remain in place despite talk that allocations are rising.
METHANOL AND MTBE
European methanol markets were sent a bearish signal by falling Asian markets this past week before formal negotiations were set to begin over the second-quarter contract price in the coming week.
European MTBE/ETBE markets are likely to continue moving sideways as participants wait to see where crude and gasoline will stabilize following the volatility of the last two weeks.
INTERMEDIATES AND SOLVENTS
The Eur80/mt hike in feedstock methanol price for Q2 posted by Methanex Friday is setting a bullish stage for derivative acetic acid.
Oxysolvent markets continue to be fragmented. Tightness in Acetone, MEK and IPA markets continue to keep prices high.
