Benzene prices are set to hold their ground as limited availability at the front end keeps prompt prices supported. However, the picture remains mixed for toluene amid limited buying appetite in Europe.
AROMATICS
While the gasoline blending pool remains the primary outlet for placing spot MX molecules, its supplies are tight after exports of high volumes to India.
While PX remains well supplied, OX supplies are tight amid restricted supplies from Russia and the ramp-up of Austrian Atmosa's downstream PA plant after a restart earlier this month.
Pending imports will continue to weigh on the European styrene market despite Trinseo's Bohlen outage reducing European production.
OLEFINS
Ethylene is set to trade at a discount to the June contract price as the industry awaits the results of the July CP discussions, on which a decline is expected amid lower naphtha prices and the easing of molecule supply scarcity.
While market participants look ahead to the July CP negotiations, spot prices are under pressure due to low oil prices and cracker restarts in Europe.
Similarly, the butadiene market is expected to lengthen as trading activity remains lackluster in the lead-up to the butadiene CP settlement.
There is a slightly bearish expectation due to returning capacity coming on stream.
POLYMERS
European polyethylene prices will likely remain stagnant this week as consumers defer purchasing material until the impact of the July feedstock ethylene contract price on PE pricing becomes clear.
While material availability is grade dependent, consumers may struggle to source specific LDPE grades as supply tightens.
Buyers have kept their polypropylene purchasing at minimum amount throughout June, as they work down their inventories and anticipate lower prices due to declining feedstock prices.
Accumulated demand since the beginning of the second quarter could however support the market as buyers rush to replenish their stocks ahead of the holiday period.
PET demand stands strong as converters continue with summer procurements. PS sellers will make a last push for higher June contract levels, in line with a monthly increase in styrene.
But in the polystyrene spot market, distributors in southern and eastern Europe will look to de-stock before the summer season lull begins.
METHANOL AND MTBE
Methanol markets are likely to move in surprising directions as they enter the final week of the quarter and edge closer to the contract price settlement.
Fundamentals remain long, with bearish global sentiment. Ethers are facing downward pressure amid a bearish energy backdrop, with MTBE's factor to gasoline expected to decline as demand drops off.
INTERMEDIATES AND SOLVENTS
MEG prices will remain flat this week as demand from the PET market remains "disappointing." But market fundamentals remains balanced amid limited molecule supply.
Meanwhile, buyers are likely to hold off until July to replenish their already low ACN stocks, as supply in Europe could ease due to increased run-rates at European plants.
Oxysolvents continue to see declines in their spot prices amid improving European production, increased imports and an easing off in demand.
