Ethylene spot prices are likely to remain steady this week despite an uptick in market activity. Availability will remains good, barring an unplanned outage.
OLEFINS
Supply and demand are balanced -- typical for the time of year. Meanwhile, propylene is expected to remain bearish as European crackers are mostly running well and downstream maintenance works are on the horizon.
As propylene prices are lower in Asia compared to Europe, Middle Eastern producers are likely to attempt sending cargoes into Europe.
In development news, Enterprise Products Partners and Navigator Gas said last week they plan to develop an ethylene export terminal on the Houston Ship Channel. But it was not clear if a final investment decision had been made.
Raffinate-1 continued its ascent last week, supported by MTBE. The factor was assessed at 1.3, at a trade heard early for August shipment NWE
POLYMERS
In the polystyrene market slack demand is hindering seller intentions to increase prices.
But expanded polystyrene demand is expected to outshine GPPS and HIPS demand as fundamentals remain tight.
Acrylonitrile butadiene styrene contract prices have largely been settled as strong demand led to a growth in seller margins.
The polyvinyl chloride market remains bearish ahead of the upcoming holiday season during which market participants anticipate slower demand.
Prices fell for the first time since mid-May this week, partly due to the fall in the ethylene contract price.
Buyers are convinced prices are at or near the bottom, and are looking to restock following months of running down inventory.
The upcoming holiday period, with consequently lower run rates, could however dampen buying appetite.
Polyethylene terephthalate imports from Asia which were seen active during end-June and early July, are expected to slow down.
AROMATICS
Benzene fundamentals are likely to remain under pressure with outages in downstream styrene plants which has lengthened supplies.
The imminent restart of Ellba's POSM unit is expected to relieve supply pressures in the European styrene market.
As the toluene demand front remains fragmented, prompt supplies are set to build up and keep producers on their toes.
All xylenes are expected to be well supplied following news that Slovakian Slovnaft's Bratislava refinery is operating normally after a June restart.
But stronger demand from India is expected to keep mixed xylenes supplies tighter compared to other xylenes.
Paraxylene prices are expected to track Asia while bids and offers remain difficult to track on orthoxylene.
European polyethylene terephthalate prices and demand are expected to remain firm as traders and converters continue with procurements.
ETHERS AND METHANOL
European methanol market fundamentals continue to look stable with a touch of upward pressure on reports of demand from significant market players.
Recent modest gains in Asian markets are resulting in extra material being directed to the region.
MTBE markets have by and large stabilized following the volatility when gasoline's arbitrage to the US closed and exporters redirected their efforts to WAF markets.
The factor is likely to remain stable, supported by a firm bid.
INTERMEDIATES
Monoethylene glycol prices are likely on the rise this week as demand from both the European antifreeze and PET markets picks up.
In the caustic soda market, the Mediterranean is tight and traders are looking for imports from other regions.
SOLVENTS
Most oxy solvent products continue to be stable with the exception of ethyl acetate which has seen prices surge following Ineos' unexpected shutdown.
The problem is likely to dominate markets for the next few weeks.
In oxo alcohol markets, European production is running well and supply is ample for the first time this year.
At the same time, buyers are winding down their operations ahead of the summer holiday period and prefer to keep low stocks.
