Propylene bullish fundamentals are expected to remain firm, as the fallout from the shutdown of Shell's Pernis refinery in the Netherlands and its nearby Moerdijk cracker has created shortages in the market.
OLEFINS
Resupply from the US or other regions is not expected to provide relief to the market in August, but reports of Shell's so far successful startup of the Pernis refinery could bring optimism for some.
Similar bullish sentiments are heard for ethylene and September contract price is looking like an increase for both key olefins.
Butadiene market remains firm, amid bullish sentiment starting to gather pace in the market, following the recent surge in Asian prices.
While domestic demand remains steady, eyes are now increasingly fixed to the Asian market.
POLYMERS
European spot polyethylene prices are likely to present a mixed picture this week, with the market generally expecting prices to rise in both the low density and linear low density polyethylene markets, while prices in the high density market are expected to remain flat.
Rising prices in the LDPE and LLDPE markets has been a tightening of material availability.
In PP, the arbitrage from the Middle East is wide open, but additional arrivals apart from regular flows are not expected to arrive to Europe this month.
Polystyrene sentiment is mixed as producers attempt to grow margins in August.
The closing import arbitrage from Asia and firm demand are expected to support producer margins for ABS this month.
European PET prices are expected to remain high on continuing supply concerns, some expecting tightness to remain until H2 Sep.
European PVC prices shrugged off the impact of Shin-Etsu's force majeure in Pernis, the Netherlands, sources said.
Supply is expected to ease further following news that BorsodChem was in the process of restarting its 400,000 mt/year Kazincbarcika, Hungary, plant last week following a planned maintenance
AROMATICS
Market sentiment remains mixed on benzene demand ahead amid numerous downstream styrene plant turnarounds and catalyst changes, together with phenol plant turnarounds, albeit the structure remains in a contango.
The toluene demand front stands fragmented, but with a TDI plant maintenance heard scheduled for September, it remains to be seen if further downside is seen on premiums.
The xylenes market is expected to continue to be well supplied amid a quiet streak on the back of public holidays, reducing market sentiment and activity into next week.
Demand remains weak across all xylenes, with fluctuating feedstock prices were seen helping to drive prices movements in the week previous
METHANOL AND ETHERS
Markets are likely to remain muted in the coming week as Europe continues to look east to Asia for direction.
Prices are now hovering around the Eur320/mt mark and are likely to have bottomed out as Asian prices reversed some of the recent losses over the past few trading sessions.
MTBE is available even though the market remains on the tighter side.
Demand is expected to pick up over the next few weeks, driven by summer specification gasoline, as winter stocks deplete.
SOLVENTS AND INTERMEDIATES
Tightness remains the main issue for all oxy solvent products bar ethyl acetate (ETAC).
The limited availability is adding upward pressure on prices with even ETAC markets expected to face shortages over the next few weeks.
The Easter break could provide some welcome relief for many of the oxy solvents with a drop in activity allowing for stocks to replenish.
European MEG prices look set to remain flat this week amid a quiet market.
While prices have been rising in recent weeks off the back of renewed demand from the PET industry, prices have plateaued and are not expect to rise until early September, spurred by the antifreeze industry re-stocking.
Solvent naphtha (C9) and hexane sentiment remains firm on amid supply tightness, but other hydrocarbon solvents are faced with lackluster demand amid the summer holiday season.
