Ethylene supplies in Europe's spot market remain tight with little buying reported.
OLEFINS
Prices have been rising in the spot market, with the contract price also up on the month on the crude price climb.
The mid-term outlook is said to be bearish due to the cracking of lighter feedstocks yielding greater proportions of ethylene.
Spot prices in the European butadiene market continue to be supported by high spot pricing for export material.
Good demand in export markets has helped remove any length from the European market, supporting firm spot prices.
AROMATICS
Benzene prices were kept low with outages in the downstream styrene market.
The benzene spot price fell to a three-month low last week.
Market participants continue eyeing toluene export opportunities to the US, although there are growing doubts whether there will be firm demand for the parcels across the Atlantic during March.
Similarly, while the MX transatlantic arbitrage remains open on paper market opinion is divided on its workability, due to specification complications and demand uncertainty in the US for March dates.
Market participants still await the outcome of the PX and OX February European CP negotiations.
Oxy solvent markets remain balanced to tight with prices either stable or with some anticipation of modest price rises.
Several products continue to suffer from a shortfall on production problems.
But many also face a seasonal demand slowdown. Further volatility is expected in the styrene market on continued production problems.
In the downstream polystyrene market, sellers will push for a three digit price increase in February to cover for the monthly cost rise, although demand is sluggish.
Muted market activity in Asia ahead of the Chinese Lunar New Year break is likely to limit import offers in the styrenics markets.
POLYMERS
Polyethylene supplies are said to be abundant in Europe, with mixed reports about the volume of buying activity in January.
Despite the length in the market, spot prices are higher on a rise in the monthly contract price of the monomer feedstock.
European spot PET prices were forecast to continue to edge higher on firm demand, a strong MEG feedstock contract price settlement and a PX CP due to also settle at higher levels.
European PVC markets are expected to face ongoing upward pressure in the coming week.
The shortfall in production in certain parts of Europe as well as a modest pickup in demand during the early part of February has helped raise prices.
Turkish PVC markets face even stronger upward pressure for similar reasons as they rely on European supply.
The European spot SBR price is expected to continue ticking higher through Q1 and Q2, supported by surging feedstock styrene and butadiene and by forecast rising Asian demand after the Lunar New Year.
METHANOL AND MTBE
Sentiment in Europe's methanol market is stable verging on bearish, with muted demand due to the Chinese Lunar New Year's holidays expected to continue into next week.
Few spot deals are reported with prices falling as a result of the lack of buying activity.
MTBE has seen some gains to the factor against gasoline in the past week, and demand conditions remain positive for the week ahead.
Oil and gasoline markets pulled prices down after a severe blow to the US stock market upset sentiment.
But continued European exports to Latin America and West Africa should keep the factor climbing.
INTERMEDIATES
The MEG market in Europe is well balanced, despite weakening demand as the seasonal appetite for anti-freeze and PET wanes in the final weeks of winter.
Supplies are not as abundant as the lack of buying would indicate, due to increased exports to Asia from the Middle East on price strength in the region.
European AA/VAM markets have now begun to increase following weeks of stability despite multiple upwards indications.
A lack of exports from Asia on local tightness as well as a shortfall in available material from European suppliers are among the main market drives.
OTHER
Eurostat is expected to publish its latest data for December 2017 on Wednesday.
