EMEA: The Week Ahead in Petrochemicals, W/C Apr 9

Sentiment is stable in European ethylene, with supply sufficient on the back of a lighter maintenance calendar due to postponements.

OLEFINS

In PROPYLENE, the market is balanced amid good demand and comfortable supply with spot activity expected to pick up in the European market following the previous holiday lull.

The European butadiene market is closely watching Asian price developments, following a drop in pricing in Asian markets.

However, European exporters have also turned their attention to the US, where arbitrage opportunities continue to be sought.

POLYMERS

The European polyethylene market has been quiet with sentiment stable. The general trend of waning demand in recent weeks may persist.

Fundamentals have been stable and supply is long. In polypropylene, market participants expect prices to increase on the back of robust demand and following the rise in April propylene contract price.

AROMATICS

Styrene supply is expected to remain sufficient, with plant restarts expected to add length to the market. Overall, styrene has seen a period of price weakness, especially with demand weak.

Supply length remains an issue in benzene, with discussions rangebound earlier. Meanwhile, the market for toluene is seen as "balanced to long".

With an outage at BP's downstream PTA plant, spot MX demand remains thin for PX extraction in Europe, together with arbitrage opportunities appearing difficult to work.

Market participants are awaiting the outcome of PX and OX contract price negotiations for April, although no major price moves are anticipated.

METHANOL-ETHERS

Demand is still sluggish in the MTBE market, with participants watching supply levels and trying to estimate when buying will kick in more seriously. The factor is expected to continue to see small fluctuations as buyers and sellers take positions.

The European methanol market has been buoyed by an uptick in activity following the Easter holidays. Market participants see the market as balanced-to-tight going into April.

Downstream from methanol, European acetic acid prices surged to a near seven-year high last week as supply woes drove prices higher, and the situation is expected to persist.

Maintenance and shutdowns across the globe have impacted availability, and market sources believed the tightness would remain until June or the end of June, with further production losses expected from turnarounds in April and May.