US OLEFINS
Trade participants head into April awaiting a settlement for the March ethylene contract. Market sources have pointed to a likely decline for the March ethylene contract, citing a continued decline in domestic spot prices, which dropped below the 14 cent/lb FD USG level last week for the first time in eight months. Meanwhile, propylene trade participants were still looking to assess operations at two propane dehydrogenation units, which have had issues over the past month.
US POLYMERS
US polyethylene market participants said the March domestic contract should be finalized this week. Most expectations were that March prices were stable, but Dow and ExxonMobil reiterated last week that they were still pushing for price increases. Trade sources said with feedstock ethylene costs low and supply still ample for ethylene and polyethylene, there was little justification for an increase. US polypropylene offered little reaction to Total Petrochemicals & Refinery USA declaring a force majeure at its La Porte, Texas, polypropylene plant. Inventory remained ample and, according to sources, a modest muting of supply shouldn’t influence spot pricing, although demand is expected to rise moving forward.
LATIN POLYMERS
Latin America PE and PP will see mixed price movement this week after stable-to-lower prices during the previous week. Buyers and sellers will be returning to the market after many industry events held in different locales. Other countries, such as Mexico and Peru, will be hosting the main local industry event of the year where traders, producers, buyers and end-users will meet, as per market feedback. Traders said PE prices have hit the floor while buyers continued to wait and watch, sources said. Mercosur market is expecting a price increase after Braskem shut down a LDPE plant for maintenance after a decomp process was triggered to correct a reactor failure, according to company spokesperson. In Argentina, market participants expect April prices to increase at least $60/mt after local producer Dow announced such a price increment, according to sources. In the PP sector, traders said there will be more US-origin material to be offered in the Latin America market amid lower feedstock prices seen for most of the previous months, with ample supply and moderate demand, sources said.
US METHANOL
Logistics around Intercontinental Terminals Company’s Deer Park, Texas, facility continued to hamper spot methanol activity in the Gulf Coast moving into April. ITC trades have been limited since the mid-March fire, with activity instead reported at St. Rose. Downstream, MTBE market participants have also been eyeing spot methanol logistics, with one source suggesting “Might see some supply disruptions from lack of feedstock,” as pricing inches upward.
US STYRENICS
US spot benzene prices were poised to remain steady in the near term as derivative demand from the downstream styrene segment remained subdued amid talk of ongoing maintenance by a US producer. Sources anticipated that liquidity would stall somewhat following the settlement of the April US benzene contract, which closed 23 cents above March’s 225 cents/gal. Downstream, styrene prices were expected to rebound somewhat from last week’s sharp declines. Planned maintenance throughout April in the US and abroad was poised to lend some support to pricing though high inventory levels in Asia as well as softer benzene prices could limit upward price movement.
Source: S&P Global Platts
