Ethylene spot prices in Northwest Europe increased marginally week on week to Eur885/mt ($1,214/mt) FD NWE Friday on the back of a fall in steam cracker utilization rates, which helped managed the oversupply in ethylene, sources said.
Ethylene spot prices in the region were at a near year-low at the beginning of the month at Eur855/mt FD NWE but have since recovered. The low was on the back of copious supplies.
Prices for cracker co-product like benzene, propylene and butadiene were under pressure, which reduced operating rates on crackers to 80% currently from above 80% in recent weeks, a source said.
A steam cracker uses hydrocarbons like naphtha and LPGs to produce chemicals like ethylene, propylene, butadiene and benzene. Ethylene is primary output of a steam cracker.
"Propylene is getting supplies, benzene is not short anymore and butadiene is balanced. Hence the need for the crackers to run hard to fulfill these [co-product] contracts is gone," one source said.
NWE propylene spot prices fell to Eur1,150/mt FD NWE Friday, a month low, on the back of better availability of product. The improved availability was due to increased imports in April. Moreover, derivative demand was stable, sources said.
Butadiene spot prices in the region hit a near four-month low Friday as a combination of weak global demand and oversupply concerns put pressure on prices. The inland market was assessed at Eur918/mt FD NWE, the lowest since January 30 when they were assessed at Eur973/mt FD NWE.
Benzene spot prices Friday fell to their lowest level since the end of November, diving to low $1,330s/mt in Europe towards the end of last week.
The spot benzene benchmark was assessed at $1,335/mt CIF ARA, down by another $32.50/mt week on week. The three-week streak of almost non-stop deflation in European benzene prices is a direct consequence of the easing supply tightness, as imports of up to 60,000 mt, according to some sources, are expected to start arriving in Europe at the turn of the month.
