CHEM-NET FACTS

1 novemBER 2013

CHEMICAL MARKET INSIGHT AND FORESIGHT - ON A SINGLE PAGE

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Ethylene Oxide Fax: +44 20 7978 5307

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All EO plants in the US have been operating Sep-2013 Oct-2013 Oct-2013 Short-Term
US PRICES /lb /lb $/ton Price Trend
normally during the month and still the
Contract 59.30 N.A. FOB N.A.
availability is on the tight side. Demand from WEST EUROPE PRICES /ton /ton $/ton
derivatives remains very high, especially from Contract 1313-1513 1285-1485 DDP 1753-2026
ethoxylates with their use in shale gas fracking CHINA DOMESTIC PRICES Rmb/ton Rmb/ton $/ton
Domestic Spot 10400 10400 EXW 1704
consuming ever larger volumes. Demand from
MEG has eased off slightly as the PET resin N.A. = Not Available = Revised

season winds down. The ethylene contract Rmb/ton prices include VAT at 17%
price for September was, surprisingly, rolled
over at 46.0 c/lb ($1014/ton) ddp.

The availability of EO in Europe eased into US Dollars per Ton ETHYLENE OXIDE PRICES : 2 YEAR SPAN
the month. PKN Orlen brought back its plant 2250

at Pock at the end of September, Clariant 2000

re-started its one reactor at Gendorf in early 1750

October and Sasol brought back on stream its 1500

plant at Marl last weekend. Only Ineos Lavera 1250

plant will now remain down, as it has been for 1000
around 50% of the time this year, due to the In Conversion to US$ the 17% VAT Element in Chinese Rmb Prices has been Excluded for Comparative Purposes
750
cracker maintenance and it is due to re-start, ov c b ar r
ay n l g p ct ov c b ar r
ay n l g p ct
De 12 Fe M Ap Ju Ju Au Se O De 13 Fe M Ap Ju Ju Au Se O
hopefully, by mid November. The ethylene N
20 M N
20 M

contract price for this month was settled at Product Location Definition

a decrease of 35/ton to 1225/ton ddp Ethylene Oxide

Ethylene Oxide
United States
West Europe
Contract FOB
Contract DDP
before discounts, which was a slight surprise Ethylene Oxide China Domestic Spot EXW

for most, as a smaller decrease or even a roll-

over had been expected.

Short-Term Price Trends US Dollars per Ton

2500
ETHYLENE OXIDE PRICES : 10 YEAR SPAN

2250
At the moment it looks as if the ethylene contract 2000
price in the US for October may come down. 1750
The average weighted spot ethylene price in 1500

September was 53 c/lb against the contract 1250

price of 46 c/lb and the weighted average so 1000

far this month is 46 c/lb and prices are still 750

In Conversion to US$ the 17% VAT Element in Chinese Rmb Prices has been Excluded for Comparative Purposes
going down. 500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pressure is being put on ethylene prices in Product

Ethylene Oxide
Location
United States
Definition
Contract FOB
Europe because of shipments of ethylene Ethylene Oxide West Europe Contract DDP
Ethylene Oxide China Domestic Spot EXW
due to arrive in November from the US and
Mexico. These are reportedly priced around
1000-1030/ton cfr, whereas the current spot
price in Europe is about 1370-1420/ton. US Dollars per Ton ETHYLENE PRICES : 2 YEAR SPAN
This will result in some cracker cutbacks and 2250

an inevitable reduction in prices. 2000

1750

1500

1250

1000

750

500

ov c
12
b ar Ap
r
ay Ju
n Ju
l g p ct ov c
13
b ar Ap
r
ay Ju
n Ju
l g p ct
N De Fe M Au Se O N De Fe M Au Se O
20 M 20 M

Product Location Definition

Ethylene United States Contract Monthly DDP
Ethylene West Europe Contract Monthly DDP
Ethylene Asia Import East Asia CFR

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