Ethylene supplies in Europe are expected to remain tight as scheduled maintenance at the beginning of turnaround season means there is little material available for dealmaking.
OLEFINS
Some special discounts have been reported in the market, but these are rare and are said to be highly dependent on location.
Propylene supply will remain snug, with April spot volumes mostly heard pegged at parity to the contract price, with bullish polypropylene and acrylonitrile demand.
The European butadiene market is awaiting a clear direction in Asian demand and pricing, which has yet to emerge following the Lunar New Year holidays.
Meanwhile, arbitrage opportunities to the US have been supporting European pricing and reducing any length from the market.
POLYMERS
Polyethylene markets are lengthening in Europe with downward price pressure on both low density and linear low density material expected to continue this week.
Buying activity was less than most players had anticipated in recent weeks.
High density grade markets remain the tightest in the region.
Polypropylene prices are expected to remain relatively firm as solid demand combined with recent outages to offset a weaker feedstock picture.
AROMATICS
The European benzene market is expected to remain rangebound this week, as the absence of open arbitrage out of the region and stable demand at low levels has seen spot levels hover just below the March contract price for most of the month.
Despite expectations of increased styrene run rates in the short term, ample supplies in Europe will take some time to clear out.
Downstream, the styrene market appears on a downwards trend due to European plants completing their maintenance works in March and US-based plants in April.
As for mixed xylenes and toluene, the driving force in the market remains the open arbitrage from Europe to the US Gulf Coast Area.
METHANOL/MTBE
Activity was quiet for most of last week in the European methanol market, with tightening supplies and a focus on the upcoming quarterly settlement of the contract price in Europe driving discussions among most players.
Sentiment at this stage suggests the contract price will drop from its current Eur380/mt level.
MTBE remains in search of direction, as the upcoming gasoline specification change is expected to increase MTBE
blending, but summer grade stocks in Europe are ample at the moment so blending demand is expected to be rangebound.