Ethylene market in November fluctuated

I. price trend:

According to the monitoring data of the business agency, the price of ethylene on the outside market in November fell first, then rose and then fell, which can be said to be ups and downs. At the end of the month, the average price of ethylene was 826.50 US dollars / ton, down 1.58% compared with 839.75 US dollars / ton at the beginning of the month, and the current price was down 14.44% compared with last year.

II. Market analysis:

Products: in November, the overall price of ethylene on the outside market fell first, then rose and then fell. The price of ethylene market in Asia rose first, and then it was high and volatile. As of the end of the month, CFR Northeast Asia closed at $818-824 per ton, and CFR Southeast Asia closed at $807-815 per ton. European ethylene market prices fell, as of the end of the month, the European ethylene market price for FD northwest Europe closed at $878-889 / ton, CIF northwest Europe closed at $785-796 / ton. The price of ethylene in the U.S. region rose. As of the end of the month, the price was US $501-513 / ton. As a whole, the market of ethylene fluctuated. The industry pays more attention to the supply and demand after the festival.

Industry chain: International: on November 26, WTI crude oil futures market in the United States rose to 58.41 US dollars / barrel, up 0.40 US dollars or 0.7% over the previous trading day, while Brent crude oil futures rose to 64.27 US dollars / barrel, up 0.62 US dollars or 1.0% over the previous trading day. Tass, citing three sources close to OPEC, said the group and key partners such as Russia are considering extending the production cut agreement for three to six months, which currently expires in March 2020. Affected by the news, oil prices rose slightly. However, the price of oil also fluctuated in the early stage, which had insufficient support for ethylene, and the external market of ethylene was temporarily at a low level. The lower styrene price has a slight upward trend, and the ethanol price continues to consolidate, which has a limited supporting effect on the ethylene price.

3. Future forecast:

According to ethylene analyst of Business & Social chemical branch, the recent crude oil price has maintained a narrow range of strong shocks, and there are some favorable factors in the market in the short term, including the geopolitical influence of stability maintenance in Iran and Iraq, the increase of OPEC production reduction expectation, the pessimistic sentiment of us inventory data, etc., which support the stronger oil price operation. Therefore, analysts of business data expect that ethylene prices will keep a narrow range of volatility in the future, which does not exclude the possibility of rising.