S&P Global Platts outlook for European petrochemical products markets in the w/c May 15:
OLEFINS
Olefins prices are seen under pressure as several crackers have restarted. While imports are seen applying further pressure on ethylene, European butadiene is following signals from Asia where prices dropped $175 last week.
The decline in propylene prices has been lower than expected so far in May and the market is looking for fresh direction.
Monoethylene glycol prices are expected to remain stable amid low demand and an unwillingness among producers to lower prices.
POLYMERS
Bearish olefins have cast an impact on downstream polymers.
Polyethylene prices are expected to continue to soften this week on an impact from imports and bearish ethylene.
Polypropylene buyers who were buying "hand to mouth" early in May have been relying on inventories to carry them toward June when they expect prices to be cheaper.
Polyethylene terephthalate sentiment remains relatively weak as buyers push for lower prices while restricting orders.
AROMATICS AND BLENDING COMPONENTS
Mixed xylene fundamentals remain under pressure on lackluster demand and arbitrage opportunities prove difficult to work.
With a lower second May contract settlement of paraxylene at a price $40 below April, it remains to be seen if there will further downside for spot prices.
With styrene spot supplies limited in Europe and availability dry in the US for May dates, downside risk remains minimal on styrene prices as the demand front holds strong.
The benzene-to-toluene spread has been healthy so far this year but this is expected to change as benzene turns bearish.
ETBE prices were buoyed by the strength in feedstock ethanol and seasonal demand last week.
Finland's Neste has shut its ethers unit in Porvoo, Finland, for maintenance.
MTBE supply-demand was finely balanced and no fresh exports were heard last week, following a 40,000 mt cargo that was fixed out of Europe in early May.
METHANOL AND INTERMEDIATES
Mider-Helm's methanol plant in Leuna, Germany, methanol plant went into maintenance last week, but this is unlikely to support the spot market.
With volumes coming out of Azerbaijan, Egypt and Libya, there was further downside potential in Europe.
A delay in the restart of Celanese's Clear Lake vinyl acetate monomer plant in the US is likely to prop up VAM prices in coming weeks.
With little resupply coming into Europe prices could edge higher this week.
