After the July Benzene European contract price settled down $31 at $793/mt, it remains to be seen if spot prices can hold their ground with numerous downstream styrene plant outages.
AROMATICS
Expectations remain mixed on whether spot toluene prices could resist above the July ECP level, which settled at $600/mt.
Supply tightness in xylenes is easing as no plants were heard undergoing maintenance and no particular uptick in demand was seen.
Meanwhile, the styrene July barge ECP fully settled at Eur1,200/mt Monday, up Eur27.50.
Ellba's unexpected shutdown last Tuesday is expected to keep the prompt market tight this week.
OLEFINS
Ethylene spot prices could fall this week as availability increases and feedstock costs decline. Spot market activity is expected to gain momentum after the July CP had settled, down Eur50 at Eur965/mt on firm demand.
Butadiene is expected to remain stable with healthy demand, and the bullish influence of Asian price rises is expected to be offset by ample availability.
Market fundamentals are likely to remain stable with a balanced to long outlook with regards to supply.
POLYMERS
Polyethylene prices this week will be grade dependent and will depend on availability.
With feedstock ethylene's July CP settling down Eur50, PE contract prices are likely to see more of a decline than the spot market, which in contrast has been under sustained pressure over the last few months and is not expected to reflect the full monomer decline.
Meanwhile, polypropylene buyers are eyeing price decreases following the Eur50 drop in the contract price of propylene.
European PET prices and demand are expected to find support during July amid procurement activity to meet summer demand.
Polystyrene demand is expected to remain slow through July due to the seasonal summer lull.
Acrylonitrile butadiene styrene prices are expected to fall in July in anticipation of lower feedstock costs.
METHANOL AND MTBE
Methanol markets are set for a moderate easing following the settlement of the European Q3 contract price.
Spot demand seen during the last two weeks is unlikely to resurface this week.
MTBE markets are likely to see fundamentals strengthen on strong blending demand.
The closure of the gasoline arbitrage from Europe to the US has focused European gasoline exports on the WAF market.
INTERMEDIATES AND SOLVENTS
Monoethylene glycol prices could move slightly higher this week on firming Asian demand.
While European demand remains muted, PET and antifreeze producers were heard making enquires last week, prompting some in the market to expect a slight rebound in prices.
Oxysolvents products arelikely to continue the declines seen throughout most of June.
Improved European supplies as well as significant import volumes are continuing to ease the previously tight situation.
