The daily market summary by IDFC First Bank on January 14, 2025, provides an overview of the petrochemical market. Here’s a summary of the key points:
Crude Oil: The crude oil prices continued to decline, with Brent crude down 1.1% at $83.4 per barrel, while WTI crude was down 1.1% at $78.5 per barrel. The decline was attributed to the increasing supply in the market and worries about demand.
Naphtha: Naphtha prices fell 1.3% to an average of $460 per tone, driven by the weaker crude oil prices and ample supply. The demand for naphtha from the Asia-Pacific region was also subdued, which added to the weakness.
Ethylene: The ethylene prices stabilized, with offers around $1,200 CFR NE Asia, and were supported by weaker supply and stable demand. The prices were expected to remain stable in the short term as the demand was expected to remain supported by the strong downstream demand.
Polyethylene : The polyethylene prices in Asia-Pacific remained stable, with offers around $1,350 CFR NE Asia, while in Asia, offers were around $1,420 per ton. The stable demand and supply imbalance kept the prices stable.
Polypropylene : The polypropylene prices in Asia-Pacific remained stable, with offers around $1,250 CFR NE Asia, while in Asia, offers were around $1,320 per ton. The demand remained stable, and the supply was expected to remain tight in the short term, which would keep prices stable.
Petcoke: The petcoke prices remained stable, with offers around $140 per ton. The demand was expected to remain strong in the short term, backed by the positive sentiments in the downstream sectors.
Freight: The freight rates remained stable, with shipping lines and owners increasing rates to counterbalance the rising bunker costs. The demand for shipping was expected to remain strong in the short term.
Outlook: The petrochemical market is expected to remain stable in the short term, driven by the stable demand and supply imbalance. The crude oil prices were expected to remain volatile, which could impact the petrochemical prices in the long term. The demand for petchems was expected to remain strong, backed by the positive sentiments in the downstream sectors.