Ethylene spot prices in Northeast Asia (NEA) continued to rise last week due to continued pre-holiday material purchases in China, ICIS said.

Thus, prices ranged from USD950 per tonne to USD1,050 per tonne, CFR CBA, for deliveries in February and the first half of March against USD930 per tonne, CFR CBA, January 18, according to ICIS.

Several Chinese companies now have less contractual deliveries than in previous years, because negotiations have stalled due to the large difference between price and counter offers. This prompted them to increase their spot purchases, including orders for shipments until March.

Buyers also stock up material due to fears that the supply may be more limited in March, when preventive maintenance will begin in South Korea at one of the cracking plants.

However, after the recent price increase, more spot imports have arrived in the region: about 27 thousand tons from Europe and South America for deliveries in March and early April.

Ethylene replenishment in Asia is expected to slow next week as several companies have completed their pre-holiday purchasing plans.

Others may postpone purchases for material deliveries in March, as recent price increases have led to a reduction in the margin of some derived products.

Ethylene is the main raw material component for the production of polyethylene (PE).

According to the ICIS-MRC price review, in Russia the demand for PE in January was low and by the end of the month it decreased even more. Many companies have already closed all their needs for PE in the current month and took a pause until February. Excess supply remains in all segments of consumption, the greatest surplus in the segment of film PE. Last week, amid a surplus, some sellers went for further price reductions. Sellers are trying to sell their quotas as much as possible in order to enter the next month with empty stocks.