December 20, according to the sources, ethylene suppliers in Asia are discussing the initial offer for 2018, the premium of ethylene is about 80 US dollars per tonne, according to the Northeast Asia CFR Agreement.

According to S & P Global, six of the 12 steam cracker units in Japan’s naphtha will be serviced. During this turnaround, about 3.46 million tonnes of ethylene units were idle each year, accounting for 53% of Japan’s total ethylene production.

Due to the completion of a new ethylene derivatives plant, southeastern spot supply is expected to decline next year. It is reported that in order to strengthen its commercial operation, Thai PTT Company has recently built a 400,000-ton metallocene C6 linear low-density polyethylene factory in Matah.

In addition, deep-sea supplies from Saudi Arabia will also likely be reduced as new ethylene downstream product plants will soon be established in the area. In 2017, due to the delay in the start of the new polyethylene plant in the region, ethylene exports in Saudi Arabia increased.

An industry insider said: “By 2018 ethylene supply will certainly be less than in 2017. This is why suppliers demand higher premiums.

The source estimates that price discussions may continue to early 2018.