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Petrochemicals

Growing European ethylene supply is hit by weak derivatives

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Listen: Growing European ethylene supply is hit by weak derivatives

What's in store for 2020? As 2019's heavy turnaround season at all main European petrochemical cracker units came to an end, ethylene supplies returned to a progressively weakening derivatives market. Styrene monomer in particular has been significantly affected and set to remain bearish for the foreseeable future.

On the opposite side, upstream naphtha has kept strong and has recently pushed European cracker margins to the floor. How did this situation develop and what is to expect in H1 2020? Ora Lazic, European ethylene editor, and Olu Shaw, editor for the European styrenics chain, discuss on today's Commodities Focus podcast.