Recently, BASF's ethylene complex at its Zhanjiang integrated site in South China commenced operations as scheduled. This is the world's first ethylene complex with its main compressors (electric-driven) powered entirely by renewable energy. PriceSeek Analysis on Ethylene, Bull-Bear Score: -1
The commissioning of BASF's Zhanjiang ethylene complex increases market supply, potentially leading to a decline in spot ethylene prices. Considering recent contract data for ethylene futures, the release of new capacity may exert downward pressure on futures prices. The score is moderately bearish, as the facility, while innovative as the world's first renewable energy-driven project, directly adds to supply. Against a backdrop of no significant demand growth, this could easily trigger price downside risks.
Comments
0