SCGC Acquisition and Expansion Strategy
Olefins chain: market highlights
Q4 prices fell from global inventory destocking, continued lockdown in China's major cities, and usual soft season.
2021
2022
HDPE, PP,
Naphtha
Prices,
and Spreads
($/ton)
1,400
1,100
800
500
2023
HDPE
PP
P14
Naphtha
HDPE-N
PP-N
200
2019
2020
Q1/21
Q2/21
Q3/21
Q4/21
Q1/22
Q2/22
Q3/22
Oct'22
Nov'22
Dec'22
Q1/23
(QTD)
HDPE-N
PP-N
$536 / ton
$651 / ton
$418/ton (-$118/ton)
$396/ton (-$255/ton)
Q4/22
Q1/23
Q3/22
Q4/22 Notes
Average Weekly Low QoQ Change (QTD)
Brent
-9
98
89
78
83
($/bbl)
(-9%)
Crude price plunged from recessionary concerns and rising COVID-19 cases in China.
Naphtha
-41
714
673
629
673
($/ton)
(-6%)
Naphtha price fell from weak cracking demand and soft gasoline market.
PE-N
-29
390
361
305
380
Spread was pressured by global economic concerns, despite global production cut.
($/ton)
(-7%)
PP-N
358
302
219
($/ton)
-56
(-16%)
362
Note: Prices are as of 23 January 2023.
Worse off than PE due to slow demand in finished goods, particularly in China.
Meanwhile, supply from Vietnam increased due to soft domestic demand from credit issues.
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