It is imperative for petrochemical producers to understand and analyse the economic and market factors affecting the competitiveness of their exports. In recognition of these factors, Advisian has established Olefins & Derivatives Monitor (ODM) Report to examine the true cost of supply to major world markets for key ethylene and propylene derivatives - polyethylene (PE), mono ethylene glycol (MEG) and polypropylene (PP)
The report addresses the integrated economics, from feedstock hydrocarbon through to linear low density polyethylene (LLDPE), PP and MEG on a free delivered basis to the following markets.
- China
- Western Europe
- Latin America (Brazil)
The economic analysis is derived from the liquid and gaseous hydrocarbon, and coal feedstock. Margins are similarly derived from LLDPE (butene), MEG and PP prices.
The report provides ongoing intelligence on leader-integrated producer plants in the US Gulf Coast (ethane/propane and naphtha), Saudi Arabia (ethane and propane), Western Canada (ethane), South Korea (naphtha), Western Europe (naphtha and LPG), China (naphtha and coal-based methanol-to-olefins) and Brazil (naphtha). For propylene, our analysis also includes economics for PDH (propane dehydrogenation) plants in the US, Western Europe, Saudi Arabia and China. Full supply chain costs are reported, including plant cash costs (variable and fixed); packaging, freight, and distribution (with regular updates of ocean freight costs); SG&A costs; as well as tariff and technology royalty costs, as appropriate.
ODM issue is published during last week of every month.
The following table illustrates the summary of coverage in ODM:
| Supplier Region | Exports Market | Product for Margin Analysis |
|---|---|---|
| USGC | China | Polyethylene |
| China | Western Europe | Mono ethylene glycol |
| South Korea | Latin America (Brazil) | Polypropylene |
| Latin America | Ethylene (Domestic market) | |
| Western Europe | Propylene (Domestic market) | |
| Middle East (Saudi Arabia) | ||
| Canada |
For more information or to subscribe to the Olefins & Derivatives Monitor, contact us.