Asian prices for key petrochemical products, including ethylene, propylene, and polyethylene, continue to stay elevated despite the recent ceasefire in the Iran war, according to market sources. The agreement between Washington and Tehran has not yet alleviated trader concerns about the durability of the ceasefire and the timeline for global oil trade normalization [1]. Safe navigation through the Strait of Hormuz, a critical channel for global oil shipments, remains a focal point for market participants. Persistent worries about the security situation in the region are keeping risk premiums high for petrochemical products [1].
A Tokyo-based petrochemical trader commented, 'The market is still very nervous about potential flare-ups. The ceasefire is welcome, but we need to see stable and safe navigation through Hormuz for sentiment to really improve' [1]. Analysts noted that while spot prices have not surged further, they have also not dropped significantly, indicating ongoing supply concerns. Technical analysis shows strong support levels for regional petrochemical benchmarks, and any negative news from the region could trigger a move toward recent highs [1].
Traders are also considering the time required for shipping insurers to lower premiums and for supply chains to return to normal. Until these factors are resolved, elevated prices and cautious trading are expected to persist in Asian petrochemical markets [1].
CONCLUSION
Despite the Iran ceasefire, Asian petrochemical prices remain elevated due to ongoing concerns about the security of oil shipments through the Strait of Hormuz. Market participants expect prices to stay high until there is clear evidence of safe passage and normalized supply chains. The overall sentiment remains cautious, with traders closely monitoring regional developments for any signs of renewed instability.