Each month, FGE’s Ethane Monthly Supply, Demand & Trade Balance analyses the volatile short-term market for ethane. In this statistical review, we track, interpret and forecast ethane supply and demand fundamentals to deliver clear, concise analysis and a fundamental summary of the ethane market.
The ethane trading market has been coming of age in recent years. A rise in spot trade and increased market volatility has resulted in buyers and sellers gradually shifting from almost a purely term market to one with increased trading opportunities and a need to manage risk.
FGE’s Supply, Demand & Trade Balances utilises a country-level, bottom-up approach to develop a regional understanding of global supply and demand market dynamics. Overlaying a global trade matrix, FGE balances trade routes and import/export requirements to provide a fully integrated supply chain model.
Our in-depth models integrate price-elastic demand areas, such as steam cracking, with our in-house view of price spreads and how these will affect swing cracking demand and import requirements.
On the supply side, we look at the main exporting markets in depth. By examining organic wellhead production growth as well as rejection/recovery trends, on a US PADD by PADD basis, we arrive at monthly figures for exports and domestic inventory levels.
Subscribers will thus be able to see “behind the curtain” of FGE’s monthly ethane supply, demand and trade model, which informs FGE’s short-term outlook. To help subscribers isolate any changes, we provide a PDF summary of the main changes in fundamentals month to month.