Baran Serdaroglu

Petrochemical supply flows from the Middle East over the second half of the year are contingent on shipping bottlenecks, many of which will depend on how the conflict between the US and Iran develops. But, market participants said, it's unlikely there will be swift return to prewar trade flow levels for most chemicals originating in the Middle East, as the economics of global trade have changed.

European methyl methacrylate, butyl acrylate and 2-ethylhexyl acrylate markets showed signs of weakening prompt demand despite tight supply, while forward sentiment softened on expectations of increased Asian imports, slightly easing constraints toward late May and June, according to multiple market participants.

The European Union's import prohibition on refined petroleum products derived from Russian crude takes effect Jan. 21, with northwestern European markets expecting minimal disruption while southeastern Europe faces greater exposure, according to market participants.