|
(ICIS) -- Prices of naphtha and ethylene
in Asia are expected to be on a decline because of weak demand for downstream
products - styrene monomer (SM) and polyethylene (PE), traders said on
Friday. A possible prolonged shutdown at a cracker in Taiwan further
dampens the outlook for naphtha, they said.
The intermonth naphtha spread between the first-half July and first-half
August contracts was assessed at a backwardation of USD 3.50/tonne (EUR
2.50/tonne) - the weakest since 21 February, according to ICIS data. Naphtha
prices were at USD 983.50-986.50/tonne CFR (cost and freight) Japan on
Friday.
Reflecting the bearish market, South Korean’s Yeochun NCC (YNCC) has
bought 50 KT of spot naphtha a very weak premium of USD 1.50/tonne to Japan
quotes CFR for delivery into Yeosu in the first half of July. “Demand is
decreasing and the outlook is bearish,” said a naphtha trader.
Meanwhile, Asian SM prices slipped below USD 1.400/tonne CFR China this
week amid poor downstream styrenic resins demand. SM buyers were hesitant to
commit as they expect spot prices to fall further.
High density PE (HDPE) spot prices have weakened by USD 10/tonne to below
USD 1.350/tonne CFR China, on the back of sluggish downstream demand and softer
leading domestic prices. Buyers opted to monitor the market this week, while
waiting for more offers to emerge next week. However, they reiterated that
purchases would be limited to small lots.
mrcplast.com
| 
