Supply constraints push Asian ethylene and propylene markets up
April 12/2012
(plastemart) --
Spot ethylene and propylene markets firmed up further over the past week in
Asia. Overshadowing thin trading activity amidst short holidays in the region as
well as lower naphtha values, supply constraints drove the bullish
trend.
Supply was affected by ongoing production outages at regional
crackers. More crackers are due to be brought offline for maintenance in the
next couple of months. Spot ethylene gained over week , while the increase
amount was even larger with respect to early March. The market was calm as
Chinese players were on holiday for most of last week due to Qing Ming Festival
that took place from April 1-3.
Overshadowing weak demand from
downstream markets, restricted availability led spot ethylene offers to remain
on their firm path for another week.
