Asian ethylene-naphtha spread narrows to 3-year low
The spread was assessed at around $451/ton, which is the lowest level since October 2015, with naphtha prices on CFR Japan basis recently hitting an almost four-year high at around $732/ton. The benchmark naphtha prices in Asia have been following a steadily increasing trend since late August on the back of rising crude oil prices.
On the other hand, Asian ethylene prices have largely shrugged off the rising trend in naphtha prices. The spot ethylene market has been bearish since the middle of August due to comfortable supply levels in the region amid an influx of imported cargoes and reduced demand.
Although demand picked up ahead of China’s return from the National Day holiday, the spot ethylene prices on CFR FEA basis have slipped to their lowest levels since early August 2017 as can be seen in the below graph created by ChemOrbis Price Wizard.
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