- Asia butadiene naphtha spreads healthy- Malaysia's May natural Rubber
Output falls





Although Asian butadiene was deemed stable
in the last session on July 18, market sources indicated that the sentiment
would remain bearish due to ample supply. The week started on a positive note for the
upstream market with September ICE Brent futures rising $4.46-5.50/barrel from
July 15, to reach $103.47-130.50/b on July 18. In line
with rising crude oil prices, the CFR Japan naphtha cost rose $17.375-23.500/mt
and reached $769.12-800.50/mt. Due to rising supplies, Asian
butadiene prices have fallen by around $100-120/mt in July. The price
spread between naphtha and butadiene remained healthy at $520.875/mt on July
18, which is higher than the breakeven $300-320/mt level. According
to Department of Statistics Malaysia data, Malaysia's natural rubber production
dropped 6.3% in the month and...