- Buyers stay on sidelines on downstream pressure- Concerns over oversupply on expected cracker startups



Activity was muted in the Asian Ethylene
markets June 6, with few active bids and offers heard. Several buyers stayed on
the sidelines, citing sufficient inventories and weak downstream demand. Sellers held firm on upstream pressure. Cargoes for July remained plentiful, according to several
participants, with a buyer saying there was no urgency to purchase as
"it's very easy to get additional cargoes for July." With most Asian crackers slated to restart in second-half
June following scheduled turnarounds, concerns over oversupply persisted,
adding to the bearish market sentiment. Upstream,
the benchmark C+F Japan naphtha marker was assessed down $19.75/mt at $566.625/mt
at the Asian close June 6. The
ethylene-naphtha spread was calculated at $203.375/mt, below the typical spread
of $250/mt for...