- Asia naphtha steam crackers market is weakening demand- Rising freight, possible lower arbitrage volumes affect
market





Market sources stated that Asia naphtha
steam crackers still needed naphtha-fed steam crackeders, despite their poor
olefin margins. However, rising freight rates and the anticipation of a
shortage from the West boosted trading sentiment. The key CFR Northeast Asia Ethylene and C+F
Japan Naphtha spreads, closely monitored by olefin manufacturers, were $181-199/mt
Nov. 25. This was down $12.25/mt each day. Since Sept.
28, olefins-naphtha margins are below the $250/mt minimum breakeven for
integrated producers. A trader stated that the decline in demand from
steam crackers [naphtha fed steam] has been due to some turning around and not
returning online this year. Mid-afternoon trading on Nov. 28 saw
a slight uptake in sentiment as brokers pegged December-January Mean...