- Downstream demand declines- High naphtha prices are
putting pressure on producers





Asian ethylene market activity was very
limited on July 7, as many participants were on the sidelines because of
sufficient inventory. Market sources indicated that they
expected discussion levels to drop as derivatives demand is weak and production
margins are poor. August ethylene discussions have not started. According
to some market participants, the talks could start later than usual due to low
demand. Due to a shrinking buyer pool and lower
operating rates at downstream facilities, a supply glut could increase selling
pressure. China's major Sinopec cut offers from Yuan 100-120/mt,
to Yuan 7,300-7,500/mt in the face of weakening sentiment on the Chinese market. According
to market participants, the sentiment was also affected by falling import
prices. High naphtha prices put pressure on producers in...