- China Gulei begins commercial operations- Asian PEethylene spread
remains below breakeven





Asian ethylene was stable on Dec. 20, 2018. Spot
prices discussions were limited because the end-of-year holiday season is approaching. According to market sources, the Asian ethylene
market sentiment will likely remain bearish due to increasing supplies
amid the start up of steam crackers in this region. The margin of
derivatives production also remained negative which has limited spot
purchasing appetite. Asian polyethylene rose $10/mt on Dec. 20, at $950/mt
Dec. 20, and the spread between PE/ethylene was calculated at $80-85/mt. While the
spread was below the $150-170/mt. Upstream breakeven level, the CFR Japan
naphtha cost rose $5.50/mt on day to $624/mt Dec. 20. The price spread
between naphtha and ethylene was $246-260/mt Dec. The price
spread between ethylene and naphtha was $246-262/mt (Dec. It will
drive the expansion of the downstream industrial chains but...