- Demand is influenced by downstream margins and
operating rates- Bearish in the near-term



As a
result of the large buy-sell gap, discussions in the Asian ethylene markets on
May 11 were limited. Participants continued to voice concerns about eroded
downstream margins, reduced operating rates, and bearish sentiment. According to market sources, demand was expected to remain
weak in the short term as weak derivative markets would keep procurement
activities low. Japan's ENEOS delayed its
steam cracker restart until the week of May 16. The unit was closed in March for annual maintenance. It was
originally scheduled to resume operations in May. The benchmark C+F Japan naphtha marker, which is used in
upstream markets, was valued at $4.125/mt-$4.140/mt and $917.625/mt-$917.640/mt
as of the Asian close on May 11. The
spread for naphtha-ethylene was calculated at $252.375/mt- $252.385/mt....