Asian Ethylene Prices Drop on Weak Downstream■ September
stocking activities during the week■ Chinese domestic market stableThe Asian ethylene market saw prices drop
in the week ending Aug. 12. Many market participants blamed weak downstream
demand for reducing buying appetite. As buyers continued to feel pressured by falling derivative
prices, purchasing activity was seen for September arrivals. Some deals were
done below $800-820/mt and $780-$790/mt CFR Northeast Asia. According to market sources, a South Korean producer issued
a sell tender for 5,000 tons of ethylene to be loaded on August 18-19. According to market participants, this was due to lower
downstream operating rates. This resulted in excessive ethylene supplies. The Middle East-origin cargoes also appeared to be
plentiful, increasing the supply pool. Prices
in China were stable at Yuan 7,300/mt.extant, despite limited changes in demand
and supply...