- Low downstream operating rates- Derivative production margins
remain negative





August 16 saw limited activity in the Asian
ethylene markets. Participants remained on the sidelines due to a lack of
urgent buying requirements, especially in Southeast Asia. Market sources said that run rates in downstream
facilities were low at 70%-75% depending on the product. However, some reports
suggested that they could drop to as low as 60%. According
to market sources, production margins for key downstream products like
polyethylene, monoethylene glycol, and styrene monomer remained negative. This
weighed on buying sentiment. On Aug. 15, a Chinese producer of
styrene monomer was reported to have initiated an early turnaround due to weak
demand and eroded margins. The benchmark C+F Japan Naphtha
marker was down $22.75-27.50/mt to $661.25-680.50/mt by the Asian close on Aug.
16. The spread...