Limited discussions for
fixed-priced cargoes May operating rates
likely to average 80%-90%



Spot Asian ethylene
markets sentiment was low on April 26th, with many participants remaining
cautious due to upstream naphtha volatility. According to market sources, discussions on fixed-priced
cargoes were very limited. However, there was some discussion about cargoes
that could be traded on a floating basis for a premium of $10-20/mt over CFR
Northeast Asia price. The near-term
outlook was bearish due to ongoing Chinese lockdowns. However, the recovery in
the naphtha markets on April 26 did not help ethylene sentiment. Producers said that there was no incentive for cracker
operating rates to rise amid low ethylene demand. Market participants stated that May operating rates are
expected to average between 80%-90% in Asia. The C+F Japan naphtha marker, which was valued at $12-16/mt...