- CFR NE Asia reaches 2-month high- Market Supported by PE, Lower Cracker Runs



Asian ethylene was stable day-on-day at
$875-890/mt CFR Northeast Asia February 10. Asian ethylene was stable
to $15-20/mt more than a week before. Asian
ethylene market sentiment firmed as some downstream market started rebounding. The price of film-grade high density polyethylene rose $10
per week to be valued at $1,030/mt February 10. The spread in price between PE and Ethylene was $155/mt
February 10, which is close to the typical breakeven spread at $150/mt. The ethylene demand recovery was limited because some
derivatives markets, including monoethylene glycol, were still bearish. The CFR China MEG price dropped $15/mt week-on-week to
$510/mt February 10. Market sources
suggest that naphtha cracker owners may seek ethylene rather than buying
naphtha because it is cheaper. The CFR
Japan naphtha...