- China's supply shortages are a reason to prop up the
Asia market- Olefin output margins further weight on demand-side
fundamentals



Asia naphtha was concerned about supply
tightness on Nov. 23. Russia sanctions supported the Asian market structure
despite a further narrowing in olefin production margins that weighed on
demand-side fundamentals. Sources
said that few new deals were made via tenders from naphtha fed steam crackers.
They preferred private negotiations to meet requirements. A trader said that the demand for downstream plastic
derivatives is low and that (naphtha fed steam) crackers have not been
restarted after turnarounds. This highlights the tepid demand from
petrochemical manufacturers. Data from
S&P Global revealed that ethylene-naphtha margins remain below breakeven
levels at $250/mt for integrated producers. This is consistent with data since
Sept. 28. Revealed that the key...