Asian Ethylene Prices Rise on Limited Supply■ Some users are cautious because of the weak derivative performance■ Short-term demand to be met by limited supplyIn Asia, the demand for ethylene rose in
the week ending Sept. 2, due to improved supply. Many buyers were still
short of inventory, and sellers reported an increase in inquiries about H2
September cargoes. According to market
sources, selling indications increased following a tender that closed higher
than market expectations on Sept. 1. Market
participants said that end-user demand may remain limited by the weak
performance of derivatives if ethylene prices rise. End-users will likely be cautious as the production margins
of key products like mono ethylene glycol and polyethylene glycol remain
negative, according to a trader. Some
sources suggest that producers may reconsider raising operating rates in light
of the widening spread...