Ethylene prices soaring naphtha prices are fickle

Despite the reduction in upstream costs and the flat atmosphere in the downstream polymer market, the cost of olefins in Asia has risen in the past week. A slight increase in the spot price of propylene was attributed to the active buying atmosphere, while ethylene was due to the limited supply and the price soared.

On the New York Mercantile Exchange, crude oil prices were bearish last week when they settled. Compared with last week, the ** contract indicated that the goods delivered in November fell by nearly $1.81 per barrel. Since the beginning of October, energy prices have also fallen by nearly $2.43 per barrel.

The reduction in the cost of crude oil has caused the Asian naphtha prices to be volatile for most of last week. Although naphtha prices remained stable in early October, the weekly spot price of naphtha CFR Japan fell by US$10/tonne. Upstream costs have weakened, and downstream polymer markets have been dull, but olefin quotes have increased every week. The reason for this is mainly limited supply and a more active buying atmosphere.