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Special review on decline in ethylene prices
07
Jul '10
In the last two months, Naphtha and Ethylene prices fell by over 20% and 32.3% respectively. Naphtha and Ethylene monomer prices sharply lowered in the short-term for the following three main reasons:

1)Sharp fall in the energy price particularly at the end of April and early May.
2)Access of supply from M E Asia.
3)Weakness in the downstream spoiled Ethylene demand.

According to market experts, naphtha and ethylene prices will still fluctuate to a limited extent, due to following reasons:

1)Due to planned multiple cracker outages in N E Asia and Middle-East Asia in mid-July for maintenance, market supply is expected to be reduced.
2)Current Naphtha prices are at their lowest in eight months, although Middle East and India are increasing their exports of naphtha, but due to decline in naphtha cracking operational rate, price may steady at current levels.

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Fibre2fashion News Desk - India

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