27 May 2008 10:40 [Source: ICIS news]
“With such narrow differentials, there is just no incentive to buy naphtha to produce ethylene,” an end-user said.
Some end-users in northeast ?xml:namespace>
Notional future values for ethylene are pegged at $1,285-1,315/tonne CFR (cost and freight) NE Asia (northeast
In the Asian naphtha markets, the second half of July contract was notionally pegged at $1,125.00-1,128.00/tonne CFR Japan and first half August at $1,122.50-1,125.50/tonne CFR Japan.
If margins continued to be this bad and our crackers were still running at reduced rates, then we would not need to buy any naphtha for the next month or so, he added.
We anticipate some inefficient naphtha crackers would be shut down in the near term, another end-user said.
High naphtha prices have kept end-users at bay, resulting in SK Energy in
Asian naphtha broke another new historical record high late on Monday, by trading at $1,125.00/tonne CFR Japan.
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