29 May 2008 10:23 [Source: ICIS news]
MUMBAI (ICIS news)--Ethylene prices in India are expected to rise 11% to around $1,550 (€992)/tonne CFR (cost and freight) in July, leading to a short-term fall in demand, a senior official from Dow Chemical said on Thursday.
"The recent price increase in ethylene would push all the raw material manufactureres to reconsider their cost position and cut down on ethylene demand when possible," he said.
In the long-term, however, these prices would be absorbed by the market, the official added.
“Ethylene prices rose to $1400/tonne in May 2008 from $1125/tonne in the year-ago period and is expected to rise further mainly due to cost increase across the board,” he added.
Ethylene is facing a direct impact from the increased naphtha and crude prices.
The spot price for naphtha for Asia-Pacific was in the range of $1,114-$1,115/tonne and that of crude was $131/bbl, according to global chemical intelligence service ICIS pricing.
However, the official highlighted that the raised ethylene price would not prompt an increase in bioethylene production at least for two years as the investment in the biofuel sector was not up to the mark.
($1 = €0.64)
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