09 October 2008 04:20 [Source: ICIS news]
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SINGAPORE (ICIS news)--Asian ethylene continued to free fall this week, hitting their lowest levels in almost three years by falling an estimated $50/tonne to cross the $900/tonne CFR (cost and freight) mark, following unconfirmed deals to northeast Asian buyers, traders said on Thursday.
Over 10,000 tonnes of spot ethylene of northeast Asian origin were heard changing hands in the high $800s/tonne to $900/tonne CFR range to buyers in China and Taiwan for November arrival, said a trader who sold the cargoes.
The latest fixtures followed an earlier reported deal on Tuesday at $930/tonne CFR China.
The bulk of the spot transactions during the week were heard sold to end-users in the downstream vinyls sector, traders said.
The last time northeast Asian ethylene prices slumped to under $900/tonne was in December 23, 2005, when prices were assessed at $875-880/tonne CFR NE Asia, according to global chemical market intelligence service, ICIS pricing.
Other traders said sellers could be shorting the market, although some preferred not to take positions as it was unclear when prices would bottom out.
“It’s too risky,” said a Singapore-based trader. “Stand still. That’s the best position.”
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