04 October 2012 09:46 [Source: ICIS news]
By Felicia Loo and Helen Lee
A looming possibility of further cuts in cracker utilisation is also weighing on the naphtha market, they said.
Naphtha is being supported by limited deep-sea flows from
At midday, the northeast Asian ethylene market has been subdued and prices were unchanged from Wednesday at $1,300-1,350/tonne CFR NE (northeast)
Going forward, ethylene buyers are bearish on the market on expectations of increased availability of November-loading cargoes from
“The [naphtha) demand is thin on the cracker side. The high FOB [free on board naphtha] premiums are not directly linked to the CFR end-users’ prices,” said a trader in
The outlook on ethylene, however, is pessimistic when
“The post-holiday [ethylene] outlook on demand is weak so ethylene prices may decline,” said a market participant.
Most of the end-users in
Offers for Asian propylene (C3) fell by as much as $40/tonne this week as an outage at Nippon Shokubai’s 460,000 tonne/year acrylic acid plant at
Amid such backdrop, the crackers, particularly in
“It’s a tough situation. The run rates will continue to be low,” said one trader in
The company is currently running its other 450,000 tonnes/year naphtha cracker in
Another Japanese producer, Mitsubishi Chemical, is keeping an average run rate of 85% at its three naphtha crackers this month, a company source said. The company operates a 392,000 tonne/year No 1 cracker and a 489,000 tonne/year No 2 cracker in Kashima, and; a 500,000 tonne/year cracker in Mizushima.
($1 = €0.78)
Additional reporting by Becky Zhang
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