The Asian ethylene-naphtha prices plunged as naphtha prices firmed while ethylene prices remained stable. Recently the prices was assessed at $586.75/mt, down $6.23/mt.
Ethylene supply was also tighter due to the maintenance at the steam crackers, which are slated to resume production by end November. Market sources said spot ethylene demand in China was currently healthy due to positive margins for SM production at around $180/mt.
Steam cracker turnarounds in China have also cut ethylene production, boosting demand for ethylene.
China's Secco will shut its steam cracker in Shanghai in October for annual maintenance, market sources said. It is having production capacity of 1.2 million mt/year of ethylene.
Report said that ethylene prices were expected to remain firm on positive SM margins, with some noting a sharp increase was unlikely due to weakness in the polyethylene market.
