The financial crisis in USA and Europe, has made way for fears of a global economic downturn. This has weakened consumer demand worldwide, tanking demand and prices of all feedstocks and polymers. Key processors in Asia, particularly China, rely very heavily on demand from the markets of the West. With deteriorating export demand as well as bearish domestic market sentiments, petrochem majors are saddled with high inventory levels. This has left them mulling options of reduced run rates and even plant shutdowns. High inventories also exerting pressure on spot prices. Ethylene prices peaked above US$1650/MT in Asia in July 2008; dropped to US$1250/MT in the week of September 8, 2008, and currently hover around US$600/MT. Propylene prices peaked around US$1850/MT in Asia in June 2008, dipped to US$1100/MT in the week of October 6, 2008 and currently hover below US$600/MT CFR China.
27-Oct-08 
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