Improved buying sentiments and financial aid pumped into global markets drive up ethylene prices

15-Oct-08

After plunging by almost 200 dollars last week, ethylene prices in Asia have moved up to US$810/MT. This ten dollar rise can be attributed to recovering global financial markets as financial aid starts getting pumped into markets along with revival in buying sentiment. Spot ethylene cargoes found buyers at US$800-810/MT CFR, but sellers have now up-revised offers by about fifty dollars. Most players consider this recovery a temporary phenomenon, as the consumers are reported to have stashed away stockpiles for November delivery. Adding to supply concerns will be the return of material from Formosa Petrochemicals' soon to be restarted 1.2 mln tpa No. 3 cracker o that has been shut for almost 5-6 weeks for maintenance.