Production cuts fail to lift C2/C3 prices in Asia

10-Nov-08

Ethylene and propylene prices in Asia failed to get revived despite production cuts by key producers. Lackluster demand in the continent has kept ethylene and propylene prices down by about twenty dollars. As demand continues to be subdues in Asia, particularly China, FOB ethylene prices have slipped to US$335/MT, propylene to US$275/MT. In fact, poor price realization is compelling players to buy ethylene cargoes rather than process naphtha. This could limit a price dip in the near future despite persistent pessimistic market outlook.