Will petrochem prices in Asia fall at the same pace that they have spiked?

22-Oct-09

Over the past 2 weeks, price of petrochemicals in Asia have shown signs of stability. After the Chinese returned to the markets to start restocking post National Holidays, prices have started moving up in line with strong crude values. Although demand has not improved much post-holidays, prices continue to move in tandem with crude values. Crude oil prices have risen to year long highs on signs of global economic recovery as well as a weakening dollar. Analysts warn that prices could fall at the same pace that they have risen post-holdays without strong demand to back it up. China's domestic demand for petrochemicals is recovering gradually and price of polypropylene, polyethylene and styrene monomer are expected to be propped by rising crude prices.