Asian ethylene markets fall apart on panic sell-off

Asian ethylene markets plunged into panic with spot prices nosediving $195/mt on the week, as producers and traders grappled with the crisis of confidence in Northeast Asia and Southeast Asia. The Friday turmoil in Asia started in the early morning as news of a slump in naphtha prices reached market players. Prices for open spec naphtha cargoes on a CFR Japan basis slumped $32.25/mt when markets opened in Asia Friday, as Western crude benchmarks fell $4-$5/barrel. Naphtha cargoes for delivery in the second-half of November and first- and second-half of December each slumped $32.25/mt to hit $597.25/mt, $612.25/mt and $626.75/mt, respectively. Jitters in the Asian market continued throughout the day as market participants absorbed a continuous stream of bad news. Besides having to contend with a sharp slowdown globally, most... [read full story]