ETHYLENE

Ethylene prices dipped to US$1175/MT in Asia in the week of October 15, 2007. Quiet market conditions prevailed despite strong crude oil and naphtha prices, on account of weak demand from end-users, particularly from China. Weak demand persists as players refrain from buying on estimation that ethylene supply will rise on completion of maintenance turnarounds. Downstream producers prefer to wait and watch as they await a price rectification in November.