FEEDSTOCK - ETHYLENE

A supply glut from Japan has caused ethylene prices to plummet to US$1300/MT in Asia in the week of February 25, 2008. Oversupply in the domestic market of Japan is a result of excess buying by Mitsubishi Chemical Corporation. Supply in South Korea has overtaken demand as the country’s major markets of China and Taiwan are currently teeming with plentiful stocks. As a result, surplus stocks are finding their way into the Japanese market. This has led to a wide gap of almost fifty dollars between buying intention and sellers’ offers at US$1250/MT CFR SEA.