ETHYLENE

Dual forces are in play in the Asian ethylene markets: on the supply side - several naphtha crackers are running at reduced rates, and on the demand side - buying interest from end-users, who are well supplied due to high levels of inventories, continues to be weak. This has led to a dip in ethylene prices to US$1190/MT in Asia in the week of March 17, 2008. However, higher feedstock values have prompted most sellers from South Korea to quote above US$1200/MT CFR level.