Key highlights
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Spot move: Hydrogenated naphtha Ex-Hebei rose *.*** in the week ended * September.
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Futures base: Regional naphtha futures stabilized around USD ***/tonne; off the lows driven by April slump near USD ***/tonne.
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Downstream tone: LDPE/HDPE prices steady; slightly lower for LLDPE as orders were slow and cautious restocking.
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Feedstock economics: Coal based olefins profitability continued to outperform oil-based routes, which is putting pressure on naphtha linked demand.
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Logistics backdrop: Intra-Asia freight softened at the end of August, supporting some stability in delivered costs.
Demand-Side Analysis
Demand across China’s ethylene chain on Naphtha-derived feedstock saw a stable but subdued reaction. LDPE and HDPE prices were steady, while LLDPE settled lower due to softer new order flows and slanted stock positioning, thus stunting the typical September rise. Factories are looking to procure low pricing outlet on material in a weak speculative environment, limiting the upside from feedstock-led pass-through....
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