Olefins and polymers: How will 2015 treat them?

摘要

Ethylene-naphtha spread seen set to remain healthy 1. Steam cracker shutdowns in Japan likely to tighten ethylene supply 2. Weak butadiene market may trigger further steam cracker run cuts 3. Feedstock naphtha market seen bearish on refinery expansions The Asian ethylene-naphtha spread is seen likely to remain above the typical breakeven level of $350/mt throughout 2015, with ethylene supply seen tightening towards year end and the outlook for naphtha bearish, industry sources said this week. The Asian ethylene-naphtha spread routinely hovered below $350/mt until mid-September 2013 due to increasing ethylene supply from gas-based producers in the Middle East, but has remained consistently above that level since then due to cutbacks in output in Japan.