Soaring crude futures moderated ethylene losses spurred by low US prices and abundant supplies during the week to May 14. Chinese Petroleum Corp. of Taiwan had shut down its ethylene pipeline, leaving volumes in storage. Styrene monomer (SM) and other ethylene derivatives in China, however, were enjoying positive margins. While Asian ethylene prices dropped $10/mt on the week, the regional SM margin was $170-190/mt, and polyethylene's premium to ethylene reached $120/mt on May 11. The ethylene-naphtha spread was $570-580/mt-a nine-month low-still maintaining plenty of wiggle room above the $350/mt typical breakeven spread. On May 9, naphtha was priced at $678.25-680.25/mt CFR Japan.
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