The prospects for the Asian olefin market in the first quarter of 2012 are worrisome

At the end of the year, Asian olefin producers, buyers and traders all predicted that the olefins market in Asia will see a period of turmoil in 2012, affected by the global economic outlook and the ups and downs of upstream naphtha and crude oil prices.

A Japanese olefin trader said: “The end-user has cut domestic production and is minimizing purchases and reducing inventory. We are not optimistic about the first quarter, especially if the current economic outlook is not good. ”

The spot price of ethylene currently fluctuated between 1140 and 1160 USD/ton (CFR Northeast Asia).

Some market participants stated that they are pessimistic about the market before the Lunar New Year holiday at the end of January and expect that demand will remain weak before the Spring Festival holiday. A Chinese importer of propylene said: “Before the spring holidays, no one wants to establish an inventory. The current period is when the cash is king.” The first quarter of each year is usually the off-season of production of most petrochemical products.