MNI China Daily Summary: Monday, December 23

MNI: China Steel Demand Seen Falling Next Year

MNI: China CFETS Yuan Index Up 0.83% In Week of Dec 20

MNI: PBOC Net Drains CNY643.5 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Lower At 7.1870 Mon; -2.26% Y/Y

MNI China Daily Summary: Friday, December 20

EZ/UK T-Bill Calendar: Greece to Sell Bills New Year's Eve

EZ/UK Bond Supply Calendar: BOE APF Sales Due 6 January

MNI: CANADA NOV INDUSTRIAL PRICES +0.6% MOM; EX-ENERGY +0.5%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

OIL PRODUCTS: Asian Naphtha Market to Face Pressure in 2025: Platts

OIL PRODUCTS
BulletEnergy BulletsCommodities

The Asian naphtha market is expected to remain under pressure in 2025 due to poor downstream margins and new capacities in China, Platts said. 

  • Platts expects a 28.5% annual increase in China's naphtha imports to 431k b/d in 2025, as plants ramp up operations.
  • However, new cracker startups in China, such as Sinopec-Ineos and Shandong Yulong Petrochemical, will contribute to a supply overhang.
  • Ethylene supply in Asia is projected to stay oversupplied, with margins remaining low. Poor olefin margins, which hit a five-year low in 2023, are expected to persist, affecting trade flows from South Korea and Taiwan.
  • Naphtha supply may tighten in Q1 2025 due to low refinery runs in Asia and increased Middle East turnarounds. Macroeconomic challenges in China and Japan, along with transport fuel demand issues, continue to pressure refinery runs. China's reduction in export tax rebates will further limit refinery runs.
  • Reforming margins are likely to stay weak through Q1 2025, with potential improvement in late Q2 2025. 

 

Keep reading...Show less
169 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Asian naphtha market is expected to remain under pressure in 2025 due to poor downstream margins and new capacities in China, Platts said. 

  • Platts expects a 28.5% annual increase in China's naphtha imports to 431k b/d in 2025, as plants ramp up operations.
  • However, new cracker startups in China, such as Sinopec-Ineos and Shandong Yulong Petrochemical, will contribute to a supply overhang.
  • Ethylene supply in Asia is projected to stay oversupplied, with margins remaining low. Poor olefin margins, which hit a five-year low in 2023, are expected to persist, affecting trade flows from South Korea and Taiwan.
  • Naphtha supply may tighten in Q1 2025 due to low refinery runs in Asia and increased Middle East turnarounds. Macroeconomic challenges in China and Japan, along with transport fuel demand issues, continue to pressure refinery runs. China's reduction in export tax rebates will further limit refinery runs.
  • Reforming margins are likely to stay weak through Q1 2025, with potential improvement in late Q2 2025. 

 

Keep reading...Show less