The market is concerned that its earnings might decline due to expansion of ethylene manufacturing facilities in North America but it is very unlikely considering the industry’s condition in China, said analyst Lee Chung-jae.
With cost of production in China as the benchmark for ethylene in Asia, Korean naphtha cracking centers will maintain their upturn in profitability, forecasted the analyst.
The price difference between ethylene and its major ingredient naphtha is likely to increase after mid-April, while butadiene price, which fell to US$1,200 per metric ton, is unlikely to slide further, added the analyst.
By Hwang You-mee (glamazon@heraldcorp.com)