Episode 1448: PODCAST: Asia ethylene price surge pressures PE, SM, PVC markets (part 2)

SINGAPORE (ICIS)--The ongoing US and Israel-led conflict in the Middle East has disrupted crucial flows of naphtha feedstock to cracker operators across Asia.

With about 60% of Asia’s naphtha imports typically sourced from the Middle East, the region remains vulnerable to widespread cracker run‑rate cuts and temporary shutdowns, with the effect cascading through the ethylene (C2) value chain.

• Naphtha shortages force Asia producers to cut C2, PE op rates
• Market participants look to China for alternative SM supply amid tightening availability
• PVC margins hold firm on adequate inventories, steady downstream demand

This is the second installment of a two-part podcast.

In part one, ICIS senior editors Josh Quah and Izham Ahmad examine how tightening feedstock availability is pressuring cracker operating rates and reshaping sentiment in the C2 and polyethylene (PE) markets.

In part two, ICIS senior editor Luffy Wu and ICIS market analyst Jonathan Chou discuss how the disruption is filtering downstream into the styrene monomer (SM) and polyvinyl chloride (PVC) markets, and what participants can expect in the weeks ahead.