Supply constraints propel spot ethylene prices in USA to three-month highs

Plastics Feb 18, 2011 No Comments

Spot ethylene prices in USA peaked to a three month highs, with February volumes heard done at the 52- and 53-cent/lb levels, as per Platts. These levels were previously seen on November 10, 2010, while February spot ethylene was last assessed Tuesday at 49.125 cents/lb.

Ethylene has been on a steady climb since February 8, when a major feedstock supplier Enterprise Products Partners declared force majeure out of the facility out of its Mont Belvieu, Texas unit after a massive fire at a key storage facility. Supporting ethylene’s surge were strong ethane values, which reached the 76-cent/gallon level in Tuesday morning trading before scaling back in the afternoon and into Wednesday. A downed olefins unit at LyondellBasell's complex in La Porte, Texas, and ExxonMobil's move to put certain high-density polyethylene products out of its Mont Belvieu, Texas, plant on allocation, were also having an effect on prices.

via Supply constraints propel spot ethylene prices in USA to three-month highs.

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.