U.S. prices for the chemical building block ethylene reached a seven-month low in May, dropping below 50 cents per pound, according to PetroChem Wire, a daily newsletter serving the petrochemical industry.
Reduced ethylene production due to plant maintenance closures supported the ethylene market earlier in the second quarter. Ethylene peaked at just over 75 cents per pound at the beginning of April. On May 31 it traded at 46.5 cents per pound.
“Two factors have affected the ethylene price during May,” said Kathy Hall, PetroChem Wire‘s chief editor. “Supply availability has been increasing as various ethylene plants complete their maintenance turnarounds. Also, the U.S. ethylene price had reached a level that kept downstream markets like polyethylene from being competitive in the global marketplace. Without export market options, inventories built in those markets which backed up into the ethylene market.”
via Ethylene hits seven-month low in U.S. during May – MarketWatch.