Ethylene hits seven-month low in U.S. during May

Plastics Jun 02, 2012 No Comments

Flammable gasU.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.

Tags : ,

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

Leave a Reply

Your email address will not be published. Required fields are marked *