June US ethylene to rise by 2.5 cents - Deutsche

20 June 2007 18:07  [Source: ICIS news]

HOUSTON (ICIS news)--June ethylene contracts were likely to rise by 2.5 cents/lb to 47 cents/lb ($1,036/tonne) amid growing demand for polyvinyl chloride (PVC), Deutsche Bank said on Wednesday.

US producers have nominated increases of 3-5 cents/lb for June.

Deutsche Bank said a mixed supply/demand situation could prevent an increase of the magnitude sought by producers. Demand for polyethylene (PE) was up, but the seasonal increase was behind that of previous years, it said.

Some buyers involved in the negotiations said they expected a 1.0-1.5-cent increase, adding that a settlement may happen next week.

Chevron Phillips, Equistar, ExxonMobil, INEOS and Shell are among the major producers of ethylene in the US. Dow Chemical, Georgia Gulf, Occidental Chemical and Total are among the buyers.

By: Mark Quiner
+1 713 525 2653

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