NPRA ’09: Volatility to rule in US olefins in 2009

31 March 2009 00:37  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The US olefins market will remain volatile this year as limited inventory levels will not be able to offset demand fluctuations, a market participant said on Monday.

According to the market source, US producers likely will run crackers at minimum rates in 2009 to avoid being caught with too much supply should a new downtrend emerge.

US cracker operating rates were at about 70% in February, up from 59% in January, according to an industry consultant.

The same consultant expected March operating rates to be near 80%, but the market source said that projection seemed slightly too high.

Downstream demand in the US seems steady now because of export opportunities, but that could change without any notice, the source said on the sidelines of the International Petrochemicals Conference (IPC).

In addition, the market source said, there are lingering concerns among US producers about how new capacity in the Middle East and Asia will impact the market in the next two years.

Sponsored by the National Petrochemical & Refiners Association (NPRA), the three-day IPC ends on Tuesday.

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By: William Lemos
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