US ethylene spot prices plummet 12% in one day

08 May 2012 22:15  [Source: ICIS news]

US ethylene spot prices plummet 12% in one dayHOUSTON (ICIS)--US ethylene spot prices fell sharply on Tuesday, losing around 12% in one day likely as a result of supply pressure after the restart of two crackers in recent days.

Ethylene for May delivery traded as low as 53.50 cents/lb ($1,179/tonne, €908/tonne), dropping from a deal done at 61 cents/lb on Monday.

May ethylene traded last week at 63.00-63.25 cents/lb, down from 66.00-68.50 cents/lb a week earlier.

Market sources said the latest reduction reflected loosening supply, citing the restart of a LyondellBasell cracker and a DuPont unit that had been off line for planned maintenance.

Another source also pointed to a "major correction", saying US ethylene prices had been priced above polymer prices in recent weeks.

Ethylene for May was last heard bid at 52 cents/lb with no offers. Ethylene for June was bid at 50 cents/lb, also without offers.

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By: William Lemos
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