20 December 2012 16:49 [Source: ICIS news]
HOUSTON (ICIS)--Williams Olefins has shut down its Geismar cracker in Louisiana, market sources said on Thursday, an outage that could offer an explanation to a sudden rise in ethylene spot prices this week.
Ethylene for December delivery traded on Wednesday at 59.50 cents/lb ($1,312/tonne, €997/tonne), rising from a deal done at 55.50 cents/lb a day earlier.
The surge came amid news that Williams was shutting down its 612,000 tonne/year cracker in Louisiana for repairs.
The outage is only expected to last 3-4 days, market sources said, adding, however, that the company had declared force majeure on ethylene.
The restriction could be the result of a tight supply balance that means Williams has limited inventory to cover even a brief outage, a market participant said.
Williams did not immediately respond to a request for comment.
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($1 = €0.76)
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