31 January 2013 18:19 [Source: ICIS news]
NEW YORK (ICIS)--The US ethane market will remain long for the next four-to-five years, resulting in an extended period of favourable feedstock prices, the chief executive of US-based Dow Chemical said on Thursday.
“One would expect … we’re going to benefit from this 20-something number for a few years to come. If it goes into the 30s, it will be due to aberrations,” said Chairman, President and CEO Andrew Liveris, referring to cents/gal for ethane prices on the company’s Q4 conference call.
Dow has a $25bn (€19bn) asset base in the US that will benefit from low ethane prices, Liveris said.
Dow also expects to take advantage of low propane prices, as it uses both ethane and propane feedstock at its crackers.
“We are especially bullish on propane. In fact, going forward, we see structurally long propane creating a ceiling on ethane pricing,” Liveris said.
“And you can be sure Dow’s feedstock flexibility will allow us to continue to pivot so we continue to take advantage of our uniquely advantaged feedstock slate,” he added.
($1 = €0.74)
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