14 June 2013 21:42 [Source: ICIS news]
HOUSTON (ICIS)--The Williams plant explosion in ?xml:namespace>
While most firms produce ethylene captively to make other chemicals, Williams produces ethylene for sale to other companies, and thus prices on the relatively small
Currently, US spot ethylene prices are up more than 10% to 59-60 cents/lb ($1,301-1,323/tonne, €976-992/tonne) from 53.5 cents/lb earlier in the week, as assessed by ICIS.
Ethylene will be rationalised locally until backup supplies are arranged, UBS said.
The analyst firm pointed to Axiall and Westlake Chemical’s polyvinyl chloride (PVC) businesses as possible beneficiaries of the outage at the Williams plant with modestly higher margins. Overseas competitors could also benefit, UBS said.
Overall, UBS believes that the ethylene market will readjust within a few months due to plenty of excess capacity globally.
($1 = €0.75)
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