14 June 2013 21:49 [Source: ICIS news]
HOUSTON (ICIS)--US spot ethylene prices jumped on Friday in response to the explosion and fire at Williams’ Geismar cracker in Louisiana.
US front-month ethylene was heard done twice at 60 cents/lb ($1,323/tonne, €992/tonne) at midday.
This was the first trade at or above 60 cents/lb for front-month ethylene since a deal was done at 62.375 cents/lb on 15 May.
The run-up slipped slightly as the day wore on, with spot trades for June ethylene done at 59.75 cents/lb then 59.00 cents/lb.
Sources said the run-up was largely tied to expected supply tightness because of the Williams explosion and fire.
The day of the fire bids had climbed to 57.0-58.0 cents/lb compared with a deal done the previous day at 53.5 cents/lb.
Buyers said the duration of the high spot prices will depend largely on how long Williams remains down.
There are expectations that softer-than-expected demand, and the restart of several crackers currently down could lead to a reversal in the next week.
($1 = €0.75)
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