09 July 2013 21:10 [Source: ICIS news]
In US spot ethylene trading, bids and offers remained at wide levels, with no deals reported done since 2 July.
On Tuesday, US ethylene was heard bid at 54 cents/lb ($1,190/tonne, €928/tonne) against offers at 59-60 cents/lb.
“Everyone is glad to be finished with that three-month settlement,” a buyer said. “The market has been quiet.”
US ethylene recently reached a three-month settlement for April, May and June.
A US producer said the recent slowdown in ethylene activity is partly because of market players attempting to figure out the long-term effects of the explosion and fire at Williams Olefins’ Geismar cracker in Louisiana on 13 June.
“There is plenty of supply out there,” the producer said. “Everyone’s just trying to figure out how to move it.”
On the propylene side, sources said a recent push for higher prices has run its course and that prices have flattened out.
“There is no momentum on PGP (polymer-grade propylene),” the producer said. “Given the recent lack of activity we might see a rollover or a decrease.”
July PGP contracts were nominated up 1 cent/lb while chemical-grade propylene (CGP) contracts were nominated up 2 and 4 cents/lb.
US July PGP spot prices were last heard bid at 60.00 cents/lb and offered at 63.75 cents/lb.
($1 = €0.78)
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