04 September 2013 20:39 [Source: ICIS news]
HOUSTON (ICIS)--US spot ethylene prices fell 4.1% day on day, sources said on Wednesday, although the market said there was no decisive reason why.
US ethylene for the front month, which is September, traded at 53.00 cents/lb ($1,168/tonne, €888/tonne), 52.75 cents/lb and 52.50 cents/lb on Wednesday.
September ethylene traded the previous day at 55 cents/lb and had traded four times the previous week above 55 cents/lb.
The day-on-day drop was slightly attributed to increasing inventories and longer supply.
“There is the expectation that prices will come down before the end of the year,” a producer said. “There is so much margin in ethylene at the moment anyways.”
Several traders said they were not surprised at the fall and had been expecting prices to come down.
The Wednesday trades put ethylene prices in-line with market prices before the 13 June fire and explosion at Williams Olefins’ Geismar cracker in Louisiana.
The fall in ethylene also extended to the future month. October ethylene traded at 53.50 and 53.75 cents/lb on Wednesday, lower than the previous reported deal done a week ago at 54.75 cents/lb.
However, sources cautioned that any loss of production from the US hurricane season would likely boost spot prices.
($1 = €0.76)
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