15 October 2013 22:28 [Source: ICIS news]
HOUSTON (ICIS)--US spot ethylene traded in Texas moved up on Tuesday, slightly narrowing its gap to Louisiana material.
US ethylene done on the Texas-based Williams system traded at 43.750 cents/lb ($965/tonne, €714/tonne) and 44.000 cents/lb on Tuesday, up from the previous day’s trade at 43.625 cents/lb.
The most recent trade for ethylene done on the Louisiana-based Choctaw system was heard at 64 cents/lb on 14 October.
Sources said the 20 cent/lb gap is consistent with bid/offer levels seen for the material.
The gap is largely attributed to difficulties in moving ethylene from Texas to Louisiana because of operational issues with the Evangeline Pipeline.
Sources said the pipeline is not expected to run at full rates until the end of 2013 or the start of 2014.
This has led to storage space reaching a premium on the Williams system, with one source saying no new orders are being accepted.
Market players said it remains unclear how ethylene will move once the pipeline is restored, as a typical gap between Williams and Choctaw material is 1-2 cents/lb in favor of Louisiana material.
($1 = €0.74)
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