01 November 2013 20:56 [Source: ICIS news]
HOUSTON (ICIS)--US spot ethylene prices increased an average of 6.8% week on week during the week, boosted by bargain buying and increased export demand, sources said on Friday.
US spot ethylene prices ended the week at an average of 49.250 cents/lb ($1,086/tonne, €804/tonne), their highest since the end of September and up from the previous week’s average of 46.125 cents/lb.
Ethylene prices hit a 14-month low in early October on long supply in Texas and soft demand from downstream markets.
After hitting the low, sources said traders and investors moved in to take advantage of the prices, expecting demand and prices to move up at the start of 2014.
Prices are expected to rebound in 2014 once the Evangeline Pipeline returns to full operating rates, balancing supply in Texas and Louisiana.
Currently, Texas ethylene is in the high-40s cents/lb, while Louisiana ethylene is in the mid-60s cents/lb.
Ethylene spot prices also ended the week higher as demand improved from the export market, a buyer said.
The rally could be short-lived once the October ethylene contract is settled, as market fundamentals have supply long and demand soft.
($1 = €0.74)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections