US spot ethylene falls to mid-40s cents/lb level on trade
ICIS News : 4-Oct-13 22:25
HOUSTON (ICIS)--US front-month spot ethylene traded in the mid-40s cents/lb for the first time since mid-July 2012, based on a trade late on Friday.
The deal for front-month October ethylene was done at 45.75 cents/lb ($1,009/tonne, €737/tonne), its lowest since a trade at 45.50 cents/lb in mid-July 2012.
The deal is also lower than two trades done on Thursday at 47.75 cents/lb.
Spot ethylene prices have been tumbling because of oversupply on the Texas-based Williams system, as well as softer demand.
With the ongoing shutdown of the Evangeline Pipeline, several Texas ethylene facilities have been unable to move material to preferred destinations in Louisiana, forcing them to sell material.
Additionally, demand has weakened on economic concerns in the US and several downstream plant shutdowns in the polyethylene (PE) and polyvinyl chloride (PVC) markets.
The drop in spot prices puts their weekly average range of 48.00 cents/lb at their lowest since they were at 46.63 cents/lb the week ended 12 July 2012.
Spot prices are also lower by 17% year on year from the average of 57.88 cents/lb the week ended 5 October 2012.
($1 = €0.73)
By John Dietrich