US spot ethylene rises for second straight day

HOUSTON (ICIS)–US front-month spot ethylene prices rose for the second consecutive day on Wednesday, contrary to upstream energy markets and despite expected stronger supply.

Front-month August ethylene peaked at 26.00 cents/lb ($573/tonne) on Wednesday before dipping down to 25.75 cents/lb.

Both trades were higher than the last reported trade on 25 August at 24.25 cents/lb, which was also higher than the final reported trade on 24 August, which was done at 22.00 cents/lb.

The increase over the past two days comes as stock market prices have tumbled and US crude oil values fell below the $40/bbl level.

Additionally, LyondellBasell is expected to start up an expansion at its Channelview cracker in Texas, which should add 113,000 tonnes/year of ethylene capacity at the site.

Despite this, rumors of a possible plant disruption could be pushing up on spot ethylene prices, a source said.