PODCAST: Propylene, ethylene markets diverge as US thaws from freeze

Author: Michael Sims

2021/04/09

HOUSTON (ICIS)--The US ethylene and propylene markets have diverged as the southern US recovers from the freeze in February that shut much refining capacity in the US.

Propylene contracts saw the steepest month on month decrease in March since 2008,  just one month after the largest-ever month-on-month increase due to impacts from the freeze.

March ethylene contracts for the majority of market participants settled earlier this month at the largest month on month increase since October 2005 as steam cracker outages and rate reductions caused by mid-February's winter storm resulted in much higher month-on-month spot prices, which outweighed lower cash costs in the contract price settlement.

Olefins expert Michael Sims discusses this and more in this podcast interview by Anna Matherne and Alex Snodgrass.