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Tuesday, November 30, 2021

US ethylene dichloride prices near 5-month low on ample supply, declining feedstocks

US ethylene dichloride was assessed down $5/mt week on week at $240-$250/mt FOB USG Thursday as ample supply, weak pricing in Asia and declining US ethylene costs pushed prices lower.

The assessment was the lowest since the March 12 assessment of $205-$215/mt FOB USG, according to Platts data.

March offers were heard at $280/mt FOB USG, with trading levels pegged at $240-$250/Mr FOB USG.

“Asia pricing is sliding and will be below $300/mt CFR basis, and with $50-$60/mt for shipping, there is downward pressure in the US, especially as fourth quarter nears,” one trading source said.

In feedstock ethylene, August US spot ethylene traded below 30 cents/lb for the first time in over five years, according to Platts data, following talk of oversupply, strong run rates and weak downstream derivatives markets, sources said Thursday.

One deal was concluded at 29.625 cents/lb ($653/mt) MtB Wms and came after two deals at 29.75 cents/lb ($656/mt) MtB Wms late Thursday afternoon, following an active trading day — ten deals were heard concluded throughout the day, starting at 31.75 cents/lb MtB Wms and dropping to the lowest level since the 29 cents/lb seen on July 14, 2010, according to Platts data.

US spot ethylene fell 2.25 cents for August delivery to be assessed Thursday at 30.25-30.75 cents/lb FD USG, as September also dropped 2.25 cents to 30.75-31.25 cents/lb FD USG.

Thursday’s assessment is the lowest since July 14, 2010, when the spot price was assessed at 29 cents/lb, Platts data showed.

In industry data, US EDC producers made 4.7 billion lbs in the second quarter, up 276.669 million lb from Q1 and up 38.77 million lb from 4.661 billion lb in Q2 2014, AFPM data released Friday showed.

First-half 2015 US EDC production totaled 9.123 billion lb, up 325.57 million lb from 8.797 billion lb in H1 2014, the data showed.

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