Houston, TX – PetroChem Wire reports, “U.S. prices reached their lowest level since early December in early April, rebounded slightly, but then could not sustain the upward momentum and ended the month several cents below the level seen on April 1. Ethylene prices on the U.S. Gulf Coast, which were just under 61 cents per pound on April 1, fell to 54 cents on April 8, the lowest level since December 10. They rebounded slightly in the latter part of this month, reaching just over 57.5 cents on April 29, but never recovered to the 60-cent or higher level seen in March and the very beginning of April.
Contributing to the recent softening price trend in ethylene was the subdued trade in polyethylene, ethylene’s largest plastic derivative. Weaker prices for crude oil and other energy components left export buyers wondering if U.S. prices for polyethylene would move lower. There were reports that traders were opting to source material from Asia while waiting for U.S. polyethylene prices to become more workable for export. Recent and ongoing plant outages have kept some suppliers’ polyethylene inventories snug. Still, due to lackluster demand, polyethylene prices have been weakening slightly. Spot polyethylene, which sold for 66.5 cents per pound at the beginning of April, was selling around 65 cents in late April, the same level seen in mid-March, while, prices for the raw materials used to make ethylene were higher at the end of April than at the beginning of the month. Ethane increased in price by 0.75 cents per gallon, or about 2.5 percent. Propane, another ethylene raw material, increased in price by roughly 2.6 cents per gallon or about 2.75 percent.”
Source: Rubber World
