US spot ethylene fell 1.5 cents/lb Monday, assessed at 53.25-53.75 cents/lb FD USG, nearing levels last seen November 22, 2012, Platts data showed.
Prior to being traded at 52.25 and 52 cents/lb MtB Wms after close of assessment on Monday, ethylene for February delivery was heard bid as low as 50 cents/lb, offered at 54.25-55 cents/lb MtB Wms and traded at 54.25 cents/lb MtB-other pipeline basis.
Sources cited the climb of 34% in ethylene inventories rose in fourth-quarter 2013 from the prior quarter, which were also up 70% from 2012 levels, data from trade group American Fuel and Petrochemical Manufacturers showed Friday. The build-up was caused by busy turnaround season expected to start in the later part of Q1, as well as the shutdown of the Chevron Pipe Line’s Evangeline pipeline, the largest of the three ethylene lines connecting Texas and Louisiana.
Ethylene inventories totaled 1.605 billion lbs in Q4, up 406 million lbs from Q3 and up 662 million lbs from Q4 2012, the data showed.
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