US spot ethylene hits six-month high on soaring feedstock
Sept. 10, 2018
US spot ethylene traded at 19.25 cents/lb ($424/tonne) on Thursday, as a spike in upstream ethane costs drove ethylene spot prices to a six-month high.
The front-month September ethylene trade on Thursday was up sharply from front-month August ethylene trades at16.25 cents/lb in the previous week.
The increase was largely driven by a spike in prices for upstream ethane, which rose to 44.750 cents/gal from 40.625 cents/gal at the close of last week. Ethane is the most common cracker feedstock in the US.
The Thursday ethylene trade is the highest front-month trade since the first of two 1.5m tonne/year new crackers started up in 2018.
Still, ethylene spot prices are below levels at the end of 2017.