Tracking continued tight supply and low inventory levels, US spot ethylene prices hit a 29-month high on Tuesday on the back of two trades, as per ICIS. Sources said front-month Williams System ethylene traded at 74 cents/lb (US$1631/ton) and then 75 cents/lb, up from a trade at 73 cents/lb the previous day. These are the highest front-month trades since the week ended 13 April 2012. Prices continue to be high in the spot ethylene market because of three ongoing cracker shutdowns and one scheduled shutdown at the end of October. The crackers that are down represent almost 10% of supply, with an additional 2.5% set to go down in October. The tightness in supply has been exacerbated by low inventory levels, as most market participants were expecting long supply in the third quarter on several restarts and expansions. As a result, the US ethylene market remains strongly backwardated, especially into the fourth quarter and beyond.
18-Sep-14 
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