US ethylene dichloride prices were assessed Thursday at US$325-335/mt FOB US Gulf, a spike of US$30/mt week on week, amid tight availability, strong demand from Asia and an increase in feedstock costs, as per sources in Platts. The price is at its highest since October 20, 2011, when it was assessed at US$325-335/mt FOB USG. "Our ethylene component cost for EDC production is around $330/mt and until someone shows up with a bid near US$360/mt FOB USG, we do not anticipate to make additional spot EDC," a source with a major producer said. Most of the US EDC production follows specific contract volumes and pricing, which leaves little leftover product for spot trading, sources said.
The spike in demand follows reduced production rates in Asia and Europe, which in turn has increased exports demand and price traders are willing to offer for any spot product. "[The spot price for EDC in] Southeast Asia is around US$410/mt and [the cost of shipping the cargo from the US to Southeast Asia is] around US$70/mt. [While] US prices have come up in the last few weeks, we are not seeing producer offers at US$330/mt yet," one trading source said.
In feedstocks, US spot ethylene was assessed Thursday at 58.25-58.75 cents/lb FD USG -- a near six-month high, as December bids were heard at 55 cents/lb Mont Belvieu Williams pipeline, offers were heard at 61 cents/lb Mont Belvieu Williams pipeline and traded at 57.75 cents/lb Mont Belvieu Williams pipeline.
23-Dec-13 
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