US January ethylene CP settles at six-year high: sources

Houston — The January US ethylene contract price settled 6.5 cents higher than the December contract price, trade participants said Feb. 2.

The settlement puts the domestic January ethylene CP at 37.75 cents/lb, a more than six-year high, according to S&P Global Platts. The domestic ethylene CP was last higher Dec. 19, 2014 at 38.25 cents/lb, Platts data showed.

The increase was in line with market expectations. Spot ethylene prices have remained strong due to increased downstream demand, according to olefins sources.

Spot prices started the year reaching a six-year high, according to Platts data. Prices dipped in mid-January and recovered into the low 30s cents/lb by the end of January on strengthening demand.

The January CP represents the second price increase after two consecutive falls, according to Platts data.