US Gulf Coast spot ethylene fall to all-time lows

US Gulf Coast spot ethylene prices hit new lows Friday due to reduced demand amid the coronavirus pandemic, sources said.

Spot Mont Belvieu ethylene prices were assessed at 9.625 cents/lb, the lowest price since S&P Global Platts began publishing the assessment in July 2004.

April ethylene traded at 9.625 cents/lb MtB-Nova with the front-month March talked flat to April by sources.

Mont Belvieu prices have fallen more than 56% since the year-to-date high of 22 cents/lb seen on January 13.

Spot Choctaw ethylene prices were assessed at 8 cents/lb, the lowest since Platts started the assessment on March 2 and the lowest-ever price recalled by sources.

The April Choctaw-Nova spread traded at minus 1.625 cents, bringing April Choctaw prices 1 cent lower on the day, with the front-month March also talked flat to April by sources. The Choctaw-Nova spread suggests serious length in Louisiana, sources said.

Sources pointed to Sasol's Louisiana 1.5 million mt/year cracker, which has been running while the company's downstream 420,000 mt/year LDPE unit was damaged by a fire in January. Delayed turnarounds for other downstream derivative plants in Louisiana has also applied pressure, one source said.