US Gulf Coast spot ethylene prices hit new low

Houston — US Gulf Coast spot ethylene prices slumped to new lows Friday due to reduced demand amid the coronavirus pandemic and weak upstream feedstock costs, sources said.

Spot Mont Belvieu ethylene prices were assessed at 8 cents/lb, the lowest since S&P Global Platts began publishing the assessment in July 2004.

April ethylene traded at 8 cents/lb MtB-Nova, falling 0.625 cent on the day.

Mont Belvieu prices have fallen more than 63% since the year-to-date high of 22 cents/lb seen on January 13.

Spot Choctaw ethylene prices were assessed at 7.5 cents/lb, the lowest since Platts started the assessment on March 2 and the lowest-ever price recalled by sources.

The Choctaw-Nova spread suggests length in Louisiana, sources said.

Sources pointed to Sasol's Louisiana 1.5 million mt/year cracker, which has been running after the company's downstream 420,000 mt/year low density polyethylene unit was damaged by a fire in January.