USGC ethylene market sees high volatility
OREANDA-NEWS. Mont Belvieu, Texas, spot ethylene trading is experiencing heavy volatility as the market enters a heavy turnaround season.
Spot ethylene surged to its highest level since August 2015 as news that a producer brought its cracker down in mid-March surprised some market participants who were expecting turnarounds to begin in April.
Spot prices sank more than 7?/lb, or 22pc, to 24.75?/lb by 24 March on news that Dow Chemical delayed the turnaround of its 500,000 t/yr Plaquemine, Louisiana, cracker to the second half of 2016.
Ethylene pared losses this week as Flint Hills Resources brought its Port Arthur, Texas, cracker down for unplanned maintenance, according to a filing with the Texas Commission on Environmental Quality.
Spot ethylene for April delivery last traded at 27.625?/lb.
The market could see more volatility in the next three months as the turnaround season continues.
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