Recently, according to price data from S & P Global Platts, spot ethylene prices in the United States have soared to their highest level in more than two years. The agency predicts that U.S. ethylene prices will continue to rise due to tight supply.

Platts 'evaluation price from August 15 to 16 showed that in August, the spot price of ethylene in Montbellevue was 33 cents per pound, the highest since May 5, 2022. From August 13 to 15, the evaluated price of ethylene in Choctaw, Louisiana was 38 cents per pound, the highest price since January 25, 2022. On August 16, ethylene prices fell to 35 cents a pound. The ethylene spread between Montbellevue, Texas, and Choctaw, Louisiana, reached a high of 7.75 cents a pound at the end of July, but has narrowed to 3 cents. Sources believe that logistics restrictions have caused continued supply problems and pushed up overall ethylene prices. Nova Chemical Company confirmed on July 25 that its ethylene cracking unit in Gasma, Louisiana had an unplanned shutdown, pushing up ethylene prices in Louisiana.

The United States is in hurricane season. In early July, Hurricane Beryl hit the Gulf Coast and caused power outages that affected ethylene supplies. Since then, spot ethylene prices have risen in Texas and Louisiana.

Standard & Poor's Global emphasized that the U.S. ethylene market is still in a dominant position compared with Asia and Europe. On August 15, the profit margin of U.S. ethane cracking units was 29.91 cents per pound, the highest level in more than two years. On August 3, feedstock ethane prices fell to a four-year low of 11.375 cents per pound, reflecting changes in natural gas prices and an oversupply of feedstock caused by ethylene production cuts. U.S. ethylene prices are expected to stabilize after the hurricane season ends, which could create arbitrage opportunities for other regions. Source: China Chemical News