The spot price of US linear low-density polyethylene (LLDPE) butene export slumped to its lowest in nearly 17 years on Wednesday. Market participants told SSESSMENTS.COM that the decline was attributed to extremely weak global demand.
The LLDPE butene price stood between $574-$596/ton (26-27 cents/pound) FAS Houston on Wednesday, $11/ton lower than on Tuesday. The rail car pricing was discussed at 23-24 cents/pound, its lowest since January 8, 2003. The FAS Houston assessment has fallen by $121 (17%) year-to-date, and by $363 (38%) year-on-year.
The rail car pricing has mostly hovered around mid- to low 30s cents/pound this year. However, market players informed SSESSMENTS.COM that weak market sentiment and outlook due to the COVID-19 pandemic pushed the price to the low 20s cents/pound last week.
