The contract prices of US ethylene for April were down from March as declining spot prices offset rising cash costs amid weak demand. Market sources informed SSESSMENTS.COM that US ethylene contracts were down from 21.75 cents/pound in March to settle at 20.50 cents/pound in April, the lowest since 19.75 cents/pound in February 2002.
Meanwhile, spot prices fell further by about 4 cents/pound from a month earlier, dragged by ample supply amid tepid demand. Front-month ethylene dropped from 10.000-14.375 cents/pound in March to 8.000-9.000 cents/pound in April.
Prices were under pressure from persistent supply length as downstream demand could not keep up with a series of cracker startups and capacity additions. Market sources told SSESSMENTS.COM that delayed derivative plant startups and slowing global economic activity resulted in demand shortfall.
