US ethylene contracts for June were up from May, in line with higher spot prices and cash costs amid a pick-up in demand. Market sources informed SSESSMENTS.COM that US ethylene contracts increased from 24.0 cents/pound in May to 24.5 cents/pound ($540/ton) in June. Meanwhile, front-month ethylene prices were up by about 1 cent/pound from a month earlier to 11.750-13.500 cents/pound in June, driven by rising cash costs and improving demand.
Ethylene export and demand for polyethylene (PE) have rebounded since the widespread lockdowns across the US in mid-March. Average cash costs increased slightly from the previous month with prices of feedstocks ethane, propane, and butane increasing. June contract prices for co-products propylene and benzene inches higher, but butadiene stays weak.
