Ethylene and propylene prices in the US dropped significantly on Monday, driven by a slump in crude oil prices. Market sources informed SSESSMENTS.COM that March Mont Belvieu-NOVA ethylene prices fell to 12.5 cents/pound on Monday, 7.4% from Friday's close. Meanwhile, March Choctaw ethylene declined by 8.6% day-on-day to 12 cents/pound on Monday. Both prices are at their lowest since June 2019.
The price of feedstock ethane at Mont Belvieu decreased by 11.5% on Monday to 12–13 cents/gallon. Demand for ethane in the Gulf Coast was expected to soften this month even before the oil price plunge. Industry sources told SSESSMENTS.COM that Dow would bring its TX-9 cracker offline due to an expansion project, while Ineos would shut its Olefins 2 plant in Chocolate Bayou for maintenance. These shutdowns are expected to decrease ethane demand in the region by 5%.
Meanwhile, March polymer-grade propylene (PGP) prices in Mont Belvieu fell 3.375 cents/pound, or 11.7% from Friday's close to 25.375 cents/pound. PGP prices dropped to 25.875 cents/pound in September 2015 and 15 cents/pound in December 2008 due to downturns in broader financial and energy markets.
