US ethylene dichloride prices were assessed Thursday at$325-335/mt FOB US Gulf,a spike of$30/mt week on week,amid tight availability,strong demand from Asia and an increase in feedstock costs,said sources.
The price is at its highest since October 20,2011,when it was assessed at$325-335/mt FOB USG,Platts data showed.
"Our ethylene component cost for EDC production is around$330/mt and until someone shows up with a bid near$360/mt FOB USG,we do not anticipate to make additional spot EDC,"a source with a major producer said.Most of the US EDC production follows specific contract volumes and pricing,which leaves little leftover product for spot trading,sources said.
The spike in demand follows reduced production rates in Asia and Europe,which in turn has increased exports demand and price traders are willing to offer for any spot product."[The spot price for EDC in]Southeast Asia is around$410/mt and[the cost of shipping the cargo from the US to Southeast Asia is]around$70/mt.[While]US prices have come up in the last few weeks,we are not seeing producer offers at$330/mt yet,"one trading source said.
In feedstocks,US spot ethylene was assessed Thursday at 58.25-58.75 cents/lb FD USG--a near six-month high,as December bids were heard at 55 cents/lb Mont Belvieu Williams pipeline,offers were heard at 61 cents/lb Mont Belvieu Williams pipeline and traded at 57.75 cents/lb Mont Belvieu Williams pipeline.
Ethylene via the Choctaw pipeline in Louisiana was heard bid at 61 cents/lb and offered at 65 cents/lb for December deliveries.For January deliveries,trades were heard done at 58.50 cents/lb Mont Belvieu Williams pipeline and 59 cents/lb Mont Belvieu Williams pipeline.
The ethylene spot price was at its highest since the June 20 assessment of 59.50-60 cents/lb FD USG,Platts data showed.US chlorine prices gained$10/st week on week assessed Tuesday at$220-230/st FOB plant,as downstream PVC prices gained unexpected traction at the end of the year,pushing demand for chlorine higher,sources said.
