US ethylene shifted lower as buyers vacated the market with no trades done in the last "several days," sources said Wednesday.
At mid-week, December was being offered at 49 cents/lb ($1,080/mt) and bid at 48 cents/lb, roughly 2.375 cents lower from Tuesday's assessed level.
The market was backwardated though with January being talked at a roughly 1.5 cent discount to December.
With Texas producers facing an end-of-year inventory tax of 2.5%, buyers had little incentive.
One trader said it made more sense to sell December ethylene, buy cheaper January to avoid the inventory taxes.
Ethane was also falling and crackers were in the process of restarting.
Purity ethane was last done at 66.75 cents/gal Mtb-pipe Wednesday morning. Subsequently it was bid at 66.25 cent/gal and offered at 66.75 cents/gal.
Ethane was assessed at 71 cents/gal November 3.
The last reported spot ethylene trade was done on December 1, at 50 cents/lb for the prompt month.
Mont Belvieu pipeline (MtB pipe) is a propylene delivery system in the US.
At mid-week, December was being offered at 49 cents/lb ($1,080/mt) and bid at 48 cents/lb, roughly 2.375 cents lower from Tuesday's assessed level.
The market was backwardated though with January being talked at a roughly 1.5 cent discount to December.
With Texas producers facing an end-of-year inventory tax of 2.5%, buyers had little incentive.
One trader said it made more sense to sell December ethylene, buy cheaper January to avoid the inventory taxes.
Ethane was also falling and crackers were in the process of restarting.
Purity ethane was last done at 66.75 cents/gal Mtb-pipe Wednesday morning. Subsequently it was bid at 66.25 cent/gal and offered at 66.75 cents/gal.
Ethane was assessed at 71 cents/gal November 3.
The last reported spot ethylene trade was done on December 1, at 50 cents/lb for the prompt month.
Mont Belvieu pipeline (MtB pipe) is a propylene delivery system in the US.
