United States ethylene agreement settlements continue as PVC manufacturers resist

United States March ethylene contract negotiations are still ongoing as United States PVC manufacturers are holding out for larger decreases, market resources stated Tuesday.

"A variety of customers have settled at a 4-cent/lb reduction, however there are at least two PVC manufacturers that are requesting 4.25-4.5 cents/lb lowers," one trading resource said. " drilling mud additives is still not accepted market-wide as well as can turn this right into a two-month settlement," the trading source added.

United States PVC production accounts for 20% ethylene intake, according to sources, and also unlike polyethylene, manufacturing is not up and down integrated with ethylene manufacturing.

On Wednesday, US ethylene contracts for March were heard clearing up 4 cents below February's degree to 45.5 cents/lb, according to resources, which likewise was to push the posted price 4 cents lower at 50 cents/lb.

Although unusual, a comparable negotiation pattern took place in mid-2013, when buyers held out for a three-month negotiation for April, Might and also June, which dropped contract rates by 0.75 cent/lb, 1 cent/lb and 0.75 cent/lb, respectively.

Sources pointed out significant decrease in feedstock rates in addition to constant spot markets in previous months, regardless of planned turn-arounds at two large Texas manufacturers, as factors for the purchasers' demand for a larger decline.

United States pureness ethane, the major feedstock for ethylene manufacturing, averaged 30.17 cents/gal, down 8.12 cents/gal, while Non-LST Mont Belvieu lp rates balanced $1.063/ girl in March, down 37.56 cents from February's $1.4386/ gal, according to Platts data.

United States place ethylene evaluations balanced 51.95 cents/lb in March, up 0.04 cent/lb from February's 51.91 cents/lb average, according to Platts information.

United States ethylene agreement costs are cleared up between significant manufacturers and buyers at the beginning of the month for the previous month.

The negotiations take into consideration changes in spot ethylene as well as spot feedstock prices.

In markets Tuesday, area ethylene was heard quote at 51.25 cents/lb Mont Belvieu Williams pipe basis, supplied at 53 cents/lb ALL-TERRAIN BICYCLE Wms and also traded two times at 52 cents/lb ALL-TERRAIN BICYCLE Wms for April shipments. May was listened to proposal at 51.75-52.25 cents/lb MtB Wms, provided at 52.375-53 cents/lb MtB Wms as well as traded at 52.375 cents/lb ALL-TERRAIN BICYCLE Wms.