Ethylene Prices are Soaring
January 06, 2021
Spot Ethylene prices leapt higher again and have reached $.425/lb; ironically, a level last seen on 1/6/2015, exactly 6 years ago. The monomer has rallied some $.12/lb since the beginning of 2021.
The forward monomer market is in steep backwardation, meaning the prices are currently forecasted to erode to as low as $.285/lb by June. In the meantime, this has put tremendous cost-push increase pressure on Polyethylene prices.
US PE producers implemented $.29/lb of price increase in 2020, including a nickel in December, there is another increase, averaging $.05/lb, on the table for Jan.
|
|