Scarce supply drives up ethylene prices.(recent hurricanes result in rise of ethylene)(Brief Article)

U.S. ethylene producers have pushed through the full 5-cts/lb increase for September contracts, taking prices to 45.5 cts-46 cts/lb del, market players say. Production glitches caused by recent hurricanes on the U.S. Gulf Coast, strengthening demand, as well as rising feedstock costs, drove the increase, sources say. One major producer has announced a 10-cts/lb hike for October contracts in light of continued tight supply. There has been no consensus as yet for July contracts, which settled at increases of 1 cts/lb for back-integrated ethylene users, and 0.5 cts/ lb for nonintegrated users, sources say. August contracts rose 3 cts/lb across the market, they say.

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