CW price report.(COMMENTARY)

Refinery and cracker outages caused by hurricanes Katrina and Rita have driven up olefins prices in the past two weeks. Propylene spot prices have jumped from the low- to mid-30 cts/lb del just four weeks ago, to 49 cts-52.5 cts/lb del for chemical grade and 50.5 cts-54 cts/lb del for polymer grade, sources say. Prices are notional, however, due to the lack of spot availability. Ethylene contracts have settled at a 5-cts/lb increase for September, after rising 3 cts/lb for August. Spot ethylene prices have gained 3 cts-5 cts/lb during the last two weeks. Butadiene spot prices are up 5 cts/lb from last month. September butadiene contracts rose 2 cts/lb, to 48 cts/lb del, and producers are seeking increases of 3 cts/lb5 cts/lb for October.

European olefins prices have also surged because of tight supply and concerns about lost production in the U.S. Ethylene spot prices have jumped $190-$200/m.t. in the past two weeks, propylene advanced about 80 [euro]/m.t., and butadiene about $40/m.t., sources say. Some fourth-quarter ethylene contracts in Europe have settled at 825 …