The Williams complex explosion in Geismar, Louisiana has led to an additional Force Majeure on Ethylene. Several other crackers remain offline for maintenance. Despite producers’ third attempt to implement their $.04/lb increase, all signs were pointing towards a contract price decrease in June. However, similar to May, mid month monomer mayhem sent Spot Ethylene prices soaring and resin suppliers pulling well-priced offers off the table awaiting market clarity.
Polypropylene prices continued to press higher as good demand chased production challenged supplies. June PP contracts began to settle up $.03/lb, pricing. US Polypropylene prices have sprinted ahead of international markets, limiting export opportunities. Petrochemical market participants are well-familiar with unplanned outages, but the consistent flow of disruptions seen in 2013 are starting to add up. Polyethylene prices were soft early this week and contracts seemed to be headed lower in June, but found support from the most recent Williams outage.