Spot US LLDPE butene falls to lowest price in almost 17 years.
◼️HIGHLIGHTS
⚫Previous low seen January 8, 2003.
⚫Price falls 17% since start of 2020, 38% on year.
Petrotahlil - The spot US linear low density polyethylene butene export price has fallen to the lowest level in almost 17 years after sources said global demand has grown extremely weak.
"I don't anticipate a lot of price erosion beyond this," one trader said, explaining this has already been factored into the market.
Since January 2, the assessment has fallen $121, or 17%. On a year-on-year basis, the assessment is down $363, or 38%.
The FAS Houston LLDPE butene price fell $11 Wednesday day on day and was last assessed static at $574-$596/mt (26-27 cents/lb), with rail car pricing discussed at 23-24 cents/lb, the lowest price since January 8, 2003.
The FAS assessment includes an additional 3 cents/lb to cover packaging and transportation costs.
The previous low on record was a 23 cents/lb rail car basis assessment that rose from 21-22 cents/lb rail car basis, six days earlier on January 2, 2003.
The price has mostly trended in mid- to low 30s cents/lb rail car in 2020, but this week fell to the low 20s after market participants forecast a weak outlook and market sentiment due to the coronavirus pandemic and lack of market drive.
"It looks like the wave of selling at these lower levels is done for April, but I don't think there will be much action until we get to May now," one source said.
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