This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Ethylene Prices Drop Seven Percent In February After January Highs

HOUSTON, March 4, 2013 /PRNewswire/ -- Prices for ethylene, the raw material for many consumer goods made from plastic, declined in early February from the eight-month peak reached in late January and then plateaued signaling a potential improvement in profit margins for manufacturers heading into Spring, according to the chemical industry report, PetroChem Wire (PCW).

U.S. ethylene prices fell from nearly 68 cents per pound on January 28 to 61.75 cents by February 12 before rebounding slightly to end the month at 62.75 cents per pound, a 7% overall decline.  At the same time, costs to produce ethylene from ethane rose from 7.5 cents per pound to 8.5 cents per pound, and propane-based costs rose from 2 cents per pound to 4.5 cents per pound.

Ethylene price stability in recent weeks following the earlier, more dramatic price movements, suggests a more balanced supply/demand picture for the chemical. "Overall, February was a stable month for ethylene and many of its downstream markets," said Kathy Hall, PCW's executive editor. "During January, some unexpected plant outages contributed to prices rising. Once those plants came back online, prices stabilized."

The 68-cent ethylene price seen in late January was the highest level since early May 2012 and was the pinnacle of an uninterrupted price increase that began in early December. Ethylene prices jumped by nearly 30 percent, or 18 cents per pound, between early December and late January.

This steady price increase reflected strong domestic and export demand and tighter domestic supply for polyethylene, ethylene's largest plastic derivative.  The U.S. and Canada recorded the highest volume of polyethylene exports in three years in December.

The PetroChem Wire is a daily newsletter serving the petrochemical industry. It counts every major petrochemical and refining company among its readers, as well as many major manufacturing concerns, global conglomerates, industry consultants, equity analysts and government agencies. It also produces maps of the ethylene plant and pipeline system. For more information, see www.petrochemwire.com

SOURCE PetroChem Wire

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,749.79 -28.36 -0.16%
S&P 500 2,063.89 +2.66 0.13%
NASDAQ 4,754.4460 +6.05 0.13%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs