US ethylene prices fell on Monday to 16.75 cents per pound (USD369 per tonne), the lowest level since July 2019, due to increased supply and lower spot activity, ICIS reports.

On Tuesday, ethylene was offered in the range from 14.00 to 17.50 cents per pound (USD308-385 per tonne).

Recent cracker launch launches and load increases, including Eastman in Longview, Texas, Huntsman in Port Neches, Texas, and Shintech in Plaquemine, Louisiana, have increased levels of material offerings.

Sasol closed its factory in Lake Charles, Louisiana, for maintenance after months of manufacturing substandard material.

Due to production problems in September and October, US ethylene prices rose to 28.25 cents per pound (USD621.5 per ton).

Ethylene is the main raw material for the production of polyethylene (PE).

According to the ICIS-MRC Price Survey, in the first week of December, buying activity in Russia increased markedly, but processors still limit their purchases to current orders, plus there are polyethylene residues from November purchases. Last week, the whole range of polyethylene fell in price, and it seems this is not the last price correction in December.

The main US ethylene producers are ExxonMobil, INEOS, LyondellBasell and Shell Chemical. Major U.S. buyers are Occidental Chemical and Westlake Chemical.