The PetroChem Wire publishes daily forward curves for natural gas liquids, ethylene, and polyethylene prices on page three of the report. If interpreted properly, these forward curves provide insight into market sentiment and direction. They also have a practical application as buyers and sellers routinely use them to lock in margins into the future. Read the rest of this entry »
I had a meeting recently with a company who told me they don’t trade futures markets for a commodity of which they are a major consumer. The reason? They don’t want to take on “too much risk” and be caught in a “volatile” market.
Rather than trade this commodity on an exchange, they prefer to continue to pay for their product while locked into a supply contract that often has 1 price per quarter. And their contracts don’t always guarantee timely or on-spec delivery. Read the rest of this entry »
January 16 to February 15, 2010, Vol. 2, Issue 02
Ethylene monomer spot prices rose 9 cents from mid-January to mid-February, outpacing increases seen in the polyethylene market, where producers were seeking another round of contract price increases. Read the rest of this entry »
Vol. 2, Issue 01 It’s an interesting stage in the evolution of the resin markets. It’s as if the markets that once resembled a darkened, haunted castle are turning into a house of mirrors. A new transactional price level in the spot market is discovered, and it’s now heard everywhere, seen everywhere. It appears in multiple newsletters and it is openly discussed in emails and telephone calls around the globe. Read the rest of this entry »
After suffering through 2008, one of the most tumultuous years in memory, commodity chemical market trends of 2009 were marked by a dedication to stability. More interesting than any one company’s dedication or market segment’s behavior is the collaborative dedication to stability, the resultant behavior of the invisible hand of the markets. Read the rest of this entry »
December 16, 2009 to January 15, 2010, Vol. 2, Issue 01
Polyethylene prices moved higher in the first half of January after holding steady in December. The upward move came as ethylene prices moved higher while further upstream ethane eased. Read the rest of this entry »
November 16 to December 15, 2009, Vol. 1, Issue 13
Polyethylene prices were steady from mid-November to mid-December. Upstream, ethylene prices traded higher during this time period, and ethane spot pricing was volatile.
In the polyethylene market, producers were seeking to implement 4-5 cpp contract price increases in November. Read the rest of this entry »
Hurricane season is a factor that no markets can truly build into their models - and for those that try, the lack of storm activity can be as devastating as the storms themselves.
2009 was a mild year for the Gulf - and prices were correspondingly stable. For the polyethylene chain, this meant that spot prices were between 40 and 50 cents per pound - the lowest levels the industry has seen for more than two years. Read the rest of this entry »
Vol. 1, Issue 03 The Information Age is well upon us, and in the markets this is a good thing. For the US resin markets in particular, this increase in information illuminates what had been in the dark for many decades. We not only know what energy prices are doing in real time, we also now know how crucial chemical markets perform throughout the day, such as ethylene, propylene and benzene. Resin market information is updated and available each day. Read the rest of this entry »
October 16 to November 15, 2009, Vol. 1, Issue 12
Spot polyethylene prices were steady-to-higher from the middle of October to the middle of November. Upstream, ethylene spot prices moved higher but did not keep pace with a sharp rise in ethane prices. Read the rest of this entry »