US August ethylene contract settles higher

Market: Petrochemicals
04/09/24

The US August ethylene contract price settled at 33¢/lb, the highest recorded settlement since November 2022.

The contract price rose by 0.75¢/lb from the prior month, or 2.33pc, which marks a fifth consecutive monthly increase.

An uptick in the contract price was supported by higher US spot ethylene prices. Maintenance at Enterprise Products Partners' (EPC) cavern in Mont Belvieu, Texas, coupled with lower inventories in the second quarter, placed upward pressure on spot prices this summer.

US spot EPC ethylene averaged higher month-over-month. The August spot average for front-month ethylene increased to 30¢/lb from 26.59¢/lb in July. On 3 September, Argus assessed US spot EPC ethylene at 30.31¢/lb.

The US ethylene contract price is a 50/50 formula accounting for ethylene spot prices and ethane feedstock costs. The average of spot ethane prices was lower in August at 13.95¢/USG, down from 15.43¢/USG in July. Prompt month EPC ethane traded higher in September alongside natural gas.

By Joshua Himelfarb

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

23/06/25

Indian quality controls for PVC set for December 2025

Singapore, 23 June (Argus) — The implementation of Bureau of Indian Standards (BIS) quality controls for polyvinyl chloride (PVC) imports into India is now set for to 24 December 2025, extended from 24 June 2025. The extension was announced late on 20 June in the Gazette of India , signalling a third extension in the implementation of BIS quality controls on PVC imports. An initial implementation date of 26 August 2024 was set by India's Department of Chemicals and Petrochemicals (DCP), followed by an extension to 24 December 2024 and a second extension to 24 June 2025 . Some progress is noticeable, but is it enough? There are 30 PVC homopolymer production units outside of India that are currently listed as BIS certified as of 23 June. This includes key production units in Japan, South Korea, Taiwan, Thailand, Indonesia, Vietnam and Malaysia, which accounted for around 44pc of total imports into India in 2024, according to latest data from Global Trade Tracker (GTT). Some units in the US, Germany, France, Egypt, Colombia and Mexico are also included in the list, but other US and European production units are either still waiting for BIS audits to be conducted at their plants or are waiting to hear back from BIS agents after submitting their applications for audit. This is a significant improvement since the previous implementation date of 24 December 2024, when a total of 14 PVC homopolymer production units were BIS certified, predominantly in Japan, Taiwan and South Korea. Chinese PVC producers, which accounted for around 40pc of total imports into India in 2024, have also yet to receive BIS certification to supply PVC into India. India needs to import a significant share of its PVC supply before the start of new domestic capacities from 2026 onwards and an extension to the implementation of BIS quality controls is likely because some key exporters are still waiting to receive BIS certification, market participants said. Suspension PVC (s-PVC) import prices into India were assessed at $680-720/t cfr India on 20 June 2025, while paste PVC (e-PVC) import prices were assessed at $940-1,020/t cfr India. By Michael Vitiello India's PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

Versalis completes pyrolysis production tests at Mantua

19/06/25

News

19/06/25

Versalis completes pyrolysis production tests at Mantua

London, 19 June (Argus) — Italian chemical company Versalis has completed initial production tests at its 6,000 t/yr input capacity chemical recycling site in Mantua. The company reaffirmed plans to expand the technology at a site in Priolo, Sicily which will have an input capacity of 40,000 t/yr. The company, a subsidiary of integrated oil company Eni, is producing new plastic materials via a "high thermal performance pyrolysis reactor" as part of its "Hoop" brand. The new plastic materials will be suitable for food packaging and pharmaceuticals. The Mantua plant began construction in October 2023. The new site in Priolo was planned as part of the Eni-Versalis "chemical transformation plan" that was signed in March 2024 with the enterprise ministry, although an input capacity was not given at the time. Eni announced plans to phase out Italian steam crackers in October 2024 , choosing to focus "on a high-value downstream portfolio comprising compounding and specialised polymers, biochemistry and products from the circular economy". By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Pryme restarts Rotterdam PPO plant

19/06/25

News

19/06/25

Pryme restarts Rotterdam PPO plant

London, 19 June (Argus) — Dutch plastic-derived pyrolysis oil (PPO) producer Pryme has restarted output at its Rotterdam site, and by this morning had produced 25t of PPO since 18:00 local time on 18 June. The output marks a successful restart since the operation, Pryme One, shut down on 29 April because of a leaky discharge valve. The Pryme One site has an input capacity of 26,000 t/yr. Pryme reduced its second quarter production guidance to "up to 250t" from "750-1,250t" following the shutdown. Pryme previously limited operations at the site in March, after vibrations caused a shutdown. In its 2024 annual report the company said that it had originally aimed for production goals of a little below 7,000t of PPO for 2025. Since the leak on 29 April the firm guided production of 1,500-2,000t for the third quarter and 3,000-4,000t for the fourth quarter in its first-quarter results, published on 6 May, adding that "production is expected toward the lower end of each range unless further improvements are realised". By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

UK firm wins grant to develop bio-based UPR

18/06/25

News

18/06/25

UK firm wins grant to develop bio-based UPR

London, 18 June (Argus) — UK-based chemical distributor Bowden Chemicals has been awarded a government grant to develop unsaturated polyester resins (UPR) made from bio-based materials. The company, which supplies raw materials for the polyester resin and phenolic resin industries, aims to develop a UPR over the next 18 months that matches the performance of fossil-based resins while containing more than 50pc renewable content. UPRs are hard, thermosetting resins used in the construction sector. The grant was awarded through the UK government's "Smart Grant" scheme, administered by innovation agency Innovate UK. The amount of funding has not been disclosed. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Keyera acquiring Plains' Canada NGL assets for $3.75bn

17/06/25

News

17/06/25

Keyera acquiring Plains' Canada NGL assets for $3.75bn

Houston, 17 June (Argus) — Midstream operator Keyera will acquire Plains All American's Canadian natural gas liquids (NGLs) business for C$5.15bn ($3.75bn). The transaction, which is expected to close by the first quarter of 2026, includes 193,000 b/d of fractionation capacity in western Canada, more than 1,500 miles of pipelines gathering 575,000 b/d of NGLs, 23mn bl in NGL storage capacity, and the 5.7 Bcf/d Empress straddle gas processing plant. The acquisition is expected to deliver C$100mn of annual synergies between the assets in the first year, according to Keyera. Plains said the divestiture will allow the US-based midstream operator to focus on its crude handling assets in both the US and Canada. Plains will keep nearly all of its NGL assets in the US. The acquisition of Plains' assets gives Keyera NGL fractionators and gas processing plants in Fort Saskatchewan, and at the Empress facility in western Canada as well as storage at Sarnia, Ontario. It also links Keyera's existing assets to takeaway agreements for LPG exports out of British Columbia. Keyera chief executive Dean Setoguchi said the acquisition "... brings key infrastructure under Canadian ownership, keeping value and decision-making closer to home." Plain's Canadian business is underpinned by fee-based contracts with an average remaining life of 10 years, Keyera said. Associated NGL production in Canada is expected to grow by 500,000 b/d by 2040, according to Keyera, as natural gas production in western Canada climbs by 6 Bcf/d during the same timeframe. By Amy Strahan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more