July 2011

Polyethylene pricing has begun to drift lower in June and July as North America was becoming globally uncompetitive.

The new question is: “Are North American PE producer comfortable with exports to Latin America or do they want to try and compete in Asia?”

We quickly get back to the million dollar question of value or volume in PE.  If you look at cash cost for ethylene in the US in the low 30 cpp range, then you can quickly understand that at today’s pricing there is a heft margin being made and producer can run harder if they wish.  (read full article)