Thursday, January 4, 2007

Ethylene slump the worst is yet to come

ASIAN ETHYLENE prices may have been sliding over the past few weeks after peaking in September, but many agree that prices have yet to hit rock bottom.

Spot ethylene prices have fallen by almost 25% since a near-$1,500 (l,179 [euro])/tonne peak. Consumption has slowed, mainly due to cooling demand in the derivatives markets, especially for polyethylene (PE).