The US ethylene contract price for June is expected to settle 1-2 cents lower than May, a market source said.
"We think it will move down about a penny and a half," the source, a major buyer, said.
May settled at 58.50 cents/lb, up just 1.25 cents/lb from April despite spot ethylene averaging 66.50 cents/lb for the month. Market sources cited poor demand from the polyethylene markets as a key reason for the nominal hike.
A similar situation could be seen for June, when spot ethylene averaged north of 62.25 cents/lb, according to Platts data.
Spot ethylene has lost considerable ground recently, shedding more than 8 cents over the past two weeks.
"It's coming down," a source with a producer said.
On Tuesday, July bids were heard at 54.50 cents//b against no offers. Ethylene was last assessed Friday on either side of 55.375 cents/lb.
