Spot ethylene has been on the rise, 0.50 cent/lb higher than the record lows seen April 9 after prompt-month was heard offered at 14 cents/lb MtB Nova. Sources have attributed the rise to the market finding balance after falling rapidly. Since then, April has been heard traded at 14.25 cents/lb MtB Nova for three straight days. Previous drops in pricing were due to continued length in supply amid new ethylene capacity and, more recently, weak demand particularly from the polyethylene sector, sources said. More than 3.5 million mt/year of new capacity has been added in the last 12 months, and nearly 4 million mt/year of additional capacity is expected online through December.

Spot propylene has also been on the rise with sources citing stronger demand and refinery turnarounds tightening RGP supply. Expectations for April propylene contracts range from a down 1 cent to up 2 cents/lb, sources said. March contracts settled at 47 cents/lb for PGP and 45.50 cents/lb for chemical-grade product, each down 6 cents/lb from February.