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Softer Demand for US Plastics Feedstocks Lowers Petrochemicals Prices, Bloomberg Analysis Shows

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Spot petrochemical prices have fallen in the US in the last week as demand for the plastics-making feedstocks softened for June delivery, Bloomberg analysis showed on Monday.

Prices for spot ethylene fell by nearly 17% in their third weekly slide in a row while Polymer-grade propylene fell about 8% in a four-week run of falls or unchanged prices.

Ethylene is used in plastic packaging while propylene is used by automakers and textile manufacturers, the article noted.

The drop in price reflected an apparent softening in export demand in particular for US petrochemicals, ending a months-long run of relatively high prices, traders told Bloomberg.

US ethylene looked competitive at about $0.21 per gallon, the story said.

Ethylene was trading at $0.25 per pound by May 29, down from $0.30 a week earlier, polymer-grade propylene $0.39/lbs down from $0.425, refinery-grade propylene $0.33/lbs down from $0.365/lbs.

It listed butadiene at $0.66/lbs down from $0.695 a week earlier. Methanol was $1.535/gal down from $1.625/gal. Benzene was $4.021/gal down from $4.661/gal a week earlier.

Toluene was priced at $4.251/gal down from $4.341/gal.

For natural gas liquids, ethane was trading at $0.214/gal, up from $0.198, propane $0.801/gal versus $0.804/gal.

Butane was trading at $1.096/gal, down from $1.194/gal.

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