Insatiable Demand for All Things Plastic Has Ethane Skyrocketing
- Ethane is trading at highest since 2019 on the U.S. Gulf Coast
- Exxon and Dow Chemical among players investing in U.S. plastic
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Ethane, a key component in plastic production, is trading at a nearly two-and-a-half-year high in the U.S., with demand surging as global economies recover from last year’s slump.
Prices for the fuel, which is a byproduct of natural gas processing, have climbed 57% this year to 33 cents per gallon Monday in Mont Belvieu, Texas, the main trading hub for natural gas liquids in the U.S. Further stoking the rally is the fact that output of the fuel has stalled alongside oil and natural gas drilling, with drillers continuing to favor capital discipline over output growth.