ETHYLENE

An ethylene supply shortage in Asia caused by maintenance shutdowns at major producers has caused ethylene prices to spike by over fifty dollars to US$1320/MT in the week of April 14, 2008. Several key plants have been either shut down for annual maintenance or have been running at lower rates due to reduced margins. Operating rates at Taiwan's Formosa no.1 cracker has been brought down to less than 80% capacity caused by mechanical trouble due to a power outage.