Ethylene Oxide Prices Decrease in the USA Amid a Reduction in Production Costs

As per the latest data, Ethylene Oxide prices decreased by 4% in the initial week of March 2023. While during the last couple of weeks of February 2023, Ethylene Oxide prices were stable in the USA on the back of no new orders from the regional industries. The USA’s manufacturing Purchasing Manager’s Index also decreased in February  2023 amid a contraction in domestic manufacturing activities. At the same time, US Federal Reserve increased its interest rates to fight the rising inflation in the country.

Ethylene Oxide’s feedstock Ethylene costs declined in the past week due to the previous decreases in the upstream Natural Gas prices, which reduced the upstream cost pressure. Amid increased production rates and weak demand from the consumer end, Natural gas prices decreased by almost 31% during February. Consequently, at the end of the week, concluded on 10th March 2023, Ethylene Oxide prices are witnessed at USD 1400/MT.

According to the reports, The Environmental Protection Agency (EPA) of the USA recently presented in their community meeting on Ethylene Oxide and its associated risks in Kingsbury, Queensbury, and New York. Commonly used as a sterilizer for medical equipment, EPA notified people about its use in the medical sector and its cycle of exposure through fugitive emissions.

As per the ChemAnalysts, “It is predicted that the prices of Ethylene Oxide will remain stagnant in the upcoming weeks of March 2023. While the feedstock Ethylene costs will likely remain firm due to increasing costs of Natural Gas amid consistent demand and increasing interest rates by the US Federal Reserve to curb inflation. It is making it difficult for the consumer to buy commodities, and due to this, the import orders from the USA are also likely to decrease. It will negatively affect the consumption rates of Ethylene Oxide in the downstream Glycol industries.”