Ethylene oxide prices moved decisively higher into early March, driven by tighter merchant availability, firmer export nominations, and rising upstream costs. MEG demand strengthened ahead of the summer beverage-packaging season. Geopolitical risk to trade routes and robust Gulf Coast cracker reliability narrowed the buffer, prompting aggressive buying and reduced spot flexibility. Demand patterns underpinned the rise: PET and beverage-packaging needs supported MEG procurement, while automotive coolant buying sustained EO consumption. Domestic light-vehicle output rose, reinforcing MEG intake. Supply dynamics added upward pressure as feedstock costs climbed; ethylene spot prices lifted EO production costs and compressed margins. Gulf Coast crackers operated at high utilization, limiting exportable volumes, while maintenance at a major facility temporarily tightened flows. Outlook favors continued upside through spring, with modeled changes of +8% for March, +6.5% for April, and +4.2% for May, contingent on shipping risks, energy costs, and insurance premiums. Procurement should stay flexible to reflect sustained feedstock pressure, and MEG build for packaging.
Selenis has effectively manufactured recycled PET chips using terephthalic acid sourced from Circ®, a textile-to-textile recycler based in Virginia. The chip production took place through a series of batches at Selenis' pilot plant in San-Giorgio, Italy. By utilizing inputs recovered from polycotton textile waste, Selenis has created high-quality PET chip, which has been further processed into DTY yarn. This yarn will play a crucial role in product development as Circ prepares for additional capsule launches. Selenis is leveraging the success of this initial collaboration phase and is committed to advancing towards an offtake partnership to support Circ's inaugural industrial facility.
Eduardo Santos, Head of Corporate Strategy at Selenis, remarked that the monomer synthesis showed a performance comparable to virgin terephthalic acid. He expressed optimism about the consistent quality of Circ's monomer output and anticipated future commercial success. Santos pointed out that the Circ partnership complements Selenis's existing mission and goals for a more sustainable textile industry. He further stated their anticipation of expanding upon this collaboration and providing support for Circ's forthcoming commercial production trials.
