Unprecedented Price Volatility Hits Ethylene Spot Markets; Industry Experts Provide Insight on Trends & New Challenges Faced

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Proprietary, real-time data & analysis on operations, pricing & supply & demand fundamentals provides transparency into NGLs & petrochemicals market

“With ongoing volatility and high potential for outages and the shift toward feedstock, it's essential for market participants to have clarity around the complex ethylene market,” said Suzanne Evans.

The boom in U.S. ethane supplies, due to the proliferation of drilling in shale gas plays, has prompted the U.S. petrochemical industry to expand steam cracker capacity and build a number of new crackers recently. A wave of unplanned outages and delays in unit restarts from planned maintenance has created exceptional price volatility in the ethylene spot markets this summer.

Genscape, the company increasingly cited as providing the highest quality fundamental data to market participants across the global commodities and energy industry, suggests that the increase in price volatility is not a short-term phenomenon. The recent wave of unplanned outages and delays in unit restarts from planned maintenance will likely be a trend that will persist, to some extent, for the rest of 2014 and beyond. As the U.S. petrochemical industry expands existing infrastructure and seeks to capture wide profit margins, the propensity for unforeseen reductions in ethylene capacity remains in the near to medium term.

“With ongoing volatility and high potential for outages and the shift toward feedstock, it's essential for market participants to have clarity around the complex ethylene market,” said Suzanne Evans, Genscape’s senior product manager for petrochemicals and NGLs. “Transparency in fundamentals reduces market inefficiency and in turn, undue price volatility.”

In an effort to provide insight into the recent market events and ongoing volatility, Genscape and the PetroChem Wire have teamed up to launch a new white paper today, The Summer of Ethylene: Spot Price Volatility Risk and the Need for Transparent Fundamentals. The white paper can be downloaded by visiting: info.genscape.com/summer-of-ethylene

The need for accurate, real-time information in this volatile market is evident. Genscape’s proprietary monitoring and comprehensive analysis brings transparency to the U.S natural gas liquids (NGLs) and petrochemical market, providing insight into the entire NGLs supply chain – pipeline flows, fractionation and processing, and downstream petrochemical demand. This data and insight allows producers, traders, and analysts to make more efficient daily decisions related to supply optimization, operations, and pricing.

Genscape monitors over half of the U.S. Gulf Coast steam cracker units, nearly 32 billion lbs/year of ethylene production capacity, via infrared technology and publishes real-time alerts for its clients on furnace shutdowns, restarts, and flaring at these cracker units – accurate, quantitative fundamental information that supports market transparency.

Additionally, the newly launched U.S. Gulf Coast Morning PetroChem Update report combines Genscape’s proprietary monitoring with quantitative data and benchmark pricing from PetroChem Wire to offer a comprehensive, accurate, and concise overview to U.S. olefin market stakeholders. “Timely and deep market fundamental information provides the opportunity to be aware ahead of the market, creating an advantage in both trading and marketing olefins,” says Kathy Hall, executive editor at PetroChem Wire. To learn more or download a sample report, visit: info.genscape.com/usgc-petrochem-report

About Genscape

Genscape is the leading global provider of real-time data and intelligence for commodity and energy markets, driven to improve market transparency and efficiency. With thousands of patented monitors strategically deployed worldwide, Genscape is unique in its ability to collect and report proprietary market fundamentals in real-time or near real-time. Genscape delivers innovative solutions across a number of asset classes including: Oil, Power, Natural Gas and LNG, Agriculture, Petrochemical and NGLs, Maritime, and Renewables. Genscape clients often gain first-mover advantage, improve risk management, or increase operational efficiency. For more information, please visit: http://www.genscape.com

For all press inquiries please contact:

Jaimie Weiss
Marketing Communications Manager
Office: +1 617 790 0959
jweiss(at)genscape(dot)com

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Jaimie Weiss
Genscape, Inc.
+1 (617) 790-0959
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since: 06/2009
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