Remember that the price of ethylene is now heavily affected by the price of crude oil.
Building block chemical ethylene leads [price] surge
PR Newswire Assoc. / Apr 14, 2011
Prices all along the U.S. petrochemical chain moved higher during the first quarter of 2011, but none more dramatically than ethylene, according to PetroChem Wire (PCW), a daily U.S. petrochemical industry newsletter.
Georgia Gulf says PVC production cut by a third
AP (via Bloomberg) / Apr 14, 2011
The company said it is dealing with a reduced ethylene supply ...
Georgia Gulf Declares Force Majeure on Its Shipments of PVC
By Jack Kaskey / Bloomberg / Apr 14, 2011
Georgia Gulf Corp. (GGC), North America’s largest maker of vinyl construction products, declared force majeure on shipments of polyvinyl chloride because of a shortage of raw materials.
What's it like when a price taker breaks? Until now I had thought only in terms of bankruptcy and default but the idea of a force majeure based on false statements about shortages that are really affordability issues is compelling.
Say I'm totally wrong, what if there really is an ethylene shortage. Explain to me why there is a shortage of ethylene now?
