US C2 producers nominate plus 5-10 cts/lb for Oct

02 October 2008 16:34  [Source: ICIS news]

LONDON (ICIS news)--US ethylene producers nominated increases of 5 cents/lb ($110/tonne or €78/tonne) and 10 cents/lb for October contracts, buyers said on Thursday.

Only those two initiatives were put forward so far, according to the sources. The US has at least five ethylene producers that participate in the settlements.

The nominations for October came while August-September contracts were initially settled at a combined decrease of 11.50 cents/lb.

Market sources on both sides of the industry downplayed the nominations for October.

“Same game every month… buyers won't agree so we go to an end of month settlement, which doesn't get settled,” one source said. 

Another source said the nominations do not reflect market conditions, as about 80-85% of the industry has restarted production that was affected by hurricanes Gustav and Ike.

“They may not be running at 100% but they are back up,” the source said.

US ethylene contracts usually settle at the end of the month.

Chevron Phillips, Equistar, ExxonMobil, INEOS and Shell Chemicals are among the major producers of ethylene in the US. Dow Chemical, Georgia Gulf, Occidental Chemical (OxyChem) and Total are among the buyers.

($1 = €0.71)

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By: William Lemos
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