Most US Dec ethylene contracts settle down 9.5 cents/lb

18 December 2008 23:40  [Source: ICIS news]

HOUSTON (ICIS news)--Most US ethylene contracts for December were settled at a 9.5-cent/lb ($209/tonne, €146/tonne) reduction from November, market sources said on Thursday.

The drop puts ethylene in December at 28.50 cents/lb, according to global chemical market intelligence service ICIS pricing.

Market participants said a full-market settlement at that figure could be reached by the end of the week.

The decrease is the fifth consecutive monthly drop for ethylene since prices peaked at 74.50 cents/lb in July.

The contract fell by a combined 36.50 cents/lb in August-November due to weak demand and lower feedstocks costs.

US ethylene demand is said to have dropped by about 15% from one year earlier due to the weak US economy.

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 = €0.70)

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By: William Lemos
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