30 April 2009 21:45 [Source: ICIS news]
HOUSTON (ICIS news)--Initial US ethylene (C2) contracts for March and April settled on Thursday at a combined reduction of 1.5 cents/lb ($33/tonne or €25/tonne).
Initial contracts settled down 1 cent/lb for March and down 0.5 cent/lb for April.
The initial settlements were reached between two producers and three buyers, according to a market participant.
US ethylene contracts settled at 32 cents/lb in February, up by 0.5 cent/lb from January, according to global chemical market intelligence service ICIS pricing.
The two-month initial settlement came after market participants failed to agree on a 1 cent/lb reduction for March.
That first agreement had been achieved between one producer and one buyer, but other producers refused to follow suit and offered instead a drop of half a penny.
However, buyers dug in their heels for a full penny reduction, keeping March contracts unsettled and triggering the initial double settlements with April.
On the spot side, ethylene bid/offers were at 21.00-23.25 cents/lb on Thursday. Ethylene last traded at 22.125 cents/lb and 22.750 cents/lb on Tuesday, according to market participants.
Chevron Phillips Chemical, 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 = €0.75)
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