04 November 2009 23:49 [Source: ICIS news]
HOUSTON (ICIS news)--US October ethylene contract prices settled higher by 2.75 cents/lb ($61/tonne, €41/tonne), market participants said on Wednesday.
The increase brings the October net contract price to 37.25 cents/lb, a buyer and seller said.
Spot business for November was heard done in a range of 32-33 cents/lb, up by 1.0-1.5 cents/lb from comparable deals in the previous week.
Prices for Mont Belvieu ethane, a primary ethylene feedstock, have surged by more than 10% in the past week.
Ethane prices ended the day at around 68 cents/gal, up from 60 cents/gal on 30 October.
Sources linked the run up in ethane costs to higher energy prices and increased demand as cracker operators shifted to lighter feeds.
November ethylene demand was looking decent so far, according to one seller, although this might not be representative of the overall market.
A downstream polyethylene (PE) producer said it had booked record export shipments for November.
Chevron Phillips Chemical, Equistar, ExxonMobil, INEOS and Shell Chemicals are among the major producers of ethylene in the US.
Dow Chemical, Georgia Gulf, Occidental and Total are among the buyers.
($1 = €0.68)
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