01 April 2010 17:56 [Source: ICIS news]
HOUSTON (ICIS news)--An initial US ethylene contract settlement for March was agreed upon at an increase of 5.00 cents/lb ($110/tonne, €81/tonne), market sources said on Thursday.
The settlement would put ethylene at 57.50 cents/lb for March.
The monomer settled at 52.50 cents/lb in February, up by 3.50 cents/lb from January, according to global chemical market intelligence service ICIS pricing.
The initial settlement came in higher than what some market participants had predicted earlier this week.
It was unclear if other settlement participants will follow suit, but one source said a 5 cent/lb increase was reasonable considering spot values for the monomer.
Ethylene for March traded earlier in the week at 66.00 cents/lb, the source said.
US ethylene bid/offers for April were at 67.25-72.00 cents/lb on Thursday. That compares with April deals done at 67.50-69.50 cents/lb on Wednesday.
US ethylene prices surged in the first quarter of 2010, driven by tight supply caused by a series of unplanned outages in the last three months.
($1 = €0.74)
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