US C2 margins stay flat on lower olefin prices, lower costs

10 May 2010 17:12  [Source: ICIS news]

HOUSTON (ICIS news)--US ethane-based ethylene margins were flat during the week ended 7 May as a 3.2% reduction in feedstock costs offset a 20% reduction in prices for co-products such as propylene, ICIS pricing’s ethylene margin report said on Monday.

Spot margins for ethane-sourced ethylene were at 20.0 cents/lb ($441/tonne, €344/tonne), roughly even with 20.5 cents/lb during the week ended 30 April, the report said.

Mont Belvieu ethane prices on 7 May were around 54 cents/gal, about 4 cents lower compared with a week earlier.

Meanwhile, co-product prices from contract propylene also fell during the week.

Margins for US naphtha-based ethylene were assessed higher by 4.7 cents for contract ethylene and 8.5 cents for spot ethylene, boosted by a nearly 10% drop in naphtha costs.

The 8.5-cent increase brings naphtha-based spot ethylene margins up to the level of ethane-based spot margins.

May spot ethylene traded last week at 42.00-45.00 cents/lb, down from 42.00-47.25 cents/lb during the week ended 30 April, according to data from global chemical market intelligence service ICIS pricing.

($1 = €0.78)

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By: David Barry
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