18 October 2010 19:13 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene spot margins rose by 6% last week, lifted by a jump in spot prices, the ICIS ethylene margin report showed on Monday.
Spot margins for ethane-sourced ethylene were assessed at 12.88 cents/lb ($284/tonne, €202/tonne), up from 12.13 cents/lb in the week ended 8 October, according to the report.
Ethylene margins rose as ethylene spot prices last week jumped by 3.5% on average on the heels of a new cracker outage in Texas.
The monomer began the week trading at 35.00 cents/lb for October, but spiked to 36.50 and 39.00 cents/lb by Thursday following news that Dow Chemical had shut down its LHC7 olefins plant in Freeport, Texas.
The 612,000 tonne/year unit was shut down early on 13 October after a steam turbine went off line, a spokesperson said.
Dow did not say when the cracker would be restarted. The company has a second cracker in Freeport, LHC8, with a 1m tonne/year capacity.
US ethylene spot prices were steady on Monday. The monomer was bid at 37.750 cents/lb for October, while an offer was heard at 38.875 cents/lb.
($1 = €0.71)
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