US ethylene margins jump 6% on higher spot prices

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)

For more on ethylene visit ICIS chemical intelligence
To discuss issues facing the chemical industry go to ICIS connect

By: William Lemos
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly