US ethylene margins rise 33% as surging spot values outpace ethane

08 November 2010 22:10  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins climbed by 33% in the past week as spot prices rose faster than ethane costs, the ICIS ethylene margin report showed on Monday.

Spot margins for ethane-sourced ethylene were assessed at 17.98 cents/lb last week, up from 13.49 cents/lb in the week ended 29 October.

The key driver in the margin increase was a 6.88 cent/lb increase, or 17%, in the weekly spot ethylene range, compared with a 2.40 cent/lb increase in ethane costs.

Spot margins for naphtha-based ethylene slipped by less than 1 cent to 4.87 cents/lb, as naphtha costs rose by almost 8%.

Ethane prices have risen in nine of the past 12 weeks, while naphtha prices have risen in eight of the past 12 weeks.

($1 = €0.71)

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