28 March 2011 21:48 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--US ethylene contracts for March could rise by at least 4 cents/lb ($88/tonne, €62/tonne), market sources said on Monday, citing higher production costs and a jump in spot prices.
Market sources said ethane and spot ethylene were both lending support to the contract side.
Spot ethylene for March traded last week in a range of 58.500-60.625 cents/lb, rising from deals done at 50.750-52.000 cents/lb four weeks earlier.
Meanwhile, production costs rose as ethane, which accounts for more than half of US cracker feedstocks, posted a 7.6% gain in the period.
Mont Belvieu ethane ended Friday at 71 cents/gal, rising from 66 cents/gal in the week ended 4 March.
Firm downstream demand also pushed the monomer contract up, market participants said during the International Petrochemical Conference (IPC) in ?xml:namespace>
According to sources, 20% of
For polyvinyl chloride (PVC), the number was as high as 40%, sources said.
US ethylene contracts usually settle at the beginning of the month, but the settlement applies for the preceding month.
A 4 cent/lb hike would place March ethylene at 53.00 cents/lb.
Buyers include Dow Chemical,
($1 = €0.71)
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