04 April 2011 21:12 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins surged by nearly 10% in the last week of March, lifted mostly by continued gains in the price of spot ethylene, the ICIS margin report showed on Monday.
The increase last week extended an uptrend that began in mid-January, when ethylene spot prices began to rise on firm demand, constrained supply and higher feedstock prices.
The monomer has gained nearly 47% since trading at 41.50-42.25 cents/lb in the week ended 14 January.
Ethylene spot prices rose last week on continued firm demand, but sources also cited cracker turnarounds and a recent allocation announced by Shell as factors lending additional support for the monomer.
Shell will limit deliveries of ethylene to 90% in April, sources said, adding that the restriction stemmed from problems the company had accessing storage wells in Mont Belvieu, Texas, following the fire at the Enterprise Products facility in February.
Feedstock limitations resulting from the
The 676,000 tonne/year cracker will be off line until the end of April, sources said.
The 873,000 tonne/year unit will be off line until 18 June, according to information in the market.
US ethylene prices continued to move up on Monday. The monomer was bid at 63 cents/lb against an offer at 64 cents/lb.
Mont Belvieu ethane prices inched up to 73.625-75.000 cents/gal on Monday from 73.000 cents/gal on Friday, but trading was thin because several market players were out attending an industry conference in
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