US ethylene margins increase 3% on higher spot prices

21 February 2012 19:05  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins increased by 3% during the previous week as spot prices moved higher and feedstock ethane costs dropped, the ICIS margins report showed on Tuesday.

US ethylene margins moved to 52.25 cents/lb ($1,152/tonne, €875/tonne), using ethane as a feedstock, from 50.84 cents/lb for the week ended 10 February.

The slight increase mirrored a 1.0 cent/lb increase in spot ethylene prices during the week, on tight supply.

Feedstock Mont Belvieu ethane prices dropped by 3% on weaker demand because several US crackers are in turnaround.

Assessed Mont Beliveu ethane prices ended 17 February at 48.25-49.50 cents/gal.

Also, five US producers have scheduled maintenance for the next few months.

The turnarounds have tightened the supply of ethylene, pushing assessed spot prices to 65.0-68.0 cents/lb DEL pipeline (delivered via pipeline).

($1 = €0.76)

By: John Dietrich

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