05 June 2012 19:02 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene contracts for May settled at 46.25 cents/lb ($1,020/tonne, €816/tonne), dropping by 9 cents/lb from April, market sources said on Tuesday, confirming initial settlements reached the previous day.
The 16% drop resulted from lower spot prices and reduced production costs last month.
US ethylene contracts normally settle at the beginning of the month for the preceding month.
The drop in May was the sharpest for a single month since the contract fell by 9.50 cents/lb in November 2008 in the wake of the global financial crisis that year.
Ethylene for May delivery traded at 46.50 cents on 31 May, dropping from deals done at 63 cents/lb at the beginning of the month.
The downtrend has carried into the new month, as ethylene for June delivery traded on Tuesday at 40-41 cents/lb, down deals done at 42.00-45.50 cents/lb on 1 June.
($1 = €0.80)
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