02 July 2012 20:09 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene spot margins rose by 8% last week as a result of cheaper feedstock costs and higher ethylene spot prices, the ICIS margin report showed on Monday.
Ethylene margins were assessed at 35.11 cents/lb ($774/tonne, €611/tonne), using ethane as a feedstock, up from 32.42 cents/lb in the week that ended on 22 June.
The increase came as ethylene spot prices last week climbed on average by 4% to 44.25 cents/lb, while ethane prices fell by nearly 8% from a week earlier to 28.39 cents/gal on continued pressure from ample supply.
US ethane prices in June averaged 30.28 cents/gal, the lowest level since November 2002, according to an ICIS assessment.
The product accounts for about 60% of the feedstock volumes used to make ethylene in the US.
Ethylene margins for June averaged 32.79 cents/lb, down from 42.21 cents/lb in May and slightly below the 33.86 cent/lb average of June 2011, the report showed.
Ethylene for July delivery traded on Monday at 42.375 cents/lb, up from previous deals done at 42.00-42.25 cents/lb on Thursday.
($1 = €0.79)
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