03 July 2012 18:15 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene contracts for June began to settle on Tuesday at 39 cents/lb ($860/tonne, €679/tonne), dropping by 7.25 cents/lb from May on pressure from lower spot prices and reduced production costs last month.
US ethylene contracts normally settle at the beginning of the month for the previous month.
The 16% drop puts the monomer contract at its lowest level in nearly two years.
The reduction came as ethylene spot prices fell by 24% in June to an average 42.94 cents/lb, while ethane prices dropped to a 10-year low on 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.
($1 = €0.79)
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