US ethylene margins drop 7% on lower spot, higher feed costs

09 July 2012 15:34  [Source: ICIS news]

US ethylene margins drop 7%HOUSTON (ICIS)--US ethylene spot margins fell by 7% in the first week of July, pressured by lower ethylene spot prices and higher ethane costs, the ICIS margin report showed on Monday.

Ethylene margins were assessed at 32.58 cents/lb ($718/tonne, €589/tonne), using ethane as a feedstock, down from 35.11 cents/lb in the week that ended on 29 June.

The drop followed a 3.8% average drop in the price of spot ethylene, which softened as two US crackers that had been off line for maintenance resumed production last week.

Ethylene for July delivery traded at 42.375-42.750 cents/lb in the week that ended on 6 July.

That compares with 42.000-46.500 cents/lb a week earlier.

Meanwhile, ethane prices averaged 30.90 cents/gal last week, rising by nearly 9% from 28.39 cents/gal in the previous week.

Ethylene for July was bid at 40 cents/lb on Monday with no offers.

($1 = €0.82)

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By: William Lemos
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