02 August 2012 18:22 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene contracts for July were settling at a 3 cent/lb ($66/tonne, €54/tonne) increase on Thursday, in a nearly market-wide agreement that puts the monthly contract at 42 cents/lb.
The settlement represents an increase of about 8% from June, when the contract fell by 7.25 cents/lb to 39 cents/lb.
According to sources, most settlement participants had agreed to the 3 cent/lb increase, which is the first in the past four months for the US monomer.
The July increase came as ethylene spot prices climbed by about 9% last month to an average of 46.72 cents/lb, while ethane prices rose by 13% to 34.31 cents/gal.
Ethane is a key raw material for US ethylene production, accounting for around 60% of the feedstock volumes used to make the monomer.
Mont Belvieu ethane was assessed at 34.50-35.50 cents/gal on Thursday, whereas ethylene for August was bid at 47.00 cents/lb against a 49.25 cent/lb offer.
August ethylene traded at 48.25 cents/lb earlier this week.
($1 = €0.82)
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