07 September 2012 19:56 [Source: ICIS news]
MEDELLIN, Colombia (ICIS) --US ethylene oxide (EO) contract values for August were assessed higher by 3.20 cents/lb ($71/tonne, €56/tonne) on Friday.
EO was assessed at 49.80-59.30 cents/lb, according to ICIS pricing. The formula-based pricing is contingent upon the monthly ethylene contract settlement, which fully settled this week for August.
US ethylene contracts for August rose by 4 cents/lb to 46 cents/lb, market sources said, following a jump in spot prices and slightly higher production costs last month.
The ethylene settlement, a nearly 10% increase from July, came after spot prices rose by 14% in August as a result of outages and reduced operations at some US crackers.
At least two ethylene units were taken off line in Louisiana recently as Hurricane Isaac swept through the state, leaving widespread power outages and flooding in its trail. The storm forced other crackers in the region to run at lower rates, further affecting monomer supply.
Ethylene production costs also climbed slightly in August on higher ethane costs. Mont Belvieu ethane prices averaged 35.403 cents/gal last month, up from 34.313 cents/gal in July.
Ethane accounts for around 60% of the feedstock volumes used to make ethylene in the US.
For more on ethylene oxide visit ICIS chemical intelligence
($1 = €0.79)
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