US ethylene margins fall 4.4% on drop in spot prices

15 October 2012 16:51  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins for the second week of October fell by 4.4% on a drop in spot ethylene prices, the ICIS margins report showed on Monday.

Ethylene margins were assessed at 45.29 cents/lb ($998/tonne, €768/tonne), using ethane as a feedstock, down from 47.39 cents/lb a week earlier.

The fall was mostly attributed to spot ethylene prices dropping, outweighing lower feedstock costs.

US ethylene spot prices fell by 1-4 cents/lb during the week as sources said two crackers were restarted, boosting supply.

Also, ethane cracker co-product values fell to 4.28 cents/lb from 4.39 cents/lb, further eroding ethylene margins.

Feedstock ethane costs fell by 3.6%, to 13.61 cents/lb from 14.12 cents/lb.

October spot ethylene started the week with bid/offer levels at 52.5-53.5 cents/lb, continuing their downtrend from a deal heard on Friday at 53.5 cents/lb.

($1 = €0.77)

By: John Dietrich

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly