18 October 2012 19:06 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene prices fell by 4.2% on average in the first half of October, a reduction that could lead to a potential contract drop for the month, an ICIS assessment showed on Thursday.
Ethylene for October delivery traded on average at 56.625 cents/lb ($1,248/tonne, €948/tonne) in the first two weeks of the month, down from an average 59.130 cents/lb for the entire month of September.
The reduction, if sustained, could lead to a drop of just over 1 cent/lb in the October contract, as production costs have stayed mostly steady so far this month, the assessment showed.
Ethylene for October delivery traded at 52.25-53.00 cents/lb earlier this week, while bids/offers were at 52.75-54.75 cents/lb on Thursday.
The decline in spot prices in October stems from softer demand, a market participant said, adding that the polymer market in the US is not "doing so great".
US ethylene contracts normally settle early in the month for the previous calendar month.
September ethylene settled at 48.25 cents/lb, up by 2.25 cents/lb from August.
($1 = €0.76)
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