US ethylene margins surge 7.7% on higher spot prices

29 October 2012 15:13  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins rebounded from a steep fall the previous week to gain 7.7% for the fourth week in October, the ICIS margin report showed on Monday.

Ethylene margins were assessed at 45.05 cents/lb ($993/tonne, €765/tonne) using ethane as a feedstock, up from 41.83 cents/lb the previous week.

Most of the gain in margins was attributed to higher spot prices, which gained 2.000-4.625 cents/lb during the week on news of a cracker outage in Texas.

Also, another cracker restart was delayed, further tightening supply.

Feedstock ethane costs also fell by 0.8%, to 14.13 cents/lb from 14.24 cents/lb, during the week.

Ethane cracker co-product credit values fell during the week to 3.99 cents/lb from 4.19 cents/lb, a 4.8% drop.

Trading of October ethylene was thin on Monday, with most of the market moving toward November material, with a deal done at 56.25 cents/lb.

($1 = €0.77)

By: John Dietrich

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