07 November 2012 21:59 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins fell by 1% in the last week of October, pressured by lower ethylene spot prices, the ICIS margin report showed on Wednesday.
Ethylene spot margins were assessed at 44.60 cents/lb ($983/tonne, €767/tonne), using ethane as a feedstock, down from 45.05 cents/lb a week earlier.
The reduction followed a drop in ethylene spot prices, which last week traded at an average 55.125 cents/lb, down by 1.5% from deals done a week earlier.
The drop outweighed a reduction in feedstock ethane costs, which ended the week 9% lower at 30 cents/gal.
Ethane accounts for around 60% of the feedstocks used to make ethylene in the US.
Mont Belvieu ethane traded at 30 cents/gal on Wednesday, while ethylene for November delivery was transacted at 55 cents/lb.
US ethylene spot margins have averaged 43.67 cents/lb so far in 2012, up by nearly 60% from an average 27.47 cents/lb in 2011.
($1 = €0.78)
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