US ethylene margins increase by 1.2% on lower ethane

12 November 2012 16:42  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins gained 1.2% in the first week of November, mostly on lower feedstock costs, the ICIS margin report showed on Monday.

Ethylene spot margins were assessed at 45.12 cents/lb ($995/tonne, €786/tonne), using ethane as a feedstock, up from 44.60 cents/lb the previous week.

The increase was largely fuelled by cheaper ethane costs, which fell to 13.11 cents/lb for the week ended 9 November from 13.81 cents/lb the previous week.

The fall in ethane prices was mostly attributed to longer supply.

The gains in ethylene margins were mitigated by weaker spot prices and lower cracker co-product values.

US spot ethylene prices tightened during the week, gaining 1.000 cents/lb on the low end and falling by 1.250 cents/lb on the high end, creating a net loss in average price.

Cracker co-product credits fell to 3.98 cents/lb from 4.04 cents/lb.

US spot ethylene for November was offered at 56 cents/lb on Monday, with no bids heard.

($1 = €0.79)

By: John Dietrich

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