US ethylene margins rise 2% on lower feedstock prices

03 December 2012 23:29  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins rose by 2% in the last week of November on lower ethane feedstock prices, the ICIS margin report showed on Monday.

Ethylene spot margins were assessed at 42.57 cents/lb ($938/tonne, €722/tonne), using ethane as a feedstock, up from 41.71 cents/lb a week earlier.

The increase resulted from a drop in ethane prices, which ended last week at 26 cents/gal, down by 7% from 28 cents/gal a week earlier, on supply pressure and weaker demand.

A 0.8% rise in co-product credits also lent support to ethylene margins last week, but gains were limited by a small drop in ethylene spot prices, the report showed.

US ethylene for November delivery traded last week at 50.750-51.375 cents/lb, down on average by 0.1% from 51.000-51.250 cents/lb in the week ended 23 November.

December ethylene was bid on Monday at 50.000 cents/lb against an offer at 50.625 cents/lb.

Meanwhile, ethane prices were steady at 26 cents/gal.

US ethylene margins for November fell on average by 3% compared with October, but margins have averaged 43.63 cents/lb so far in 2012, up by nearly 60% from an average 27.47 cents/lb in 2011.

($1 = €0.77)

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By: William Lemos
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