04 December 2012 22:01 [Source: ICIS news]
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HOUSTON (ICIS)--US ethylene contracts for November dropped by 2 cents/lb ($44/tonne, €34/tonne), market sources said on Tuesday, confirming that a full-market settlement had been reached.
The 4% reduction, which came amid lower feedstock and ethylene spot prices in November, puts the contract at 45.25 cents/lb.
US ethylene contracts normally settle at the beginning of the month for the previous month.
The monthly contract had been expected to drop as a result of lower spot prices and reduced ethane costs last month.
The drop in ethylene prices stems from weaker demand, whereas ethane prices have softened on supply pressure and also as a result of softer demand.
Ethane accounts for around 60% of the feedstocks used to make ethylene in the
The feedstock traded down to 24 cents/gal on Tuesday, hitting another all-time low as inventories remain at historic high levels.
December ethylene traded at 50.75 cents/lb earlier in the day, on the low end of deals done at 50.625-51.750 cents/lb last week.
($1 = €0.77)
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