US ethylene margins increase 4.3% on cheaper feedstocks

10 December 2012 17:01  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins increased by 4.3% in the first week of December on lower ethane feedstock costs, the ICIS margin report showed on Monday.

Ethylene spot margins were assessed at 44.42 cents/lb ($979/tonne, €764/tonne), using ethane as a feedstock, up from 42.57 cents/lb a week earlier.

The increase comes on the heels of continued weakness in the feedstock ethane market. Ethane prices fell to 10.47 cents/lb week on week from 11.68 cents/lb, a 10% drop.

Additionally, ICIS-assessed spot prices also moved higher on average, gaining 1.125 cents/lb on the high side of the range and holding steady at the lower end of the range.

Cracker co-product credits also increased week on week, up to 4.01 cents/lb from 3.93 cents/lb.

US spot ethylene for December was bid Monday at 51.75 cents/lb, lower than a deal done the previous week at 52.50 cents/lb.

($1 = €0.78)

By: John Dietrich

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