US ethylene margins fall 3.8% on downturn in spot values

11 February 2013 18:19  [Source: ICIS news]

US ethylene margins fall 3.8% on downturn in spot valuesHOUSTON (ICIS)--US spot margins for ethylene fell by around 3.8% week on week, tracking a downturn in spot prices, the ICIS margin report showed on Monday.

Ethylene spot margins were assessed at 55.91 cents/lb ($1,233/tonne) for the week ended 8 February, compared with 58.10 cents/lb for the previous week, using ethane as a feedstock.

The decline in margins was mostly driven by US spot ethylene prices dropping 1.625-2.500 cents/lb week-on-week because of improving supply.

Spot ethylene margins have fallen around 6.9% in the past two week after nearly setting a new record high at 60.03 cents/lb for the week ended 28 January.

The record for ethylene margins remains 60.58 cents/lb for the week ended 6 April 2012, as assessed by ICIS.

Feedstock ethane prices increased to 11.12 cents/lb for the week ended 8 February, up by about 1.4% week-on-week from 10.97 cents/lb, further eroding margins.

Spot ethane cracker co-product values increased to 4.78 cents/lb from 4.76 cents/lb week on week, slowing some of the fall in ethylene margins.


By: John Dietrich
713-525-2600



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