04 March 2013 17:02 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins slipped by less than 0.1% for the second consecutive week on higher production costs, the ICIS margin report showed on Monday.
US ethylene margins were assessed at 54.95 cents/lb ($1,211/tonne, €933/tonne) for the week ended 1 March for material using ethane as a feedstock.
The margins were down from 54.98 cents/lb a week earlier and 54.99 cents/lb two weeks ago.
The biggest reason for the drop in margins was an increase in production costs and a drop in co-product credits.
US ethane costs increased to 11.78 cents/lb for the week ended 1 March, up from 11.34 cents/lb week on week.
Co-product values fell to 4.98 cents/lb from 5.07 cents/lb the previous week.
The fall in ethylene margins came despite a 0.5 cent/lb increase in US spot ethylene prices, tracking slightly tighter supply.
Ethylene for March was heard bid at 62.5 cents/lb, with no offers.
($1 = €0.77)
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