US ethylene margins fall slightly on increased ethane costs

29 April 2013 15:57  [Source: ICIS news]

HOUSTON (ICIS)—US ethylene margins fell by 0.3% week on week as feedstock costs increased slightly, the ICIS margin report showed on Monday.

US ethylene margins for the week ended 26 April were at 50.45 cents/lb ($1,112/tonne, €856/tonne) for ethane-based material. Margins were at 50.60 cents/lb the previous week.

US ethylene spot prices were unchanged during the week, as buyers and traders said the market lacked a clear direction and demand was soft.

As a result, margins were mostly driven lower by a 1.6% increase in feedstock ethane costs, which moved up to 12.71 cents/lb from 12.51 cents/lb.

The feedstock increase was slightly curbed by higher cracker co-product values, which moved to 4.35 cents/lb from 4.30 cents/lb a week earlier.

Co-product values increased because of higher propylene prices, which were mostly fuelled by improved demand.

US ethylene for April was last heard bid at 55 cents/lb.

($1 = €0.77)

By: John Dietrich

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly