13 May 2013 19:48 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins gained 11% for the week ended 10 May, the ICIS margin report showed on Monday.
US ethylene margins moved to 49.41 cents/lb ($1,089/tonne, €839/tonne) for ethane-based material, up from 44.70 cents/lb the previous week.
The rebound in margins came as they reached their lowest level in 2013 the previous week.
The biggest reason for the gain in margins was an increase of 4.0-4.5 cents/lb in spot prices week on week, tracking improving demand and tighter supply.
Sources also felt that the decline in spot prices seen the week ended 3 May was overdone and based on thin trading.
Additionally, feedstock ethane costs fell during the week ended 10 May, to 12.37 cents/lb from 12.88 cents/lb, boosting ethylene margins further.
Ethane cracker co-products credits fell slightly during the same time, to 4.29 cents/lb from 4.33 cents/lb, slightly tamping down on ethylene margins.
US ethylene for May was heard bid at 58 cents/lb on Monday against no fresh offers.
($1 = €0.77)
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