03 June 2013 16:27 [Source: ICIS news]
HOUSTON (ICIS)—US ethylene margins for the week ended 31 May fell by 4.0% week on week to the lowest level this year, the ICIS margin report showed on Monday.
US ethylene margins for ethane-based spot material dropped to 45.75 cents/lb ($1,009/tonne, €777/tonne) from 47.66 cents/lb the previous week.
This is the lowest margins have been since December 2012, the report showed.
Most of the fall came from a drop in spot prices, which shed 1.75-2.25 cents/lb during the week.
Some market players said demand remains softer than expected, while others said the decline is the result of the expected start-up of several crackers.
Margins were also weakened by a drop in ethane cracker co-product credits, which fell to 4.15 cents/lb from 4.31 cents/lb week on week.
Feedstock ethane costs fell during the week, moving to 12.15 cents/lb from 12.41 cents/lb, slowing the fall of ethylene margins.
US ethylene for June was heard bid at 50 cents/lb on Monday against no fresh offers.
($1 = €0.77)
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