10 June 2013 17:00 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins fell by 1.9% week on week for the week ended 7 June, the ICIS margin report showed on Monday.
US margins for ethane-based spot material fell to 44.90 cents/lb ($990/tonne, €752/tonne), down from 45.75 cents/lb the previous week.
Ethylene margins have been less than 50 cents/lb in four of the past five weeks, after sinking to that level only once in 2013 before this stretch.
Most of the decline is coming from spot prices, which shed 0.25-2.50 cents/lb during the week.
Spot prices have been on the decline because of balanced supply and softer-than-expected demand.
Additionally, ethane cracker co-product values fell to 4.04 cents/lb from 4.15 cents/lb, further weakening ethylene margins.
A decline in feedstock ethane costs helped mitigate the slide in ethylene margins. US ethane prices fell to 11.52 cents/lb from 12.15 cents/lb.
US ethylene for June was heard bid at 51 cents/lb against no fresh offers.
($1 = €0.76)
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