17 June 2013 16:46 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins for the week ended 14 June increased by 8.6% week on week on a rise in spot prices, the ICIS margin report showed on Monday.
US ethylene margins for ethane-based spot material increased to 48.83 cents/lb ($1,077/tonne, €807/tonne), up from 44.90 cents/lb the previous week.
The run-up in ethylene margins was mostly attributed to an increase in spot material, which gained an average of 2.875 cents/lb week on week.
The rise in spot prices came on expectations of tighter supply in the market after the fire and explosion at Williams’ Geismar cracker in Louisiana on 13 June.
The cracker shutdown also weakened demand for feedstock ethane. This led ethane prices to fall to 10.54 cents/lb from 11.52 cents/lb, further strengthening ethylene margins.
Also, cracker co-product credits increased week on week, up to 4.12 cents/lb from 4.04 cents/lb, adding more strength to ethylene margins.
US spot ethylene traded between 59-60 cents/lb to close the previous week. No fresh bids or offers were heard Monday morning.
($1 = €0.75)
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