01 July 2013 16:38 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins fell by 5.9% week on week for the week ended 28 June, the ICIS margin report showed on Monday.
US ethylene margins for ethane-based spot material fell to 49.08 cents/lb ($1,082/tonne, €833/tonne) compared with 52.13 cents/lb the week prior.
Most of the decline in margin came from weaker spot prices, which shed 2.75-3.00 cents/lb during the week.
The drop in spot material came as several crackers were restarted or began the restart process, lengthening the supply.
The boost in cracker activity also pushed feedstock ethane prices higher, further eroding margins.
US ethane prices increased to 10.63 cents/lb from 10.58 cents/lb, according to the margin report.
Ethane cracker co-product credits also fell during the week to 3.71 cents/lb from 3.83 cents/lb, mostly on softer propylene.
US ethylene for July was heard bid at 54 cents/lb on Monday against fresh offers at 61 cents/lb.
($1 = €0.77)
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