US ethylene margins rise 0.4% week on week on higher spot prices

29 July 2013 18:39  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins rose by 0.4% for the week ended on 26 July, the ICIS margins report showed on Monday.

US ethylene margins for ethane-based spot material rose to 46.19 cents/lb ($1,018/tonne, €764/tonne), compared with 46.02 cents/lb a week ago.

Margins rose on slightly improving spot prices, which counteracted higher spot ethane prices.

Sources said supply continues to improve as only one major cracker, Williams Olefins’ Geismar cracker in Louisiana, remains down.

Demand has been softer than expected from the polyethylene (PE) and polyvinyl chloride (PVC) markets.

US spot prices rose by 0.75 cent/lb on the low end and 0.25 cent/lb on the high end for the week ended 26 July.

The increase in cracker activity has also boosted spot ethane prices, which rose to 11.17 cents/lb from 10.86 cents/lb week on week.

Cracker co-product credits fell slightly, down to 3.86 cents/lb from 3.89 cents/lb.

US ethylene for July was heard offered at 55 cents/lb Monday with no fresh bids.

($1 = €0.75)

By: Ken Fountain

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