US ethylene margins fall by 0.8% week on week on soft demand

05 August 2013 23:16  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins fell by 0.8% for the week that ended on 2 August, the ICIS margins report showed on Monday.

US ethylene margins for ethane-based spot material fell to 45.80 cents/lb ($1,010/tonne, €757/tonne, compared with 46.19 cents/lb a week before.

Margins fell on softening demand and improving supply, with only one major cracker, Williams Olefins’ Geismar cracker in Louisiana down.

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

US spot prices fell by 0.25 cents/lb on the low end and 1.00 cents/lb on the high end for the week that ended 2 August.

Spot ethane prices fell to 11.05 cents/lb from 11.17 cents/lb week on week.

Cracker co-product credits rose to 3.97 cents/lb from 3.86 cents/lb.

US ethylene for August was sold at 53 cents/lb on Monday.

($1 = €0.75)

By: Ken Fountain

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