06 August 2013 20:03 [Source: ICIS news]
HOUSTON (ICIS)--US July ethylene contracts reached a full settlement at a rollover, sources confirmed on Tuesday.
Buyers and sellers confirmed that July ethylene contracts settled at 45.5 cents/lb ($1,003/tonne, €752/tonne).
The rollover came despite the monthly spot price average dropping by slightly more than 1 cent/lb.
Spot prices were weaker in the month mostly on several cracker restarts boosting supply.
Feedstock ethane prices moved up slightly, by less than 0.1 cents/lb, which lent some support to a smaller decrease.
Based on the decrease in spot prices and the slight increase in feedstock costs, July ethylene contracts could have fallen by 0.25-0.50 cents/lb.
The July settlement initially started to reach the market on 2 August, sources said, but full confirmation was not available until Tuesday.
The June contract settlement was part of a triple-month settlement, joining the May and April settlements.
US ethylene contracts are typically settled at the start of the month for the previous month.
Major US producers include Chevron Phillips Chemical, ExxonMobil, INEOS, LyondellBasell and Shell Chemical.
Major buyers include Axiall, Dow Chemical, Occidental Chemical and Total.
($1 = €0.75)
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