12 August 2013 20:02 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins increased by 0.7% week on week for the week ended 9 August, the ICIS margin report showed on Monday.
US margins for ethane-based spot ethylene increased to 46.12 cents/lb ($1,017/tonne, €763/tonne) from 45.80 cents/lb the previous week.
The increase was mostly pushed by cheaper feedstock ethane costs, which fell to 10.78 cents/lb from 11.05 cents/lb.
Ethylene spot prices were also higher on average in an up-and-down week of trading, gaining 0.875 cents/lb on the high side and falling by 0.750 cents/lb on the low side.
Sources said the demand picture for ethylene remains unclear but that supply is strong and feedstock costs are falling.
Some market players said downstream consumers are building up inventories in an effort to retreat from the market and push prices down.
Ethane cracker co-product credits fell during the week, to 3.96 cents/lb from 3.97 cents/lb, slightly softening ethylene margins.
US ethylene for August was heard offered at 55.75 cents/lb against no fresh bids.
($1 = €0.75)
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