06 September 2013 22:08 [Source: ICIS news]
HOUSTON (ICIS)--US front-month ethylene switched to backwardation from contango on Friday based on several spot trades.
US September ethylene, which is front-month material, traded between 54.00-54.75 cents/lb ($1,190-1,207/tonne, €905-917/tonne) on Friday.
This represented a rebound from the previous trade, which was done at 53.375 cents/lb.
The rebound was partially based on concerns of possible unplanned outages during hurricane season, as well as expectations that demand will soften through the end of the year.
Ethylene for October came down on Friday from its previous trade at 53.75 cents/lb done mid-week.
October ethylene traded on Friday between 53.875-54.250 cents/lb, with the lower deals coming later in the day.
The fall was mostly based on expectations that supply be strong after hurricane season and that demand will soften.
Ethylene had been in contango by roughly 1 cent/lb through most August.
($1 = €0.76)
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