30 September 2013 18:50 [Source: ICIS news]
HOUSTON (ICIS)--US ethylene margins fell to their lowest level in 10 months on falling ethylene spot prices and steady feedstock costs, the ICIS margin report showed on Monday.
US ethylene margins for ethane-based spot material fell to 44.16 cents/lb ($974/tonne, €721/tonne) for the week ended 27 September, down by almost 3.0% from 45.51 cents/lb a week ago.
This is the lowest ethylene margins have been since reaching 42.57 cents/lb for the week ended 30 November 2012.
Most of the decline came as spot prices reached their lowest since early December 2012, after a trade for September material at 50.75 cents/lb late on 27 September.
Spot ethylene prices are declining on the back of several downstream plant shutdowns, as well as long supply on strong US cracker operations.
Additionally, feedstock ethane costs have been mostly stable, despite strong demand from US crackers.
US ethane prices were 10.60 cents/lb for the week ended 27 September, down from 10.87 cents/lb a week earlier.
Cracker co-product credits were steady at 4.07 cents/lb week on week.
($1 = €0.74)
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