US ethylene margins jump 7.9% on increase in spot prices

11 November 2013 19:26  [Source: ICIS news]

US ethylene margins jump 7.9% on increase in spot pricesHOUSTON (ICIS)--US ethylene margins climbed 7.9% week on week for the week ended 8 November, the ICIS margin report showed on Monday.

US ethylene margins for ethane-based spot material moved to 44.82 cents/lb ($988/tonne, €741/tonne), up from 41.54 cents/lb the previous week.

Most of the margin increase came from US spot ethylene prices gaining 1.5-4.0 cents/lb during the week as bargain buying continued.

US spot ethylene prices rebounded to a six-week high after hitting a 15-month low in early October.

Ethylene margins were also boosted by a decline in feedstock ethane costs, which moved to 10.55 cents/lb for the week ended 8 November from 11.13 cents/lb the previous week.

Ethane cracker co-product credits fell to 4.12 cents/lb from 4.17 cents/lb, slowing down the gain in ethylene margins.

US ethylene for November traded at 52.25 cents/lb on Monday, flat with its previous reported trade the previous week.

($1 = €0.75)

By: John Dietrich

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