04 April 2014 21:58 [Source: ICIS news]
HOUSTON (ICIS)--US March ethylene contracts appear headed toward a two-month settlement, sources said on Friday.
A market source said that it expects a two-month settlement for March and April as some buyers are holding out for a larger decline.
One US buyer confirmed its March settlement at 45.50 cents/lb ($1,003/tonne), down 4.00 cents/lb from February.
Other sources reporting hearing settlements at that level, although no other confirmations were reported.
Another US buyer said it is holding out for a decline of 4.25 cents/lb for March contracts.
Additionally, March spot ethylene prices were largely steady but slightly softer, tracking continued long supply in the Texas region.
A US ethylene producer said that April contracts are expected to rebound on increased demand for ethylene from the Louisiana region, following the expected restart of the Evangeline Pipeline.
The producer said that a too-steep decline in March and rebound in April will lead to undesired levels of volatility.
Major US ethylene producers include Chevron Phillips (CP Chem), ExxonMobil, INEOS, LyondellBasell and Shell Chemical.
Major buyers include Axiall, Dow Chemical, Occidental Chemical (OxyChem) and Total.
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