US ethylene margins increase 2.1% on higher spot prices

22 April 2014 16:56  [Source: ICIS news]

HOUSTON (ICIS)--US ethylene margins for the week ended 18 April rose 2.1% week over week, the ICIS margin report showed on Tuesday.

Ethylene margins for ethane-based spot material rose to 44.29 cents/lb ($976/tonne) from 43.40 cents/lb the previous week.

Much of the increase came as spot prices increased by 0.5-1.5 cents/lb during the week, hitting their highest level in 10 weeks.

Spot prices rose mostly on expectations that demand in Louisiana will surge on the restart of the Evangeline Pipeline, which is expected to resume full operations in May.

Ethane cracker co-product credits also rose during the week, to 4.26 cents/lb from 4.23 cents/lb, boosting ethylene margins.

However, the increase in demand helped push feedstock ethane prices higher, to 12.97 cents/lb from 12.83 cents/lb, slightly eroding ethylene margins.

US front-month April ethylene was heard bid at 53.00 cents/lb on Tuesday against offers at 55.25 cents/lb.

By: John Dietrich

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