US June ethylene contracts settle up 3 cents/lb - source

02 July 2009 17:38  [Source: ICIS news]

HOUSTON (ICIS news)--June US ethylene contracts were settled up by 3 cents/lb ($66/tonne, €47/tonne) at a net price of 33.5 cents/lb, a market participant said on Thursday.

Other participants were not immediately available to confirm the settlement, but sources on Wednesday said the market was moving toward a 3 cent/lb increase in June.

US ethylene producers nominated increases of 4-5 cents/lb for June following a rollover settlement for May at 30.5 cents/lb.

Higher feedstock ethane and crude oil prices during June helped drive up ethylene spot prices, laying the foundations for a contract increase, observers said.

The spot transaction average for ethylene during the week ended 26 June was 25.25 cents/lb, according to global chemical market intelligence service ICIS pricing.

That is nearly 3 cents higher compared with an average price of 22.5 cents/lb during the week ended on 29 May.

Mont Belvieu ethane prices were at 50 cents/gal on 26 June, up 7 cents from four weeks earlier.

In the propylene market, a US buyer this week said he did not expect any progress on July contract negotiations until next week.

Chevron Phillips, Equistar, ExxonMobil, INEOS and Shell Chemicals are among the major producers of ethylene in the US.

Dow Chemical, Georgia Gulf, Occidental and Total are among the buyers

($1 = €0.71)

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Author: David Barry
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