US March and April ethylene contracts reach initial settlements

02 May 2014 22:12 Source:ICIS News

HOUSTON (ICIS)--US March and April ethylene contracts have reached initial settlements in-line with market expectations, sources said on Friday.

Buyers confirmed reaching an initial settlement for March ethylene at 45.25 cents/lb ($998/tonne), down by 4.25 cents/lb from the February settlement of 49.50 cents/lb.

April ethylene was also settled, up by 1.50 cents/lb from March at 46.75 cents/lb.

The settlements were largely expected, as March feedstock and production costs fell significantly and spot prices were soft.

However, spot prices rebounded in April, tracking tighter supply and stronger demand ahead of the expected restart of the Evangeline Pipeline.

By John Dietrich