HOUSTON (ICIS)--US ethylene margins hit their highest level in more than a year on a surge in spot pricing, the ICIS margin report showed on Monday.
Margins for ethane-based spot ethylene for the week ended 11 July were 51.59 cents/lb ($1,137/tonne), their highest since reaching 52.13 cents/lb for the week ended 28 June 2013.
It was also the first time US ethylene margins have hit the 50 cents/lb level since that time.
Week on week, ethylene margins were up by 11% from 46.32 cents/lb for the week ended 4 July.
Margins were higher mostly on spot ethylene gaining an average of 4.5 cents/lb week on week, tracking tight supply on several delayed cracker restarts.
Spot ethylene also hit its highest level in more than a year during the week ended 11 July.
Ethylene margins were further boosted by a decline in feedstock ethane, which fell to 11.38 cents/lb from 12.16 cents/lb.
Ethane cracker co-product credits fell slightly, to 4.10 cents/lb from 4.11 cents/lb, slightly slowing down margin growth.
The US ethylene spot market was quiet on Monday, with material offered at 66 cents/lb against no fresh bids.