US ethylene margins up 2.9% on lower feedstock

HOUSTON (ICIS)–US spot ethylene margins increased by 2.9% in the week ending on 22 January, benefitting from lower feedstock costs, the ICIS margin report showed on Monday.

Margins for ethane-based spot ethylene rose to 11.26 cents/lb from 10.94 cents/lb in the previous week.

The increase was mostly because of lower ethane costs, which fell to 6.39 cents for each lb of ethylene produced from 6.76 cents the previous week.

Ethylene spot prices were unchanged, while cracker co-product credits fell by 3.8% week on week.

On Monday, front-month January ethylene bid/offer levels were heard at 17.000-19.000 cents/lb, wider compared with trades at 17.750-18.375 cents/lb at the close of the previous week.

Follow Tracy on Twitter