HOUSTON (ICIS)--US spot margins for ethane-based ethylene slumped by 14% in the week ending on 7 October, marking three consecutive weeks of declines on the back of lower spot prices and higher feedstock costs.
Ethylene spot prices fell by 8.5% week on week. Supply remains snug amid ongoing outages but continues to improve. Additionally, market participants are rebuilding inventories.
Spot ethylene margins also fell as feedstock ethane costs surged by 7.5% on stronger demand.
The ethylene spot price decrease and feedstock ethane cost increase outweighed the 4.3% gain in cracker co-product credits.
On contract basis, ethane-based ethylene margins fell by 2.7% in the week ending on 7 October, as the feedstock ethane cost increase outweighed the 4.2% increase in cracker co-product credits.
September ethylene contract margins have been revised, following last week’s higher settlement of September ethylene contracts.
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