US spot ethylene margins up on higher spot, contract margins fall

Source: ICIS News


HOUSTON (ICIS)--Higher US spot ethylene values pushed up margins for the week ended 15 September, the ICIS margin report showed on Monday.

However, feedstock costs on an ethylene production basis rose and cracker co-product credit values fell, pulling down contract ethylene margins.

US ethylene spot prices increased by 1.625 cents/lb ($36/tonne) week on week, tracking tight supply.

Spot ethylene margins rose by 5.2% week on week, while contract ethylene margins fell by 3.2%.

Ethane costs on an ethylene production basis rose by 0.48 cent/lb during the week.

Cracker co-product credits were down 0.08 cent/lb on a contract ethylene basis and 0.05 cent/lb on a spot ethylene basis.

Contract margins continue to reflect July ethylene and August propylene contracts, pending their respective settlements.