Initial US January ethylene contracts settle 0.25 cent/lb higher

Jessie Waldheim

01-Feb-2018

HOUSTON (ICIS)–Initial US January ethylene contract settlements have been agreed at an increase of 0.25 cent/lb from the prior month, market sources said on Thursday, although the settlement is not yet confirmed to be marketwide.

The settlement puts January contract prices at 32.75 cents/lb ($722/tonne), up from 32.50 cents/lb in December.

6CDAD1EE691B51E51D1A8BCF38D39308.jpg

The increase was driven by a slight uptick for ethylene spot prices and feedstock ethane costs in January.

Front-month ethylene traded in January at 26.50-29.00 cents/lb, a wider range than 26.75-27.75 cents/lb in December.

Average ethylene spot prices rose by 0.2 cent/lb in January over December.

Meanwhile, ethylene production costs rose in January as feedstock ethane costs rebounded from a nine-month low in December. During January, ethane prices hit a 13-month high, largely due to higher natural gas values.

However, falling costs for both propane and butane in January partly limited the impact of increased ethane costs.

US ethane, propane and butane prices

9DF59877066C20FFE517593A2BD0E438.jpg

Average cash costs for ethylene production in January rose by 0.1 cent/lb over December.

US ethylene contract prices typically settle at the start of the month for the prior month.

Major US ethylene producers include ExxonMobil, INEOS, LyondellBasell and Shell Chemical.

Major US buyers include Occidental Chemical and Westlake Chemical.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?