HOUSTON (ICIS)--US June ethylene contracts settled down by 0.75 cent/lb from May for a majority of the market as lower production costs outweighed a mid-month spot-price uptick.
The settlement puts June contracts at 23.5 cents/lb ($518/tonne) DEL (delivered).
US ethylene contract prices are typically settled at the beginning of the month for the prior month and track spot prices and production costs.
Front-month ethylene traded at 11.750-14.625 cents/lb in June amid some brief supply constraints, compared with 12.250-13.500 cents/lb in May.
Ethylene is a key petrochemical feedstock, used to make polyethylene (PE), ethylene glycol (EG) and polyvinyl chloride (PVC) among other products.
Major US ethylene producers include Chevron Phillips Chemical, DowDuPont, ExxonMobil, INEOS Olefins & Polymers, LyondellBasell and Shell Chemical.
Image above shows polyethylene, which is made with ethylene. Photo by Al Greenwood