US ethylene margins move up on increasing spot prices

HOUSTON (ICIS)–US ethylene margins moved up 2.9% week on week for the week ended 16 August, the ICIS margin report showed on Monday.

US ethylene margins for ethane-based spot material increase to 47.45 cents/lb ($1,046/tonne, €785/tonne) from 46.12 cents/lb.

The increase was mostly supported by higher spot values, which gained an average of slightly more than 1 cent/lb during the week.

The rally was supported by some supply tightness, as well as increasing demand from the polyvinyl chloride (PVC) and polyethylene (PE) markets.

Margins were also boosted by falling feedstock costs as ethane prices dipped to 10.59 cents/lb from 10.78 cents/lb week on week.

Cracker co-product credits also improved to 4.04 cents/lb from 3.96 cents/lb, tracking surging propylene values.

US ethylene for August was offered at 58.5 cents/lb on Monday against no fresh bids.

($1 = €0.75)