US ethylene margins fall 9.4% on declining spot prices

14 October 2013 21:37 Source:ICIS News

US ethylene margins fall 9.4% on declining spot pricesHOUSTON (ICIS)--US ethylene margins fell 9.4% week on week for the week ended 11 October, the ICIS margin report showed on Monday.

The decline put ethane-based spot ethylene margins at 36.57 cents/lb ($806/tonne, €597/tonne), down from 40.35 cents/lb a week ago.

This keeps margins at a 14-month low for the second consecutive week, since hitting 36.45 cents/lb the week ended 10 August 2012.

Most of the decline in margins came as spot prices continued falling, hitting a 15-month low with a trade at 43.625 cents/lb on 10 October.

Spot ethylene has been declining because of long supply in Texas and declining demand domestically.

Ethylene margins also fell as feedstock ethane costs for the week ended 11 October rose to 11.06 cents/lb from 10.99 cents/lb a week ago.

Cracker co-product credits fell to 4.07 cents/lb from 4.09 cents/lb on weaker propylene, further eroding ethylene margins.

($1 = €0.74)

By John Dietrich