US October ethylene contracts reach initial settlement down 2.2%

HOUSTON (ICIS)–US October ethylene contracts reached an initial settlement at a decline of 2.2%, sources said on Thursday.

The 1 cent/lb ($22/tonne, €16/tonne) decline, if fully accepted, would put US October ethylene contracts at 45 cents/lb.

Sources had expected a decline in contracts as spot prices reached their lowest levels in more than a year on long supply in Texas.

Demand has also been softer, sources said, as buyers retreated from the market in an effort to push prices lower.

US ethylene contracts typically settle at the start of a month for the previous month.

($1 = €0.74)