US ethylene margins climb 6.6% on weaker feedstock costs

03 March 2014 23:05 Source:ICIS News

HOUSTON (ICIS)--US ethylene margins rose by about 6.6% for the week ended 28 February, the ICIS margin report showed on Monday.

Margins for ethane-based spot ethylene rose to 39.30 cents/lb ($866/tonne) from 36.85 cents/lb the previous week.

The climb was mostly fuelled by weaker ethane costs, which fell to 15.48 cents/lb from 17.91 cents/lb.

Ethane cracker co-product credits also rose during the week, moving to 4.09 cents/lb from 4.01 cents/lb.

Spot ethylene prices were largely steady but dipped slightly, tracking stable demand and continued high inventory levels.

Sources said that margins are expected to continue improving into March, as spot ethylene prices strengthen and ethane costs continue to drop from 21-month highs.

Ethylene for March was heard bid at 50.5 cents/lb on Monday against offers at 54.5 cents/lb.

By John Dietrich