HOUSTON (ICIS)--US ethylene contracts for April are starting to settle at an increase of 2 cents/lb, market sources said on Tuesday.
If fully accepted in the market, the settlement would put April contracts at 32 cents/lb ($705/tonne), up from 30 cents/lb in March.
The settlement would be in line with market expectations for April contract prices to settle higher.
The increase is largely due to higher average spot prices and higher cash costs during April, market sources said.
Front-month ethylene spot prices in April were an average of 1 cent/lb higher than in March, while cash costs rose by about 3 cents/lb month on month.
A full settlement is pending further confirmation from market participants.
US ethylene contracts typically settle in the first days of the month for pricing in the previous month.
Major US ethylene producers include ExxonMobil, INEOS, LyondellBasell and Shell Chemical.
Major US buyers include Occidental Chemical, Total and Westlake Chemical.