Ethylene margins in USA up by 2.3 cents/lb as feedstock costs fall

22-Nov-11

Ethylene margins in USA widened by 2.3 cents/lb (US$51/ton) during the third week of November on lower ethane prices and higher ethylene spot prices, as per ICIS. The increase took margins to their highest level since late September. Ethylene margins widened as a result of a nearly 7% drop in the price of ethane, which ended on Friday at 85 cents/gal, down from 91 cents/gal a week earlier. Ethane prices continue to fall, as natural gasoline and paraffinic naphtha prices remained low. Meanwhile, ethylene spot prices rose on average by 2.3%, following November deals done last week at 51.125–51.750 cents/lb, up from 50.250 cents/lb a week earlier. November ethylene was bid on Monday at 51.625 cents/lb against an offer of 52.500 cent/lb. No deal conclusion has been heard.