US ethylene margins gain 1.5% on higher spot prices

19-Mar-13

US ethylene margins increased by 1.5% week on week, tracking stronger spot prices, the ICIS margin report showed on Monday. US ethylene margins for the week ended 15 March were assessed at 56.35 cents/lb (US$1242/ton) for ethane-based spot material. Ethylene margins for the previous week were assessed at 55.54 cents/lb. The gain in margins was mostly fuelled by an increase of 0.25-1.50 cents/lb in spot prices, tracking an unexpected cracker shutdown. Additionally, feedstock ethane costs decreased slightly during the week, moving to 11.79 cents/lb from 11.80 cents/lb. However, weakness in the US propylene market helped push ethane cracker co-product credits lower, to 4.89 cents/lb from 4.96 cents/lb a week earlier. On Monday, US ethylene for March was heard bid at 61.5-63.5 cents/lb, with offer levels at 66.0-67.0 cents/lb.