US ethylene contracts for October settled marketwide at a 2.5-cent/lb decrease, with the net transaction price at 31.25 cents/lb ($688.94/mt), sources said Monday.
The settlement, which began to take hold late last week, was confirmed to S&P Global Platts by two producers and two major buyers.
The decrease fell within market expectations that called for a reduction of 2-3 cents/lb from September's 33.75 cents/lb settlement, based on spot price movement but mainly lower feedstock costs.
Prompt-month ethylene averaged 19.47 cents/lb, 0.35 cents/lb lower than September, according to Platts data.
Prompt-month ethane, meanwhile, averaged 41.71 cents/gal (14.03 cents/lb or $309.49/mt) in October, down 10.87 cents/gal from the September average. Prompt-month propane averaged 95.69 cents/gal ($498.55/mt), down 10.21 cents/gal from September.
A sharp rise in ethane pricing in September led to ethylene contracts rising 5 cents/lb for that month. The spike, which saw ethane prices hit 61 cents/gal on September 19, a level not seen since early 2012, resulted from fractionation constraints at the Mont Belvieu, Texas hub, sources said.
Spot ethylene was last assessed Friday at 19.625 cents/lb FD USG for November delivery. On Monday, spot ethylene was heard traded at 22 cents/lb Choctaw basis.
