US ethylene contracts for August settled 4 cents/lb($88/mt) higher Wednesday, leaving the net transaction price at 46 cents/lb ($1,1014/mt), market sources said.
The settlement was confirmed by a major seller, several olefins traders and downstream sources said.
The 4-cent increase for August followed a 3-cent increase for July and comes on the strength of higher spot and feedstock prices.
Spot ethylene assessments for August averaged 53.80 cents/lb, climbing 7.25 cents/lb compared with the July average, according to Platts data. Feedstock costs rose as well, with US Gulf Coast purity ethane averaging 35.28 cents/gal, up 0.628 cents/gal from July.
Ethylene contract prices in the US usually settle at the beginning of a month for the previous month.
In the spot market Wednesday, September ethylene was heard bid at 59.50 cents/lb MtB Wms against heard offers at 61 cents/lb, while three trades were heard at 60 cents/lbs MtB Wms for undisclosed volumes.
