US ethylene contracts for October have been seen settling 1 cent lower than September, decreasing the net transaction price to 47.25 cents/lb, market sources said Friday.
The settlement was confirmed by major buyer and several tradings sources.
The decrease is the first one in four months, bringing the total contract price increase to 8.25 cents since the June 2012 low of 39 cents/lb, according to Platts data.
The decrease will lower the posted price to 51.75 cents/lb according to Platts data.
The decrease also met market expectations, as lower contract price was discussed by market sources throughout the week -- spot prices were mostly declining throughout the month, starting the month assessed at 59 cents/lb, to finish the month assessed at 54.50 cents/lb, Platts data shows.
October spot ethylene assessments averaged 55.63 cents/lb, down 2.19 cents/lb from September spot monthly average of 58.82 cents/lb, according to Platts data. Feedstock costs were assessed higher, higher US Gulf Coast purity ethane averaging 32.25 cents/gal, up .52 cents from September average of 31.72 cents/gal.
US ethylene contract prices are settled in the beginning of the month for the previous month.
