US ethylene contracts for January were heard fully settled up 2 cents from December, with the net transaction price at 50.25 cents/lb, market sources said Wednesday.
The posted price also rose 2 cents from December to 54.75 cents/lb.
January's settlement brings the contract prices to their highest levels since April 2012.
Market participants expected a price hike in the range of 1-1.50 cents/lb after feedstock prices spiked to multi-month highs.
US spot ethylene assessments averaged 57.09 cents/lb in January, up 0.01 cent from December's average of 57.08 cents/lb, Platts data showed.
In feedstocks, non-LST Mont Belvieu propane prices averaged $1.3741/gal in January, up 9.924 cents from December's $1.2748/gal, while purity ethane averaged 32.31 cents/gal in January, an increase of 4.35 cents month on month.
US ethylene contract prices are settled between major producers and buyers at the beginning of the month for the previous month. The settlements take into consideration changes in spot ethylene and spot feedstock pricing.
In the spot market Wednesday, February ethylene was heard bid at 50.50-51.375 cents/lb Mont Belvieu Williams pipeline basis and offered at 53-53.50 cents/lb Mont Belvieu Williams pipeline basis.
February, March and April spot ethylene were last heard traded Tuesday at 52 cents/lb, 52.50 cents/lb and 52.75 cents/lb, all MtB Wms pipeline basis.
