US ethylene contracts for March were settling 4 cents below February to 45.5 cents/lb ($1,003/mt), sources said Wednesday.
The March posted price also would be 4 cents lower at 50 cents/lb ($1,102/mt), according to Platts data.
If the March contract prices are accepted market-wide, both settlements would be at their lowest since October.
The decline in contract prices was expected in the market given that spot prices were virtually unchanged in February, despite a sharp drop in feedstock prices.
US spot ethylene assessments averaged 51.95 cents/lb in March, up 0.04 cent/lb from February's 51.91 cents/lb average, according to Platts data.
US purity ethane, main feedstock for ethylene production, averaged 30.17 cents/gal, down 8.12 cents/gal, while Non-LST Mont Belvieu propane prices averaged $1.063/gal in March, down 37.56 cents from February's $1.4386/gal, according to Platts data.
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 spot markets Thursday, April and May ethylene bids were heard at 51 cents/lb Mont Belvieu-Williams pipeline basis, against offers heard at 53 cents/lb MtB Williams. April ethylene was heard traded at 51.25 cents/lb Mont Belvieu-Williams on Wednesday. Platts last assessed US ethylene Thursday at 51-51.50 cents/lb FD USG.
