US ethylene contracts for March and April were nearing settlements that would combine for a 2.75-3 cents/lb ($61-$66/mt) decrease, sources said Friday.
Sources with two buyers said the net transaction price for March was beginning to settle at 45.25 cents/lb, down 4.25 cents/lb from February, although negotiations were ongoing.
At the same time, the net transaction price for April was being talked at a 1.25-1.50 cents/lb increase, fueled by a rebound in spot pricing for the period, sources said.
Combined, the settlements, if accepted marketwide, would yield a decrease of 2.75-3 cents/lb.
US ethylene contracts are typically settled retroactively on a monthly basis and take into consideration spot ethylene and feedstock prices. Although not the norm, two-month settlements are not entirely unusual.
Discrepancies between major buyers and producers on how much March contracts should decrease led to the prolonged settlement, sources said.
In the spot market, ethylene closed the week on a downward trend to be assessed Friday at 56.75-57.25 cents/lb FD USG for a day-on-day decrease of 0.625 cents/lb.
