US ethylene contracts for January settled 1 cent lower with the month's net transaction price at 24.75 cents/lb, market sources said Wednesday.
The decrease sets contracts to their lowest level since Platts first began assessing net transaction ethylene contracts in January 2003, at 24 cents/lb.
The drop is within market expectations of a 0.5-2 cent/lb decrease and follows weakening spot prices and declining prices for feedstocks.
Front-month US spot ethylene assessments averaged 17.711 cents/lb in January, a drop of 1.17 cents/lb from the December average of 18.881 cents/lb, according to Platts data.
In markets, US spot ethylene was assessed Wednesday at 17.75-18.25 cents/lb FD USG for prompt deliveries, up 0.25 cent day on day, based on the latest February bid-offer range at 17.5-18.5 cents/lb MtB Wms.
March was assessed at 18.25-18.75 cents/lb FD USG, also up 0.25 cent/lb, following the 0.5 contango structure seen on Tuesday and given the latest bid-offer range of 17.5-19.5 cents/lb MtB Wms. After close of assessment, three February deals were heard in a range of 18.5-19 cents/lb MtB Wms.
