US ethylene contracts for October were heard fully settled 1 cent lower from September, with the net transaction price at 45 cents/lb, market sources said Friday.
The posted price also declined by 1 cent from September to 49.50 cents/lb.
Both October contract prices are at their lowest since December 2012.
Most market participants have expected a decrease of 1-3 cents, given that spot prices in October have hovered around or below the last low of 48 cents/lb FD US Gulf on August 2, 2012 for 20 of the 23 business days of the month.
In October, spot ethylene prices averaged 46.42 cents/lb, down 6.61 cents/lb from September’s average of 53.03 cents/lb, Platts data shows.
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 prices.
In the spot market Friday, November ethylene was heard bid at 50 cents/lb Mont Belvieu Williams pipeline basis and offered at 51.875 cents/lb Mont Belvieu Williams pipeline basis.
December spot ethylene was heard bid at 50 cents/lb Mont Belvieu Williams pipeline basis and offered at 52.50 cents/lb Mont Belvieu Williams pipeline basis.