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U.S. Ethylene Contracts Settle Down on Lower Feedstock Costs

10:03 AM MDT | September 9, 2011 | —Lindsey Bewley

North American ethylene contracts for the month of August have settled at a decrease of 1.25 cts/lb, to 55.5 cts/lb on lower feedstock costs, market players say. The settlement represents a decline of 2.2% from July settlements. Supply remains tight due to inventory-building ahead of the hurricane season and planned maintenance turnarounds. Ethylene demand, meanwhile, has softened amid signs that the economy is weakening. Spot ethylene prices have hovered around 63 cts-65 cts/lb so far this month, and the July contract settlement was flat after rising 1.75 cts/lb...

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