US ethylene contract prices for February were heard to have fully settled 0.75 cent below January's contract prices, with the net transaction price at 49.50 cents/lb, sources said Monday.
The posted price also slipped 0.75 cent compared with January to 54 cents/lb, sources said.
February's settlement mark is the first time the contract price has declined since October.
Market participants expected a decline in contract prices as a result of spot prices falling for most of February after inventories rose 34% in the fourth quarter of 2013 compared with the prior quarter and were also up 70% compared with year-ago levels, according to data from trade group American Fuel and Petrochemical Manufacturers.
Spot ethylene assessments averaged 51.91 cents/lb in February, down 5.18 cents from 57.09 cents/lb in January, Platts data showed.
US purity ethane, the main feedstock for ethylene production, gained 5.98 cents/gal compared with January for a February average of 38.29 cents/gal, while Non-LST Mont Belvieu propane prices averaged $1.4386/gal in February, up 6.45 cents from January's $1.3741/gal, according to Platts data.
In spot markets Monday, March and April ethylene were heard bid at 52.50 cents/lb Mont Belvieu Williams pipeline basis and 51.50 cents/lb Mont Belvieu Williams pipeline basis, respectively, while two March deals were heard done at 52.75 cents/lb Mont Belvieu Williams pipeline basis and one was heard at 52.625 cents/lb Mont Belvieu Williams pipeline basis.
Platts last assessed US ethylene Friday at 52.25-52.75 cents/lb FD USG.
US ethylene contract prices are settled between major producers and buyers at the beginning of the current month for the previous month.
The settlements take into consideration changes in spot ethylene and spot feedstock prices.
