US ethylene contracts for February were heard settling 0.75 cent below January mark, lowering the net transaction to 49.5 cents/lb ($1,091/mt), sources said Tuesday.
The posted price for February would also settle .75 cent lower at 54 cents/lb ($1,190/mt), according to Platts data.
If the February contract prices are accepted market-wide, both settlements would be the first decline in contract prices since October 2013.
The decline in contract prices was anticipated by participants, as spot prices declined for most of February after inventories rose 34% in fourth-quarter 2013 from the prior quarter and also were up 70% from year-ago levels, data from trade group American Fuel and Petrochemical Manufacturers showed in the late January.
US spot ethylene assessments averaged 51.91 cents/lb in February, down 5.18 cents/lb from January's average of 57.09 cents/lb, according to Platts data.
US purity ethane, main feedstock for ethylene production, averaged 32.31 cents/gal, a gain of 5.98 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.
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 pricing.
In spot markets Tuesday, March and April ethylene were heard offered at 53.50 cents/lb Mont Belvieu Williams pipeline basis. Platts last assess US ethylene Monday at 51.50-52 cents/lb FD USG.
