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December ethylene contract settles with increase
HOUSTON, January 4, 2016 (PCW) – Parties settling monthly contracts have been confirmed to have reached a December ethylene contract price of 32.25 cpp, up 2 cpp from November.
December spot ethylene last traded at 25.75 cpp last Wednesday and traded in a range of 22.75-26.75 cpp for the month. The 30-day December ethylene calendar average was 25.33 cpp, up 1.506 cpp from November. The 30-day weighted average came in at 25.586 cpp (up 1.224 cpp from November) for Texas and 25.594 cpp (up 1.36 cpp) for Texas-Louisiana combined. The 45-day ethylene weighted average was 25.263 cpp (basis Texas only), down 0.112 cpp from November.
In terms of cash costs, ethane-based costs in the Gulf region in December averaged 11.979 cpp up from 9.786 cpp in November. Propane basis costs in October averaged 16.739 cpp, up from 11.472 cpp in September.
The increase in the contract price comes amid a slight uptick spot prices as several ethylene plants were down for planned and unplanned outages. The Gulf Coast cracker operating rate in December was 89.9%, compared with 90.7% in November and 92.8% for the year-to-date. Some 516 million pounds of ethylene output was lost in December, according to PetroChem Wire estimates. -- Samantha Hartke