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November ethylene contract settles with decrease
HOUSTON, December 2, 2016 (PCW) – Parties settling monthly contracts have been confirmed to have reached a November ethylene contract price of 30.25 cpp, down 5.25 cpp from October.
November spot ethylene ended the month at 24.875 cpp, trading in a range of 21.5-28 cpp during the month. The 30-day November ethylene calendar average was 23.827 cpp, down 7.018 cpp from October. The 30-day weighted average came in at 24.362 cpp (down 7.698 cpp from October) for Texas and 24.234 cpp (down 7.771 cpp) for Texas and Louisiana combined. The 45-day ethylene weighted average for November ethylene was 25.375 cpp (basis Texas only), down 9.241 cpp from October and 25.18 cpp for Texas and Louisiana combined, down 9.308 cpp.
In terms of cash costs, ethane-based costs in the Gulf region in November averaged 9.786 cpp, down from 10.998 in October. Propane basis costs in November averaged 11.472 cpp, up from 10.876 cpp in October.
The decrease comes during a month where steam cracker operating rates actually fell. The overall Gulf Coast operating rate for ethylene units was 90.1% in November, compared with 92.3% in October. Nearly 500 million pounds of ethylene output was lost in November, according to PetroChem Wire estimates. -- Kathy Hall