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UPDATE: US March ethylene contract fully settled
HOUSTON, April 1, 2016 (PCW) -- March ethylene contracts were fully settled late Friday at 29.75 cpp, up 4 cpp from the February contract net transaction price, also known as NTP. Initial agreements were confirmed Friday afternoon.
he price is the highest the contract has been since July 2015, when it was 32.75 cpp. Contract prices fell nearly every month during 2015, beginning the year at 35.25 cpp and ending it at 25.75 cpp. The January 2016 contract price fell a further 1 cpp 24.75 cpp and February saw contracts rebound 1 cpp to 25.75 cpp.
The March 2016 gain is a steeper increase than is usually seen for ethylene contracts. Historically, contract prices move in smaller increments of between 1-3 cpp from month to month and more usually change by 1 cpp or less.
A notable exception to this was during the fourth quarter of 2014, when volatility of spot ethylene prices and also feedstock costs caused ethylene contracts to drop from 54.5 cpp in September to 38.25 cpp in December, with sharp drops marking the change each month in between.
Spot ethylene has been notably volatile in March 2016, with prices running up from 23.5 cpp at the start of the month to 32.75 cpp by March 22, only to fall to 24.75 cpp by March 24 and climb back to 28.75 cpp by March 31. -- Kathy Hall
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