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August ethylene contract settles with increase
HOUSTON, September 2, 2016 (PCW) – The August ethylene contract agreement has settled with an increase of 2.75 cpp from July at 33 cpp.
This is the highest contract settlement price since June 2015 NTP of 33.75 cpp.
August spot ethylene last traded at 38.25 cpp on Wednesday. The 30-day August ethylene calendar average was 34.272 cpp on Wednesday, up 6.803 cpp from July. The 30-day weighted average came in at 34.986 cpp (up 7.334 cpp from July) for Texas, and 34.822 cpp (up 7.17 cpp from July) for Texas/Louisiana combined. The 45-day ethylene weighted average was 33.257 cpp (basis Texas only), up 6.692 cpp from July.
In terms of cash costs, ethane-based costs in the Gulf region in August averaged 8.164 cpp, down from 9.356 cpp in July. Propane basis costs in August averaged 4.649 cpp, down from 9.306 cpp in July.
The increase in the contract price comes amid a spate of ethylene plant outages. The month-to-date Gulf Coast cracker operating rate in August was 89.5%, down from 94.1% year-to-date average.