US spot ethylene prices fell 5 c/lb from last month, to just under 23 c/lb for the month of February. Recent industry production information from the AFPM added to the bearish momentum. 2017 saw an annualized production record of over 60.5 billion pounds, up 4% versus 2016 even with the impact of Hurricane Harvey. Ethylene demand only increased 1.7% year over year, with monomer inventories nearly doubling by the end of 2017. Ethylene production will climb 7% from the first quarter to the second quarter which will keep pressure on spot ethylene prices and margins. Cash costs have held stable since January, averaging nearly 11 c/lb for ethane crackers, 20 c/lb for LPG crackers, and 25 c/lb for naphtha feeds. It's no surprise that North American feedslates continue to lighten. In Q4 2017, ethane accounted for a record 63 wt% of all feeds, up from 48wt% from 2010-2016.