October US ethylene spot prices assessed at Mont Belvieu have averaged near 25 cts/lb, increasing about 1 cts/lb from the September average. In a double settlement that was not fully agreed upon, most participants settled US ethylene contract for August up 1.75 cts/lb from July and September up 3.00 cts/lb from August. October has yet to settle. Spot margins again increased month over month as ethylene prices increased faster than slowly rising ethane prices. Production increased into October as operating rates increased to meet increased demand. The crackers that came down during Tropical Storm Imelda returned to production, while other sites such as Ineos Chocolate Bayou experienced issues and came down in mid-October. Demand increased month over month as derivative units affected by the storm returned to production. MEGlobal’s 750kt MEG plant in Oyster Creek, TX has started up and is expected to begin shipping product by November.