Houston (Platts)--11Nov2010/413 pm EST/2113 GMT

      
The price spread between Mont Belvieu ethane/propane [EP] mix to purity
ethane has narrowed to 7 cents on receding ethane prices and steady propane
values, market sources said Thursday.

     EP mix is comprised of 80% ethane and 20% propane.

     Platts assessed purity ethane prices at 67 cents/gal on Tuesday, down 4
cents since hitting an 8-month high at 71 cents/gal last week.

     EP mix was heard traded at 60 cents/gal Thursday morning. Two weeks ago,
purity ethane prices carried a 10 cent premium to EP mix.

     "There are just more sellers than buyers in the [ethane] market right
now," an NGL broker said.

     Meanwhile, propane prices in the Gulf Coast market have been steady
despite crude oil nearing two-year highs. Propane's value relative to crude
oil has dropped to around 60%, compared with 64% last month.

     "Crude has really jumped, and propane seems to have been a little slow to
follow," a propane buyer said, adding that propane supplies are not
particularly strong, but with warmer-than-average weather forecast this
winter, "that is probably causing folks to pause."  

		--Steven McGinn, steven_mcginn@platts.com

Similar stories appear in Polymerscan. 
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