US ethylene spot prices remained in strength, with higher trading activity and increase in exports. Ethylene contract price moved 1.50 cent/lb higher on the month, to 32.25 cents/lb for July. While market in preparation for hurricane season and building up inventory, the cracker closures in Europe are also expected to support the export demand for US ethylene in the second half of the year. US ethylene prices are expected to stay relatively firm in the coming months, with seasonal and prefestival demand picking up as well, which would hold the variable margins at around 5-year average level till winter; and margins to be squeezed by higher ethane values and back to low levels by year end.