OREANDA-NEWS.  The price of ethane at Mont Belvieu, Texas, has been climbing to a steeper premium to its fuel value since the beginning of September as demand for the lighter feedstock continues to increase.

Ethane stood at about a 3.9? premium to natural gas today, up from a 3.03? premium on Monday and a 0.876? premium on 1 September.

Ethane prices were mostly range-bound during the first half of October, averaging about 19.648?/USG during the two-week period, but have bucked any movements seen in the natural gas market.

Petrochemical producers with the ability to crack ethane as the main feedstock have been heard using more of the lighter feedstock. While ethane's premium to its fuel value continues to increase, there has not been any word on easing ethane rejection.

Rejection continues to be pegged at about 550,000 b/d.

Some market participants have said propane could outpace ethane as the preferred feedstock soon as margins on cracking propane rose past ethane last week. The margin on ethane as a feedstock gained stands at 7.51?/lb, while propane cracking margins stand at 8.60?/lb.