Asian ethylene margins up on spot, co-products

HOUSTON (ICIS)–Asian ethylene margins moved up for naphtha-based and LPG-based product during the week ended 26 August, the ICIS margin report showed on Tuesday.

In northeast Asia, naphtha-based ethylene margins rose by 5.9% to $820/tonne, while LPG-based margins rose by 3.1% to $900/tonne.

Much of the increase came as spot ethylene prices gained $25/tonne during the week.

Naphtha margins were further boosted by steady feedstock costs for ethylene production and an increase in co-product credit values.

LPG costs for ethylene production rose, but by a smaller amount than co-product credit values increased, also boosting margins.

In Southeast Asia, margin growth was less, as spot prices were steady. Naphtha-based ethylene margins rose by 4.2% to $698/tonne, while LPG-based margins rose by 0.4% to $743/tonne.

As in NE Asia, naphtha costs were flat while co-product credits rose, while LPG cost increases were less than co-product credit increases.