Asia ethylene margins mostly up on higher spot

HOUSTON (ICIS)–Asian ethylene margins for LPG-based product rose during the week ended 2 December, while naphtha-based margins were split, the ICIS margin report showed on Monday.

Ethylene spot prices rose in both Northeast Asia – by $25/tonne – and in Southeast Asia – by $50/tonne – generally boosting margins.

The only margins to decline were naphtha-based ethylene margins in NE Asia, which fell by 0.3% to $665/tonne. LPG-based margins in the region rose by 5.1% to $613/tonne.

In SE Asia, naphtha-based ethylene margins rose by 1.8% to $500/tonne and LPG-based ethylene margins rose by 13% to $424/tonne.

Feedstock costs were up across the board, with naphtha costs on an ethylene production basis up $76/tonne in both regions and LPG costs up $15/tonne in both regions.

Co-product credits also rose across the board, with naphtha-based ethylene values up $49/tonne in NE Asia and up $36/tonne in SE Asia.

For LPG-based ethylene, co-product credits rose $20/tonne in NE Asia and rose $15/tonne in SE Asia.