Asian ethylene margins drop on weaker spot ethylene values

HOUSTON (ICIS)–Asian ethylene margins came down during the week ended 13 October, tracking weaker spot ethylene values, the ICIS margin report showed on Monday.

In northeast Asia, naphtha-based ethylene margins fell 7.3% week on week, while LPG-based margins fell 7.5%.

In southeast Asia, naphtha-based ethylene margins fell 8.6% week on week, while LPG-based margins fell 10%.

Spot ethylene in NE Asia was down $28/tonne during the week, while spot values in SE Asia fell $25/tonne.

Cracker co-product credits were also down across the board, falling $24/tonne for naphtha-based ethylene margins and $13/tonne for LPG-based ethylene margins.

This all offset slight declines in feedstock costs for LPG. On an ethylene production basis, LPG fell $4/tonne. On the same basis, naphtha increased by $4/tonne.

Ethylene margins have fallen four consecutive weeks across the board.