Asian ethylene margins fall on higher feed costs

12 September 2016 21:45 Source:ICIS News

HOUSTON (ICIS)--Asian ethylene margins fell during the week ended 9 September on higher feedstock costs, the ICIS margin report showed on Monday.

In Northeast Asia, naphtha-based ethylene margins fell 9.6% to $825/tonne, while LPG-based ethylene margins fell by 6.3% to $844/tonne.

Spot prices in the region fell $10/tonne. Naphtha costs for ethylene production rose by $115/tonne, compared with a $37/tonne gain for co-product credits.

For LPG-based ethylene, costs on an ethylene production basis rose $66/tonne, compared with a $19/tonne increase in co-product credits.

In Southeast Asia, naphtha-based ethylene margins fell 12% to $722/tonne, while LPG-based ethylene margins fell 7.3% to $710/tonne.

Naphtha costs for ethylene production rose $115/tonne, while LPG costs for ethylene production rose $65/tonne.

Spot prices were steady week on week, while co-product credit values gained $19/tonne and $9/tonne for naphtha-based and LPG-based ethylene, respectively.

By John Dietrich