Asia ethylene margins plunge on weaker spot

26 September 2016 16:35 Source:ICIS News

HOUSTON (ICIS)--Asia ethylene margins tumbled during the week ended 23 September on weaker spot prices and higher feedstock costs, the ICIS margin report showed on Monday.

Naphtha-based ethylene margins fell by 15% in both Northeast Asia and Southeast Asia, while LPG-based ethylene margins fell by 17% in each region.

That put NE Asia naphtha-based margins at $719/tonne and SE Asia naphtha-based margins at $632/tonne.

For LPG-based ethylene margins, NE Asia fell to $690/tonne and SE Asia fell to $571/tonne.

In NE Asia, spot ethylene prices fell $67/tonne, and in SE Asia spot ethylene prices fell $42/tonne.

Naphtha costs for ethylene production rose by $59/tonne in NE Asia and SE Asia, while co-product credits rose $2/tonne in NE Asia and fell by $6/tonne in SE Asia.

For LPG-based ethylene, feedstock costs on a production basis rose $67/tonne and $68/tonne in NE Asia and SE Asia, respectively.

Cracker co-product credit values fell by $5/tonne and $11/tonne in NE Asia and SE Asia, respectively.

By John Dietrich