Asia ethylene margins fall on feedstock increases

10 April 2017 22:59 Source:ICIS News

HOUSTON (ICIS)--Asian ethylene margins fell across the board during the week ended 7 April, tracking rising feedstock costs and weaker co-product credits, the ICIS margin report showed on Monday.

Ethylene margins in Northeast Asia for naphtha-based product fell 11% to $639/tonne, and fell by 2.3% to $630/tonne for LPG-based product.

In Southeast Asia, naphtha-based ethylene margins dropped 16% to $521/tonne, and LPG-based margins dropped 5.9% to $477/tonne.

The steeper fall in SE Asia was due to a smaller increase in spot ethylene values, which rose $5/tonne compared with $15/tonne in NE Asia.

Feedstock naphtha costs on an ethylene production basis rose $73/tonne in both regions, but rose $17-18/tonne for LPG-based ethylene on the same basis.

Cracker co-product credit declines were also softer for LPG-based ethylene than naphtha-based ethylene, curbing the week-on-week decline in ethylene margins.

By John Dietrich