Asia naphtha-based ethylene margins fall to lowest since Nov

HOUSTON (ICIS)–Asia ethylene margins were down across the board on weaker spot values, with naphtha-based margins at their lowest since November, the ICIS margin report showed on Monday.

Naphtha-based ethylene margins in Northeast Asia fell to their lowest since the week ended 11 November, while those in Southeast Asia are at their lowest since 25 November.

Most of the decline in margins for the week ended 19 May came on the back of weaker spot ethylene, which fell $45/tonne in NE Asia and $50/tonne in SE Asia.

As a result, naphtha-based ethylene margins fell 11% in NE Asia and fell 14% in SE Asia.

Spot ethylene values in NE Asia have fallen more than $200/tonne since February, while values in SE Asia have fallen more than $150/tonne.

Naphtha feedstock costs on an ethylene basis also rose during the week ended 19 May in both regions, by $36/tonne.

For LPG-based ethylene, margins fell 5.1% in NE Asia and fell 8.0% in SE Asia, as weaker ethylene offset declines in feedstock costs and higher cracker co-product credits.