Asia ethylene margins continue rebound on higher ethylene

HOUSTON (ICIS)–Asia ethylene margins rose for the second consecutive week across the board for the week ended 23 June, the ICIS margin report showed on Monday.

In Northeast Asia, naphtha-based ethylene margins rose by 12% week on week, while LPG-based margins rose by 14%.

In Southeast Asia, naphtha-based ethylene margins rose by 13% week on week, while LPG-based margins rose by 16%.

The biggest factor for higher margins was an increase in spot ethylene values, which rose by $30/tonne in NE Asia and $20/tonne in SE Asia.

Feedstock costs on an ethylene production basis were down across the board, with naphtha costs down by $42-43/tonne and LPG costs down by $37-38/tonne.

Co-product credit values were largely steady, with naphtha-based ethylene values down $5/tonne and LPG-based ethylene values flat to up $1/tonne.