HOUSTON (ICIS)--Asian ethylene margins rebounded during the week ended 7 July, tracking weaker feedstock costs, the ICIS margin report showed on Monday.
Naphtha-based ethylene margins in Northeast Asia rose by 3.3% week on week, while LPG-based ethylene margins rose by 5.0%.
For Southeast Asia, naphtha-based ethylene margins rose by 6.3%, and LPG-based margins rose by 7.4%.
The stronger margins were mostly tied to weaker feedstock costs and some stronger co-product credit values.
Naphtha costs on an ethylene production basis fell by $18/tonne in NE Asia and SE Asia. LPG costs on the same basis fell by $21-22/tonne.
Co-product credit values for NE Asia were up by $4/tonne for LPG-based ethylene and flat for naphtha-based ethylene. In SE Asia, values rose by $6/tonne for LPG-based product and by $10/tonne for naphtha-based product.
Spot ethylene prices were flat week on week in NE Asia and SE Asia.
The rebound for spot ethylene margins still puts them below levels seen during the week ended 23 June, with more of a recovery seen for SE Asia ethylene margins.