LPG-based ethylene margins rise in Asia on higher spot prices

HOUSTON (ICIS)–Ethylene margins in Asia increased across the board for the week ended 18 August, those based on liquefied petroleum gas (LPG) soaring, the ICIS margin report showed on Monday.

In northeast Asia, LPG-based ethylene margins rose by 22%. In southeast Asia, margins rose by 26%.

Naphtha-based ethylene margins rose by 7.8% in NE Asia and rose by 6.9% in SE Asia.

LPG-based margins were bolstered by higher spot ethylene, lower feedstock costs, and higher co-product credit values.

Spot ethylene rose by $50/tonne in NE Asia and rose by $40/tonne in SE Asia.

LPG feedstock costs on an ethylene production basis fell by $60-61/tonne in both regions. Naphtha feedstock costs on the same basis rose by $21-22/tonne during the week.

Cracker co-product credit values rose by $11/tonne for LPG-based ethylene, and rose by $25-28/tonne for naphtha-based ethylene.