Naphtha-based ethylene margins up in Asia, LPG-based margins down

05 September 2017 20:00 Source:ICIS News

HOUSTON (ICIS)--Asian ethylene margins were split during the week ended 1 September, with naphtha-based product up and (liquefied petroleum bas) LPG-based product down, the ICIS margin report showed on Tuesday.

Naphtha-based ethylene margins rose by 3.2% week on week in northeast (NE) Asia and in southeast (SE) Asia.

LPG-based ethylene margins fell by 7.4% in NE Asia and by 10% in SE Asia week on week.

Feedstock costs on an ethylene production basis were the major divider, with naphtha costs falling by $4-5/tonne in NE Asia and SE Asia.

On the same basis, LPG costs rose by $64/tonne in both regions.

Cracker co-product credit values rose by $11-13/tonne for naphtha-based ethylene margins and rose by $7/tonne for LPG-based ethylene margins.

Spot ethylene values were up by $10/tonne in NE Asia and increased by $5/tonne in SE Asia.

Naphtha-based ethylene margins are up by 62% in NE Asia and by 70% in SE Asia since the week ended 21 July, following six consecutive week-on-week increases.

By John Dietrich