Asia ethylene margins drop on higher feedstock costs

HOUSTON (ICIS)–Asian ethylene margins fell during the week ended 22 September as feedstock costs rose and co-product credits fell, the ICIS margin report showed on Monday.

In northeast Asia, naphtha-based ethylene margins fell 5.9% week on week, while LPG-based ethylene margins fell 11%.

In southeast Asia, naphtha-based ethylene margins fell 7.4% and LPG-based ethylene margins fell 15%.

For naphtha-based ethylene margins, feedstock costs on an ethylene production basis rose $52-53/tonne. LPG costs on the same basis rose $73-74/tonne.

Cracker co-product credit values fell $6-11/tonne for naphtha-based and LPG-based ethylene margins across regions.

Despite this, ethylene spot values increased $5/tonne in northeast Asia and southeast Asia week on week.