Asia ethylene margins drop on weaker spot, higher feedstocks

02 October 2017 15:41 Source:ICIS News

HOUSTON (ICIS)--Asia ethylene margins fell across the board for the week ended 29 September as spot ethylene dropped and feedstock costs rose, the ICIS margin report showed on Monday.

In northeast Asia, naphtha-based ethylene margins fell by 9.8%, while LPG-based ethylene margins fell by 15%.

In southeast Asia, naphtha-based ethylene margins fell by 11% and LPG-based ethylene margins fell by 20%.

Spot ethylene values fell $22/tonne in both northeast Asia and southeast Asia during the week.

Feedstock costs on an ethylene production basis increased $24-25/tonne for naphtha-based ethylene and $51-52/tonne for LPG-based ethylene.

Cracker co-product credit values also softened, by $29-35/tonne for naphtha-based ethylene and $15-17/tonne for LPG-based ethylene, further eroding margins.

By John Dietrich