Houston (Platts)--12Sep2011/436 pm EDT/2036 GMT
US ethylene cracker margins dipped nearly 10% week on week to levels not seen since early August on the back of falling spot prices.
Margins using ethane/propane mix as feedstock dropped 3.31 cents/lb, or 9.8% to close Friday at 30.40 cents/lb, according to Platts data.
Margins using ethane were also down 2.92 cents/lb, or 9.6% to 27.49 cents/lb.
Spot ethylene fell 3.375 cents/lb week on week, assessed Friday at 59.75-60.25 cents/lb on a 3- to 30-day basis that reflected backwardation in the market. The assessment was the lowest since July 21, when spot ethylene was also assessed at 60 cents/lb, according to Platts data.
One veteran trader attributed the drops to weaker-than-expected demand from downstream markets despite two producers initiating tunarounds in the US Gulf Coast region this month.
In feedstocks for the week, ethane shed .50 cents/lb to close at 71.25 cents/gal, while propane rose 1.60 cents/gal to 158.70 cents/gal.
Light naphtha was again the lowest-yielding feedstock and posted the biggest drop, down 5.35 cents/lb to 9.47 cents/lb.
Margins using propane as feedstock dropped more than 21% -- 4.33 cents/lb -- to 15.70 cents/lb.
The cracker margin estimates use the current spot price and yields of the various cracker products from cracking various light and heavy feedstocks.
On Monday, spot ethylene was heard talked at 59.75-60.50 cents/lb, with October slightly lower at 59.50-60.125 cents/lb.
Showing posts with label ETHYLENE PRICES. Show all posts
Showing posts with label ETHYLENE PRICES. Show all posts
Tuesday, September 13, 2011
Thursday, June 23, 2011
ETHYLENE PRICES
Asian ethylene started to show signs of rebounding Wednesday as end-users in Southeast Asia returned slowly to the market, sources said.
Last week, the CFR Northeast Asia price benchmark fell $44/mt from Monday to be assessed at $1,096/mt Friday, while the CFR Southeast Asia price fell $60/mt over the same period to $1,081/mt.
Both remained unchanged at this price over Monday and Tuesday this week. But Wednesday, the CFR SEA price rose $18/mt day on day to be assessed at $1,099/mt, while the CFR NEA price again remained flat at $1,096/mt.
Some market sources said end-users in SEA were slowly returning to the market, with some seeking spot cargoes for late July arrival to cover the production shortfall of Shell Chemicals' steam cracker shutdown in August.
Last week, the CFR Northeast Asia price benchmark fell $44/mt from Monday to be assessed at $1,096/mt Friday, while the CFR Southeast Asia price fell $60/mt over the same period to $1,081/mt.
Both remained unchanged at this price over Monday and Tuesday this week. But Wednesday, the CFR SEA price rose $18/mt day on day to be assessed at $1,099/mt, while the CFR NEA price again remained flat at $1,096/mt.
Some market sources said end-users in SEA were slowly returning to the market, with some seeking spot cargoes for late July arrival to cover the production shortfall of Shell Chemicals' steam cracker shutdown in August.
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