Most US ethylene margins rose late last week despite higher feedstock costs as some production issues helped push up ethylene spot prices, Platts data showed late Friday.
US spot ethylene moved up 2.25 cents/lb week on week, to be assessed at at 65.25 cents/lb FD USG at 5 p.m. CDT Friday.
This led to a rise in ethane-based margins, assessed Friday at 45.05 cents/lb, up 1.49 cents/lb since the March 8 assessment of 43.56 cents/lb. The same contributed to an increase in ethane/propane mix-based margins, estimated at 47.53 cents/lb, a 1.15 cents/lb increase from 46.38 cents/lb in the week prior.
Propane cracker margins, however, declined for the week -- down 2.96 cents/lb Friday, to 46.24 cents/lb, as propane hit its highest price level so far in 2013. Propane was assessed Friday at 90.30 cents/gal on increasing propane exports out of the Houston Ship Channel and stronger NYMEX April crude.
In other feedstocks for ethylene, US Gulf Coast purity ethane gained 0.50 cents/gal week on week, assessed Friday at 27.50 cents/gal. Gulf Coast E/P mix gained 0.75 for the week, assessed Friday at 27.50 cents/gal.
Platts' estimates of cracker margins measure the relative gain and loss in cents/lb of ethylene produced from cracking several feedstocks.
The estimate uses the current spot price and yields of the various ethylene cracker products (ethylene, propylene, butane, benzene, toluene, xylene, fuel oil and low sulfur fuel oil) from cracking various light and heavy feedstocks (ethane, propane, butane, and an 80:20 E/P mix).
In heavier feedstocks, margins using light naphtha were estimated at negative 11.33 cents/lb.
