US steam cracker margins showed minor increase against lower feedstock costs in a shortened holiday week,as US markets were closed for celebration of the Thanksgiving holiday.
Platts'close of assessment for the week was at 12:30 p.m.CST Wednesday,with markets shut Thursday and Friday for the holiday.
Ethane-based ethylene margins were estimated Wednesday at 32.70 cents/lb,up 0.31 cent/lb week on week.
Margins using ethane/propane mix as feedstock were estimated at 36.44 cents/lb,up 0.43 cent from 36.01 cents/lb on November 19.
Ethane and E/P mix are the preferred feedstocks of US olefins producers as they yield the best margins.
US spot ethylene was quarter-cent lower to end the week on Wednesday,at 50.75-51.25 cents/lb FD USG,in a shortened trading week with soft buying interest and amid thin trading.
US Gulf Coast purity ethane was down.38 cents/gal,assessed Wednesday at 28.87 cents/gal,approaching a 20-week low of 28.65 cents/gal,according to Platts data.Gulf Coast E/P mix was also 0.70 cents lower for the week,assessed Wednesday at 24.05 cents/gal.
Platts'estimates of cracker margins measures 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,butadiene,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).
Cracker margins also were also weakened by lower propylene prices.Spot refinery-grade propylene was a half-cent lower to end the week on Wednesday at 49.50-50 cents/lb.Polymer-grade propylene,was unchanged for the week,assessed at 53-53.50 cents/lb FD USG on Wednesday,with November and December bids in the range of 52-53 cents/lb Mont Belvieu-pipe basis,against heard offers at 54 cents/lb MtB-pipe for December deliveries.
Margins using propane as feedstock were up one-cent,from 32.20 cents/lb on November 19,to 33.20 cents/lb on November 21,according to Platts data.
In heavier feedstocks,margins using light naphtha were still in the negative territory,last estimated at-9.99 cents/lb.
