Marginal gains in US ethylene margins using E/P mix and ethane as feedstocks

17-Aug-11

US ethylene margins using E/P mix and ethane as feedstocks showed marginal gains for the week ending Aug. 12. Platts also reported that propane dipped slightly and light naphtha fell off its shortlived reign as the highest-yielding crack. E/P mix-based cracker margins closed Friday at 32.53 cents/lb, up .14 cents week on week. Ethane-based margins closed Friday at 29.22 cents/lb, up .74 cents/lb week-on-week. E/P mix- and ethane-based margins jumped dramatically to start the week as spot ethylene and propylene prices held their ground while the energy complex plummeted, dragging with it most olefin feedstocks. Margins stabilized to close the week as both ethylene and propylene posted decreases while ethane and propane rebounded above 70-cents/gallon. Spot ethylene shed 2.5 cents/lb week on week, assessed Friday on either side of 61.125 cents/lb; refinery-grade propylene closed the week down 1.25 cents/lb, assessed on either side of 68.50 cents/lb. The cracker margins estimates use the current spot price and yields of the various cracker products from cracking various light and heavy feedstocks.