Most US ethylene margins rise on production issues, offsetting higher feedstock costs

19-Mar-13

Most US ethylene margins rose late last week despite higher feedstock costs as some production issues helped push up ethylene spot prices, as per Platts. 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.