US steam cracker margins from light feeds dipped slightly this week on the back of lower spot ethylene values. Spot ethylene fell roughly 1.25 cents/lb on the week, with November last trading at 51.50 cents/lb while December was last traded at 51 cents/lb. Offers for both months remained near 52 cents/lb.
With ethane near 65.75 cents/gallon and spot ethylene last assessed at 51.125 cents/lb, margins from ethane were down roughly a half cent to 20.30 cents/lb, while EP mix margins shrank .64 cents to 23.05 cents/lb. EP mix is comprised of 80% ethane and 20% propane.
Propane margins gained approximately 3 cents to close the week at 13.28 cents/lb, while profits from butane were down at .09 cents/lb.
Margins from light naphtha also gained on the week at 2.44 cents/lb.
Platts' estimate 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 EP mix).
Meanwhile in production, supply was mixed as Chevron Phillips announced that it would shut down its Cedar Bayou, Texas, olefins unit for a two-week maintenance at the end of November or the beginning of December. Chevron Phillips has an estimated ethylene capacity of 1.75 billion lbs/year at Cedar Bayou.
Conversely, Ineos was in the process of restarting one of its two downed crackers at Chocolate Bayou, Texas, according to a filing with the Texas Commission on Environmental Quality (TCEQ).
The company was expected to start its 1.5 billion lbs/year No 1 steam cracker. The company has two steam crackers at Chocolate Bayou with an estimated combined ethylene capacity of 3.25 billion lbs/year.
With ethane near 65.75 cents/gallon and spot ethylene last assessed at 51.125 cents/lb, margins from ethane were down roughly a half cent to 20.30 cents/lb, while EP mix margins shrank .64 cents to 23.05 cents/lb. EP mix is comprised of 80% ethane and 20% propane.
Propane margins gained approximately 3 cents to close the week at 13.28 cents/lb, while profits from butane were down at .09 cents/lb.
Margins from light naphtha also gained on the week at 2.44 cents/lb.
Platts' estimate 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 EP mix).
Meanwhile in production, supply was mixed as Chevron Phillips announced that it would shut down its Cedar Bayou, Texas, olefins unit for a two-week maintenance at the end of November or the beginning of December. Chevron Phillips has an estimated ethylene capacity of 1.75 billion lbs/year at Cedar Bayou.
Conversely, Ineos was in the process of restarting one of its two downed crackers at Chocolate Bayou, Texas, according to a filing with the Texas Commission on Environmental Quality (TCEQ).
The company was expected to start its 1.5 billion lbs/year No 1 steam cracker. The company has two steam crackers at Chocolate Bayou with an estimated combined ethylene capacity of 3.25 billion lbs/year.
