Despite strong ethane values, spot ethylene prices hit a 6-month high this week, heard traded as high as 51 cents/lb MtB Wms and 52.50 cents/lb MtB Equ. Spot ethane was assessed as high as 71 cents/gallon midweek before scaling back to trade at 68 cents/gallon on Friday.
Given these levels, margins from ethane shot up to 19.25 cents/lb, while E/P mix margins also posted notable week-on-week gains, up approximately 6.64 cents to 22.58 cents/lb. Propane margins gained roughly 7 cents to close the week at 8.54 cents/lb while margins from butane swung into positive territory at .54 cents/lb. Margins from light naphtha were also positive at 3.32
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 an 80:20 E/P mix).
Meanwhile, spot ethylene was thinly traded Friday, with November offers heard at 55 cents/lb MtB Wms against bids at 51.50 cents/lb MtB Wms. December was seen bid at 49 cents/lb MtB Wms against no corresponding offers. No confirmed deals were reported by time of publication.
