Spot ethane values jumped roughly 4.5 cents and was assessed as high as 57.25 cents/gallon on the back of improved chemical demand and limited fractionation capacity shrank further week on week as spot ethane.
The higher feeds pulled ethylene values up roughly 2.5 cents with September seen traded as high as 34 cents/lb MtB Wms.
Steam cracker operators saw profits from ethane this week at 9.36 cents/lb while margins from E/P mix were down slightly at 11.80 cents/lb.
Margins from propane flipped back into positive territory at O.14 cents/lb while profits from butane were at minus 7.17 cents/lb.
Lighter feeds remained heavily advantaged as margins from light naphtha stood at minus 4.67 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).
Spot ethylene prices were steady on Friday with September offered at 35.25 cents/lb MtB Wms against bids at 33.75 cents/lb MtB Wms. October was seen offered at 36.50 cents/lb MtB Wms and Equ while bids were at 33 cents/lb MtB Equ and 33.25 cents/lb MtB Wms. No confirmed trades were reported.
In propylene, September refinery grade propylene was seen offered at 46.50 cents/lb MtB pipe against bids at 45.75 cents/lb MtB pipe. Spot polymer grade propylene was offered at 58 cents/lb MtB pipe for September or October.
Mont Belvieu Williams (MtB Wms) and Equistar (MtB Equ) are ethylene delivery points in the US.
China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html
