US steam cracker margins showed minor increase against lower feedstock costs in a shortened holiday week, as US markets were closed for celebration of the Thanksgiving holiday.
Platts' close of assessment for the week was at 12:30 p.m. CST Wednesday, with markets shut Thursday and Friday for the holiday.
Ethane-based ethylene margins were estimated Wednesday at 32.70 cents/lb, up 0.31 cent/lb week on week.
Margins using ethane/propane mix as feedstock were estimated at 36.44 cents/lb, up 0.43 cent from 36.01 cents/lb on November 19.
Ethane and E/P mix are the preferred feedstocks of US olefins producers as they yield the best margins.
US spot ethylene was quarter-cent lower to end the week on Wednesday, at 50.75-51.25 cents/lb FD USG, in a shortened trading week with soft buying interest and amid thin trading.
US Gulf Coast purity ethane was down .38 cents/gal, assessed Wednesday at 28.87 cents/gal, approaching a 20-week low of 28.65 cents/gal, according to Platts data. Gulf Coast E/P mix was also 0.70 cents lower for the week, assessed Wednesday at 24.05 cents/gal.
Platts' estimates 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).
Cracker margins also were also weakened by lower propylene prices. Spot refinery-grade propylene was a half-cent lower to end the week on Wednesday at 49.50-50 cents/lb. Polymer-grade propylene, was unchanged for the week, assessed at 53-53.50 cents/lb FD USG on Wednesday, with November and December bids in the range of 52-53 cents/lb Mont Belvieu-pipe basis, against heard offers at 54 cents/lb MtB-pipe for December deliveries.
Margins using propane as feedstock were up one-cent, from 32.20 cents/lb on November 19, to 33.20 cents/lb on November 21, according to Platts data.
In heavier feedstocks, margins using light naphtha were still in the negative territory, last estimated at -9.99 cents/lb.
