US propane cracking margins improve

Margins on cracking propane for US ethylene production widened last week as declines in spot propane prices outpaced declines in spot ethylene.

The margin on cracking propane, which remains the most competitive, increased by 1.26¢/lb to 9.56¢/lb as spot propane at Mont Belvieu, Texas, traded in a range of 28.125-32.75¢/USG, down from 31.75-35.375¢/USG.

The ethane cracking margin shrank 0.18¢/lb to 3.91¢/lb, the narrowest margin since the first week of October, according to an Argus DeWitt model.

The margin on cracking butane rose by 2.26¢/lb to 6.99¢/lb while spot butane fell to 41.25-47¢/USG from 47.25-52.75¢/USG.

Spot ethylene in Mont Belvieu traded in a range of 15.5-17¢/lb last week, down from 16.5-18.5¢/lb the prior week.