Analysis of Propane-Naphtha Spread Impact on Cracker Margins in NE Asia

SINGAPORE (ICIS)--Propane in northeast Asia is losing its advantage over naphtha as a cracking feedstock, but the spread is expected to widen again in August-September due to higher naphtha forecast prices.

• Propane price spread over naphtha below $50/tonne for the first time since end-January
• NE Asia propane firm on year-to-date high China PDH plants run rates
• Crackers using imported propane require about two months to evaluate feedstock economics

In this podcast, ICIS LPG analysts Yan Wang and Shihao Zhou discuss the current market dynamics and outlook.