US ethane rose to the highest level since the third quarter of 2018

US ethane rose to the highest level since the third quarter of 2018. With the hike in ethane price, ethane cracking margins weakened and the costs for downstream derivatives have been apparently increased.

US ethane to MEG margins have decreased to around $100/mt and LLDPE margins fell to around $750/mt.

In China, the margins of imported ethane to EO/EG also weakened. Ethylene cost is above $1,000/mt based on the $700/mt CIF price of imported US ethane. Ethane to MEG margins have also fell below the break-even line.