U.S. petrochemical steam cracker economics are in strange territory with propane yielding a higher margin than ethane for the production of ethylene and other petrochemicals. As shown in the left graph below, that is a very rare phenomenon on an average annual basis, having not occurred for six years.
And it is just as rare on a daily basis. From January 2024 until last week, the margin for propane has been above ethane for only 16 days, with most of that during a propane price aberration in early April of this year. But recently the propane margin has averaged about a penny per pound of ethylene equivalent over ethane, 19 c/lb vs 18 c/lb – right graph below, red dashed oval.
