Subscriber note: Platts proposes refined US steam cracker margin model

Platts invites industry feedback on its proposal to refine the US steam cracker margin model. The updated model would balance the mass of inputs and outputs from the cracker. It would also update the yields for each feedstock to better reflect the predominate technology used in the US petrochemical industry. The cracker margin will reflect the production margin of US ethylene when fed with the basic steam cracker feedstocks ethane, propane, ethane/propane mix (E/P mix), butane and light naphtha. All assessments will be published in cents/lb, and also converted to $/mt using a conversion factor of 22.04.

The variables used in the calculation of the PCM include the spot assessments of Platts ethane (PMUDB05), propane (PMAAY00), butane (PMAAI00), e/p mix FOB Mont Belvieu (PMUDA05), light naphtha USGC (AAYEU00), full range naphtha (AALPG00), gas oil No. 1 (POAEE00), ethylene FD US Gulf Coast(AAOSR00), propylene FD US Gulf Coast (AAIKS00) butadiene CIF USGC (PHAKC00), benzene FOB USGC (PHAAE00), Regular RBOB gasoline octane min. 83.7 FOB USGC (AAMFB00), Fuel Oil No. 6 3%S USGC Waterborne (PUAFZ00) and Natural Gas Houston Ship Channel (IGBAP00).

Please provide feedback to petchems@platts.com with cc to pricegroup@platts.com by April 30, 2013.