08 August 2011 16:26 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have jumped €172/tonne ($246/tonne) on a combination of weaker upstream prices and a €30/tonne increase in the ethylene contract price, according to ICIS margin analysis on Monday.
A 6% decrease in euro-based naphtha costs in the week ending 5 August on the back of the crude oil price drop and poor demand from petrochemicals, together with the higher August ethylene contract price, took the margin to €626/tonne.
The average peak monthly margin to date stands at €667/tonne for June and €603/tonne for May.
Contract margins had dropped significantly in July. Poor demand and burgeoning supplies had led to a €95/tonne reduction in the July contract price, but soon after the settlement, naphtha feedstock prices firmed.
The ethylene contract price settled for August at €1,120/tonne FD (free delivered) NWE (northwest ?xml:namespace>
($1 = €0.70)
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