Europe naphtha cracker margins gain on cost fall

18 March 2013 13:20  [Source: ICIS news]

LONDON (ICIS)--European cracker margins based on naphtha feedstock were slightly improved in the week ending 8 March because of a 1.4% fall in euro-denominated naphtha costs, according to ICIS analysis on Monday.

Naphtha prices were down by $7/tonne (€5/tonne) on 8 March compared with data on 1 March and this was accentuated by a 0.6% weakening of the dollar. Co-product credits were down slightly, mainly because of lower pyrolysis gas (pygas) values.

Spot margins fell by €15/tonne because of a drop in spot ethylene prices and a 1.5% fall in co-products credits, which outweighed the lower naphtha costs.

Contract margins based on liquefied petroleum gas (LPG) fell by €37/tonne on a 2.1% rise in LPG costs and a 0.4% dip in co-product credits. Propane prices rose by $60/tonne but butane prices decreased by $15/tonne. The margin advantage for LPG-based production compared with naphtha-based production decreased to €24/tonne.

Naphtha contract vs spot

 

Naptha LPG vs naphtha

($1 = €0.77)

Follow Nel Weddle on Twitter


By: Nel Weddle
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index