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)

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By: Nel Weddle
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