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.
($1 = €0.77)
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