Europe cracker margins up slightly despite fall in ethylene

08 April 2013 14:43  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins in the week ending 5 April are up about 3% compared with the previous week as a fall in naphtha costs outweighed the €60/tonne ($78/tonne) drop in the ethylene April contract price, according to ICIS analysis on Monday.

In the week ending 5 April, naphtha costs were down by 6.1%, with the benefit of a $41/tonne drop in US-based prices accentuated by a 1.6% weakening of the dollar.

Co-products credits declined by 4% because of lower propylene and aromatics values.

The year-to-date margin average is currently about 15% higher than the margin average for 2012.

Spot margins based on naphtha feedstock were up by €16/tonne again as the lower feedstock costs outweighed falls in spot ethylene and co-product prices.

Naphtha-based production regained a slight margin advantage over liquefied petroleum gas (LPG)-based production as the drop in the ethylene contract and a 3.9% drop in co-product credits outweighed a 5.6% fall in LPG costs.

Contract v Spot 5 Apr 2013

LPG v Naphtha 5 Apr 2013

($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