13 May 2013 15:51 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins slipped this week to the lowest since the end of February because of higher naphtha prices but the margin fall was cushioned by an increase in co-product credits, ICIS analysis showed on Monday.
In the week ending 10 May, a $7/tonne increase in naphtha prices was compounded by a 1.2% strengthening of the dollar.
Co-product credits rose by 1.3% mainly because of higher raffinate-1 and pygas (pyrolysis gasoline) values.
Spot naphtha-based margins dipped slightly for the same reasons. Spot dollar-based ethylene prices were flat but were higher in euro terms.
Margins based on LPG (liquefied petroleum gas) were hardest hit because of an almost $60 increase in LPG prices which led to a 9.9% increase in euro-based costs. However, LPG-based margins continue to hold an advantage over naphtha-based margins.
($1 = €0.77)
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