10 June 2013 14:44 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have slipped by 9% as a 1.7% increase in euro-based feedstock costs outshone the increase in the ethylene and propylene contract prices for June, ICIS analysis showed on Monday.
In the week ending 7 June, naphtha prices were up by $30/tonne but this was partly offset by a weaker dollar. Co-product credits decreased by 1.1% as lower butadiene (BD) and aromatics values outweighed the €15/tonne ($20/tonne) increase in the June propylene contract price.
Spot margins also declined, despite higher ethylene spot prices, because of the higher naphtha prices combined with a 2.3% fall in co-products credits. Spot BD prices fell by $150-170/tonne FOB (free on board) ARA (Amsterdam-Rotterdam-Antwerp) in the week ending 7 June.
Contract cracker margins based on liquefied petroleum gas (LPG) fell following a 2.3% increase in feedstock costs, but the margin advantage over naphtha has widened to €86/tonne.
The June ethylene contract price settled at €1,170/tonne, up by €5/tonne, while propylene settled at €1,040/tonne FD (free delivered) NWE (northwest Europe)
($1 = €0.76)
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