24 June 2013 13:52 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins have increased by 19% because of a 3.5% fall in euro-based feedstock naphtha costs, according to ICIS analysis on Monday.
In the week ending 21 June, naphtha prices fell nearly $45/tonne (€34/tonne) but the drop was partly offset by a 1.7% strengthening of the US dollar. Contract cracker margins also benefitted from a 0.5% rise in co-product credits mainly on the back of higher pyrolysis gasoline (pygas) values.
Spot margins based on naphtha feedstock jumped by 43% because of the weaker naphtha and the stronger dollar which increased spot ethylene prices in euro terms. Co-product credits were slightly down because of softer butadiene (BD) prices.
Contract margins based on liquefied petroleum gas (LPG) were up slightly on a 0.6% decline in euro-based feedstock costs as LPG prices fell by $18/tonne. LPG margins no longer hold a premium over naphtha and instead lag behind by more than €60/tonne.
($1 = €0.76)
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