Europe cracker margins up on weaker feedstock

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)

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

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index

Related Articles