01 July 2013 17:48 [Source: ICIS news]
LONDON (ICIS)--European naphtha-based contract and spot cracker margins suffered losses in the week ending 28 June because of higher feedstock costs and exchange rate fluctuation, according to ICIS margin analysis on Monday.
Contract naphtha-based margins fell by €59/tonne ($77/tonne) as euro denominated feedstock costs increased by 2.1%, with the price of naphtha rising $11/tonne and the dollar strengthening by 0.8%.
Co-product credits were down 1.0% on lower pygas values.
Average Q2 naphtha-based contract margins were €58/tonne better than in the first quarter but €165/tonne worse than the second quarter of 2012.
Spot margins (naphtha-based) dropped by €80/tonne following a fall in spot ethylene prices and the higher feedstock costs.
Co-product credits were 2.2% lower mainly because of weaker butadiene and aromatics values.
Q2 margins decreased by €51/tonne from the first quarter and by €93/tonne from the second quarter of 2012.
In contrast to naphtha based cracker margins, contract margins based on liquified petroleum gas (LPG) saw lower price decreases.
In the week ending 28 June. LPG-based contract margins decreased by €27/tonne as euro denominated feedstock costs rose by 1.4% with a $5/tonne rise in LPG prices. Q2 margins were €90/tonne higher than first quarter but €116/tonne below second quarter 2012 margins.
($1 = €0.77)
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