Europe cracker margins up by 14% on weaker feedstock prices

29 July 2013 15:08  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins based on naphtha have risen by 14% on the back of a 3% fall in euro-based feedstock prices, according to ICIS analysis on Monday.

In the week ending 26 July, the benefit of a $19/tonne (€14/tonne) drop in naphtha prices was supported by a 0.9% weaker dollar. However, the margin increase was held back by a 1.4% fall in co-products credits because of lower raffinate and pyrolysis gasoline (pygas) values.

Spot margins have also improved because of the drop in euro-based naphtha costs but the margin average for July is the lowest so far this year. Spot co-product credits fell by 1.6%.

Contract vs Spot pricing (naphtha), 26 July 2013

Conversely, contract margins based on liquefied petroleum gas (LPG) fell on a combination of higher LPG prices and a fall in co-product credits and no longer carry a premium over naphtha.

By: Nel Weddle
+44 20 8652 3214

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