06 August 2013 11:30 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have slipped slightly with higher feedstock costs and lower co-product credits outweighing the €40/tonne ($53/tonne) gain in the August ethylene contract price (CP), according to ICIS analysis on Tuesday.
In the week ending 2 August, naphtha prices rose $7/tonne which increased euro-based costs by 0.7% week on week. Co-product credits fell by 1.5% as the lower butadiene (BD) and benzene August contract prices prevailed over the higher propylene contract price.
Spot margins are also down slightly because of the higher feedstock costs. Spot ethylene prices were flat in the week ending 2 August but margins were helped by a 0.8% rise in co-product credits as BD and benzene spot prices increased.
Contract margins based on liquefied petroleum gas (LPG) rose by €12/tonne because a combination of the higher August ethylene contract price and a 0.6% rise in co-product credits offset a 1.9% increase in feedstock costs.
($1 = €0.75)
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