12 August 2013 16:07 [Source: ICIS news]
LONDON (ICIS)--European spot cracker margins based on naphtha feedstock have risen 35% week on week on the back of firmer ethylene and co-product spot prices resulting from a tighter supply and demand balance, according to ICIS analysis on Monday.
However, while spot margins climbed €47/tonne ($63/tonne), contract margins fell €10/tonne because a $6/tonne firming of naphtha prices was limited by a 0.5% weakening of the dollar leading to only a 0.2% increase in euro-based feedstock costs. Co-product credits fell by 0.4% on lower pyrolysis gasoline (pygas) values.
Contract margins based on liquefied petroleum gas (LPG) rose by €40/tonne to their highest since the end of June. An $18/tonne weakening of LPG prices accentuated by the weaker dollar led to a 2.6% reduction in LPG costs.
LPG margins have regained the advantage over naphtha margins at almost €50/tonne.
($1 = €0.75)
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