02 September 2013 17:34 [Source: ICIS news]
LONDON (ICIS)--Average ethylene contract cracker margins in the week ending 30 August have hit their lowest level for 12 months on higher upstream costs and currency fluctuation, according to ICIS margin analysis on Monday.
Contract margins based on naphtha fell by €48/tonne ($63/tonne) last week as euro-based feedstock costs rose by 3.2% on a combination of a $16/tonne rise in naphtha prices and a 1.4% stronger dollar. Feedstock costs are the highest since mid-February.
Margins were helped by a 1.7% rise in co-product credits because of higher raffinate-1 and pygas values.
Spot margins (naphtha-based) also moved down last week - falling €26/tonne on higher feedstock costs. The margin fall, however, was cushioned to some extent by a 2.2% increase in co-product credits and higher euro-based spot ethylene values.
Contract margins based on liquefied petroleum gas fell sharply by €90/tonne as euro-based feedstock costs jumped by 6.2% on a $40/tonne rise in liquefied petroleum gas (LPG) prices. Average LPG margins for August are €57/tonne higher than average naphtha margins.
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