Europe contract cracker margins fall 11% on higher naphtha

14 October 2013 15:35  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have fallen by €44/tonne ($59/tonne) on the back of a 2.4% increase in euro-based naphtha costs, according to ICIS analysis on Monday.

In the week ending 11 October, naphtha prices rose by $20/tonne, and the dollar was slightly stronger. The margin drop was cushioned a little by a 0.4% rise in co-product credits, namely from higher raffinate-1 and pygas (pyrolysis gas) values.

Weaker ethylene spot prices led to a more than €70/tonne drop in spot cracker margins, although co-product credits were up by 1.1%, boosted by higher butadiene (BD) prices.

Contract vs spot naphtha 11 October 2013

Cracker margins based on liquefied petroleum gas (LPG) feedstock were also down as euro-based costs rose by 2.5% on the back of a $19/tonne firming in LPG prices.

LPG vs naphtha feed 11 October 2013

Co-product credits were just 0.3% higher.

LPG margins are showing a €67/tonne premium over naphtha margins.

($ 1 = €0.74)

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By: Nel Weddle
+44 20 8652 3214



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