28 October 2013 15:31 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have risen by 16% to the strongest level since June because of a 3.3% drop in naphtha costs, according to ICIS margin analysis on Monday.
In the week ending 25 October, naphtha prices fell by $24/tonne while the dollar weakened by 0.7%. The margin gain would have been higher but for a 0.8% drop in co-product credits.
The contract margin average for October is currently about €29/tonne higher than for September.
Conversely, spot margins fell by 8% on the back of weakening spot ethylene prices and a 1% fall in co-product credits. Spot margins are the lowest since early September.
Contract cracker margins based on liquefied petroleum gas (LPG) were up slightly week on week. LPG costs fell by 0.6% as the weaker dollar more than offset a slight rise in dollar-based LPG prices, but co-product credits fell by 0.4%.
($1 = €0.72)
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