Europe ethylene cracker margins collapse on lower CP, higher naphtha

04 November 2013 15:35  [Source: ICIS news]

LONDON (ICIS)--European ethylene contract and spot cracker margins have collapsed by 35% and 59% respectively on the back of the lower November contract price and higher euro-based feedstock costs, according to ICIS analysis on Monday.

In the week ending 1 November, contract margins fell by €152/tonne ($205/tonne) following the €30/tonne fall in the ethylene contract price for November, and a 5.2% rise in euro-based feedstock costs. Naphtha prices had risen $26/tonne but the dollar was 2.2% stronger.

Contract vs spot naphtha prices w/e 1 November 2013

Co-product credits fell by 1% mainly because of lower propylene and benzene contract settlements.

Spot margins dropped by nearly €100/tonne for the same reasons, although there was some support from higher euro-based spot ethylene prices, and a 0.5% rise in co-product credits.

Contract margins based on liquefied petroleum gas (LPG) declined by €79/tonne. Feedstock costs increased by 2.8% as a $4/tonne hike in LPG prices combined with the stronger dollar. A fall of 0.9% in co-product credits added to the margin decline.

LPG vs naptha feedstock cracker margins w/e 1 November 2013

($1 = €0.74)

Follow Nel on Twitter

By: Nel Weddle
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index