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.
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.
($1 = €0.74)
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