Europe cracker margins fall on firmer feedstock costs

11 November 2013 14:38  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have fallen by around 6% because of slightly higher feedstock costs and lower co-product credits, according to ICIS margin analysis on Monday.

In the week ending 8 November, naphtha prices fell $5/tonne (€4/tonne) but this was outweighed by a 1% strengthening of the dollar and euro-based naphtha costs rose by 0.4%.

Co-product credits fell by 0.4% on lower pyrolysis gasoline (pygas) and raffinate 1 values.

Spot margins were down by €30/tonne on lower ethylene prices and the higher feedstock costs. Co-product credits were unchanged as higher spot propylene values were countered by lower spot butadiene (BD), raffinate-1 and pygas values.

Contract cracker margins based on liquefied petroleum gas (LPG) dropped by about 17% on a $50/tonne increase in propane prices, but LPG margins have retained their advantage over naphtha.



($1 = €0.75)

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By: Nel Weddle
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