Europe cracker margins slump to lowest level since July 2012

25 November 2013 15:36  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have slumped to their lowest level since July 2012 because of a 4.3% rise in euro-based naphtha prices, ICIS margin analysis showed on Monday.

In the week ending 22 November, a 0.4% weaker dollar offset the impact of a $44/tonne (€33/tonne) rise in naphtha prices.

Co-products credits climbed by 0.6% on the back of higher raffinate 1 and pyrolysis gasoline (pygas) values.

Spot margins have fallen into negative territory for the first time since mid December 2012 for the same reasons. Co-product credits were 1.1% higher because of firmer raffinate 1 and aromatics values.

Contract cracker margins based on liquefied petroleum gas (LPG) sank by 50% as feedstock costs jumped by 6.2%. LPG prices rose by more than $62/tonne – the highest cost since early December 2012. LPG margins are the lowest since mid-November last year.

($1 = €0.74)

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By: Nel Weddle
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