Europe cracker margins fall on higher feedstock costs

13 January 2014 15:27  [Source: ICIS news]

LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have fallen by 8% on the back of higher feedstock costs and lower co-product credits, according to ICIS margin analysis on Monday.

In the week ending 10 January, euro-denominated naphtha costs rose by 1.1% as a $14/tonne increase in prices was only slightly limited by a 0.4% weaker dollar.

Co-product credits fell by 0.8% on lower pygas (pyrolysis gasoline) and raffinate-1 values.

Spot margins were also impacted by the higher naphtha feedstock costs, but co-products credits edged higher as firmer spot propylene and benzene values outweighed the lower pygas and raffinate-1 values.

Contract cracker margins based on liquefied petroleum gas (LPG) were also softer, falling also by around 8% after a 1.2% rise in euro-denominated LPG costs and a 0.5% fall in co-product credits.

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