12 May 2014 15:47 [Source: ICIS news]
LONDON (ICIS)--European contract cracker margins based on naphtha feedstock have fallen by nearly 12% to their lowest value seen in 2014 so far because of higher feedstock costs, according to ICIS margin analysis on Monday.
In the week ending 9 May, euro-denominated naphtha costs were up by 1.9%, as an $11/tonne increase in naphtha prices combined with a 0.7% stronger dollar. Co-product credits fell by 0.2%.
Spot naphtha-based margins fell by almost a third week on week, on the higher feedstock costs. Co-product credits dropped 1% on the back of lower spot propylene, butadiene (BD) and aromatics values. Spot ethylene dollar based prices were lower but this was mostly cushioned by the stronger dollar.
Contract cracker margins based on LPG (liquefied petroleum gas) were also lower week on week, falling by about 3% on a 1.5% rise in euro-denominated LPG costs.
Note: following the €15/tonne reduction in the May BD contract price on 5 May, the contract cracker margins for naphtha and LPG-based feedstock for the week ending 2 May have been revised down by €2/tonne and €1/tonne respectively.
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