The excellent ICIS European margin report for ethylene shows an interesting picture this week.
The chart above compares contract margins based on naphtha (red line) and LPG (yellow line) feedstock. Both have been slipping since September, when they peaked at €398/t and €357/t respectively. This week, they are over 40% lower, at €232/t and €208/t.
This highlights the difficulty of passing through rising crude oil prices when demand growth is slow. As ICIS note, last week's $22/t rise in naphtha led to a €48/t fall in total margin.