Europe cracker margins improve on lower naphtha costs

17 December 2013 13:01 Source:ICIS News

LONDON (ICIS)--European contract cracker margins have increased by 18% while spot margins more than doubled on the back of lower feedstock naphtha costs, according to ICIS margin analysis on Tuesday.

In the week ending 13 December, euro-based naphtha costs were down by 2.8% because a $25/tonne ($18/tonne) fall in price combined with a 0.3% weaker dollar.

Spot margins showed the best improvement, jumping by €51/tonne to €79/tonne. This is the second consecutive week of increase. Spot margins had moved into negative territory at the end of November for the first time since December 2012. Ethylene spot prices were flat in dollar terms.

Spot co-product credits fell by 0.8% as higher spot propylene and butadiene (BD) were outweighed by lower raffinate 1 and aromatics values.

Contract cracker margins based on liquefied petroleum gas (LPG) crept up by €20/tonne on a 2.1% reduction in euro-denominated costs.

 

($1 = €0.73)

Follow Nel on Twitter

By Nel Weddle