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.
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