Europe LPG cracker margins soar after fall in euro-based costs

Nel Weddle

21-Jan-2014

LONDON (ICIS)–European contract cracker margins based on LPG (liquefied petroleum gas) have regained the advantage versus naphtha on the back of a 9.5% fall in euro-based costs, according to margin analysis on Tuesday.

In the week ending 17 January, LPG margins were up by €164/tonne as both propane and butane prices collapsed by almost $100/tonne.

Naphtha prices fell by $17/tonne but this was limited by a 0.8% stronger dollar – overall, euro-denominated naphtha costs were down by 0.9% which led to just a €21/tonne increase naphtha contract cracker margins. Co-product credits were unchanged.

Spot naphtha margins were up on lower naphtha  as well as higher co-product credits which rose 1.3% predominantly on higher spot benzene values.

Spot benzene prices reached a record high last week on the back of supply issues.

ContractvsSpot_170114

LPGvsNaphtha_170114

Follow Nel on Twitter

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?