LONDON (ICIS)--European spot cracker margins based on naphtha feedstock have fallen by more than a quarter with a drop in spot ethylene prices exacerbated by a 1% weaker dollar, ICIS analysis showed on Monday.
In the week ending 24 January, naphtha prices were up by $15/tonne but the weaker dollar limited the cost hike to just 0.6%.
Spot ethylene prices have slipped over the past week largely because previous supply constraints have been resolved and demand for incremental tonnes in January has waned.
Spot co-product credits were down by 1% largely because of weaker aromatics values.
Contract cracker margins slipped by 4% on the rise in naphtha costs as well as a 0.3% decline in co-product credits.
Contract cracker margins based on liquefied petroleum gas (LPG) were down by €67/tonne because of a 4.2% rise in costs following a $44/tonne gain in LPG prices. Co-product credits were down slightly.
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