Europe contract naphtha cracker margins highest since June 2012

Nel Weddle

07-Jul-2015

LONDON (ICIS)–European contract cracker margins based on naphtha feedstock have reached a three-year high, jumping by a further 7% on a combination of lower naphtha costs and higher co-products credits, according to ICIS margin analysis.

In the week ending 3 July, naphtha price fell by $11/tonne and while the benefit was limited by a 0.4% stronger dollar, euro-based costs were down by 1.5%.

Higher butadiene (BD) and aromatics values outweighed the lower propylene contract price.

Conversely, spot naphtha cracker margins fell as spot ethylene prices softened. However the almost 4% fall was limited by a 0.4% increase in co-product credits as well as the lower feedstock costs.

Contract cracker margins based on LPG (liquefied petroleum gas) edged up slightly because of a 1% fall in feedstock costs as butane prices fell by $10/tonne.

LPG contract cracker margins have and advantage of more than €180/tonne over naphtha margins.

cracker margins 2 7 july 2015

cracker margins 1 7 july 2015

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