LONDON (ICIS)--European contract cracker margins have fallen week on week in the wake of further gains in feedstock naphtha and LPG values, according to ICIS margin analysis on Tuesday.
In the week to 26 August, euro-denominated naphtha and LPG (liquefied petroleum gas) costs rose by 2% and 1% respectively.
The dollar strengthened 1% against the euro.
Contract naphtha based margins fell by 2% in the week to 26 August but the average for August is 2% higher than the average margin for July.
Co-product credits were up by 1%.
Contract LPG-based margins fell by 1% last week and the average for August was also down versus July – by 3%.
Co-product credits also gained 1%.
Spot naphtha-based cracker margins bucked the trend, increasing by 3% week on week – helped by a 3% increase in spot co-products credits as well as a small increase in actual spot prices.
The spot margin average for August rose by 1% versus July.
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