European cracker margins fall on feedstock gains

LONDON (ICIS)–European ethylene cracker margins have fallen week on week on the back of feedstock gains, the latest ICIS margin analysis showed.

In the week to 18 May, euro-denominated naphtha and liquefied petroleum gas (LPG) values rose by 4.04% and 7.95%, respectively.

Naphtha-based contract cracker margins fell by 11.68%, to €363/tonne, the first time weekly margins have moved below €400/tonne since mid-December 2016.

Co-products credits were 2.11% higher week on week.

Spot naphtha-based margins fell 3.76%. Co-products credits were up 3.36% week on week.

LPG-based contract margins fell by 12.08% week on week. Co-products credits were up by 1.8%.

The LPG margin advantage has narrowed to €190/tonne, down from €218/tonne in the week ending 11 May.

Picture source: Helmut Meyer zur Capellen/imageBROKER/REX/Shutterstock

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