European cracker margins fall on feedstock gains

LONDON (ICIS)–European cracker margins have fallen week on week on the back of increases in naphtha and liquefied petroleum gas (LPG) costs, according to ICIS margin analysis on Monday.

In the week to 27 July, euro-denominated naphtha values rose by 5%.

LPG costs rose by 3%.

Naphtha-based contract cracker margins fell by 13%, with co-products credits 2% higher.

Naphtha-based spot cracker margins fell by 14%, with co-products credits also 2% higher.

LPG-based contract cracker margins dropped by 3%, with co-products credits up by 1% week on week.

The LPG margin advantage to naphtha widened to €135/tonne, up from €80/tonne in the week ending 20 July.

Monthly margin averages dropped in July month on month, but still improved compared with the margin averages in May.

Naphtha-based contract and spot cracker margins dropped by 7% and 5% respectively, while LPG margins fell by 10%.

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